Earlier in the year, you may remember we mentioned that the Employment (Allocation of Tips) Act 2023 had been voted in by MPs and was being debated in the House of Lords.

Well, this Bill has now received Royal Assent – the final step required for it to become law – and is expected to come into force in about a year’s time.

The Bill will require all employers to make sure that tips and service charges paid by their customers are allocated fairly between anyone who works on their behalf. Employers will also need to develop a written policy that outlines precisely how they share tips between employees and contractors.

The Bill’s Code of Practice is being drafted up at the moment and will be out for consultation soon.

Interested to learn how this change might affect your hospitality business? Not sure how to ensure your company is compliant? Call the team here at Little Rock Employment Law on 01245 261883 for advice!

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