New tipping law comes into force

Businesses have been banned from withholding tips or service charges from their staff under new rules that came into force on 1 October 2024.

All tips, whether in cash or by card, must now be shared between workers by law in Britain, with millions of workers such as those working for cafes, pubs, restaurants, taxi companies and hairdressers most likely to benefit.

If an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.

The law means tips must be passed to employees by the end of the following month from when they were received.  Generally the tips will be taxed via PAYE.