JOURNAL ARTICLE

The UK Has a New Tipping Law. So Are You Paying More Now?

  • Published In: Bloomberg.com, 2024. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Chandler-Wilde, Helen 3 of 3

Abstract

The UK recently implemented a new tipping law, the Employment (Allocation of Tips) Act, which mandates that all tips and service charges must go directly to staff without any deductions by companies. This law aims to ensure transparency and fair distribution of tips among employees, with research showing that 4 in 5 people believe 100% of tips should go to staff. While some establishments are still assessing the impact, there is a possibility of menu price increases due to additional costs incurred by operators. The law is expected to result in £200 million more annually being paid to hospitality workers and those in service industries, significantly impacting the income of serving staff. [Extracted from the article]

Additional Information

  • Source:Bloomberg.com. 2024/10, pN.PAG
  • Document Type:Article
  • Subject Area:Economics
  • Publication Date:2024
  • Accession Number:180328578
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