UK hospitality businesses, including pubs and restaurants, are being warned to ensure compliance with new tipping laws set to take effect from October 1st.
Lynne Blakey, director at Evelyn Partners, a wealth management and advisory firm, is urging employers to get ready for the modifications brought by the Employment (Allocation of Tips) Act. This law requires employers to give 100 per cent of tips and service charges to their employees without any deductions.
Blakey, a former finance director at The Newt in Somerset with first-hand experience in the hospitality sector, emphasized that numerous businesses are still unprepared for the forthcoming legal changes. She explained, “The new regulations mandate that tips must be allocated transparently and equitably, at the place where they were earned, within a specific timeframe. This will impact employers who have previously withheld tips or shared them among multiple venues.”
The legislation also requires businesses to establish a formal written policy outlining how tips are managed and distributed, and to maintain accurate records. Employers must ensure fair tip allocation across all staff, including zero-hours and agency workers, who now have the right to request information on their share of tips if they suspect discrepancies.
