18 December 2023

To support the measures brought by the Employment (Allocation of Tips) Act 2023, the Department for Work and Pensions (DWP) has launched a draft code of practice for employers to comply with the new requirements.

The code of practice covers why the measures are being introduced and their stated aims, as well as:

  • scope
  • fairness
  • transparency
  • addressing problems

Payroll service professionals operating as troncmasters will need to keep abreast of the changes and how they structure the allocation of tips. Although in this situation it would always be the employer who is ultimately responsible, as with other payroll processes such as PAYE.

Additionally, payroll professionals working in industries accepting tips will be required to understand the requirements, including the right by employees to access their tipping records and how fast tips should be paid to employees.

The code is open for consultation until 4.30pm on 22 February 2024. If you have any comments for the DWP regarding the code, how it works, or anything you require clarifying then we strongly urge you to respond. If you have any comment for the CIPP please email them to [email protected] and we can take them into account and hand them over to the DWP, either through the consultations or in separate conversations.

The act itself will come into effect on 1 July 2024 in England, Scotland and Wales, so you still have some time to prepare for the additional duties. Prepare now to comply as non-compliance will risk tribunal proceedings.

Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.