The Allocation of Tips) Act 2023 is expected to be brought into force in May 2024; the date will be confirmed later in the year.
Under the Act employers will be required to fairly allocate tips over which they exercise control or significant influence, 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.
There will also be a duty on employers to maintain a record of qualifying tips and their allocation which will have to be kept for three years. Workers will be allowed to complain to an employment tribunal within 12 months of a failure to comply with the new obligations, and the Act gives equivalent rights to agency workers.
For assistance with policies and any advice on tips, please contact us now.