Allocation of tips: Government supports proposed legislation

By Brabners LLP

20 Jan 2023

Christine Lbv

In this series, we’re looking at a number of employment law-related Private Members’ Bills that have received support from the government and are progressing through the House of Commons.

The focus for this blog is the Employment (Allocation of Tips) Bill, which has reached the Report stage in the House of Commons.

The main points of the Bill are as follows:

  • If the Bill comes into law, it will require employers to allocate “qualifying tips” to workers with no deductions (except than those deductions set out in tax law). According to the Explanatory Notes of the Bill, “qualifying tips” are those “tips, gratuities and service charges which they [employers] are paid or which they exercise control or significant influence over”).

  • Employers must ensure those tips are distributed on a fair and transparent basis.

  • A statutory code of practice is being developed which would set out the principles of fairness and transparency. Employers would have to have regard to the statutory code of practice. The code of practice would be admissible as evidence in the Employment Tribunal and the Employment Tribunal would have to take it into account in making decisions on the allocation of tips.   

  • Enforcement of the Bill’s obligations would be dealt with by the Employment Tribunal. These would include allowing Employment Tribunals to order the employer to revise the allocation of tips or to order an employer to make a payment to a worker or workers of up to £5,000.

  • Where tips are made on “more than an occasional and exceptional basis” an employer will be required to have in place a written policy explaining how tips are dealt with, including how they are allocated between workers. This requirement is to make it easier for workers to have the information needed to bring a claim to the Employment Tribunal.

  • A worker will have the right to request information relating to an employer’s tipping record.

  • The Bill gives the same rights to agency workers as it does to workers.

According to the government’s press release, this Bill would benefit over 2 million workers in the hospitality, leisure and services sectors.

HOW WE CAN HELP YOU

We know that employers in those sectors will be keen to follow progress of this Bill to understand how it will impact them, should it become law, and what they should do to prepare. We’ll be keeping an eye on developments. To receive our updates on this Bill and other legislation, case law and issues that may affect your People and Development issues please subscribe via our website to receive our employment law newsletter and event invitations.

Brabners in Lancashire is located at Sceptre Court, Walton Summit. If you would like to discuss anything raised in this article, please give us a ring on 01772 823921, quote “LBV” and a member of our team will be happy to assist you.  

If you would like to receive more content like this, please head to our website where you can subscribe to receive regular updates of current articles and events.

Latest news

1

Solomon Commercials gets green light for £14m Kingsway expansion The headquarter view of Solomon Commercials

Solomon Commercials gets green light for £14m Kingsway expansion

06 Feb 2026

2

Guy’s administrators explore sale to James’ Places Guy's Thatched Hamlet (Pic Guy's Thatched Hamlet)

Guy’s administrators explore sale to James’ Places

06 Feb 2026

3

Former chief executive to put spotlight on mental health at Blackpool business event John Ainsworth

Former chief executive to put spotlight on mental health at Blackpool business event

06 Feb 2026

4

Green light for landmark regen project Regeneration of the 19th-century former Wheatsheaf Hotel and Pub on Whalley Road, Clitheroe

Green light for landmark regen project

05 Feb 2026

5

New operator for Winter Gardens The Winter Gardens

New operator for Winter Gardens

05 Feb 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

E-commerce in 2026: From stores to systems
PTC banner Feb 26.jpg.jpg
LBV Hub Networking
10 Feb 2026 - 10 Feb 2026

E-commerce in 2026: From stores to systems

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Degree apprenticeship information sessions for businesses
student centre entrance.jfif.jpg
LBV Hub Webinar
10 Feb 2026 - 13 Feb 2026

Degree apprenticeship information sessions for businesses

University of Lancashire, Virtual event, -

10:00 - 09:30

The Business Network Central and East Lancashire
LBV Header (29).png.png
LBV Hub Networking
11 Feb 2026 - 11 Feb 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

The Ultimate Network – February
Logo.jpg.jpg
LBV Hub Networking
19 Feb 2026 - 19 Feb 2026

The Ultimate Network – February

Brockholes Nature Reserve, Samlesbury, PR5 0AG

16:00 - 18:00

Future Forward Business and Skills Summit
Future Forward Business & Skills Summit
LBV Hub Networking
20 Feb 2026

Future Forward Business and Skills Summit

Lancashire Energy HQ , Blackpool, FY4 2QS

08:00 - 11:00

Armed Forces Covenant Business Engagement
Logo.jpg.jpg
LBV Hub Seminars
24 Feb 2026 - 24 Feb 2026

Armed Forces Covenant Business Engagement

Morecambe Football Club, Morecambe, LA4 4TB

09:00 - 15:00

Preston Freelancer Meet-Up: February
LBV Hub Networking
26 Feb 2026 - 26 Feb 2026

Preston Freelancer Meet-Up: February

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Spring Forecast 2026 LIVE: Insights with PM+M
Spring Forecas.jpg.jpg
LBV Hub Seminars
03 Mar 2026 - 03 Mar 2026

Spring Forecast 2026 LIVE: Insights with PM+M

Blackburn Rovers Football Club (Red Rose Suite), Ewood Park, Blackburn , BB2 4JF

12:00 - 15:00

Chamber Breakfast Networking – March
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Chamber Breakfast Networking – March

The Storey, Lancaster, LA1 1TH

08:00 - 10:00

Lancashire Lifesavers
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Lancashire Lifesavers

The Story, Lancaster, LA1 1TH

10:15 - 11:15

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin