The Government legislated in May 2023 to introduce the Tipping Act (an amendment to the Employment Rights Act 1996). This sets out how tips, gratuities and service charge (all described as “tips” from here) are processed and provides guidance on their distribution.
This page sets out the basic rules around tipping, the requirements on business under the legislation and how tips can be distributed. On the latter, there is a degree of flexibility, so it is for each business to interpret as best suits them.
The legislation is due to come into effect from 1st October 2024 and affects all businesses where tips are non-incidental.
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