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New laws will protect workers' rights to a fair share of tips

View profile for Shay Winstanley
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New laws will protect workers rights to a fair share of tips

New laws are scheduled to come into effect surrounding workers’ rights to a fair share of money generated through tips. The Employment (Allocation of Tips) Act 2023, which has recently received royal assent, will aim to protect worker’s rights to tips generated by their employer. The act will ensure that workers are entitled to a fair share of tips and will give them the right to request their employer’s tipping record. This provision will allow workers to determine if they are being paid a fair share of tips generated.

Whilst the legislation is not scheduled to come into effect until 2024 once further consultation has taken place, the new act is likely to be welcomed by workers as the government estimate that workers will collectively receive around £200 million back in earnings as a result of the new act.

It is important for both workers and employers in areas such as hospitality, tourism and services to keep a keen eye on these developments, with a code of practice and date of commencement reported to be scheduled for later this year. It is likely that businesses will be subject to scrutiny should they fail to comply, which could lead to employment tribunal claims.

If you are a business that is likely to be affected by the upcoming changes or an employee wanting to know how these changes will affect you, we suggest obtaining legal advice to prepare for the upcoming commencement of the new legislation. To speak to a member of our specialist employment law team, please do not hesitate to contact us on 0161 696 6170