Allocation of Tips Act
The Allocation of Tips Act came into force on 1 October 2024 and the government has published some last minute non-statutory guidance Distributing tips fairly: non-statutory guidance for employers.
It provides further details on the following topics:
- Agency Workers
Employers are obliged to take into account agency workers when considering the distribution of tips. It is intended that agency workers are not unduly disadvantaged solely by virtue of being engaged through an agency.
- Multiple sites under one ownership
Tips must be distributed between workers at the place of business where the tips are received. This means that employers cannot pool the tips received across multiple sites of operation, or different branches.
- Providing direct service
All workers involved in directly providing service to customers should be considered in the distribution of tips.
The guidance also includes three templates which employers may find helpful as it sets expectations on detail, and employees will find it useful for requesting documentation from employers.
- Tipping policy template
- Requesting tipping record template
- Tipping record template
Lastly, the guidance confirms the timings within which claims must be brought:
If the complaint is based on a failure to comply with the requirements surrounding how and when tips are distributed, it must be presented within either:
- twelve months of the failure to comply
- twelve months of the most recent failure to comply (in the event of multiple failures)
If the complaint is based on a failure to comply with the requirements surrounding the written tipping policy and tipping records, it must be presented within either:
- 3 months of the failure to comply
- 3 months of the most recent failure to comply (in the event of multiple failures)
There is a compensation of up to £5,000 to the worker to compensate for financial loss.
Posted on 10/01/2024 by Ortolan
