Tipping Legislation Reaching Final Stages

Proposed legislation that would establish laws around tipping in hospitality moved a step closer to actuality this week.

The Employment (Allocation of Tips) Bill moved further towards being implemented this week. The Bill is nearing the end of its journey through the House of Lords, and can be expected to come into effect around April 2024.

What is this act and what will it mean for your business?

Simply put, The Bill acts to protect employees and ensure that 100% of monies donated or offered by customers as tips, must go to staff. This could have a positive effect on hospitality staff shortages and make hospitality a more attractive sector to seek employment, as staff will be able to benefit from keeping 100% of the tips they receive from customers.

In turn, this could act to incentivise employees to ensure they are always providing a high level of customer service in attempt to gain more tips, and therefore will reflect well on the business in question and make it a more attractive place for customers to come and spend their money.

The Morning Advertiser report that this legislation will affect all hospitality businesses, and failure to comply with the measures outlined in the proposed legislation could end up resulting in expensive Employment Tribunal claims. The Bill covers all forms of digital transactions, as well as cash donations.

The implementation of The Bill is not retrospective, so will only apply to tips given on or after the date when the law comes into practice.

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