Tag: hospitality workers

Cash boost for millions of workers as government backs new law to ensure all staff keep their tips

UK Government backs new reforms making it unlawful for employers to withhold tips from staff

  • New legislation to make it unlawful for employers to withhold tips from staff
  • it means customers will know for certain that all tips will go to hard-working employees, who will take home more money
  • the Tipping Bill will benefit more than 2 million workers and, for the first time, will give them the right to see an employer’s tipping record

Millions of UK workers will be able take home more of their hard-earned cash under new legislation, backed by the government yesterday, banning employers from withholding tips from their staff.

Despite most hospitality workers – many of whom are earning the National Minimum Wage – relying on tips to top up their pay, there are still sadly too many businesses who shamefully fail to pass on service charges from customers to their staff.

The Employment (Allocation of Tips) Bill, introduced by Dean Russell MP and backed by the government, will ensure that all tips go to staff by making it unlawful for businesses to hold back well-earned service charges from their employees.

This overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors – who tend to reply on tips the most – and will help to ease pressures caused by global inflation and an increase to the cost of living.

Business Minister Jane Hunt said: “At a time when people are feeling the squeeze with rising costs, it is simply not right that employers are withholding tips from their hard-working employees.

“Whether you are pulling pints or greeting guests, today’s reforms will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.

“I particularly want to tip my hat to the work of Dean Russell MP and all the campaigners who have helped make the Tipping Bill a reality.”

Through the Bill, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. On top of this, workers will receive a new right to request more information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal.

Dean Russell, Conservative MP for Watford, said: “I am delighted that my Tips Bill has passed second reading in Parliament. It is fantastic that we are on track to securing a fair deal for millions of people working in hospitality across the country.

“It has always felt wrong that some employers have retained tips intended for their staff. This new legislation will halt this practice, particularly given the current challenges around the cost of living. I would like to thank all of the businesses and stakeholders that have got in touch to voice their support.”

The move towards a cashless society has exacerbated the problem of companies keeping card tip payments for themselves, and today’s measures, once in law, will ban that practice.

UK Hospitality Chief Executive, Kate Nicholls, said: “Tips and service charges provide a significant and welcome boost to hospitality employees’ take-home cash. So we’re delighted to see this proposed legislation recommend that employers can set a fair distribution policy for staff, meaning they all benefit.

“This should also reassure prospective hospitality sector workers at a time when the industry is seeking to fill vacancies.”

The reforms follow a range of UK Government action to support people with the cost of living and help those on lower incomes keep more of what they earn.

Most notably, earlier this year the government increased the National Living Wage to £9.50 per hour – equivalent to an extra £1,000 a year for a full-time worker – with a full campaign which encouraged workers to check their pay.

In addition, the government recently announced a widening of the ban on exclusivity clauses, giving the lowest paid workers flexibility to top up their pay and work multiple jobs if they wish.

The government helpfully adds: ‘reforms come at a time when there are more employees on payrolls than ever before – and unemployment has reached an all-time low’.

Diageo’s Rainbow Network invites LGBTQIA+ hospitality workers to join Pride with Purpose workshop at Johnnie Walker Princes Street

Diageo’s hospitality skills programme, Learning for Life, is hosting a tailored ‘Pride with Purpose’ one-day workshop at Johnnie Walker Princes Street during Pride month, designed to support and upskill LGBTQIA+ hospitality venues and LGBTQIA+ community hospitality workers.

The tailored course will be delivered by Learning for Life partners Springboard and will directly address the challenges that those working in LGBTQIA+ venues or LGBTQIA+ employees might encounter with sessions on positive drinking (DRINKiQ session), inclusive language, inclusive service and an introduction to cocktails masterclass. 

The concept was proposed by members of the Diageo global Rainbow Network, which exists to ensure that the talents and contributions of all Diageo LGBTQIA+ employees are respected, valued, and embraced.

The network maintains both an internal and external focus, supporting one another in the workplace to foster an environment where all employees can bring their whole self to work, while also considering the connection, outreach and social impact that they can have within the broader community in which Diageo operates.

Jorgie Hunt, Keg Plant Manager, and Jack Malcolmson, Business Improvement Project Lead for Brewing, Co-Chair the Supply Chain & Procurement Rainbow Network in the UK and played an important role in developing the partnership with Diageo Learning for Life to create the Pride with Purpose workshop concept.

Jack Malcolmson said: “Diageo’s purpose is to Celebrate Life, Every Day, Everywhere, and Championing Inclusion and Diversity is at the heart of this. The Rainbow Network is one of many Employee Resource Groups in Diageo, and functions to celebrate, and advocate for, members of the LGBTQIA+ community within the business and beyond. 

“We’re celebrating Pride 2022 with an incredible calendar of events. The “Pride with Purpose” workshop, developed in collaboration with Learning for Life and Springboard, is an incredible opportunity for us to engage with LGBTQIA+ hospitality venues and workers, providing them with new skills and qualifications, and showcasing the work Diageo are doing in the I&D and DrinkIQ spaces. LGBTQIA+ venues have faced particular hardship through the COVID-19 pandemic, and I’m incredibly proud that we’re able to support them in this way.”

Diageo’s Learning for Life programme, which began in Latin America and the Caribbean in 2008 and has since expanded across the globe, provides vital training and experience and a route into the hospitality sector.

With a focus on adult education, Learning for Life in the UK has traditionally focused on offering opportunities to young unemployed people, with skills programmes covering key areas within the hospitality industry implemented in partnership with local educational, governmental, and training organisations.

Gillian Dalziel, Learning for Life Programme Manager for Diageo in the UK, said: “It’s really important for us to bring this workshop to the LGBTQIA+ hospitality community over Pride as it demonstrates our support and allyship and really helps us live our purpose by championing inclusion and equality throughout the hospitality industry.

“We wanted to make sure that we delivered a programme that would be truly valuable to those who wanted to attend and would benefit from the resources we have available to us at Learning for Life to help create more positive relationships and experiences for employees in their day-to-today work. I encourage anybody that is interested to get involved.”

The Learning for Life Pride with Purpose workshop is open the anyone aged 18 or over and is free to attend. It will take place on 27th June.

To register please visit: https://form.jotform.com/221561837049964

All tips to go to staff under UK government plans to enhance rights of 2 million workers

Government unveils plans to overhaul tipping practices, helping around 2 million people top up their income

  • UK Government to tackle shameful tipping practices and ensure all tips go to workers
  • plans will help around 2 million UK workers retain their tips, which can make up a large proportion of income for many hospitality workers
  • customers will know tips are going to the worker for a fair day’s work

All tips will go to staff under new plans to overhaul tipping practices set out by the UK Government today (Friday 24 September), providing a financial boost to hospitality workers across the country.

Most hospitality workers – many of whom are earning the National Minimum Wage or National Living Wage – rely on tipping to top up their income. But research shows that many businesses that add a discretionary service charge onto customer’s bills are keeping part or all of these service charges, instead of passing them onto staff.

The government will make it illegal for employers to withhold tips from workers. The move is set to help around 2 million people working in one of the 190,000 businesses across the hospitality, leisure and services sectors, where tipping is common place and can make up a large part of their income.

This will ensure customers know tips are going in full to workers and not businesses, ensuring workers receive a fair day’s pay for a fair day’s work.

Tipping legislation will build on a range of government measures to protect and enhance workers’ rights. In the past 18 months alone, the government has introduced parental bereavement leave, protected new parents on furlough, and given millions a pay rise through a higher minimum wage.

Labour Markets Minister Paul Scully said: “Unfortunately, some companies choose to withhold cash from hardworking staff who have been tipped by customers as a reward for good service.

“Our plans will make this illegal and ensure tips will go to those who worked for it. This will provide a boost to workers in pubs, cafes and restaurants across the country, while reassuring customers their money is going to those who deserve it.”

Moves towards a cashless society have accelerated dodgy tipping practices, as an increase in card payments has made it easier for businesses to keep the funds.

80% of all UK tipping now happens by card, rather than cash going straight into the pockets of staff. Businesses who receive tips by card currently have the choice of whether to keep it or pass it on to workers.

Today’s plans will create consistency for those being tipped by cash or card, while ensuring that businesses who already pass on tips fairly aren’t penalised.

The legislation will include:

  • a requirement for all employers to pass on tips to workers without any deductions
  • a Statutory Code of Practice setting out how tips should be distributed to ensure fairness and transparency
  • new rights for workers to make a request for information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal

Under the changes, if an employer breaks the rules they can be taken to an Employment Tribunal, where employees can be forced to compensate workers, often in addition to fines.

Tipping legislation will form part of a package of measures which will provide further protections around workers’ rights.

Building on economic support measures, the UK Government recently announced a range of initiatives to support the hospitality sector through its first ever Hospitality Strategy.

This set out ways to help the sector improve its resilience, including by making hospitality a career option of choice, boosting creativity, and developing a greener sector.

As Fringe returns, Green MSP calls for more support for hospitality workers

With the Edinburgh Fringe opening this week, the government and industry must offer more support to hospitality staff, according to Green MSP for Lothian Lorna Slater, who has submitted a parliamentary motion in support of workers.  

This follows reports from the Unite trade union, which Lorna is a member of, that warned of a “sharp increase of verbal and physical abuse from customers” against hospitality workers. 

The motion notes that Low pay and insecure working conditions were endemic in the hospitality industry prior to the pandemic and calls for employers to introduce proactive anti-sexual harassment policies as well as supporting extra investment in retraining and mental health services and long-term plans to improve incomes and job stability across the sector. 

Scottish Greens MSP for Lothian, Lorna Slater, said: “Nobody should be getting harassed or abused at work, and employers need to support their staff and take steps to ensure that it does not happen again. 

“Many of the people working in our pubs and restaurants are the same young people who have been disproportionately hit by the pandemic in terms of their job prospects, income and mental wellbeing. They are also the ones who are least likely to have been vaccinated against Covid. 

“For far too long, hospitality workers have had to endure conditions and anxiety that would be unacceptable in other industries. Governments and the industry need to step up and support hospitality workers and young people, rather than allowing them to be further punished by this terrible pandemic.” 

Motion text 

That the Parliament notes what it considers concerning reports from the Unite trade union, which warns of a “sharp increase of verbal and physical abuse from customers” against hospitality workers;

believes that low pay and insecure working conditions were endemic in the hospitality industry prior to the COVID-19 pandemic;

understands that many hospitality workers are young workers;

notes the recent Resolution Foundation study that found that, at the end of May 2021, 18- to 24-year-olds were 2.5 times more likely than any other age group to have been out of work or still on furlough, and that more than one in four 18- to 24-year-olds said that they were concerned about finding a job in future due to mental health issues; 

further notes the calls for investment in retraining and mental health services, as well as long-term plans to improve incomes and job stability as part of a new approach to hospitality, and believes that the calls from Unite for extra security for busy venues and proactive anti-sexual harassment policies should be adopted.