A fairer way for the allocation of tips

Recent changes to the payment of tips in the United Kingdom, particularly in England, have been introduced to ensure that workers receive the tips they earn. The key changes are encapsulated in the Employment (Allocation of Tips) Act 2023 which came into force on the 1^st October 2024 and aims to make the distribution of tips fairer and more transparent. Here are the main points:

1. **Fair Distribution**: Employers are required to distribute tips, gratuities, and service charges fairly among workers. This includes both cash and card tips.

2. **No Deductions**: Employers are prohibited from making any deductions from tips, except for those required by law (e.g., tax).

3. **Written Policy**: Employers must have a written policy on how tips are distributed. This policy should be accessible to all workers.

4. **Record Keeping**: Employers are required to keep records of how tips are distributed for a period of three years.

5. **Right to Request Information**: Workers have the right to request information about the employer’s tipping record and policy. Employers must respond to such requests within four weeks.

6. **Enforcement**: Workers can take their complaints to an employment tribunal if they believe their employer has not complied with the new rules.

These changes are designed to ensure that workers receive the full benefit of the tips they earn and to promote transparency in the distribution of tips.

If you are not receiving your tips or have another issue regarding your employment, call 01202 512227 for a free initial 30-minute telephone appointment.