On 01 October 2024, the new duty requiring employers to give all tips to workers without any deductions is being introduced.
The Employment (Allocation of Tips) Act 2023, ensures that tips are issued fairly to workers. The code of practice associated sets out the principles to ensure fairness and transparency applies.
There is a requirement for employers to provide a Tipping Policy, where tips are a normal practice. The policy outlines:
- How tips will be distributed fairly
- When the employee will receive payment e.g. made within one month following the month in which they were received
- The process the worker should follow to request a copy of their individual tipping record
Employers will be required to keep a record of every tip and how it was dealt with for a period of three years.
This act is going to impact businesses within the hospitality industry. If you operate a business in this area, please contact our team of HR Consultants to discuss implementing a Tipping Policy, to ensure that you comply with the new code of practice associated.
Contact our team today on 0345 646 0406, email enquiries@nockoldshr.co.uk or fill out our online enquiry form.