More Tips for the Hospitality Sector

June 7th 2023

The Employment (Allocation of Tips) Act 2023 received Royal Assent on 2 May 2023 will create new obligations on employers to allocate qualifying tips to workers. It is expected to be brought into force in May 2024. The government estimates that workers should receive £200 million more in tips that would otherwise have been deducted by their employer. A Statutory Code of Practice is intended to be issued by the Government in due course following a consultation later this year.  

Employers will also be required to have a written policy where tips are paid on more than an occasional and exceptional basis and maintain a record of qualifying tips and their allocation for 3 years. The Act gives equivalent rights to agency workers.

Millions to take home more cash as new law on Tipping passes