Majority of consumers support Tipping Act, finds RSM
This will ensure they receive all of the tips they have earned within one month of them being collected
A survey of 2000 from RSM has found that 80% of consumers think that 100% of tips and service charges should go to staff.
Despite this, only a fifth (20%) believe that hospitality staff receive 100% of the tips from customers.
The new Employment (Allocation of Tips) Act 2023 will make it unlawful for businesses to hold back service charges from their employees.
This will ensure they receive all of the tips they have earned within one month of them being collected.
Saxon Moseley, head of leisure and hospitality at RSM UK, said: “It’s encouraging to see consumers believe that hospitality staff should be rewarded for their hard work rather than losing out on their tips, and this new legislation will ensure that happens.
“The leisure and hospitality sector has been plagued by labour shortages, resulting in fierce competition for the very best staff. With the fairer distribution of tips, combined with recent National Minimum Wage increases, this will hopefully help to make the leisure and hospitality industry a more attractive place to work.”
Charlie Barnes, director and head of employment legal services at RSM UK, added: “The clock is ticking until the new tipping legislation comes into play; businesses are advised not to wait until the 1 October and to begin following the requirements now to avoid getting tripped up. Failure to do so will expose employers to employment claims, requiring them to redistribute the tips fairly to all impacted workers and pay compensation of up to £5,000 per employee.”