New law on allocation of tips

The Employment (Allocation of Tips) Act 2023 and its accompanying statutory Code of Practice will come into force on 1st October 2024.This was confirmed by commencement regulations for the Act and Code of Practice which were laid before Parliament yesterday. Key features of the Act include:

• employers are required to pass on tips in full to workers; 

• tips must be allocated in a fair and transparent way;

• employers of businesses where tips are left more than occasionally are required to have a tipping policy in place; 

• tips must be distributed within one month following the month in which they were received;

• workers have a right to request a copy of their tipping record in order to enable them to bring a claim to employment tribunal where they believe they are not receiving tips they should be; 

• employers are required to maintain a record of how every tip has been dealt with for three years from the date the tip was paid; and

• employers must have regard to the new statutory Code of Practice when distributing tips. 

Thanks to Daniel Barnett.