A new law banning restaurants from withholding tips from staff will takes effect in England today, impacting two million workers in the hospitality industry.
The legislation ensures that around £200m in tips, gratuities, and service charges become fully accessible to employees, with no deductions allowed.
While cash tips were already protected, the new regulations also cover card payments, necessitating transparent policies for tip distribution and management by employers.
There are concerns that restaurants may raise prices to offset the loss of tips used to supplement wages, potentially impacting profit margins.
