The last thing any decent employer will do is withhold tips from hard-working staff. We like to think that the hospitality sector doesn’t contain many ‘bad apples’ in this respect but, whether they like it or not, if any exist, they’re about to be found out.
The last thing any decent employer will do is withhold tips from hard-working staff. We like to think that the hospitality sector doesn’t contain many ‘bad apples’ in this respect but, whether they like it or not, if any exist, they’re about to be found out.
The Government has just published its Code of Practice for the forthcoming Tipping Act – or, to use the full name, the Employment (Allocation of Tips) Act 2023. And what this means is that the two million-plus workers in the UK’s hospitality and services industries are going to have their right to keep tips enshrined in law.
The Act is designed to ensure that service charges added to bills go to those they’re intended for, and are not retained by the business owner. This could mean – according to Government estimates – as much as £200 million in the pockets of service industry employees. And as many of those in low-paid positions rely on tips to help keep their head above water, this is a landmark piece of legislation.
The Code of Practice will be statutory in England, Scotland and Wales, and will have legal effect, meaning it can be introduced as evidence in an employment tribunal once the Act becomes law, which is expected to be on October 1 this year.
At Complete Licensing, our legal experts are, naturally, fully conversant with this new legislation and how it will work. On the face of it, making sure tips go where they are intended might seem simple, but there are always issues to be resolved. Get in touch with us and we can guide you through the protocols so that you’re ready to implement the changes without problems or issues from day one.