The government have introduced legislation which is to provide guidance for the distribution of tips among staff. The Employment (Allocation of Tips) Act 2023 received Royal Assent last week and is likely to take effect in about one year’s time.
It requires employers to ensure all tips and service charges are allocated fairly between its workers, and employers will be required to have regard to a Code of Practice which is being developed. The Act also compels employers to have a written policy on how it deals with tips and to keep records of all tips and service charges received for a period of three years.
We will update you further as soon as the guidance is published.