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On July 1st, UK tipping legislation is changing. The Employment (Allocation of Tips) Act will bring stricter regulations on how employers handle their staff’s tips. This aims to prevent staff from losing out on tips, and improving tipping systems across the country.


The main change in the new act will make it illegal for employers or businesses to keep any tips from their staff, with very few exceptions. All of their staff will need to receive the full amount of their tips, with 0 deductions. Tips will need to be distributed fairly between staff. While this does not necessarily mean splitting tips into equal amounts between staff, employers must have a fair system in place for distributing tips- for example, by hours worked, employee seniority, etc. This system must be outlined to all staff in a written policy. Records must also be kept of every tip left in a business, which employees have the right to request at any time.


So what should all UK employers have in order before July 1st?

  1. A written tipping policy that is on public display and easy for everyone to access.
  2. Staff need to be fully aware of your business’s tipping policy.
  3. A fair system for distributing tips must be in place, and known to each of your employees.
  4. End-to-end transaction reports will be needed for all tips left to a business, which employees will be able to request at any time.


For help getting started with the new legislation, get in touch with us to help you keep compliant, and separate tipping from your business.