The Government has delayed the introduction of tighter laws on tipping under the Employment Rights Act 2025 (ERA 2025) after criticism of the Government’s plans from the trade union, Unite.
On 29 June 2026, the Government published a response to its consultation on strengthening the law on tipping as part of its Plan to Make Work Pay, along with a draft updated Code of Practice on Fair and Transparent Distribution of Tips. However, Unite called for the draft Code to be withdrawn, saying that the Government had “reneged on its promise to give workers full control on the allocation of tips” as the updated Code required “employers to merely consult on how tips will be allocated”.
The Government has now updated its consultation response to confirm that a new public consultation on the draft revised Code will be held before a final revised Code is produced and laid before Parliament.
In July 2026, the Government published a revised timetable for implementation of the remaining reforms that are set to be introduced under the ERA 2025 during 2026/27. Under the revised timetable, measures to strengthen tipping laws which were previously expected in October 2026, are now due to come into force “by the end of 2026”.
