News / Press release / Business operations

Urgent tipping clarity needed from Government

July 14, 2026

The Government’s withdrawal of an updated tipping code of practice less than three months before implementation has left hospitality in limbo, UKHospitality said.

As part of the Employment Rights Act, the Government outlined its intention to strengthen current tipping legislation from 1 October 2026. The changes would require hospitality businesses to consult with staff on its tipping policy.

A draft code of practice was published outlining the details of how that consultation should be run in practice, but it was unexpectedly withdrawn by the Government, with no explanation.

UKHospitality is calling for urgent clarity on the status of the draft code of practice and its implementation, which is less than three months away.

Our response

Allen Simpson, Chief Executive of UKHospitality, said: “Fantastic hospitality doesn’t happen without the incredible people working in our sector.

“There is nothing pro-worker about excluding half a team from tips, as some organisations are suggesting.

“I believe that 100% of tips should be shared across the whole team, from front of house to kitchen staff. Every single person involved in delivering the hospitality experience matters and should be rewarded.

“We were already concerned about changing a law introduced so recently and working effectively for both teams and employers, and the withdrawal of a new code of practice just three months before its implementation leaves businesses in limbo.

“Once again, hospitality businesses are left with absolutely no certainty or clarity on what is expected of them.

“We are pressing the Government to urgently come forward with an explanation as to why the draft code has been withdrawn and how it intends to proceed with these changes.”