Staff could keep all their tips

North Devon MP backs cash-for-workers bill

North Devon’s MP has welcomed a new bill aimed at protecting workers’ tips.

Almost one-fifth of people in North Devon are thought to be employed by hospitality businesses, a sector in which staff rely on gratuities boosting their hourly pay.

The new bill, which would force employers to pay staff tips in their entirety, moved closer to becoming law in recent days, removing the right of businesses to choose whether to pass on tips made on debit or credit cards.

Such payments are now thought to amount to 80 per cent of all tipping according to the government. Cash tips are already the legally property of staff.

Discussing the proposed new bill on Friday [20 January], North Devon’s Conservative MP Selaine Saxby believed it will be welcomed by the 19 per cent of her constituents employed in hospitality, adding: “I am disappointed by reports of companies keeping tips or portions of tips for themselves instead of passing them on to their staff as they should.”

She said North Devon is “home to fantastic hospitality businesses” which are “vital to our local economy, bringing in £560 million a year and supporting 11,100 local jobs—in fact, it is difficult to find a business that is not in some way reliant on tourism.

“The hospitality sector is key in enabling residents of North Devon to benefit financially from our visitors, and subsequently protect our world-class natural environment.

“Reliable staffing is key to a successful hospitality business, and the majority of businesses in the hospitality sector support their staff by distributing any tips appropriately. However, median hourly pay in hospitality is the lowest of all sectors in the UK.”

Ms Saxby claimed the average daily value of tips is £29 outside London for full-time workers, adding: “That pay is crucial to many, and in popular areas such as mine, it is a welcome addition for people facing higher house prices and rents as a result of North Devon’s popularity as a tourism destination, which is driving our current housing crisis.”

The bill, sponsored by Tory MP Virginia Crosbie, cleared the Commons after receiving cross-party support. It will now be scrutinised by the Lords.