A LEADING Cumbria business figure has said proposed legislation that would ban employers from withholding tips could 'help further strengthen the attractiveness of the hospitality sector in terms of developing a career'.
Dan Visser was responding to the news that the Employment (Allocation of Tips) Bill had had its second reading in Parliament.
Mr Visser, vice-chairman of Cumbria Tourism and director of sales and marketing at the Langdale Estate, said: “Our world-class visitor experience is based on the wonderful landscape and fantastic business we have catering for the needs of our visitors.
"What often makes any visit to the area truly memorable is the service provided by the teams of people working throughout the visitor economy to welcome and look after our visitors, and they deserve to be rewarded for their efforts.
“Every team delivering a great experience deserves a great tip from their happy customers.”
Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said it could be 'tempting' for employers to retain tips in 'challenging times'.
"But, at the end of the day, people choose to tip the people who are serving them, cooking for them, taking care of their rooms etc. - not the business," she said.
"And, on that basis, it’s right that tips are passed on to those people.
"So, from that perspective, this legislation is the right move.
"But in a tight labour market such as we’re in, staff can more easily vote with their feet, and move away from, or choose not to join, employers who’re not passing on tips, exacerbating recruitment and retention issues.'
Through the Employment (Allocation of Tips) Bill, a new statutory code of practice relating to the distribution of tips would be developed.
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Workers would also receive a new right to request more information about employers' tipping records.
A spokesman for the Department for Business, Energy and Industrial Strategy said the 'overhaul' of tipping practices was set to benefit 2 million UK workers across the hospitality, leisure and service sectors.
Watford MP Dean Russell, who introduced the bill, said: "It has always felt wrong that some employers have retained tips intended for their staff.
"This new legislation will halt this practice, particularly given the current challenges around the cost of living."
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