Date17 Jan 2024
Following our previous article, in which we discussed the proposed changes to allocation of tips for hospitality businesses, the Government has been progressing the Employment (Allocation of Tips) bill, with it receiving overwhelming support from both houses in Westminster. As of 15 December 2023, the draft code of practice has been released. It is available for public viewing, with the consultation phase closing on 22 February 2024. For further information on the consultation, please click here.
The new tips legislation will come into effect on 1 July 2024, so employers are advised to have considered the code and whether their current distribution of tips meet the requirements of the new legislation. Employers whose employees receive tips via a Tronc Scheme should ensure the scheme also meets the new legislative requirements.
The draft code requires employers to:
The code of practice is still in draft and we await any updates that may come out of the consultation, but it’s clear that many of the proposed requirements will remain. We recommend that all employers whose employees receive tips and gratuities should ensure they are prepared for the changes once confirmed.