Duty on employers to give all tips to workers without deductions

Implementation date: To be confirmed

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 code of practice setting out principles of fairness and transparency.

The Government launched a consultation on the draft statutory code of practice on 15 December 2023. 

The measures are expected to come into force in 2024, following consultation and secondary legislation.