The Act places an obligation on employers to:
- Ensure that all qualifying tips are allocated fairly between workers; andEnsure that they have a written policy in place setting out how they deal with tips.
Guidance for things like:
- What amounts to a qualifying tip; andWhat factors you should be taking into account in determining how to allocate and distribute tips….
……is all
contained in a draft statutory code of practice, consultation on which
has recently closed, so we expect to hear shortly on that.This will likely mean big changes for clients where tipping is standard.You must have regard to the code when designing and implementing your policies and practices about this.We
recommend that you get ahead of the curve and start to look at steps you
can take to prepare for these measures in advance, especially as
changes can take a while to get in place.These could be things like:
- Reviewing the draft code; andAuditing current tipping arrangements against the code to see how they measure up and what you need to do to ensure compliance.
Further
non-statutory guidance will be published in due course to help parties
interpret the legislation, but we do advise that you get that head start
so please do contact the team if this affects you and we can help you
with that audit and any necessary documentation too.
