The government has set out the next stages for a number of new Workers’ Rights Acts – giving "more money and more say" back to UK workers.
Benefits range from increases to the minimum wage, greater flexibility over when, where and how people work, and legislation to ensure hospitality workers receive tips that are left by customers.
The Employment (Allocation of Tips) Act 2023, which became law in May this year, requires employers to pass all tips on to workers. Most employers already pass on tips to the staff who earn them. However, there are still some unacceptable tipping practices by unscrupulous employers.
Business and Trade Minister Kevin Hollinrake said:
“As we approach Christmas, it’s more vital than ever that we do what we can to support workers and families across the country. I’d like to encourage businesses to be as flexible as possible and give their hard-working employees the tips they deserve. I want to thank the MPs who brought forward this legislation to support hard-working families and shape the UK’s outstanding workers’ rights record.”
Christmas is an incredibly busy season for hospitality workers, and usually a time of year when customers are more generous with their tips. All employees deserve to receive their fair share of tips, so the government has launched a public consultation on the Tipping Act’s Code of Practice to gain feedback from employers, workers and other stakeholders on the fair and transparent distribution of tips.
New rights to protect new parents from redundancy, give carers extra support and help all employees work flexibly are also a step closer as government has laid legislation with plans for the measures to come in next spring. These measures will help workers who have caring responsibilities or parents at risk of redundancy and ensure everyone is able to work as flexibly as needed into the new year.
ACAS Chief Executive Susan Clews said:
“The shift in recent years towards increased use of flexible working by organisations has allowed more people to better balance their working lives and enabled employers to attract and retain skilled staff. ACAS has recently consulted on a new draft Code of Practice which outlines good practice around requests for flexible working and explains the forthcoming changes in the law to employers and employees.”
An extra 2.6 million workers across the UK will benefit from the removal of the 26-week qualifying period that is currently required before making a flexible working request.
Those with caring responsibilities will also be entitled to a brand-new employment right to a week’s leave to care for a dependent.
Redundancy protections are also being extended to cover pregnancy, as well as to new parents.
The government is also introducing the biggest ever increase to the National Living Wage, worth over £1,800 a year for a full-time worker, fulfilling the pledge to end low pay. When this increase comes into effect in April, the National Living Wage will be worth nearly £21,000 a year for a full-time worker – almost double, in cash terms, the amount which a full-time worker on the National Minimum Wage earned in 2010.
For the first time, 21-years-olds will be legally entitled to the National Living Wage, which is set to reach two-thirds of average earnings.
