Royal Assent for Employment (Allocation of Tips) Act 2023
New law
Once in force, the Employment (Allocation of Tips) Act 2023 (see Follow up ) will amend the Employment Rights Act 1996 to make it unlawful to withhold tips, gratuities and service charges from workers (see Follow up ). The full amount of tips will have to be allocated fairly between workers of the employer at that place of business, and then paid to them no later than the end of the month following that in which they were paid by customers. Affected employers will also be required to: (1) have a written policy on tipping; and (2) keep written records of their tipping practices for a rolling period of three years. Workers will have a right to request information relating to these records.
Pro advice. The measures in the Act are expected to come into force in 2024.
Code of Practice
The Act will be supported by a new statutory Code of Practice providing guidance on how tips should be fairly distributed, and this will be subject to formal consultation later this year.
Employment (Allocation of Tips) Act 2023
Government press release