How to comply with the new Tip Allocation Law
7 June 2023
The Employment (Allocation of Tips) Law that came into force in May 2023 impacts all businesses that take tips or raise a service charge. The law brings new obligations and costs to businesses, coupled with new rights for workers. Failure to meet these new obligations could result in a costly trip to an Employment Tribunal as well as reputational harm.
Given the law's importance, we arranged this insight session to help our clients and stakeholders to learn more. Watch David Sheen, Public Affairs Director, UKHospitality and Peter Davies, Managing Director, WMT accountants provide an overview and advice on the new law and answer a wide range of questions from participants. The following nine key changes to the law are covered:
- Defining what is an “employer received tip” and what is not
- Defining what amount must be paid to workers
- Defining a timescale in which the amount must be paid
- The “same place of business” rules
- Agency workers
- Prohibition on certain contractual changes
- New legal obligations on employers and rights for workers
- Where do Tronc schemes fit into the new rules?
- Statutory Code of Practice
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