A cafe worker says she can give her grandmother extra presents this Christmas thanks to a new law that means staff will receive all tips from customers.

Leah Williams is one of thousands of cafe, restaurant and beauty salon workers in Wales who will benefit from the law change.

Businesses currently have the choice of keeping tips they receive via their card or passing them on to their employees. Cash tips, on the other hand, are for the staff.

Millions of workers in the UK are expected to earn a total of £200 million more, according to the UK government.

Mrs Williams said: “My grandmother is very important to me. I want 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’s indoor market and says the tips she received were “really important” to her as she started working there after leaving school at 16.

“It helps me a lot with my bills because the cost of living is going up. I drive my own car, I have to pay my insurance, taxes and phone bill,” she said.

In 2021, the UK government reported that 80% of all tips were given by card, suggesting it has become easier for businesses to keep the money.

The law, which comes into effect in Wales, England and Scotland in October, makes it illegal for businesses to withhold tips from their staff.

The new regulation also introduces a statutory code of conduct for fair and transparent tipping. This code is intended to give employees the right to view their employers’ tipping policy and to obtain an overview of the amount of tips given.

Jenny Morgan, owner of Full of Graze café in Mumbles, Swansea, says tips are always paid to her staff immediately after each service. It is only recently that tips have been accepted by card.

She said she thought the new law would “encourage more customers to tip.”

“I love it because customers know that the tips go directly to the person who helped them,” she said.

“If staff know that they are getting tips or benefits for working, I definitely think it would encourage more staff to come into the sector.”

Dr Robert Bowen, a lecturer in business at Cardiff University, said the new legislation would make things “fairer” for workers.

He said: “It is true that in some cases companies withhold tips from their staff, so with this action we prevent that.

“Companies will have to develop a code of conduct and come up with their own procedures for dealing with tips.

“They collect all the tips, have to pay taxes on them, and how the tips are distributed is up to the company.

“They may do so on the basis of experience, but they may not discriminate on the basis of age, gender or whether employees have a disability.”

In Swansea city centre, shoppers welcomed the change.

Glenda Keane said: “The staff work hard for their money, so wherever we go we tip. You tip abroad, so why not here?”

Joe Young said he has worked in many different roles in the hospitality industry over the past four years.

“You work hard for your tips, and people have a different work ethic than the people they bring to work,” he said.

“Some people give a lot more than others, so I think you should be able to keep the tips you get.

“It really makes a big difference, and some people really rely on tips.”

Christina Cole added: “I tip when I can. If you get good service, it’s important to be nice back.”