Thanks for the tip! Change in law gets warm welcome

Employers are now compelled by law to pass tips to staff

A change in the law that compels employers to pass on gratuities to staff has been welcomed.

While cash tips belong to staff, until today companies could choose whether to keep tips made via card or pass them on to employees.

It is estimated £200m will be taken home by millions of workers in the UK, according to the government.

The BBC spoke to customers and staff in Norfolk, who welcomed the new rules and said employees deserved to be rewarded for good service.

Charlie Brown says passing on tips to staff is important as it makes you trust the bar or restaurant

In 2021, the UK government said 80% of all tipping was taking place with a card, suggesting it had become easier for businesses to keep the money.

The new law will make it illegal for businesses not to pass tips on to their staff.

Under the new regulations, staff will be given the right to see their employers’ tipping policies and a record of how many tips were given.

Charlie Brown, 32, from Great Yarmouth, said she agreed with the law change, having worked in the hospitality industry.

"When you tip in a restaurant you assume it's going to the server based on their performance," she said.

"It's important because it makes you trust the employer and the establishment more if they look after their staff."

Tracey Kemp, 55, and Roz Hazell, 58, both from Great Yarmouth, strongly believe tips are for workers, not managers or business owners

Tracey Kemp and Roz Hazell, both from Great Yarmouth, said they checked to ensure staff did receive tips before leaving them, preferring to leave a cash tip even when paying the bill on card.

"People who work in hospitality get too little as it is and that money from customers should be passed on," said Tracey, 55.

Fish fryer Tom Howes does not receive tips as he is on a higher wage, but waitress Dory Czicza does get tips whether paid by cash or card

Tom Howes and Dory Czicza both work at Fish'o'licious, a fish and chip restaurant and takeaway on Regent Road, in the heart of Great Yarmouth's tourist district.

She is a waitress and gets tips, but he does not.

Dory, 28, said: "The tips that we get on card, we take it straight out of the till and put it in the pot as cash."

Tom added: "I'm the fryer and I don't get the tips. I get paid a little extra. The tips are for their service - it's not for the business."