Government to legislate to ensure workers receive tips in full

24 September 2021

The Department for Business, Energy and Industrial Strategy (BEIS) has published its response to the consultation that explored ensuring the fair and transparent treatment of tips, gratuities, cover and service charges. 

An upcoming Employment Bill will include measures that ensure that tips, gratuities and service charges go to workers in full.  The legislative measures will mean that:

•    Employers in all sectors will not be able to make any deductions from tips received by their staff
•    Employers will be required to distribute tips through a fair and transparent process. There must be a written policy on tips, and records retained to show how tips have been dealt with. Employers may use a tronc to distribute tips. A tip must be dealt with no later than the end of the month following the month it was paid by a customer
•    Workers will be able to request information relating to an employer’s tipping record
•    Employers will have to regard a statutory Code of Practice on Tipping

Where employers fail to comply with these measures, they can be taken to Employment Tribunal.

The Employment Bill will be brought forward when Parliamentary time allows, and it is expected the rules will commence no earlier than one year after the Bill has passed.

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