Unite Calls For Tipping Code To Be Withdrawn Over Worker Control Concerns

Unite has urged the Government to withdraw its revised code of practice on tipping, arguing it fails to deliver on promises to give hospitality workers greater control over how gratuities are shared. Unite has called on the Government to withdraw its draft code of practice on tipping, claiming it fails to honour Labour's commitment to give hospitality workers greater control over how tips are allocated. The union argues that, under the revised proposals, employers would only be required to consult staff before deciding how gratuities are distributed, rather than allowing workers to determine the process themselves. According to Unite, the approach risks leaving lower-paid employees vulnerable and could enable managers to influence the allocation of customer tips.

Concern over employer control

The union believes the revised code could allow tips to be used to supplement the pay of other staff groups or, in some circumstances, benefit management. Sharon Graham, general secretary of Unite, said: "Workers should have control over their own tips, pure and simple. Most customers assume they do anyway. Giving managers control, even letting them keep a slice for themselves, is clearly unfair." She added: "The government messed this up the first time in their code of practice on tipping. The fact that they are now repeating the same mistakes in a revised version that was supposed to address workers' concerns is genuinely concerning."

Calls for consultation

Unite has also criticised the Government for not consulting workers on the detail of the revised code before publication. The union noted that other elements of the Employment Rights Act have undergone consultation, arguing the same process should have been followed for tipping guidance. Bryan Simpson, Unite's lead organiser for hospitality, said: "This new flawed code of practice must be withdrawn. The government is showing contempt for hospitality workers, who are among the most vulnerable in the economy, by not even consulting on its plans." "Labour promised to give workers greater control over their tips. That promise must now be honoured."

Long-running campaign

The dispute follows Unite's longstanding campaign for reform of tipping practices within the hospitality sector. Earlier this year, the union successfully challenged Government guidance it claimed contained misleading language about collective bargaining and workers' rights. The latest intervention also builds on reforms introduced under the Employment (Allocation of Tips) Act, which made it unlawful for employers to retain customer tips and required businesses to distribute gratuities fairly under a statutory code of practice.

Debate over tronc systems

As previously reported by the drinks business, Unite welcomed legislation preventing employers from keeping tips when it was introduced in 2022, but argued the reforms did not go far enough. At the time, the union said greater protection was needed around tronc systems, under which tips are distributed independently of employers, and called for changes to national insurance rules governing gratuities.