Payroll

The Employment (Allocation of Tips) Act measures to commence 1 October 2024

The government has issued its response to the draft code of practice on the fair distribution of tips, along with an updated code of practice.

The legislation, which will come into force on 1 October 2024, will ensure that all tips are to be passed onto workers, and businesses where tips are given more than occasionally will be required to have a tipping policy. Companies will need to regard the updated code of practice when distributing tips to ensure fairness and transparency.

The Department for Business and Trade (DBT) stated in the response:

“We will continue to work closely with other Government Departments and stakeholders in tipping industries to help businesses prepare for implementation and support workers to be informed about their new rights."

“We will also continue to work with other Government Departments and stakeholders to prepare non-statutory guidance and communications to support businesses to implement the new rules.”

Whether you pay tips through your payroll, or operate an external tronc, ensure you are aware of the code and how you need to comply before 1 October 2024. The CIPP will continue to monitor government releases, as and when additional content is released.