Allocation of Tips Act from 1 October 2024
Allocation of Tips Act from 1 October 2024
The Employment (Allocation of Tips) Act 2023
New Legislation 1 October 2024
The Employment (Allocation of Tips) Act 2023 also known as the Tips Act or Tipping Act received Royal Ascent on 2nd May 2023. The purpose of this Act is to regulate how employers allocate tips amongst their staff to ensure that they receive those services charges, tips and gratuities in full and that they are allocated in a fair and transparent way.
Further to our employment law update in March 2024 (Employment (Allocation of Tips) Act 2023 – Kerseys Solicitors) it is now confirmed that from 1st October 2024 this new legislation will require employers to ensure a fair and transparent distribution of service charges, tips and gratuities to all staff. Employers will be required to have a written policy in place and that all staff are made aware of the policy.
Further, employers will be required to keep records of how the tips that are paid on a “more than occasional and exceptional basis” are distributed for at least three years and further workers will be able to request to see copies of these records.
Employers must have regard to the Code of Practice on Fair and Transparent Distribution of Tips (the Code) (also in force from 1st October 2024) when implementing their Tips Policy and practices. The Code sets out the key principles of fairness and provides suggestions on how employers can apply them to their business. The Code applies to all staff to include agency workers but it does not apply to the self-employed.
How Kerseys Solicitors can help
If you have any enquiries regarding the allocation of tips, please contact Annalie King, Partner and Head of our Employment Law team or Rosie Brighty, Trainee Employment Solicitor at Kerseys Solicitors. You can contact Annalie King or Rosie Brighty by telephone at Kerseys Solicitors in Colchester 01206 584584, Kerseys Solicitors in Ipswich 01473 213311 or Kerseys Solicitors in Felixstowe on 01394 834557 or email us at [email protected].
Kerseys Solicitors are just a click away visit our website and click “Call Me Back” and a member of our Employment Law team will be happy to contact you at a time that is convenient to you.
