Thursday 30 June 2022 11:03 AM MP urges Commons to unite behind legal push to allow workers to keep ALL their ... trends now MPs urged to unite to back new tipping law that would help millions of workers keep ALL gratuities from customers by closing a debit and credit card loophole that lets COMPANIES keep them Tory Dean Russell will attempt to close cred and debit card loophole next month Cash tips are already covered by law but card payments can be kept by bosses The Government ran out of time to get a similar law into place earlier this year By David Wilcock, Deputy Political Editor For Mailonline Published: 10:37 BST, 30 June 2022 | Updated: 10:56 BST, 30 June 2022 3 Viewcomments MPs have been urged to unite behind a fresh push to pass a law allowing hospitality staff and other works to keep all their tips. Tory Dean Russell will attempt to close a loophole next month that allows firms to withhold gratuities from staff if they have been made using credit or debit cards. The Watford MP aims to use a private members bill to bring in the change after the Government ran out of time to get a similar law into place earlier this year. The change was first mooted by ministers six years ago. Supporters of the law change say it would help up to two million workers who earn the minimum wage increase their take-home. But he faces pushback from the hospitality industry, which argues that firms should be allowed to use some of the money to cover transaction costs. Mr Russell, 46, told MailOnline his Employment (Allocation of Tips) Bill would block bosses 'from retaining tips which are intended for the staff who provide the service to customers'. Tory Dean Russell will attempt to close a loophole next month that allows firms to with-hold gratuities from staff if they have been made using credit or debit cards. The Watford MP will use a private members bill to bring in the change after the Government ran out of time to get a similar law into place earlier this year. The change was first mooted by ministers six years ago. 'It is important that each business is given the opportunity to talk to their staff about how tips will be allocated,' he said. 'Some businesses will share tips evenly between the whole team, whereas other businesses may decide that each team member can retain the monies they earn individually. 'As long as there is a collective decision, I am confident this scheme will work well for everyone. 'When the Bill has its second reading, I hope that colleagues will unite on this issue as it will support many people in all of our constituencies.' The bill was introduced earlier this month and will face a Commons vote next month. In May ministers quietly dropped plans for a new law forcing bosses to let staff keep all of their tips. The new plans had been announced last September that would make it illegal for businesses to siphon off gratuity money from card payments. Restaurant owners are already banned from keeping cash tips left for waiting staff, but there is nothing to stop them taking a cut when the bill is settled by debit or credit card, which has become increasingly popular as cash use was discouraged in the pandemic. Research has shown businesses that operate with an optional service charge for parties or gatherings often keep part or all of said charges, instead of divvying them up among staff. Union chiefs wrote to Business Secretary Kwasi Kwarteng last year, warning that the fall in cash payments and employers 'interfering' with tips has created a 'perfect storm' that has wiped out recent rises in the Living Wage and Minimum Wage. But sector leaders have cautioned that firms should be allowed to keep some of the money because customers using cards leads to bills for firms. Kate Nicholls, the chief executive of UKHospitality, said: 'We want to see as much of the tips and service charge reach hardworking hospitality staff as possible, as this can make up a valuable proportion of their income. 'There are, however, costs involved for businesses in processing, administering and distributing the money involved, not to mention bank charges. 'Key to achieving an equitable system therefore, lies in balancing the two. An efficient system that ensures tips are shared fairly amongst all employees who contribute to providing great service, while not costing businesses that are already reeling from rising costs across the board, is key and we want to work with the Government, MPs and other stakeholder to make this possible.' But Unite national officer for hospitality Dave Turnbull said: 'Legislation is urgently needed on this issue. We would prefer the government to deliver on its promise to legislate but it has been left to a private member's bill which lacks the detail necessary. 'We do not agree there is any need to for employers to deduct anything to administer tips. Admin fees have largely been abolished in the casual dining sector and casinos. Employers have a very generous National Insurance concession on this matter which more than accounts for any minimal cost of processing tips into a pay.' Share or comment on this article: All rights reserved for this news site (dailymail) and under his responsibility