The
Employment (Allocation of Tips) Act 2023 introduces a requirement for employers to give all
tips, gratuities and service charges to workers without any deductions. It also obliges employers to ensure that
tips are distributed fairly between workers.
Organisations will need to abide by a statutory
code of practice setting out principles of fairness and transparency.
The measures are due to come into force on 1 October 2024.
The Labour Government has indicated, in its pre-election
Plan to make work pay, that it intends to make further changes to ensure that workers, rather than employers, decide how
tips are allocated. The detail of these measures and when they will be brought into effect, is not yet known but it is expected that it may be included in the Employment Bill due to be published before the end of w/c 7th October.
Further
guidance was issued at end of September 2024.
