Restaurants Will Be Banned From Keeping Waiters’ Tips

Restaurants will no longer be allowed to keep waiters’ tips when customers pay by card under new legislation, according to reports.

Kwasi Kwarteng is expected to announce plans to stop the predatory practice that sees businesses keep the service charge, when patrons pay by card.

Use of cash has tumbled during the pandemic, making it harder for staff to receive the extra payment normally reserved for them.

The Business Secretary’s bill will see 1.7 million hospitality workers benefit, finally receiving 100 per cent of the service charge.

Existing legislation already bans restaurants from retaining cash tips but this latest move follows complaints that low pay and morale are helping to drive chronic staff shortages in the hospitality industry.

A Whitehall source said: “Workers going above and beyond for their customers can now rest assured that their hard-earned tips will be going directly in their pockets and nobody else’s,”

“We’re putting an end to dodgy tipping practices and making sure that hard work pays off.”