New Tipping Rules in the UK: What Hospitality Staff Need to Know
The UK’s hospitality industry has seen a significant change as of October 2024 with the Employment (Allocation of Tips) Act. This new law mandates that 100% of customer tips, gratuities, and service charges must go to staff without unauthorized deductions. Employers must now follow strict guidelines to ensure fair and transparent distribution of tips, fostering greater trust and accountability across the sector. Here’s what you need to know if you’re working in hospitality and want to ensure your tips are handled correctly.
Key Changes Under the New Tipping Rules
The Employment (Allocation of Tips) Act lays out clear guidelines for businesses:
- Fair Distribution: All customer tips must be distributed among staff, without any deductions (except for necessary tax withholdings). Employers cannot take a portion for themselves or the business.
- Transparency & Policy Requirement: Employers must have a written policy explaining how tips are shared, including the criteria for distribution, such as hours worked or job role.
- Record-Keeping: Employers must keep records of all tips and their distribution for three years. This enables staff to verify they are receiving their rightful share.
What If Your Not Receiving Your Tips?
If you suspect that you’re not receiving your tips fairly, or if your employer isn’t following the new policy, you have options. Under the new law, you can request access to tip records to ensure transparency. Additionally, you can bring a claim to an employment tribunal if your employer isn’t following the required protocols or if tips aren’t distributed fairly.
Need Help? We Can Assist!
At CP Law Associates, we specialise in employment law and can guide you if you feel your rights under the new tipping rules are not being upheld. Our team is here to review your case and advise on the best course of action to ensure fair treatment and compensation in your role.
Reach out to us today for a free consultation and let us help you secure the tips you work hard to earn.