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  • Writer's pictureSophia Brading

Key Highlights of the Tipping Act 2024

Under the Tipping Act, the government must introduce a new code of practice to help ensure that employers are distributing tips fairly and transparently.

Key Highlights of the Tipping Act 2024

Here is a summary of the report:

- The Tipping Act, effective from October 1, 2024, ensures fairness and transparency in distributing tips, covering England, Scotland, and Wales.

- It mandates employers to follow a Code of Practice, requiring them to pass on tips to workers without deductions (except for income tax) and ensure fair distribution.

- Employers must maintain written tipping policies, record all tips, and provide access to these records to workers.

- The Act encompasses various scenarios, including cash and non-cash tips, and addresses the entitlements of agency workers.

- Methods for distributing tips, such as troncs, are regulated to ensure fairness and independence.

- Transparency requirements include having a written tipping policy and maintaining clear records accessible to all staff.

- Workers have recourse through internal resolution processes or, if necessary, via employment tribunals to address any issues regarding tip allocation.

For further details, you can access the complete Code of Practice here

You can also Google "Code of Practice on Fair and Transparent Distribution of Tips"

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