New tipping law: what should employers be doing now?

From 1st October, employers are required under the?Employment (Allocation of Tips) Act 2023?to ensure that tips, gratuities and service charges are passed on to their workers without deductions, and distributed among them in a fair and transparent way.?

They must have a written policy and maintain a record of all tips received and distributed in the previous three years. Workers will have a right to see an employer’s tipping record.

The new legislation is supported by a?statutory code of practice?which sets out the key principles of fairness. The code:

• Allocating and distributing tips fairly does not necessarily require employers to allocate the same proportion of tips (rotas etc).
• Employers should use ‘clear and objective’ factors to determine the allocation and distribution of tips - type of role; basic pay rates; hours worked; individual and/or team performance; seniority/level of responsibility; and customer intention.
• Employers should also consult and ensure employees are happy to be part of the scheme and its format
• Troncs are similarly affected and need the same level of scrutiny, and also need the correct level of 3rd party oversight

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Appreciating there are great benefits for your workers as well as your business but adopting these policies, and working with compliant solutions can drive a number of benefits.? Keeping both staff and customers happy, knowing they are receiving all of the tips as intended.

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https://www.peoplemanagement.co.uk/article/1889896/new-tipping-law-employers-doing-now

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https://www.gov.uk/government/news/millions-to-take-home-more-cash-as-tipping-laws-come-into-force#:~:text=Introduced%20through%20a%20Private%20Members,on%20to%20workers%2C%20without%20deductions.

#payments #tipping #hospitality

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