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Employment (Allocation of Tips) Act 2023

Withholding tips from staff is set to become unlawful following the Tipping Bill receiving Royal Assent.

The Government believes that more than two million workers across the hospitality, leisure and services sectors will have their tips protected and be able to view an employer’s tipping record. An estimated £200 million a year will go back into the pockets of hard working staff by retaining tips that would otherwise be deducted.

The Act makes it unlawful for businesses to hold back service charges from their employees, ensuring staff receive the tips they have earned.

A new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed.

Employers will be required to have a written policy on how they deal with tips and must keep records for three years.

On top of this, workers will receive a new right to request more information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal.

Although no date has been given the measures are expected to come into force in 2024.



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