Requirement to consult employee representatives on allocation of tips policies

Implementation date: By end of 2026

The Employment Rights Act 2025 includes provisions to require employers to consult employee representatives on their written policy on the allocation of tips.  

Under the Act, 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.

The Government has confirmed, in its timeline update on implementing the Employment Rights Act 2025, that these measures will take effect by the end of 2026.

The Government has published its response to its consultation on the new requirements to consult workers on tipping policies.