Allocation of Tips Act and Code

As reported in July’s Labour Research, the Employment (Allocation of Tips) Act 2023 and Code of Practice come into force on 1 October 2024.

This includes a requirement to pass on tips in full to workers, allocate them in a fair and transparent way, and gives workers a right to request a copy of their tipping record. Businesses where tips are left more than occasionally must have a tipping policy.

There are different time limits for bringing claims, depending on whether the claim is about record keeping and information (three months), or non-payment/underpayment of tips (12 months). Employers must have regard to the new statutory Code of Practice when distributing tips.