Duty on employers to give all tips to workers without deductions

Implementation date: 1 October 2024

The Employment (Allocation of Tips) Act 2023 introduces a requirement for employers to give all tips, gratuities and service charges to workers without any deductions. It also obliges employers to ensure that tips are distributed fairly between workers.

Organisations will need to abide by a statutory code of practice setting out principles of fairness and transparency.

The measures are due to come into force on 1 October 2024. 

The Labour Government has indicated, in its pre-election Plan to make work pay, that it intends to make further changes to ensure that workers, rather than employers, decide how tips are allocated. The detail of these measures and when they will be brought into effect, is not yet known.