BBCA cafe worker says she can give her grandmother extra gifts this Christmas because of a new law that requires staff to keep all of the tips left by customers.
Leah Williams is one of thousands of employees in cafes, restaurants and beauty salons across Wales who will benefit from the change in the law.
Businesses currently have the choice of whether to keep tips paid by card or pass them on to employees, while cash tips belong to the employees.
According to the British government, millions of workers in the UK are expected to bring home a total of £200 million more.
Mrs Williams said: “My grandmother is really important to me. I would love to give her the world, but I can’t.”
The 25-year-old, who lives with her grandmother, works at the Greedy Fellas cafe in Swansea Market Hall and said the tips she received there had been “really important” to her since she started working there after leaving school at 16.
“It helps me a lot with my bills because the cost of living is rising. I have my own car, I have to pay my insurance, taxes and my phone bill,” she said.
In 2021, the UK government reported that 80% of all tips were paid by card, suggesting that it had become easier for businesses to keep the money.
The law, which comes into force in Wales, England and Scotland in October, makes it illegal for companies not to pass on tips to their employees.
The new rule also introduces a legal code of conduct for fair and transparent tipping, which will give employees the right to see their employer’s tipping policy and receive a record of the amount of tips given.
Jenny Morgan, owner of Full of Graze cafe in Mumbles, Swansea, said her staff were always paid tips straight after each shift and that card tips have only recently been accepted.
She said the new law would “encourage more customers to tip.”
“I think it’s great because customers know that the tip goes directly to the people who served them,” she said.
“If employees knew that they could get tips or perks from their work, I think that could definitely encourage more employees to work in this sector.”
Dr Robert Bowen, senior lecturer in business studies at Cardiff University, said the new legislation would create “fairer” conditions for workers.
He said: “It does happen that companies withhold tips from their employees in some cases. This will now be prevented.
“Companies must introduce a code of conduct and develop their own processes for dealing with tips.
“They collect all tips, have to pay taxes on them and how they are then paid out is up to the company.
“They can do that on the basis of their experience, but they cannot discriminate against employees on the basis of age, gender or whether they have a disability.”
In Swansea city centre, shoppers welcomed the change.
Glenda Keane said: “The staff work hard for their money. Wherever we go, we tip. People do it abroad, so why not here?”
Joe Young said he has worked in many different positions in the hospitality industry over the past four years.
“You work hard for your tips and people bring different work ethic to work,” he said.
“Some people give a lot more than others, so I believe you should be able to keep the tips you get.
“It makes a big difference and some people actually depend on tips.”
Christina Cole added, “I tip when I can. When you get good service, it’s important to be nice.”
