From 1 October 2024, the Employment (Allocation of Tips) Act 2023 (the Tipping Act) came into force.

Workers are now entitled to keep 100% of any tips, and employers should have a transparent policy that details how tips will be fairly allocated. This change is expected to boost wages by putting £200 million back to workers.

The tips should be added to the employees’ wage, where they will be subject to National Insurance and Income Tax, and they can’t form part of the National Minimum Wage.

Workers will have a new right to request a copy of their tipping record to enable them to bring a claim to an Employment Tribunal if they believe they are not receiving tips they should be.

This act was a long time in coming – the consultation process started back in May 2016. If you are concerned about how this may impact you as a worker or employer, get in touch!