Requirement to consult employee representatives on allocation of tips policies

Implementation date: Not expected before 2026

The Employment Rights Bill includes provisions to require employers to consult employee representatives on their written policy on the allocation of tips.  

Under the Bill, employers that are required to publish an allocation of tips policy are required to review the policy, in consultation with employee representatives, at least every three years. Where there are no existing employee representatives, consultation must be with affected employees.

It is not yet known when this measure will come into force. In its Next Steps to Make Work Pay policy paper, the Government said it expects to begin consulting in 2025 on the various measures covered in the Bill and that it anticipates that "the majority of reforms will take effect no earlier than 2026". However, it is not expected that consultation on this particular measure will be required.