Top tips for employers; new legal requirements for the fair distribution of tips
On 1 October 2024, new legal requirements are coming into force to prevent employers keeping tips left by customers in recognition of good service. The new legislation, the Employment (Allocation of Tips) Act 2023 and accompanying statutory Code of Practice aims to ensure the fair and transparent distribution of tips. In April of this year, following a consultation with stakeholders, the government published the updated Code of Practice. The Code of Practice has legal effect and will be considered by the Employment Tribunal when determining disputes relating to tipping practices.