Tips

The law on tipping changed on 1 October 2024 when the Employment (Allocation of Tips) Act 2023 came into force, inserting a new Part 2B into the Employment Rights Act 1996. It was accompanied by a new statutory Code of practice on fair and transparent distribution of tips.

This made it mandatory for employers to pass on tips to workers and gave workers the right to request a copy of their tipping record that allows them to bring a tribunal claim when they are not receiving the tips they should be. It also requires employers in businesses where tips are left more than occasionally to have a tipping policy in place. While such a policy promotes transparency, employers are still allowed to decide how tips are allocated.

The Employment Rights Bill adds some further requirements to the policy. It will:

• require employers to consult trade union, workers’ representatives or workers directly over its tips policy before the policy is introduced;

• require the employer to review the tips policy at least every three years;

• make available the views expressed in the consultation to all workers.