Gov delays tipping law until October 2024

The UK government has delayed the implementation of the tipping law from July 2024 to October 2024. The Department for Business and Trade published an updated Code of Practice on Monday (22 April 2024) on the fair and transparent distribution of tips that will have legal effect under the Employment (Allocation of Tips) Act 2023. The Act and secondary legislation make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all of the tips they have earned. These new measures will apply to England, Scotland and Wales once they have been approved by parliament. The government stated that many hospitality workers rely on tips to top up their pay and are often left “powerless” if businesses don’t pass on service charges from customers to their staff. However, this overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors helping to ease cost of living pressures. The updated Code of Practice will be statutory and have legal effect, meaning it can be introduced as evidence in an employment tribunal. Alongside the updated Code of Practice, the government has also published its formal response to the public consultation which sets out the feedback received during the consultation, the government’s response and next steps. Kevin Hollinrake, business and trade minister, said: “It is not right for employers to withhold tips from their hard-working employees. “Whether you are cutting hair or pulling a pint, this government’s legislation will protect the tips of workers and give consumers confidence that when they leave a tip, it goes to the hardworking members of staff. The secondary legislation laid today reinforces our commitment to legally protecting our low paid workers and ensuring a fair day’s pay for a fair day’s work.” Ben Thomas, CEO of Tipjar, added: “Hospitality and service industries are part of the fabric of our culture and a cornerstone of our economy. We are honoured to have consulted with the Department of Business and Trade as they have developed this important Code of Practice clarifying employers’ responsibilities as they pass tips to their hard-working teams. “As a business that exists to help employers distribute tips on the same principles of fairness and transparency, we are confident that this Act will support millions of tipped workers across the UK, and level the playing field for businesses across these sectors. We’re excited to support employers in leveraging the opportunities this will present, as we build a more fair and transparent future.”