All tips to go to staff under government plans
Consultation response. The government has published its response to its 2016 consultation on tipping, gratuities, cover and service charges and has confirmed that it will legislate to ensure that all such payments go to workers in full, with employers being required not to make any deductions (other than those required by tax law, see Follow up ). The provisions will be included in the Employment Bill, to be brought forward “when parliamentary time allows” .
Other provisions. Employers will be required to distribute tips in a fair and transparent way, including via tronc systems if they wish, and they must have a written policy on tips and a record of how tips have been dealt with. A tip must also be dealt with by no later than the end of the month following that in which it was paid by the customer. Workers will be able to request information relating to an employer’s tipping record. A breach of these obligations will be enforced in employment tribunals.
Pro advice. There will also be a statutory Code of Practice on Tipping.
Tipping consultation: government response
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