Government publishes new guidance on workers receiving tips

The new Code of Practice designed to protect tips given to more than 2 million workers has been published and laid before Parliament.

The updated Code of Practice will have statutory legal effect under the Employment (Allocation of Tips) Act 2023, meaning it can be introduced as evidence in an employment tribunal.

The Act and secondary legislation make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all the tips they have earned.

The measures, which apply to all industries, are expected to come into force on 1 October 2024, once they have been approved by Parliament.

Ministers say this overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors.

Business and Trade Minister Kevin Hollinrake said: “It is not right for employers to withhold tips from their hard-working employees.

“Whether you are cutting hair or pulling a pint, the legislation will protect the tips of workers and give consumers confidence that when they leave a tip, it goes to the hardworking members of staff.”

Although the new measures on tipping are not expected to come into force until October, the government is encouraging all businesses to follow the new requirements immediately, before they come into legal effect.

Tips cannot be used to count towards minimum wage pay – this has been the case since 2009.

Please contact us if you would like more information about the issues raised in this article or any aspect of employment law.