Government reveals draft for new tipping practice
The draft code of practice is on fair and transparent distribution of tips.
The government has published its draft code of practice on fair and transparent distribution of tips.
Pub and bar operators have been anticipating the first draft of the code since the introduction of the Employment (Allocation of Tips) Act in May 2023, which made it illegal for employers to withhold tips from staff.
In November 2023, Pub & Bar's legal writers TLT put together a summary on the act, which can be read here.
However, upon the publishing of the new government draft, trade body UKHospitality has said that there are two new key elements of the code of practice for members to be aware of.
First, that employers should use a clear and objective set of factors to determine the allocation and distribution of tips. The choice of factors should be fair and reasonable given the circumstances and the nature of the individual businesses.
Second, there are several factors which may be considered by employers when setting up their tipping policy, including type of role or work; basic pay; individual and/or team performance; seniority or level of responsibility; length of time served with the employer; and customer intention.
More guidance expected soon
"The code of practice has been much anticipated and it’s positive that it has finally been published so that the sector can provide feedback and begin to plan," says UKHospitality chief executive Kate Nicholls. "On initial reading, we’re pleased that the code of practice recognises the variety of different business models within hospitality and that the code of practice is not too prescriptive, allowing tips to be based on the circumstances of a role, for example.
"We’ll be working closely with the Department of Business and Trade to provide feedback from members and ensure the final date of implementation allows businesses ample time to digest and implement the requirement under the code of practice.
"More guidance on how the overall legislation will operate, alongside the code of practice, is expected soon and we will continue to analyse these updates as they come."
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