New law on allocation of tips and accompanying Code of Practice in force from 1st October 2024

Key features of the Act include:

• employers are required to pass on tips in full to workers; 
• tips must be allocated in a fair and transparent way;
• employers of businesses where tips are left more than occasionally are required to have a tipping policy in place; 
• tips must be distributed within one month following the month in which they were received;
• workers have a right to request a copy of their tipping record in order to enable them to bring a claim to employment tribunal where they believe they are not receiving tips they should be; 
• employers are required to maintain a record of how every tip has been dealt with for three years from the date the tip was paid; and
• employers must have regard to the new statutory Code of Practice when distributing tips. 

August 2024