New UK tipping law in force from Tuesday for restaurants, pubs and hairdressers
Restaurants, along with taxi firms, hairdressers, hotels, pubs and cafes, may have to increase their prices to cope with a new tip-sharing law that comes into effect this Tuesday (October 1). The new rules will ban these businesses from withholding tips or service charge payments given by customers, whether in cash or card. Kate Nicholls, the CEO of UK Hospitality, has said that businesses have "been gradually getting ready for this" and are moving towards adopting a code of best practice endorsed by unions. Saxon Moseley, head of leisure and hospitality at consultancy RSM, warned that businesses who have been using the service charge to pay staff or offset their wage bill will still need to pay their staff, but won't be able to use this cash fund. He says: "And in that scenario, margins will be hit, in some cases fairly drastically." READ MORE: London's 2 busiest train stations to close over Christmas - with one shut for 8 days Michael Powner, employm...