Non-Statutory Guidance on the Employment (Allocation of Tips) Act 2023

The Employment (Allocations of Tips) Act 2023 and the Code of Practice on Fair and Transparent Distribution of Tips came into force on 1 October 2024. The Government has published non-statutory guidance for employers in accordance with this Act and Code. 

Important additional points to be aware of under the non-statutory guidance are: 

• Employers should consider agency workers when they are distributing tips. Agency workers are not required to receive an equal share of the tips, but they must not be disadvantaged because of being engaged via an agency; 

• Tips must be received and distributed in the same branch. It is not possible to gather tips from different branches to then distribute; 

• Employers hold the responsibility of determining what roles in the business will be eligible to receive tips. The code of practice encourages that employees providing customer services should be strongly considered by the employer;

• The guidance provides templates for a tipping policy, requesting a tipping record and a tipping record; 

• If an employer fails to distribute tips, the employment tribunal will be able to review previous distributions, make a recommendation on a previous distribution and order an employer to pay workers. It should be noted that an employment tribunal will have the power to order employers to pay employees who have not made a complaint; and

• If an employer fails in their duty to provide tipping information, the employment tribunal can make a declaration confirming the employer’s failure. The employment tribunal can also ensure that employers in the future will comply with the written tipping policy and tipping records requirements. 

You can read the new guidance here.

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