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New Legislation Regarding Tips on the Way

Following a consultation, the government has announced that they will bring forward measures to ensure tips, gratuities and service charges go to workers in full as part of an upcoming Employment Bill. If there is non-compliance with the new rules when they are in force, employers could face employment tribunal claims.

So, what has been announced so far?

New Measures

The government has said that the new 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
  • Provisions to allow workers to make a request for information relating to an employer’s tipping record
  • Requirements for employers to have regard to a statutory Code of Practice on Tipping
  • Where employers fail to comply with these measures, enforcement through employment tribunals

Any changes may be some way off yet as the government has said that the Employment Bill will be brought into force when Parliamentary time allows and that they expect that the rules on tips won’t come into force until at least a year after the Bill has been passed.

We will keep you updated on employment law developments, in the meantime if you have an employment law matter you would like assistance with, please do not hesitate to contact Kingfisher Professional Services Ltd as we are happy to help.


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