Tipping legislation may create “unforeseen consequences” for staff, UKHospitality warns

Restaurants will soon be legally barred by the UK government from keeping tips from staff.

New statutory legislation on tipping may become an “unnecessary burden” for small businesses, according to UKHospitality.

The trade body added that it has provided its members a code of practice promoting fair distribution among their staff. The code is also approved by the British and Irish trade union Unite.

“Some smaller businesses may retain a small proportion of tips to cover the costs of credit card charges and processing payments - but this is a small amount and the practice has been approved by Unite,” UkHospitality Kate Nicholls said.

“At a time when costs are mounting for operators in the sector, the Government must be careful about introducing additional legislation. There is no evidence that further legislation, which may have unforeseen consequences for staff, is necessary at this time.”