UK Government plans to make it illegal for hospitality firms to withhold tips from workers

IPOSUP automates tips as UK restaurants, café and pub bosses are soon banned from keeping tips left for staff

2 minute read

Posted: 24/09/2021

UK Food Council

Media & News Desk
020 -3393 - 5337


Arno de Bruin

London 24th September 2021: IPOSUP mobile payments service launches automation of tips direct to hospitality staff bank accounts ahead of the UK Government plans to make it illegal for hospitality firms to withhold tips from workers, who rely on them to top up their income. In a statement, the Department for Business said that the new legislation would help about two million people working in the hospitality industry. Ministers also pointed towards research that suggests most tips are now paid by card in the UK, rather than in cash. Employers who break the new rules can be taken to employment tribunals to face fines and/or compensate workers.

IPOSUP provides free customer tipping and distribution facility for card or bank payments without incurring additional bank charges for the business, and these businesses do not need to employ external partners to ensure tips are fairly distributed among staff.

As well as helping hospitality merchants to automatically pass on all tips, service charges and gratuities in full without any deductions to staff, the IPOSUP payments service complies with a fair code of practice which should already be compliant with future UK Government legislation. Micro hospitality owners can thus save time and money by providing full transparency on tipping records, and hence avoid any claims due to breach of tipping legislation at employment tribunals. Their staff can also supplement fairly their wages with tips lifting them onto a real Living Wage.

As reported today, Labour Markets Minister Paul Scully said the Government plans would "ensure tips will go to those who worked for it".

Dr Chandra Patni, CEO of IPOSUP.COM said, “The IPOSUP card and bank payments acceptance terminal, aimed at millions of UK restaurants, cafés and pubs, does exactly that by splitting the tip amounts and directly crediting the staff members’ bank accounts in near real-time within minutes. Our IPOSUP mobile payment terminals reassure customers that their tips are going to "those who deserve it even for chip and PIN and contactless card payments. Bank account-initiated payments at the point of sale, referred to as “Bank-at-POS” also enable tips directly to staff bank accounts”.

Dr Patni added, "Even as far back as 2015, restaurants were keeping tips which should go to hardworking staff members as a reward for good service. To build a stronger and more dynamic economy, our focus at IPOSUP is to increase the number of micro and small businesses doing the right thing and committing to pay a Living Wage"