Employment (Allocation of Tips) Bill

Felicity Buchan Excerpts

2nd reading
Friday 15th July 2022 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

I apologise if I sound repetitive, but I said I supported the previous Bill today because it was the right thing to do, and I support this Bill because it is the right thing to do. I think my constituents, who probably spend quite a lot of their take-home pay in restaurants and bars, would be very shocked if they learned that their tips, whether or not made by credit card, are actually the legal property of the restaurant owner. That would really surprise people.

The timing of the Bill is important because hospitality clearly faces major challenges, particularly in recruiting staff. The more we can professionalise the hospitality sector and its employment practices, the better: it will make it more likely that restaurants and bars can be fully staffed. That is very important to me, because I represent a central London constituency. My constituency of Kensington and that of my neighbours in Westminster probably has the greatest density of restaurants, bars and other leisure facilities so the Bill is very important to residents.

I was shocked to hear that my local gastropub is no longer able to open on a Monday or Tuesday, not because it does not have the clientele—it is always overbooked, with people waiting for tables—but simply because it cannot get the staff. We cannot have a situation in which businesses, which are so important for livelihoods and for the general economy, cannot operate because they cannot hire staff. The Bill will go a small way towards making the hospitality sector more attractive to staff because they will have a legal entitlement to tips and will not simply have to wait for their employer to do the right thing.

Staffing in this sector is going to be so important going forward. We need to ensure that we have workers who can keep the economy going. In London the tourist season is beginning to start again. I am delighted to see in my constituency that not only domestic tourists but lots of international tourists are returning. So it is important that restaurants, bars and other leisure units can continue to function.

Doing the right thing is critical, and professionalising the industry is also very important. This is good timing, because as we are all aware, workers are suffering from the effects of global inflation—it is global; it is not a UK issue. So it is very important that employees are getting the proper pay package. I was shocked to hear that in the past some employers even used tips to make up the minimum wage. Clearly, that is no longer happening. It has been ruled out, but it is important that the intention of consumers is fulfilled. The intention of consumers is important. When I eat out, I give an extra 12.5%, not because I think that my burger should have cost 12.5% more but because I think that the waiter and the other staff deserve that extra remuneration.

The statutory code of conduct will be critical; we should not diminish its significance. How tips are allocated among staff will be important. Lots of staff work in these establishments, not simply the waiter who comes to the table. So getting the fair balance between the frontline and backline staff is going to be important. We should not diminish the significance of that. I am well aware that the Bill is just one step, and getting the details right is going to be critical.

My hon. Friend the Member for Watford (Dean Russell) spoke about the consultation that he has already done, but I encourage him to ensure that the detailed consultation carries forward. I am well aware that lots of restaurants are hierarchical institutions and perhaps the person who cleans the dishes in the back of the kitchen is not recognised to the same extent. However, clearly that person is integral to the restaurant. We, as consumers, may not see them, but they are critical and it is important that they are recognised.

I very much welcome the Bill, and it is shocking that the provision is not already the law. I appreciate the efforts of my hon. Friend the Member for Watford (Dean Russell), who introduced this Bill in 2021 but dropped it in anticipation of the employment Bill. Although I am sure the employment Bill will happen at some point, it was not in the Queen’s Speech, so it is good that my hon. Friend has introduced this private Member’s Bill.

This Bill is a great first step in getting things right for employees, but it is also an important step in ensuring employers are on a level footing and trading on an equal basis. Restaurants that do the wrong thing by their staff should not be in a better competitive situation because they are able to offer cheaper prices to consumers. This Bill is good not only for employees but for employers, because it puts everyone on the same footing and ensures that employers do right not only by their employees but by their consumers, who give tips in the full expectation that they are paid to employees.

I am fully supportive of this Bill. There is no question but that it is the right thing to do. It is important for my constituency, where so much of the economy is made up of restaurants and bars in the night-time economy. I am very grateful for the Bill on behalf of my constituents.

The Bill is also important because it further professionalises the sector, and we will find that many employment practices have to be professionalised in the post-coronavirus world, because only then will employers be able to recruit staff. In every regard, this is an important Bill that formalises what we all think is right, that employees should be able to retain their tips. The Bill fulfils the expectation of every consumer when they go out to eat and drink, and long may that continue.