As part of the Employment Rights Act, the Government had outlined its intention to strengthen current tipping legislation from 1 October 2026. The changes would require hospitality businesses to consult with staff on its tipping policy.
However, the paper was withdrawn yesterday (13 July) by the Government.
The decision comes after the Unite union called on the ‘flawed’ revised code of practice to be withdrawn saying that it could disadvantage lower-paid workers on insecure contracts by allowing employers to redistribute tips to offset the pay of other staff.
“Workers should have control over their own tips, pure and simple,” said Sharon Graham, Unite general secretary. “Most customers assume they do anyway. Giving managers control, even letting them keep a slice for themselves, is clearly unfair.”
Trade body UKHospitality says the Government’s U-turn has left hospitality in limbo and is calling for urgent clarity on the status of the draft code of practice and its implementation, which is less than three months away.
“Fantastic hospitality doesn’t happen without the incredible people working in our sector,” says chief executive Allen Simpson.
“There is nothing pro-worker about excluding half a team from tips, as some organisations are suggesting. I believe that 100% of tips should be shared across the whole team, from front of house to kitchen staff. Every single person involved in delivering the hospitality experience matters and should be rewarded.
“We were already concerned about changing a law introduced so recently and working effectively for both teams and employers, and the withdrawal of a new code of practice just three months before its implementation leaves businesses in limbo.
“Once again, hospitality businesses are left with absolutely no certainty or clarity on what is expected of them.
“We are pressing the Government to urgently come forward with an explanation as to why the draft code has been withdrawn and how it intends to proceed with these changes.”