October 3, 2024
The Employment (Allocation of Tips) Act went live on the 1st October 2024, and promises substantial change to the handling and distribution of tips.
Whilst the majority of employers distribute gratuities and tips to staff fairly, this act has been introduced to stop the few businesses that still do from exploiting their workforce.
We’ve gathered the key information you need to ensure you’re following the act below…
This new legislation says that all tips should be given to staff fairly and without any deductions (apart from income tax).
The Act provides details on areas such as agency workers, hours worked, digital direct tips, non-monetary tips, record-keeping, safeguarding against discrimination, and more.
The Department of Business and Trade states that:
These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions.
From today, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.
They expect the act to put £200 million back into workers’ wages.
Now the Employment (Allocation of Tips) Act is live, there is a great opportunity for you to improve your processes and policies for staff and create a better environment for communication.
Having a clear and strong process in place can be an effective way to attract new staff, as well as keep those already in your business.
Ensuring tips are allocated fairly will also help motivate your team. They know that putting the extra effort into giving excellent customer service will ultimately reward them and the business.
Did you know that you can integrate your Tevalis EPOS system with leading tipping and tronc platforms? This tech can help ensure your compliance whilst making tip distribution much easier!
For more information on the Employment (Allocation of Tips) Act, click here.
To learn more about our integrations, click here.
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