By Kate Palka
Applying to hospitality businesses, including restaurants, bars and cafes, the Employment (Allocation of Tips) Act 2023 introduces new rules around tips and tipping, and comes into force on 1 October 2024. We’ve covered details of the new act in a previous update: The Employment (Allocation of Tips) Act 2023.
To support employers with implementation of the new measures, the government has issued a statutory Code of Practice on the fair and transparent distribution of qualifying tips. The code:
- Clarifies what payments constitute qualifying tips;
- Specifies what workers are included in the act;
- Sets out the key principles of fairness that should be considered; and
- Provides information about alternative methods for allocation and distribution of tips.
It also offers some guidance about one of the key provisions of the Act – the requirement to create a written tipping policy. The policy must include:
- How tips are accepted;
- How they are allocated and distributed; and
- What steps the employer takes to ensure they are handled fairly and transparently in accordance with the Act.
Another key section of the code covers how to address problems and resolve issues. The code points to the Acas Code of Practice on disciplinary procedures as a useful tool for both employers and workers.
Getting prepared
Before the Act comes into effect, it is worth familiarising yourself with both the draft code and the Acas guidance.
Review your current practices and your tipping policy if you have one. And, if you would like our help updating or creating a tipping policy, please do get in touch on 020 3056 8538 or info@thelegaldirector.co.uk.
And don’t forget to sign up for the upcoming Lunch and Learn on 8th May for further employment law updates.
