Employment (Allocation of Tips) Act 2023 – 01 October 2024
You may have seen our update in April this year, surrounding the Employment (Allocation of Tips) Act 2023 (“the Act”) which detailed that implementation of the Act had been delayed.
We can now confirm that after being laid before parliament recently, the Act will be coming into force on 01 October 2024.
As previously mentioned, there is a new statutory Code of Practice that employers will be required to follow when they distribute tips amongst staff. The Code of Practice has now been finalised and will also come into place on 01 October 2024.
Businesses will be expected to comply with the Code of Practice when implementing their tipping policies, to ensure they are allocating tips, gratuities and service charges to staff legally. Compliance with the Code of Practice will be taken into account by the Employment Tribunal, who have the ability to award up to £5,000 in compensation per worker in the event the Act is not followed correctly.
If you have any queries regarding any of the points above and what they might mean for your business, or if you have a query on another area of employment law, our friendly and professional team are here to help. Explore how our team can support your business, speak with us on 01246 555 111, or contact one of the team directly below:
Amy Hallam
Head of Employment
t: 0114 349 6989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Associate
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
Jade Taylor
Trainee Solicitor
t: 01246 560587
e: jade.taylor@brmlaw.co.uk
