Preparing for the ‘Tipping Act’

3rd May 2024

By Claire Hollins, Senior Associate.

The implementation date for the new law on the allocation of tips has been pushed back from 1st July 2024 to 1st October 2024.

What do employers need to do?

Under the Employment (Allocation of Tips) Act 2023, employers must pass tips on to their employees in full without deductions, and businesses where tips are commonly given must have a tipping policy in place. Additionally, workers now have the right to request their tipping records and will be able to file a claim with the Employment Tribunal if they suspect tips are not being distributed correctly which means proper and accurate records need to be kept.

Tipping Policy

The employer’s tipping policy should cover how tips are accepted, how tips are allocated and distributed and what steps the employer is taking to ensure tips are handled fairly and transparently. The policy can be available in electronic or hard copy format, with accessible formats provided on request for workers with disabilities. While there is currently no requirement for the policy to be accessible to customers, employers may opt to make it available to them.

Different rules will apply where an independent Tronc is responsible for allocating the tips.

Record Keeping

A record must be kept of all tips received and the amount allocated to each worker which must then be retained for a period of three years. Employees will have the right to make a written request to view the tipping record of the employer for up to the past three years provided they worked for the employer during the requested period. All tipping records are to be stored, processed and disposed of in line with data protection law.

Although the implementation date has been delayed, employers are encouraged to comply with the new requirements immediately and should start by agreeing with staff what system will be adopted for the fair allocation of tips which should then be documented in a formal written tipping policy. If you want advice for your business on how to implement the new laws relating to tips then please contact our employment team on 0161 832 3434 or email

Kuits FSQS registered
Kuits good employment supporter