• Home
  • Resources
  • Major shakeup for handling staff tips due to launch soon

Major shakeup for handling staff tips due to launch soon

Code of practice proposed to help with fair distribution of tips
Peninsula Logo

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.

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and Health & Safety questions

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?

  • Home
  • Resources
  • Major shakeup for handling staff tips due to launch soon

Related articles

  • polling station

    Blog

    What could a general election mean for employment law?

    Here's what the big three have each vowed to do should they come away with an election win.

    Peninsula TeamPeninsula Team
    • Employment Law
  • compensation pay

    Blog

    Directors involved in BHS collapse must pay £18.3m in compensation

    The High Court has ruled that two directors of collapsed retailer BHS must pay £18,364,448 in compensation to creditors to stop corporate risk-taking

    Peninsula TeamPeninsula Team
    • Dispute Resolution
  • NIC

    Blog

    Conservatives plan NICs abolition for self employed

    After a difficult week, PM Rishi Sunak has set out a raft of tax measures at the Conservative manifesto launch with plans to abolish main NICs rate for four million self employed workers

    Peninsula TeamPeninsula Team
    • Employment Law
Back to resource hub

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.