The introduction of a new law around employees’ tips has been pushed back from July to October.
The Employment (Allocation of Tips) Act 2023, which makes it unlawful for employers to withhold tips from employees, was due to be enacted on 1 July 2024, but the Department for Business and Trade last week revealed it will now be implemented in October, once the changes have been approved by Parliament.
Employers will be required to pass on tips and service charges to their staff. Businesses where tips are left more than occasionally will be required to have a tipping policy, and will be required to abide by a new statutory code of practice on fair and transparent distribution of tips.
Workers will also have a new right to request an organisation’s tipping record so they can bring a claim to an employment tribunal if they believe they are not receiving the tips they are entitled to.
Business and trade minister Kevin Hollinrake said: “It is not right for employers to withhold tips from their hard-working employees.
“Whether you are cutting hair or pulling a pint, this government’s legislation which will protect the tips of workers and give consumers confidence that when they leave a tip, it goes to the hardworking members of staff.
“The secondary legislation laid [on 22 April] reinforces our commitment to legally protecting our low paid workers and ensuring a fair day’s pay for a fair day’s work.”
Kate Nicholls, chief executive of business lobby group UKHospitality, said delaying the tipping law’s implementation was an appropriate step.
“The revised timeframe will now allow businesses to implement any changes required and is evidence of government acting on feedback from UKHospitality,” she said.
However, she said it was disappointing that the government had not provided greater clarification about how the law will apply to agency workers.
“Given the desire from all parties involved to get this legislation right, we would urge government to work with UKHospitality on providing greater clarity on this issue before the legislation comes into force in the Autumn,” said Nicholls.
In its response to its consultation on the code of practice, the government said it would prepare non-statutory guidance and communications to support businesses to implement the new rules.
When asked if they had ever sought agreement from or consulted their staff on the distribution and allocation of tips, 57% of employers reported to the government that they had done this, while 32% said they had not. However, 73% of workers reported their workplace had not consulted staff, and only 27% said they had.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Sixty-one per cent said their organisation already made their tipping policy available to staff, 21% did not and 18% were not aware of their workplace having a policy.
Reward, compensation and benefits opportunities
Browse all comp and benefits jobs
