Yet more changes on the way for tipping

The Allocation of Tips Act 2023 came into force in October. The statutory obligations for employers are detailed in the Code of Practice  on the fair and transparent allocation and distribution of tips. But now the government has added some non-statutory guidance.

Tipping non-statutory guidance for employers:

• Tips can’t be pooled across multiple sites or different branches.
• Employers must include agency workers when considering the distribution of tips.
• Employers are responsible for deciding (and justifying) what roles are in-scope for the allocation of tips. Everyone providing direct service to customers should be included.
• Have a tipping policy and tipping record template in place.
• Failure to distribute tips and to provide tipping information can lead to claims in the Employment tribunal.

The Employment Rights Bill clarifies and firms up the requirement for employers to implement and maintain a policy on tips, by requiring employers to submit to increased worker and trade union involvement in the process. In brief, the provisions require employers:

• To consult with trade union or worker representatives before implementing a tipping policy.
• To consult with trade union or worker representatives whenever the tipping policy is reviewed (which must happen at least once in the first three years after implementation and every three years thereafter).
• To publish a summary of comments gathered from these consultation processes.

It is important to remember that the Bill is currently going through Parliament and that these changes are unlikely to be implemented until 2026 at the earliest.

Further reading

• Employment Rights Bill: factsheets – GOV.UK
• Will the Employment (Allocation of Tips) Act 2023 end tipping?