"Please see below upcoming legislation changes in relation to tips!"
Reference
2023 Chapter 13
Stage
Forthcoming Legislation
Effective
1 October 2024
Description
The Employment (Allocation of Tips) Act 2023 will create a legal obligation on employers to allocate to workers all tips, gratuities and service charges which they are paid or over which they exercise control or significant influence, without making any deductions.
Summary
The Employment (Allocation of Tips) Act 2023 will create a legal obligation on employers to allocate to workers all tips, gratuities and service charges which they are paid or over which they exercise control or significant influence, without making any deductions. It will also require employers to ensure that the distribution of qualifying tips between workers is fair.
The measures in the Act will be supported by a statutory Code of Practice that will provide businesses and staff with advice on how tips should be distributed. The draft Code was subject to consultation early in 2024.
The Act also provides:
• a new right for workers to request more information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal
• remedies to be made available to the employment tribunal where employers fail to comply with their obligation, including the ability to order an employer to make a payment to one or more of its workers
• a requirement to provide workers with a written policy on how tips are dealt with, which will apply to any business where tips are paid on more than an occasional and exceptional basis.
Commencement regulations will bring the Code of Practice and the remaining measures in the Employment (Allocation of Tips) Act 2023 into force on 1 October 2024.
Link to Act www.legislation.gov.uk
If you have any queries in relation to this upcoming act or need assistance writing policies, please don't hesitate to contact your Payroll Pal today:
0191 605 2008
Comments