Queen's Speech reveals restaurants will be FORCED to hand over all tips to workers

A MILLION restaurant, pub and hotel workers will benefit from a new bill announced by the Queen that forces employers to hand over all tips.

Companies currently follow a voluntary code when it comes to tipping, which means they are not legally required to pass on all gratuities to staff.

A number of big restaurant chains were criticised last year for holding back as much as 10 per cent of tips, typically when paid by card, to cover administration costs.

But companies face being barred from doing this under the new Employment (Allocation of Tips) Bill.

This will see all tips, gratuities and service charges passed onto workers in full, as well as making sure the extra cash is distributed fairly.

It will also ensure businesses are clear to customers about how their tips are shared out.

The rules for tipping

THERE is currently no obligation to tip staff in the UK although it's customary to leave 10 per cent if you're happy with the service.

However, some restaurants add on a service charge instead which is typically around 12.5 per cent.

Service charges can either be mandatory or discretional depending on the establishment, but businesses must make clear either way how they charge.

Compulsory service charges must be paid, unless you recieved poor service, while customers can choose whether or not to pay a discretional fee.

In both cases, the charge is added to the bill by the business.

You'll need to check your bill to see if the service charge has been added on so you don't end up paying a tip twice.

It's not customary to pay a tip for fast food, self-service or takeaway meals.

Around 1.7million people work in food and accommodation services in the UK, according to latest Office for National Statistics (ONS) figures.

The government estimates the new bill could benefit 1million of these workers on minimum wage should it be passed into law.

It comes after the government highlighted concerns over a rise in unfair tipping practices, with more than 80 per cent of tips now being made on card.

Back in 2015, it was revealed high street shops were taking up to 10 per cent of tips paid by card, while this dropped to 2.5 per cent following public outcry in 2018.

The new bill will apply to companies in England, Scotland and Wales.

Announcing it today, the Queen said: “My government will take steps to make work fairer, introducing measures that will support those working hard.”

We've asked the government when this practice would realistically come into effect and we'll update this article when we get a response.

Here's our ultimate guide to tipping – from what to do in restaurants to whether your hairdresser expects one.

While experts have revealed their dos and don’ts when paying service charge.

In other money news, the date of the Autumn Budget has been announced – here's what we know so far about what will be included.

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