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Employment (Allocation of Tips) Act 2023 is up to date with all changes known to be in force on or before 30 September 2024. There are changes that may be brought into force at a future...
- EXPLANATORY NOTES Employment (Allocation of Tips) Act 2023
These Explanatory Notes relate to the Employment (Allocation...
- EXPLANATORY NOTES Employment (Allocation of Tips) Act 2023
Jul 29, 2024 · The Employment (Allocation of Tips) Act 2023 makes it mandatory for all tips to be passed on to workers without deductions. This statutory code of practice provides guidance to employers and...
Employment (Allocation of Tips) Act 2023. 2023 CHAPTER 13. An Act to ensure that tips, gratuities and service charges paid by customers are allocated to workers. [2nd May 2023]
2 days ago · The Employment Allocation of Tips Act 2023 is a welcome change aimed at creating a fairer, more transparent tipping system. By mandating the direct and complete transfer of tips to staff, this law acknowledges the hard work of hospitality workers. It also seeks to uphold the trust customers place in the practice of tipping.
- Overview
- Background:
Withholding tips from staff becomes unlawful as the Tipping Bill achieves Royal Assent, with more than 2 million workers to have their tips protected.
Millions of UK workers will take home an estimated £200 million more of their hard-earned cash, as employers are banned from withholding tips under the Employment (Allocation of Tips) Act 2023, which today (Tuesday 2 May) received Royal Assent.
Many hospitality workers rely on tips to top up their pay and are often left powerless if businesses don’t pass on service charges from customers to their staff.
This Bill makes it unlawful for businesses to hold back service charges from their employees, ensuring staff receive the tips they have earned. The measures are expected to come into force in 2024, following a consultation and secondary legislation.
This overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors helping to ease cost of living pressures and give them peace of mind that they will keep their hard-earned money.
Business and Trade Minister Kevin Hollinrake said:
•The Government strongly believes that tips, gratuities and service charges should go to workers, rather than employers. Tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently. The Government has made this clear since announcing its intention to legislate on this and confirming its support of this Private Members’ Bill.
•The measures in the Employment (Allocation of Tips) Act 2023 will come into force via secondary legislation. We expect the measures to come into force around a year after Royal Assent. We will confirm the date of commencement later this year.
•The measures in the Act will be supported by a statutory Code of Practice. This Code is being developed and will be subject to formal consultation later this year.
•Anyone who has concerns about current or recent employer can contact the Acas helpline on 0300 123 1100.
These Explanatory Notes relate to the Employment (Allocation of Tips) Act 2023 which received Royal Assent on 2 May 2023 (c. 13). 4 Overview of the Act 1 The purpose of the Employment...
A Bill to ensure that tips, gratuities and service charges paid by customers are allocated to workers.
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