New Tipping Law delayed until October

The awaited new legislation regarding tipping has been pushed back, from coming into force, until October this year. The reason for the delay has been cited to allow more lead time for businesses to implement the changes. 

The new legislation, which will apply to England, Scotland and Wales, requires that all tips and service charges be distributed to staff without any deductions, requiring businesses to implement a clear, equitable distribution process, ensuring that employees receive their full share.

The new legislation is accompanied by a Code of Practice which was officially unveiled and laid before parliament by the Department of Business and Trade on 22 April 2024 and is set to introduce significant changes directed at enhancing transparency and fairness in the distribution of tips across the hospitality industry and other sectors. Highlights of the final code of practice includes clarification on agency workers.

Minister for Business and Trade, Kevin Hollinrake stated;

“It is not right for employers to withhold tips from their hard-working employees.”

“Whether you are cutting hair or pulling a pint, this government’s legislation which will protect the tips of workers and give consumers confidence that when they leave a tip, it goes to the hardworking members of staff.”

“The secondary legislation laid today reinforces our commitment to legally protecting our low paid workers and ensuring a fair day’s pay for a fair day’s work.”