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 code of practice setting out principles of fairness and transparency.

Following a period of consultation, the Government published a draft version of the code of practice on 22 April 2024. 

The measures are expected to come into force on 1 October 2024, once they have been approved by Parliament.