Last week, finally, legislation came into force to ensure that employers in the hospitality sector are legally obligated to pass on all tips to staff. Good news of course, though it is staggering that it took so long for this ridiculous stage of affairs to be rectified. Previously employers were compelled to pass on cash tips, however tips made through card payments – increasingly the dominant form of payment – could be retained by companies going into the pockets of bosses or as deductions for breakages or “dine and dash” incidents. Now, if employers are not transparent and fair in the distribution of tips a breach through a complaint could bring penalties. Tribunals will be given new powers to compensate workers for up to £5,000 for such a breach. As well as restaurants and pubs, operations such as hairdressers and taxi operators will be covered too.

The issue of tip retention first became a campaigning issue for the STUC when we launched our Better than Zero campaign a decade ago, focussing on low pay, zero hours contracts and other abuses of workers in the hospitality sector. The creation of Unite the Union’s Unite Hospitality, first in Scotland, and now across the UK has become the driving force for increased unionisation in the hospitality sector and, with it, campaigning wins such as the one we saw last week. For nearly a decade, workers have highlighted the issue, naming and shaming major companies who were trousering workers’ tips and organising within workplaces to challenge policies and reform tronc systems which are frequently used to distribute gratuities amongst staff.

The measure is expected to boost wages by putting £200 million back into the pockets of low-paid workers. The measure enjoys massive public support. Who wants to think that the money they pay in recognition of staff service will be snaffled up by the employer? Even hospitality bosses were compelled to welcome the legislation, even if they did so coolly and with an array of caveats. It is often said by them that the majority of hospitality employers already pass on all tips. Whilst this may or may not be true, research published earlier this year by hospitality consultants Three Rocks found that just 28% of hospitality companies are currently compliant with the new Act.

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However welcome, the Tips Act simply rectifies one area of concern over the treatment of the 220,000 hospitality workers in Scotland. On the 28 September the Fair Work Convention launched the findings of its two-year inquiry into working conditions into Hospitality. Its findings are stark. The sector accounts for a third of all zero hours contracts in Scotland. One in eight have no written contract of employment. Nearly half earn less than the Real Living Wage. Over the years we have heard countless stories of the insecurity that this forces upon a largely younger workforce with a high proportion of ethnic minority and migrant workers. Late notice of shifts is common, workers are often unable to take breaks and still have breaks deducted from pay. Uncertainty of finish times is common leading to further problems.

Much is made by employers in the sector of the flexibility they offer. Yet the Fair Work Convention found that this was not workers’ experience at all. It found that many workers do not consider the sector to be flexible for their needs. This is particularly true for those who are balancing other responsibilities outside work such as caring g responsibilities (predominately women), education (predominately younger workers) or other work commitments.

Safety is a major issue. The accommodation and food services sector has the third highest rate of non-fatal workplace injury of any sector of the economy after agriculture and construction. Workplace bullying is a major problem as is sexual harassment. A survey by Unite the Union in January 2018 found that 9 in 10 hospitality workers had experience of sexual harassment. Over half of those who had experienced sexual harassment said that the perpetrator was a customer. And the risks do not begin at the door of the workplace. The combination of late-night working, uncertainty over finishing and low pay combine to make a toxic mix which means that too many people, most often women, are subject to dangerous journeys to and from work. Again, we have heard countless reports over the years of people being attacked walking home from work because no public transport was available and they could not afford, on their salaries, regular taxis home.

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Whilst there remains a high turnover in hospitality jobs and many leave the sector after studying or because they achieve employment in another chosen path, the number of those for whom hospitality is a job for life, with the financial insecurity this brings, is growing.

The hospitality and wider tourism industry have been highly vocal over recent years, and particularly since the onset of the pandemic in demanding support from government in the form of rates reliefs and other support. Hospitality is a key part of the service sector which in turn has been playing an increasing and indeed dominating role in the economy. UK Hospitality claims that between 2015 and 2022, over the hospitality has increased its annual economic contribution by £20 billion to £93 billion. Nevertheless, the importance of an economic sector does not rest solely on the numbers. Quality employment and rising productivity are at least as important. Here the sector does far less well. We need a push at both UK and Scottish level to improve job quality and reward. In some cases, this may mean prices have to rise as the sector’s bosses claim, but there is plenty of scope through improved working conditions and practices to increase turnover and productivity.

A good place to start would be the Fair Work Convention’s recommendations for a Fair Work Hospitality Charter which gives a very big nod in the direction of Unite the Union’s own existing document. As recently reported in this paper, priorities include payment of at least the real living wage, promotion of real living hours, the provision of written contracts for all workers, tips policies that are clear, fair and in line with legislation, access to paid training and development and supporting workers to understand their rights and entitlements at work. It should include commitments to supporting safe travel home for staff as well. Trade unions and young activists have worked hard over the past decade to win an understanding of an obvious yet often ignored fact. Hospitality work must be treated in the same way as other forms of work. Its workforce deserves the same respect, security and opportunities as any other worker. Hospitality workers get it, it's why they have begun to join the union in significant numbers. It’s now time for everyone to get on board with that too.

* Roz Foyer is General Secretary of the STUC