Legislation
Businesses to pay workers 100% of tips under new law
Date
Effective now
Summary
The highly discussed and long awaited Employment (Allocation of Tips) Act 2023 is now delayed.
The Employment (Allocation of Tips), or the “Tipping Act”, was granted Royal Assent on 2 May 2023. However, despite the Code of Practice being published and presented to parliament by the Department of Trade and Industry (DBT) back in April 2024, it’s not expected to come into force until 1 October 2024 – a delay from the previously expected date of July 2024.
The updated Code of Practice will be statutory and have legal effect under the act, therefore it can be introduced as evidence in an employment tribunal.
The act will make it unlawful for businesses to hold back any monies collected from customers by way of service charges/tips. It aims to make sure that all staff involved in providing service to customers, including agency workers, receive a fair share of any relevant tips.
We await further updates.
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