Top Tip!
From 1st October 2024, employment law relating to ‘employer-received tips’ is changing, particularly tips that are made by card payment.
The new regulations are introduced under the Employment (Allocation of Tips) Act 2023, amending the Employment Rights Act 1996. They set out a statutory obligation on employers to allocate tips, gratuities, and service charges to workers without deduction and ensure ‘fair’ distribution and pay no later than the end of the month following the month in which a customer paid them. They must also be distributed to staff who work at the same venue where the tip was received.
The act gives workers’ rights including the ability to request information about how tips are paid and the right to bring a claim if their employer has failed to comply with the new regulations.
Employment law rules relating to ‘employee received tips’ will not change.
If these new regulations impact your business, please feel free to contact us if you would like to discuss how these changes may affect your business and what steps you can take to prepare.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.