A cafe worker says she will be able to treat her grandmother to extra gifts this Christmas thanks to a new law which means staff will receive all tips left by customers.

Leah Williams is one of thousands of workers in cafes, restaurants and beauty salons across Wales who will benefit from the legislation change.

Companies currently have the choice whether to keep tips made via card or pass them on to employees, while cash tips belong to staff.

According to the UK government, millions of workers in the UK are expected to take home a total of £200m more.

Ms Williams said: “My nan’s really important to me, I feel like I want to give her the world but I can’t.”

The 25-year-old, who lives with her grandmother, works at Greedy Fellas cafe in Swansea indoor market and said the tips she received were “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 going up. I run my own car, I need to pay my insurance, tax and my phone bill,” she said.

In 2021, the UK government said 80% of all tipping was taking place with a card, suggesting it had become easier for businesses to keep the money.

The law, which will come into force across Wales, England and Scotland in October, will make it illegal for businesses not to pass the tips on to their staff.

Under the new regime, a statutory code of conduct on fair and transparent tipping will also come into force, aimed at giving employees the right to see their employers’ tipping policies and a record of how many tips are given.

Jenny Morgan, who owns Full of Graze cafe in Mumbles, Swansea, said tips were always distributed to her staff directly after each shift, with card tips only recently being accepted.

She said she thought the new act would “encourage more customers to give tips”.

“I think it’s great, because customers will know the tips will be going directly to the individuals that served them,” she said.

“If the staff know they’re going to get tips or benefits by working, I definitely think it could encourage more staff to work in the sector.”

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

He said: “It’s true in some instances that business do withhold tips from staff, so this will stop that from happening.

“Businesses will have to put a code of practice in place, they’ll have to come up with their own processes of how they deal with tips.

“They’ll collect all of the tips in, they’ll have to pay tax on those tips, and then how the tips are paid out is up to the business.

“They’re allowed to do that on the basis of experience, but they can’t discriminate on age or gender or whether workers 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 do tip, you give it abroad so why not here?”

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

“You work hard for your tips, and there’s different work ethics that people bring 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 does make a big difference, and some people do rely on tips.”

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