UK Parliament / Open data

Employment (Allocation of Tips)

I thank hon. Members for their contributions to this debate in which we are seeking to ensure that the draft code of practice on fair and transparent distribution of tips is approved.

I will turn now to the specific issues raised. The shadow Minister talked about engaging with the sector, which is very important. I can tell him that we engage regularly with organisations such as UK Hospitality, the British Beer and Pub Association and the British Institute of Innkeeping on these matters and have been doing so for many months, as we want to make sure that their views are heard. The non-statutory

guidance that we will be bringing forward should provide more help for those organisations to comply with the important provisions of this legislation.

The shadow Minister asked whether we would review the policy on a regular basis. We will obviously keep all these matters under review, and the guidance should help to inform the sector about requirements in terms of both employees and businesses. It is hugely important that we do so. He asked whether a person could take a claim forward to an employment tribunal for unfair dismissal. Clearly, employment tribunals are there to ensure that workers can assert their rights if they feel that their rights have not been respected, so we would definitely expect an employment tribunal to hear such a case.

The shadow Minister asked about tipping by digital apps. We see this as a new phenomenon and an interesting development, enabling the customer to be able to tip an individual using an app, QR code or whatever, and we will not stand in the way of that. Where a tip has been given directly to a member of staff, it is clear that that tip should be kept by the member of staff. The app is there to allow flexibility in the implementation of the code or the guidance, rather than allowing businesses to avoid their clear obligations.

The shadow Minister asked about payments and why they are paid the following month. I think it is reasonable to allow a business to be able to calculate the amount of tips that are received in a month and then pay those out to workers in the month following. We think that that is a reasonable balance to strike. He asks why we are taking another five months to put this legislation in place. Clearly, we want to ensure two things—that we get this right and that we respect some of the pressures that exist in the hospitality sector, which has been through a difficult time, with increases in the national living wage, the cost of living crisis and the covid pandemic. We are trying to make sure that we take the sector with us, rather than impose unfair new burdens on it. We do not think that these measures are unfair, because we know that the majority of businesses would adopt these kind of rules even without this legislation.

The hon. Member for Glasgow East (David Linden) seemed to imply that we on the Conservative Benches were going to use Brexit to improve workers’ rights. I am always keen to improve workers’ rights, and we have done so in this Parliament, but I remember his party clearly saying that Brexit would be a bonfire of workers’ rights and that certainly has not been the case.

About this proceeding contribution

Reference

750 cc187-8 

Session

2023-24

Chamber / Committee

House of Commons chamber
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