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GMB welcomes new legislation that sees workers keep all tips and gratuities

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After years of campaigning for a law change, GMB London welcomes new legislation to ensure that more than 2 million workers in the hospitality, leisure and services sectors receive all tips, gratuities and service charges given by customers.

The Employment (Allocation of Tips) Act received Royal Assent on 2 May 2023, making it illegal for businesses to hold back on tips and service charges given in recognition of the level of service received by satisfied customers.  

Perry Phillips GMB London Regional Organiser said:

“In often low-paid, insecure and unacknowledged sectors, these workers will now have the legal right to tips, gratuities and service charges that are fairly distributed amongst staff and paid without deductions. A welcome boost to their income, especially significant during the cost-of-living crisis that is having such a dreadful impact on workers and their families.

“GMB has thousands of members in these sectors and has supported many members in cases where unscrupulous employers conducted unsavoury and unfair practices to prop up profits and cover business costs at the expense of their employees.

“On behalf of our members GMB has fought long and hard for this new legislation, we welcome the clear message to businesses that their employees cannot be cheated of the tips and service charges that they have earned.”

Contact: Perry Phillips GMB Regional Organiser London Region 07912293481