The government has announced that it intends to introduce legislation to ensure that tips left for workers will go to them in full.
The new legislation will be introduced “at the earliest opportunity” and will set out that tips must go to the workers providing the service. The government says it will be fairer to workers.
It will be interesting to see how this will be managed in reality because it isn’t quite as straightforward as it sounds. For example, if tips are left are they distributed equally among all staff and are owner/managers included as staff for this purpose? How will HMRC deal with this in terms of tips at work? and what will happen when electronic payments are the only means of leaving a tip?