Labour promises ‘further measures on tipping’ as bill moves forward

The government is moving forward with the tipping bill and plans to introduce “further measures” designed to help workers.

Statutory instruments for the Employment (Allocation of Tips) Act were laid on Monday, meaning it will come into force on 1 October 2024.

The law will cover England, Scotland and Wales and will require employers to pass on all tips and service charges to staff without deductions.

The act was put forward by the previous Conservative government and was originally due to come into force on 1 July.

The Labour government has highlighted the code of practice for the act and confirmed plans for further legislation around tipping.

Justin Madders, the minister for employment rights, said: “Britain’s outdated employment laws require an urgent update. This government will ensure they are fit for the modern economy and deliver on our plan to Make Work Pay.

“We will be introducing further measures on tipping to ensure workers get their fair share of tips.

“Today’s announcement is just the first step of many in protecting workers and placing them at the heart of our economy.”

The code of practice does not set out an exhaustive list of factors for employers to consider but is designed to provide overarching principles on how to fairly apply the code.

Employers will be required to pass on all tips and service charges to staff and have a written policy on how tips are dealt with.

However, cash and digital tips given directly to staff without employer involvement are out of the scope of the code.

The government said non-statutory guidance will be published in due course to help employers and workers interpret the legislation.

The Caterer will be running a second Tipping and Payment Summit offering advice for employers on 3 October.

View the tipping code of practice here.

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