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Major shakeup for handling staff tips due to launch soon

Code of practice proposed to help with fair distribution of tips
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Peninsula Team, Peninsula Team

(Last updated )

The Employment (Allocation of Tips) Act 2023 aims to ensure that all tips are passed on to workers without deductions

The Act requires that tips be passed on to workers in full, with very limited exceptions; that businesses have a tipping policy and provide this to their workers; that businesses keep records on distribution of tips; and gives workers a new right to request a copy of their tipping record, enabling them to bring a claim to employment tribunal in order to enforce their rights.

The Department for Business and Trade (DBT) has now decided that a statutory code of practice is needed to provide guidance to employers and workers in tipping industries on the fair and transparent allocation and distribution of tips.

It has therefore issued a draft code, which will apply in England, Scotland and Wales and invited businesses, workers, customers and other interested parties to comment on its provisions.

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Details of this consultation, together with a copy of the draft code, can be found here and the deadline for responding to the DBT is 22 February 2024.

The code defines qualifying tips, qualifying workers, transparency and the key principles of fairness and methods of allocation and distribution (including troncs).

It states that an employer should ensure they have fair processes in place for resolving issues and responding to queries from workers who have not received the share of tips they expected to. For the purposes of fairness, employers should ensure they give equal weight to queries from agency workers as they do to their own, directly employed, staff.

For more information on the new tips law, visit BrAInbox today where you can find answers to questions like When the new law on tips comes into effect, do I have to share tips equally amongst staff?

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