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I recently spent time in the US where tipping is normal and expected. There, often it makes up a worker’s basis wage to the ‘minimum wage’.
In the UK tipping is much more discretionary but now laws are coming into place to govern how businesses manage tips.
The Employment (Allocation of Tips) Act 2023 comes into force on 1st October 2024. It is accompanied by a statutory Code of Practice providing further guidance.
From 1st October 2024:
a business will be required to pass on all tips in full to its workers.
Where tipping is a regular occurrence, businesses must have a ‘Tipping Policy’ in place
Tips must be distributed fairly and transparently within one month.
Business must also have a record of all tips received by an employee incase they are challenged in an Employment Tribunal.
If you need any advice and guidance in how to comply with this change do get in touch.
To tip or not to tip?
I recently spent time in the US where tipping is normal and expected. There, often it makes up a worker’s basis wage to the ‘minimum wage’.In the UK tipping is much more discretionary but now laws are coming into place to govern how businesses manage tips.
The Employment (Allocation of Tips) Act 2023 comes into force on 1st October 2024. It is accompanied by a statutory Code of Practice providing further guidance.
From 1st October 2024:
a business will be required to pass on all tips in full to its workers.
Where tipping is a regular occurrence, businesses must have a ‘Tipping Policy’ in place
Tips must be distributed fairly and transparently within one month.
Business must also have a record of all tips received by an employee incase they are challenged in an Employment Tribunal.
If you need any advice and guidance in how to comply with this change do get in touch.
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