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The Employment Allocation of Tips Act 2023 comes into force on 1st October 2024.
The Act makes it mandatory for all tips to be passed on to workers without deductions.
Employers will have to ensure that the amount of qualifying tips is allocated ‘fairly’ between workers. There is a statutory code of practise on fair and transparent distribution of tips that can be found here: Code of practice on fair and transparent distribution of tips (HTML version) - GOV.UK (www.gov.uk) This provides guidance to employers on what amounts to a fair allocation.
On the 27th September 2024, the government added to this by issuing non-statutory guidance for employers. This can be found here: non-statutory guidance for employers
This non-statutory guidance outlines:
Should your business require advice in light of the Employment (Allocation of Tips Act) 2023 coming into force tomorrow, please contact Gareth Dando, Partner in Employment Law on 01484 558060 or email Gareth.dando@ramsdens.co.uk. To contact Emily Walker, Associate Solicitor in Employment Law, ring 01484558081 or email Emily.walker@ramsdens.co.uk Alternatively, visit our Services for Business Employment Law page here.