The Government has confirmed that it proposes to legislate to prevent employers making any deductions from tips received by their staff other than those required by tax law.
The facts
In 2016, the Government consulted on tipping, gratuities, cover and service charges. It indicated in 2018 that it intended to legislate to ensure that tips left for workers go to them in full, and has now given some detail of the proposed legislation, which will include:
- requirements for employers in all sectors not to make any deductions from tips received by their staff, including admin charges, other than those required by tax law.
- requirements for employers to distribute tips in a way that is fair and transparent, with a written policy on tips, and a record of how tips have been dealt with.
Employers will be able to distribute tips via a tronc, and a tip must be dealt with no later than the end of the month following the month in which it was paid by the customer.
- provisions to allow workers to make a request for information relating to an employer’s tipping record. Employers will have flexibility in how to design and communicate a tipping record, but should respond within four weeks.
- requirements for employers to have regard to a statutory Code of Practice on Tipping.
The response also confirms that breach of these obligations will be enforced in Employment Tribunals.
What does this mean for employers?
The legislation will be included in the new Employment Bill, which will be brought forward when parliamentary time allows.
https://www.gov.uk/government/news/all-tips-to-go-to-staff-under-government-plans-to-enhance-rights-of-2-million-workers
