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Yesterday, the UK Department for Business and Trade released their final Code of Practice for the Employment (Allocation of Tips) Act. These changes have now been pushed back to come into effect on October 1st, instead of the original date of July 1st. This change gives hospitality employers across the UK more time to prepare for these changes.

It is estimated that with these changes, service workers in the UK will take home around £200 million more in tips, and the act will benefit over 2 million workers.

The key points of the act remain the same:

  •  Employers are not allowed withhold tips or service charges from their staff.
  •  All employees must have access to a written outline of the business tipping policy.
  •  A tipping policy must be on display for all customers.
  •  Employers must keep end-to-end transaction reports for all tips.
  •  Staff must receive their tips no later than the month after the tip has been left to the business.