From 1 October 2024, you can be reasonably sure that when you leave a tip or pay a service charge your largesse will benefit the establishment staff, not the business owners.
The following update is reproduced from a news story released by the Department for Business and Trade.
“From Tuesday 1st October, millions of hard working and dedicated workers will benefit from new laws which will ensure they keep 100% of the money they have earned through tips.
“Introduced through a Private Members’ Bill last year, the Employment (Allocation of Tips) Act and the statutory Code of Practice on fair and transparent distribution of tips came into force today. These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions.
“From 1 October, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.
“Most employers already pass on tips to the staff who earn them; however, these laws will crack down on the minority of businesses who continue unacceptable tipping practices.
“Employers in the wrong could be made to pay fines or compensation to staff, with workers able to hold bosses fully accountable through employment tribunals.
“The Department for Business and Trade estimates that today’s changes will mean around £200 million will be received by workers that would otherwise have been retained by these employers.
“It is hoped that this will build further trust between customers and businesses, as well as create a level playing field for all businesses through the fair and transparent distribution of tips across the board.”
