The Employment (Allocation of Tips) Act 2023 has received Royal Assent. The commencement date has not been announced but, according to the government release, will be in about one year’s time.
It makes the following changes:
In terms of enforcement:
It makes the following changes:
- Employers must make sure all tips and service charges are allocated fairly between their workers. A Code of Practice will be published in due course which will include guidance on what will be regarded as a ‘fair’ allocation.
- Employers must have a written policy setting out how they deal with tips.
- Employers must keep records of all tips and service charges received for three years.
In terms of enforcement:
- There is a 12 month limitation period on workers bringing claims for non-compliance. This sets it apart from most other employment claims which have a 3 month limitation period.
- One of the remedies available for breach is that tribunals can compel employers to revise their tip allocation policies.
- Tribunals can order the employer to pay tips and services charges not just to the Claimant, but to any workers employed by the employer.
- Fourth, compensation of up to £5,000 per Claimant might be payable to reflect additional financial losses caused by non-payment.
