Tipping is a lifeline for hospitality workers. I spent the early part of my career filling a Pringle jar each night with my tips from the section I ran in a restaurant in a central London hotel. My wages were okay, but my tips funded my social life! As I continued my career, my tips, or control over them, became more confusing and less transparent. To the point where customers would question, "Do you get this money or does it just go to the business?”.

In an overhaul of tips and gratuity practices, a new law being introduced this year will make it illegal for employers to withhold tips from workers. The new rules will allow more than two million workers to keep a total of £200 million a year in tips, according to government estimates.

These changes will be included in the Employment (Allocation of Tips) Act 2023, which received Royal Assent in May 2023. The rules are due to come into effect on July 1, 2024, and will affect the hospitality businesses across England, Scotland, and Wales.

In this comprehensive guide, we will explain the Employment Allocation of Tips bill, explore how it may impact your business operations and what amendments you can make.

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