Plans to ensure staff receive tips left by customers welcomed by union

The government has signalled it will ensure workers receive the tips customers leave for them Credit: PA

The government has announced plans to ensure staff receive tips left by customers in bars and restaurants.

The business secretary Sajid Javid proposed the move after a campaign by the union Unite complained some companies were counting tips as part of a worker's pay.

Unite has welcomed the move, which came after a call for evidence received nearly 200 responses with broad agreement that current practices were not clear for workers or consumers.

The Government announced a consultation on moves to ensure additional payments for service should be voluntary to the consumer and received in full by workers.

Plans include:

  • updating the current voluntary code of practice and putting it on a statutory footing to increase employer compliance

  • increasing transparency for consumers to make it clearer that tips are discretionary

  • preventing or limiting any employer deduction from tips except for those required under tax law

Business Secretary Sajid Javid said: "I'm setting out our proposals to make tipping fairer, clamping down on unfair practices and securing a better deal for the millions of workers in the service industry. We will look closely at all the options, including legislation if necessary."