Following on from our last blog in May about the enforcement of Employment (Allocation of Tips Act) 2023, we can confirm that the Act was officially enforced at the start of this month (1st October 2024).
Under the Act, it will be unlawful for employers to withhold tips from staff, ensuring that employees receive all the tips they earn. Additionally, employers of businesses, where tips are routine, must have a tipping policy in place. Employees will have a new right to request a copy of their tipping record, to enable them to bring a claim to the Employment Tribunal where they believe they are not receiving tips they should be.
Along with the statutory Code of Practice discussed in our last blog that guides employers and workers in the tipping industry on fair and transparent allocation and distribution of tips, the Government has also added to this by recently issuing non-statutory guidance.
The non-statutory guidance includes:
- Clarification that tips must be distributed between workers at the place of business where the tips are received and cannot pool the tips received across multiple different sites and branches.
- Employers will need to account for agency workers when distributing tips.
- That it is the employer's responsibility in deciding what roles will be treated as being in-scope for the allocation of tips.
- Templates for tipping policies and tipping records are provided within the guidance.
- A reminder that failing to distribute tips and failing to provide tipping information can lead to claims in the Employment tribunal.
Employers in the hospitality, leisure and services sectors where tips are the norm should review their current processes and look at getting policies and procedures in place to comply with the new tipping laws.
For tailored solutions and expert assistance with employment-related matters, our experienced Employment Law specialists are here to provide tailored solutions that can make a real difference for your business. We understand that every business is unique, and we are committed to delivering solutions that meet your specific needs. Call us today at 0141 221 1919 for guidance. Let's work together to ensure you're on the right track with the new tipping laws!
