Employment (Allocation of Tips)

Debate between Dean Russell and James Gray

Tuesday 14th May 2024 Commons Chamber

[Dean Russell (Watford) (Con)]

It is a proud moment for me to stand here today, because I brought in the private Member’s Bill behind this change and was able to get it over the line with the able effort and support of my hon. Friend the Member for Ynys Môn (Virginia Crosbie). It is a joyous day, because I am absolutely passionate about two things, fairness and Watford, and we have some fantastic hospitality locations in Watford. Our cafés and restaurants include Jamaica Blue, the Flourish bakery, the Beech House, the Tudor Arms, the Sun Postal sports club, the Badger pub, Rhubarb Café, Random Café, Cassio Lounge and so many more. I would love everyone here to visit as often as possible, because they would see delights that they would get nowhere else in the world.

I list all those locations because in each hospitality organisation, in each café and restaurant, there are not only people who run the business, but many staff who work in it. I was talking about the tips Bill way back when I originally tried to introduce it via a presentation Bill, which did not quite make it through. As I have a routine of never giving up, I managed to obtain a private Member’s Bill—that was through luck—and then got it through, very much with thanks to the Government. I especially thank the Minister who is on the Front Bench today, who is doing incredible work, and his team.

This measure was so important to me because I would go to meet these organisations and chat to staff, especially during the pandemic, and they were all consistent in their concerns about whether they would get to keep tips. A big shift took place at that time from people giving cash to somebody individually towards a world where cash is not so common. That is not necessarily a good place to be, but it is the way the world has moved. Far more people will now pay a tip on a credit card at the end of a meal or when they leave a café. Every one of us will have asked the same question when we have made that payment and given our tip, which is, “Will you get this?” My Bill will help to resolve that.

[James Gray]

I congratulate my hon. Friend on his superb effort in getting his Bill through, as it is a wonderful thing to have done. I support the principles behind it, but I am slightly puzzled by one aspect: should the restauranteur or bar owner not be charging the correct price for the service, without any tip or service charge having to be added on? Should he not be paying his workers a fair wage for the job they are doing, without any tips, service charge or other things added? Surely my hon. Friend’s Bill will set this in stone. I say that even though I do not like tips very much, as I would much rather pay a fair price to the restauranteur and to the person who works for them.

[Dean Russell]

My hon. Friend makes an incredibly important point, which gets to the heart of this: the fairness here is to not just the workers, but the businesses. Most businesses do the right thing and pay a decent salary. The Minister can correct me on this, but I believe that legislation taken through a while ago means that tips cannot form part of a salary. So businesses should be paying a decent wage. When some organisations do the wrong thing, what they are doing is anti-competitive; they are making profit off the backs of their workers by keeping their tips, and the businesses doing the right thing in giving 100% of the tips to the staff are less competitive. My approach is therefore far fairer to the majority of businesses that do the right thing, and to the workers. It is also far fairer to the customers, who thought that the money was going to the staff and did not realise that a percentage of it, or in some instances all of it, was being taken from them.

My Bill will ensure fairness—that is the key word we should all take from the Bill and from today’s debate. It will ensure that all tips, 100% of them, are paid to staff. Agency staff will be included in that; when I originally talked about this Bill, some had a concern about a two-tier system for workers. The Bill will also ensure that a policy is in place—a code of practice—so that businesses ensure that their staff know where they stand. Businesses will be able to be clear with everyone who works for them how the tipping practice will work; I will not go through the full list, as the Minister did an excellent job of listing it earlier.

This measure has been a journey. I mentioned my work on the Bill with my hon. Friend the Member for Ynys Môn, but, as with all journeys, I began this trek much earlier. In many ways, this began with the fantastic work done by my right hon. Friend the Member for Bromsgrove (Sir Sajid Javid) when he was a Secretary of State. He put in place the work enabling the Government to look at how we could make sure tipping was fair, so this measure is built on the shoulders of giants. I will not list them now, but many Members have been involved in making sure my Bill came to fruition. Many organisations were also involved, and I thank UKHospitality, especially Kate Nicholls, who has done a fantastic job; and the Night Time Industries Association, which has done brilliant work. Conservative Members do not often talk positively about unions, but the GMB has done fantastic work, and I should give another mention to ACAS. Lots of businesses, employers and employees have also really pushed for this to come to fruition.

I want to thank some current and former members of the Government, particularly my hon. Friend the Member for Sutton and Cheam (Paul Scully), who was incredibly supportive when I originally tried to bring my legislation in as a presentation Bill. At the time, we were going to make it part of the Employment Bill. Unfortunately, that did not happen, but many of the policies that were going to be included did happen through various other routes. I thank my hon. Friend the Member for Loughborough (Jane Hunt), who was a fantastic supporter and an able Minister.

Of course, I also thank the Minister before us today and his team. He has been excellent in making sure that this is pushed forward and, through him, I would like to thank his team. Some of them were my team in my short time as a Minister, so I know the passion they had about making sure that we got this right. During my brief time as a Minister, I had to hand over this precious baby of mine, the tips Bill, to a colleague to make sure we could keep it moving forward through the House. That was when I was able to speak to my hon. Friend the Member for Ynys Môn, who has an incredibly important hospitality industry in her constituency. I could not think of someone more able and more energetic to make sure that we got the Bill through. Through her work and our work with Lord Robathan, we made sure that it got through and received Royal Assent. Many Members will not know that on the day it was given, I was fortunate enough to meet the King that morning in Parliament—I am sure that is a rare story and one for a pub quiz sometime in the future.

The other person I would like to give a huge thanks to is the lady who rarely gets a mention in here but who is behind so many of these incredibly important Bills: my hon. Friend the Member for Castle Point (Rebecca Harris). She does an incredible job in giving us guidance on how to navigate the complex system of getting a Bill through Parliament and in giving us confidence that it is possible. She has made sure that many Bills have got through and gone on this incredibly important journey, including many others in which I have had involvement in different ways, such as those on flexible working, maternity care, leave and so on.

My Bill will help about 2 million hospitality workers across the UK. That is an incredible number. When I have spoken about this to people around the House or to my constituents, I have found that so many more people will talk about its importance: customers who want to make sure that money for which they have worked hard and which they are giving as a thank you gets to the people they are giving it to; and colleagues who have family members who work as waiters or waitresses, or who work in bars, as this will make sure that they get the money that has been gifted to them. Many colleagues have spoken to me about their experiences of working in hospitality while at university or when they were younger. That has shown me how the hospitality sector plays an important role in our society: it provides a type of apprenticeship to many of us before our careers. We learn a lot about our culture, society and community, as well as about people, through hospitality. That is why I have been so passionate about saving our night-time economy, including music venues, in Watford and across the UK. Music venues have been at the heart of our society and I fear they may be damaged in the future, but I hope the Bill may play a small part in helping them.

The Bill is also about fairness. It is impossible to legislate for fairness in society—it is a gut feel—but fairness is at the heart of what it is to be British. We believe in fairness in all parts of our society. At its heart, the legislation goes back to the fact that when someone gives money as a gift to someone else, they expect them to get it. That is what this Bill will ensure, and I am grateful to the Government for that.

I want to raise a couple of related points with the Minister to ensure they are covered as the legislation moves forward. We need to ensure there is a communications strategy before October so that workers know their rights, how to access them and what is covered. Businesses also need to know that the legislation will not be a burden. During the early stages of the Bill, I was mindful that it must not be a burden and more red tape for businesses. The majority of businesses get that and understand it. Those that were doing the wrong thing will, no doubt, kick up a fuss. Over the coming weeks and months, we will probably hear about businesses trying to get around the regulations by forming new practices. I hope the Government will clamp down on those, and name and shame the businesses involved; I will certainly be happy to do that to ensure that fairness is the heart of the regulations.

The Government have a role to play in supporting the hospitality sector as a whole as best they can. Businesses in the sector are important parts of our communities; they are in the heart of every village, town and city. Hospitality is often the reason people visit an area, it is often the first port of call for a job and a career, and it plays an important role in entertainment and culture. No other industry has such an important and broad role, so I want to ensure it is fair. I thank the Government, the Minister and colleagues across the House who have been incredibly supportive, especially my hon. Friend the Member for Ynys Môn. Finally, may I say a huge thank you to my constituents in Watford? If they had not put me here, the Bill may not have been making progress today.