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As part of the Employment Rights Act, the Government outlined its intention to strengthen current tipping laws from 1 October this year meaning hospitality companies would need to consult with staff on tipping policies.
A draft code of practice was publishing, which outlined the details of how that consultation should run in practice but it was unexpectedly withdrawn by the Government, with no explanation, according to trade body UKHospitality (UKH).
The organisation called for urgent clarity on the status of the draft code and its implementation, ahead of the proposed start date in under three months’ time.
Incredible people
UKH chief executive Allen Simpson warned the withdrawal just 12 weeks before implementation left businesses in limbo.
He said: “Fantastic hospitality doesn’t happen without the incredible people working in our sector.
“There is nothing pro-worker about excluding half a team from tips, as some organisations are suggesting.
“I believe 100% of tips should be shared across the whole team, from front of house to kitchen staff.”
Businesses in limbo
Simpson added: “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 withdrawal and how it intends to proceed with these changes.”
This comes after union Unite demanded the revised code was withdrawn to allow for “proper consultation” and claimed the Government has “reneged on its promise to give workers full control on the allocation of tips”.
