How will the new tipping bill affect my business?

Tipping in the UK is changing, and there is new tipping legislation close to approval this year.

The Employment (Allocation of Tips) Bill, is a piece of legislation aimed at ensuring that all tips and gratuities received by workers in the hospitality industry are distributed fairly and transparently. The Bill, which is currently transitioning its way through the House of Lords, if passed could have a significant impact on the way that tips are managed and distributed by some operators.

As a hospitality business, this may present some challenges for you and your team. However, at The Tronc Advisor, we are here to help you navigate these changes and ensure that your business is compliant with the new regulations.

So what is the Bill?

One of the key aims of the Bill is to ensure that all workers in the hospitality industry receive a fair share of the tips that are earned, regardless of their role or position within the business. This is particularly important in the current economic climate, where many workers in the hospitality sector are struggling to make ends meet and are reliant on tips as a significant source of income.

However, the challenge for operators is how to ensure compliance with the legislation while still providing an efficient and seamless service to their customers. This is where we come in.

So what are my obligations under the new Bill?

Well, nothing is set in stone ‘just yet’. The Bill has passed through the House of Commons and on to the House of Lords, where (we hope) it’s likely to pass later this year.

But as it stands, the headlines are:

• Tips received in a month, must be paid out by the end of the following month. 

• Staff can request reports on their tips collected. 

• Operators can no longer use the Tronc pot to pay for the Tronc system itself. 

• It’s likely the government will determine what it means to be “fair” by way of a Code of Practice.

• Tribunals are able to rule on the restitutions of complaints. 

We know this can seem daunting, but we’re here to help. We’d be happy to help guide and support you through all of this new legislation.