Employment (Allocation of Tips) Act 2023 – A further update
You may have seen our update in June last year or been to one of our HR Forums where we discussed that the Employment (Allocation of Tips) bill had been passed and was due to come into force on 01 July 2024. The Government has now decided to push this date back to 01 October 2024.
For those who are not familiar with the changes the Employment (Allocation of Tips) Act 2023 will require employers to make sure all tips go to their staff by the end of the next month after the month which the tip was made. Staff will be entitled to request a record of their tips and information on how the business distributes these.
There is set to be a new statutory Code of Practice that employers will be required to follow when they distribute tips amongst staff, the consultation for this has concluded and the draft is available to view here: Updated draft: Code of Practice on Fair and Transparent Distribution of Tips (publishing.service.gov.uk). We will provide a link to the final code once published.
The push back to October gives businesses more time to prepare but it is worth looking at implementing these policies as soon as possible to ensure that come 01 October 2024 the business is allocating tips and service charges legally to staff. The risk of failing to do so could be costly with the Tribunal entitled to compensate each Claimant up to £5,000.
If you have any questions or require further information regarding the Employment (Allocation of Tips) Act 2023, or if you have a query on another area of employment law, please contact the Employment Law Team:
Amy Hallam
Head of Employment
t: 0114 3496989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Associate
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
Jade Taylor
Trainee Solicitor
t: 01246 560587
e: jade.taylor@brmlaw.co.uk
