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Last updated: 18 Nov 2024

Employment Allocation of Tips Bill is here

Mark Taylor provides the latest update on the Employment Bill announcement and shares what businesses in the hospitality sector can do to champion the allocation of tips now the legislation has come into effect.

Our article has been referenced in the UK Government's Employment (Allocation of Tips) Bill 2022-23: Progress of the Bill Research Briefing. Read the official documentation here.

What’s the Employment (Allocation of Tips) Bill?

The Employment Allocation of Tips Bill requires hospitality businesses to ‘fairly’ allocate 100% of tips to workers no later than the end of the month following the month in which the tips were paid by customers. As the law now stands, a tip is the legal property of the the employees. The Bill requires hospitality and leisure businesses to hold a written tipping policy and keep records of all received and ‘fairly’ allocated tips. The Bill is estimated to benefit approximately 2million workers in the hospitality sector.

The main thrust of the Bill appears to centre on ‘fairness’ of tip allocations, and while ‘fairness’ isn’t defined in the legislation, it will be within a statutory Code of Practice that ‘stakeholders' will agree upon.

About the author

Mark Taylor

+44 (0)20 7710 3389
taylorm@buzzacott.co.uk

What’s the Employment (Allocation of Tips) Bill?

What happens should you not comply?

Those that do not follow the new ruling could face employment tribunals and possible prosecution. Under the new legislation tribunals can award workers up to £5,000 to compensate them from any financial losses should their employee fail to comply with law.

What can my business do?

Our Tronc system already champions the allocation of tips, gratuities, and service charges to workers through tailored tronc systems that are fair, ethical, and protect our clients from any potential challenges from HMRC. We believe there will also be even more advantages to implementing an independent troncmaster once the new legislation has passed, given several potential legislative requirements of an employer would fall away. We are happy to work with any potential client so you meet all necessary tronc requirements and will guide you through any challenges that may arise with the new legislation.

Download our checklist

Download our Tipping Act and Code of Practice Checklist

With the Employment Allocation of Tips Bill (Tipping Act) and Code of Practice now live it's crucial for your business to ensure compliance. Download our free checklist today to ensure your business meets legislation requirements.

Download our checklist now

Get in touch

Call us today on +44 (0)20 7710 3389 or email troncmaster@buzzacott.co.uk. Alternatively, fill in the form below and a member of our team will be in touch.

Get in touch