The Government has committed to giving workers more power over the distribution method of tips and this was included in the Employment Rights Act. This is now being consulted on, with a deadline of 1 April 2026.
This follows legislation coming into force on 1 October 2024, regulating the distribution of tips and service charge, ensuring that employees received 100% of the funds.
There were a range of other conditions applied, such as the timeframe in which they were distributed and the need for a code of practice on how tips are distributed.
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