New Bill Seeks to Safeguard Employee Tips in Hospitality and Service Sectors
AKEL’s proposal triggers debate in Parliament over legal protections for workers and employer practices surrounding gratuities.
A legislative debate began on Tuesday in the Parliamentary Labour Committee on a bill proposed by AKEL concerning gratuities (tips), aiming to regulate the process and ensure fair distribution of tips to employees.
Following the session, AKEL MP Giorgos Koukoumas stated that the bill primarily targets employees working in hotels, restaurants, cafés, delivery services, and other businesses where tipping is customary.
"The essence of AKEL's bill is the principle that tips belong to the employees and must be fully passed on to them by the employer," Koukoumas said. He added that the party introduced the bill after receiving complaints about employers withholding tips or using them to cover part of the agreed wages.
“Today’s discussion made clear—predictably—that there is strong disagreement and skepticism from employers' associations and business owners in the hospitality sector. At the same time, however, the Ministry of Labour acknowledged that a legal gap exists on this issue,” Koukoumas stated.
He emphasized that, currently, if an employer withholds tips, workers have no legal protection.
“There is also recognition that, to varying degrees, this practice is taking place—some employers do withhold tips,” he added.
“This practice is anti-worker and unethical, both towards employees and customers,” Koukoumas continued. “We have studied a series of laws in other countries—Ireland, the United Kingdom, Greece, France, and Germany—and we have submitted this bill to legally affirm that tips belong to employees and must be distributed to them.”