Statutory instruments (Sis) for the new tipping law, which is designed to ensure hospitality staff receive all money left to them in tips by customers and received Royal Assent back in May last year, were laid yesterday (29 July).
The SIs confirm that the code of practice and other measures in the Tipping Act come into force in October 2024.
Alongside the implementation of the Employment (Allocation of Tips) Act 2023, Minister for Employment Rights Justin Madders revealed that the Government will bring in further measures related to tipping in due course.
He said: “Britain’s outdated employment laws require an urgent update. This Government will ensure they are fit for the modern economy and deliver on our plan to Make Work Pay.
“We will be introducing further measures on tipping to ensure workers get their fair share of tips. Today’s announcement is just the first step of many in protecting workers and placing them at the heart of our economy.”
The finalised code of practise on the fair and transparent distribution of tips, which will have legal effect under the Employment (Allocation of Tips) Act 2023, was set out by the previous Conservative government back in April.
As outlined in the code, the act and secondary legislation will apply to England, Scotland and Wales, and make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all of the tips they have earned.
Not all tips are under the scope of the act, and therefore subject to the guidance, however. For example, if a worker receives and keeps a cash tip, with no employer control or involvement, the tip is out of scope for the legislation.
Digital tipping, whereby a customer uses an app to directly tip members of staff, bypassing the employer altogether, is also out of scope.
Employers should consult with workers to seek broad agreement in the workplace that the system of allocation of tips is fair, reasonable and clear and must maintain a written policy on how tips are dealt with at their place of business, ensuring this policy is made available to all their workers.
Further non-statutory guidance will be published in due course to accompany the code of practice to help employers and workers interpret the legislation.
A link to the finalised code of practice can be found here.
