New laws around tipping in beauty salons and spas

Published 18th Jul 2022 by PB Admin
New laws around tipping in beauty salons and spas

Millions of UK workers will be able take home more of their hard-earned tips under new legislation that bans employers from withholding tips from staff.

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

This news is promising for employees in the beauty and spa industry - especially with Babtac predicting a boom in growth for the beauty industry.

When does the new Tipping Bill come into force?

The bill came into force with immediate effect on July 15. This overhaul of tipping practices is set to benefit more than two million UK workers across the hospitality, leisure and services sectors – including therapists in beauty salons and spas.

Business minister Jane Hunt MP 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.

“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.

Hunt added, “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.

“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.”

Dean Russell MP, who introduced the Bill, commented, “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 Irish Government has also announced plans to introduce a new law to protect employees' tips.

What do you think about these reforms? Let us know in the comments…

PB Admin

PB Admin

Published 18th Jul 2022

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