In September the government announced plans to “tackle shameful tipping practices and ensure all tips go to workers”. But the new tipping legislation has been shelved, according to the Financial Times.

Senior government insiders told the paper that the plans have now been dropped from next week’s Queen’s Speech and “for the foreseeable future”. 

The government first consulted on tipping, gratuities, cover and service charges in 2016. Responses showed clearly that the current guidance and rules, including a voluntary code of practice, were not being used widely.

A new industry code of practice was launched in 2017, with UKHospitality long arguing that legislation would be burdensome for employers.

But unions have raised concerns that more businesses have started adding a discretionary service charge on to customers’ bills and keeping all or part of the service charge. Payment by credit card has also led to dubious tipping practices, with a number of hospitality businesses caught out over the years.

A survey of 250 hospitality staff published last week showed that 67% have questioned the tips figure on their payslip, while 92% wanted more transparency on tips and how they are shared. 

Commissioned by Tipjar, a cashless tipping platform, and conducted by KAM Media, the research also showed 66% of staff had knowingly had tips held back or deductions taken from tips. Of the 500 consumers also quizzed, 87% expressed concerns about where tips or service charges were ending up.

The latest delay to the proposed legislation has angered unions. “Every year this government promises action to ensure fair tipping, and then does precisely nothing to deliver on that promise,” Sharon Graham, general secretary of Unite, the union, told the FT.

The government’s plans were set to help around 2 million people working in one of the 190,000 businesses across the hospitality, leisure and services sectors.

The tipping legislation was due to be included in a proposed employment bill, but that has reportedly been dropped too.