28-09-2021
Government confirms plans for all tips to go to workers

The government has published its response to its 2016 consultation on tipping, gratuities, cover and service charges and has confirmed its intention to bring forward legislative measures to ensure tips, gratuities and service charges go to workers in full. The legislative measures will include:

  • requirements for employers in all sectors to not make any deductions from tips received by their staff, including admin charges, other than those required by tax law
  • requirements for employers to distribute tips in a way that is fair and transparent, with a written policy on tips, and a record of how tips have been dealt with. Employers will be able to distribute tips via a tronc, and a tip must be dealt with by no later than the end of the month following the month in which it was paid by the customer
  • provisions to allow workers to make a request for information relating to an employer’s tipping record. Employers will have flexibility in how to design and communicate a tipping record, but they should respond within four weeks
  • requirements for employers to have regard to a new statutory Code of Practice on Tipping which will support the legislation.

Where employers fail to comply with the new measures, workers will be able to bring employment tribunal claims.

The provisions will be included in the upcoming Employment Bill which will be brought forward when parliamentary time allows.

Source: Department for Business, Energy & Industrial Strategy | 23-09-2021

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