What is the new legislation?
The law governing tips, gratuities and service charges in the UK is the Employment (Allocation of Tips) Act 2023 (often called “the Tipping Act”). Legislation.gov.uk+1
What changed and when
From 1 October 2024, the obligations under the Act (and its accompanying statutory Code of Practice) came into force. Legislation.gov.uk+2CRS+2
Under the new law employers must: GOV.UK+2Legislation.gov.uk+2
Pass on all qualifying tips, gratuities and service charges to workers without deductions (apart from tax or NIC if applicable). GOV.UK+2www.rossmartin.co.uk+2
Share those tips in a way that is fair and transparent, if the employer controls or influences distribution. Legislation.gov.uk+2Acas+2
Have a written tipping policy — and make it available to all staff. Brightmine US+2GOV.UK+2
Keep detailed records of tips, gratuities and service charges and their allocation — for at least 3 years, available on request. Legislation.gov.uk+2Payroll Centre+2
You can read the full Code of Practice here:
GOV.UK – “Code of Practice on Fair and Transparent Distribution of Tips” GOV.