A MILLION restaurant, pub and hotel workers will benefit from a new bill confirmed by the Queen that forces employers to hand over all tips.

Businesses don't follow a compulsory code when it comes to tipping, which means they aren't required by law to pass on gratuities to staff.

A number of big restaurant chains were criticised last year for holding back as much as 10 per cent of tips, typically when paid by card, to cover administration costs.

But companies face being barred from doing this under the Employment (Allocation of Tips) Bill - a plan which was first put forward by the government in 2018.

This will see all tips, gratuities and service charges passed onto workers in full, as well as making sure the extra cash is distributed fairly.

It will also ensure businesses are clear to customers about how their tips are shared out between staff.

Around 1.7million people work in food and accommodation services in the UK, according to latest Office for National Statistics (ONS) figures.

The government estimates the new bill could benefit 1million of these workers on minimum wage should it be passed into law.

It comes after the government highlighted concerns over a rise in unfair tipping practices, with more than 80 per cent of tips now being made on card.

Back in 2015, it was revealed high street shops were taking up to 10 per cent of tips paid by card, while this dropped to 2.5 per cent following public outcry in 2018.

The new bill will apply to companies in England, Scotland and Wales.

Announcing it, the Queen said: “My government will take steps to make work fairer, introducing measures that will support those working hard.”