Employment (Allocation of Tips) Act 2023

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Employment (Allocation of Tips) Act 2023
Act of Parliament
Coat of arms of the United Kingdom (2022, variant 1).svg
Long title An Act to ensure that tips, gratuities and service charges paid by customers are allocated to workers.
Citation 2023 c. 13
Introduced by Virginia Crosbie MP (Commons)
Andrew Robathan (Lords)
Territorial extent 
  • England and Wales
  • Scotland
Dates
Royal assent 2 May 2023
Commencement 1 October 2024
Other legislation
Amends
Status: Current legislation
History of passage through Parliament
Text of statute as originally enacted
Text of the Employment (Allocation of Tips) Act 2023 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

The Employment (Allocation of Tips) Act 2023 (c. 13) (sometimes known as the Tipping Act) is an act of the Parliament of the United Kingdom designed to ensure tips, gratuities and service charges are allocated to workers.

Contents

History

Several employers such as Pizza Express and Giraffe were accused of abusing a voluntary code of conduct. [1] Wahaca was criticised for taking deductions from certain employees' tips, although they had changed the policies by 2024. [1]

Provisions

Under the law, a statutory code of practice will provide guidance on implementation [2]

Agency workers are also included by the legislation. [1]

It is unclear if the legislation will require sharing tips with employees on maternity leave. [3]

Employment law is devolved to the Northern Ireland Assembly, so the act does not apply to Northern Ireland. [4]

Reception

Nisha Katona, owner of Mowgli Street Foods,said the law was necessary because "young people depend on the law to protect them", but also said that some businesses which would be "casualties" because they were unprepared. [5] Harriet Mansell, chef-owner of Lilac in Lyme Regis, acknowledged the need for transparency around tips, but also said that "some relief, independent restaurants like mine won't have the capacity to buffer this situation forever". [6]

Unite indicated that the trade union had concerns about businesses imposing unelected individuals and senior managers as heads of tip-pooling committees. [3] The fact that Northern Ireland would not have this legal protection, which was also in place in the Republic of Ireland was also criticised by Unite. [7]

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References

  1. 1 2 3 Saker-Clark, Henry (1 October 2024). "What you need to know about the new law banning employers from pocketing staff tips". The Independent. Independent Digital News and Media Limited. Archived from the original on 1 October 2024. Retrieved 1 October 2024.
  2. Thomas, Aimee (24 August 2024). "New tips law means I can treat my nan at Christmas". BBC News. British Broadcasting Corporation. Archived from the original on 24 August 2024. Retrieved 1 October 2024.
  3. 1 2 Butler, Sarah; Hickey, Shane (28 September 2024). "Restaurants ponder price increases as new tip-sharing law comes into force". The Guardian. Guardian News & Media Limited. Archived from the original on 29 September 2024. Retrieved 1 October 2024.
  4. Stewart, Amy (12 November 2022). "Tipping laws: '100% of service tips should go to staff'". BBC News. British Broadcasting Corporation. Archived from the original on 12 November 2022. Retrieved 1 October 2024.
  5. Labiak, Mitchell (1 October 2024). "Workers must keep all customer tips under new law". BBC News. British Broadcasting Corporation. Archived from the original on 1 October 2024. Retrieved 1 October 2024.
  6. Mansell, Harriet (30 September 2024). "'I understand the need for transparency around tips, but this is why restaurants need to add a service charge'". The Independent. Independent Digital News and Media Limited. Archived from the original on 30 September 2024. Retrieved 1 October 2024.
  7. "Tips: Union warns NI workers could be short changed". BBC News. British Broadcasting Corporation. 15 October 2019. Archived from the original on 15 October 2019. Retrieved 1 October 2024.