Millions of workers will get a cash boost as employers will soon be banned from withholding tips.

The move comes after parliament approved Watford MP Dean Russell’s Tips Bill, meaning it has moved one step closer to becoming law.  

An estimated two million people who work in the hospitality, leisure and services sectors are expected to benefit from the bill.

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With society moving away from cash, issues have arisen whereby some employers are retaining card tip payments.

Mr Russell said: “It has always felt wrong that some employees have retained tips intended for their staff.

“This new legislation will halt this practice, particularly given the current challenges around the cost of living.”

Because of the new bill, a new statutory code of practice will be developed to provide businesses and staff with advice on how tips should be distributed.

Workers will also receive a new right to request information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal.

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