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
- Get ahead for the new year – 8 accountancy tasks to tackle now
While it is incredibly tempting to wind down in the days leading up to Christmas and take it easy between Christmas and the New Year celebrations, it really is the perfect time to ensure that your accounts are in tip top shape. - Take the Stress Out of Your Self-Assessment Tax Return
As the self-assessment tax return deadline looms, freelancers, sole traders, and ‘solopreneurs’ across the UK are bracing themselves for what can feel like one of the most daunting tasks of the year. If you’re already feeling the pressure, you’re certainly not alone. - HMRC Advisory Fuel Rates (AFRs) from 1st December 2024
Advisory fuel rates (AFRs) are recommended reimbursement figures for drivers reclaiming business mileage, usually for those in company vehicles. The advisory fuel rate is updated by HMRC based on fuel prices every quarter, and publish revised figures if required in late February, May, August and November each year - Accounting for Christmas
As we leap towards the start of the festive season, with Christmas only a few weeks away (sorry!), we are sure that marketing and people teams are full speed ahead with planning Christmas parties and finding ways to to thank everyone for their hard work and loyalty over the past year. This means it is … Continue reading - Solving a Finance Director’s Worst Nightmares: Strategies to mitigate or prevent them from occurring
Finance professionals are not only responsible for financial transactions and reporting, they are directly involved in the operation of their organisations; providing strategic direction and high-level decision making. However, with this expanded responsibility and new technology, there comes new challenges.
