HR Newsroom

The latest updates from the world of Human Resources.

Employees to benefit from all tips from 2024?

The Employment (Allocation of Tips) Bill received Royal Assent on 2 May 2023, becoming the Employment (Allocation of Tips) Act 2023.

Andrew Collier
Andrew Collier HR Adviser
The Employment (Allocation of Tips) Bill received Royal Assent on 2 May 2023, becoming the Employment (Allocation of Tips) Act 2023. The government estimates that it will help UK workers, predominantly in the hospitality sector, to receive £200 million in tips that would otherwise have been deducted by their employers. The Act is expected to be brought into force in May 2024 although the government will confirm the date later in the year.
The Act will create new legal obligations for employers, who will be required to fairly allocate tips over which they exercise control or significant influence (qualifying tips), and pay them to workers in full within a month of the payment made by the customer. Where tips are paid on more than an occasional and exceptional basis, the employer will also be required to have a written policy, available to all workers, that sets out how qualifying tips are dealt with. The government intends to issue a statutory Code of Practice on the fair and transparent distribution of qualifying tips which employers must give regard to. Failure to comply with any code will be admissible in evidence in employment tribunal claims. The Department for Business and Trade will issue a formal consultation on the Code of Practice later this year.
Another new duty for employers is maintaining a record of qualifying tips and their allocation, which must be kept for three years. Workers will have the right to request information about an employer's tipping record, which should better enable them to challenge these practices through employment tribunal claims. Workers will be allowed to complain to an employment tribunal within 12 months of a failure to comply with the new obligations. 

Photo by Sam Dan Truong via Unsplash

Get Started

Ready to WorkSmarter?

Join 8,000+ companies who are working smarter than ever before.

I'm ready, let's go

Easy Setup

Setup is really simple, and only takes a few minutes. You'll be guided through the process, step-by-step — and in no time at all you'll have your first employee added to your account.

We're Here to Help

If you need any assistance or have any questions, our friendly team will be happy to assist. Our comprehensive Help Centre is available too, with guides to all aspects of the platform.

Loved By Thousands of SMEs

WorkSmarter is loved by SMEs around the world. We're constantly innovating and releasing new features, with the aim of creating a delightful experience for users. Join thousands of other modern companies using WorkSmarter to grow their businesses.

Lots More Features Available

WorkSmarter provides a wide range of HR tools to help companies grow and manage their staff. Our upgraded plans unlock access to many more HR services, ready to help you grow your business.

Get started with WorkSmarter

Get Started in 60 Seconds

Register now, and you'll be up and running in no time.
Just fill out the fields below, and we'll set up your account.