The success of our hospitality and service industries is driven by a diverse and exceptionally talented workforce. Starting Tuesday, 1st October, new laws will come into effect ensuring workers receive 100% of the tips they’ve earned.
New Laws Protect Workers’ Tips: What You Need to Know
- New laws ensuring workers keep all of their hard-earned tips are now in effect
- These changes are expected to boost wages, putting £200 million back into workers’ pockets
- This comes ahead of the Employment Rights Bill, which will further strengthen workers’ rights and ensure fair pay
The Employment (Allocation of Tips) Act, introduced last year, is now live along with a statutory Code of Practice for fair and transparent tip distribution.
How the Employment (Allocation of Tips) Act Will Boost Wages
Under the new rules, employers must pass all tips, gratuities, and service charges directly to workers without making any deductions.
From Tuesday, 1st October, workers can take employers to an employment tribunal if tips are withheld. While most businesses already pass tips to staff, these laws aim to stop the small number of businesses that still engage in unfair tipping practices.
Employers who break the law could face fines or be ordered to compensate staff. It’s estimated that these changes will put around £200 million back into workers’ pockets, money that would otherwise have been kept by employers.
This legislation is designed to build trust between customers and businesses and ensure fair treatment for all workers.
What Employers Should Do Now: Ensuring Compliance with New Tipping Laws
At HB Accountants, we encourage all operators to review the new guidance and ensure their policies comply with the law.
Gov.UK have published guidance for employers and workers on the fair and transparent distribution of tips.
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any error
Read Our Latest Blogs Below
- 3 reasons why a local accountant is better for your business
You may not know that local accountants HB Accountants, based in Hoddesdon in Hertfordshire and on the Essex border, was originally a London accountancy practice. We moved out to this lovely market town over 40 years ago and are so happy that some of our original London-based businesses are still our clients. - Fundraising for a defibrillator at Plumpton Road in Rye House Hoddesdon
A defibrillator recently saved the life of a family member. This is why we are fundraising for a defibrillator outside our offices at Rye House. Will you help? - Simple spreadsheet accounting or accounting software package: which is best for your small business?
A critical part of running a small business is managing your accounting. Not only do you need to manage the bookkeeping – the recording and organising of your financial data such as invoicing, expenses, payments and payroll – you also need to manage your accounts – the presentation and interpretation of that financial data including … Continue reading - HB Accountants Awarded Net Zero Silver Accreditation
With a renewed focus on reducing carbon emissions and greenhouse gases to help mitigate some of the damage we are doing to our planet, the Government has committed to a legally binding target of net zero emissions by 2050. - What you need to know about hiring an apprentice
We are delighted to share that HB Accountants has been recognised as the 26th Top SME apprenticeship employer in England! This achievement reflects the hard work and dedication we put into creating outstanding apprenticeship programmes and supporting our apprentices to succeed. We are committed to nurturing talent and investing in the next generation of superstar … Continue reading
