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

Construction begins on new Civil Service office building in Talbot Gateway Alan McBride Muse Will Town Defence Infrastructure Organisation Jennifer Chard Defence Business Services Cllr Lynn Williams Blackpool Council Garry Bowker Vinci

Construction begins on new Civil Service office building in Talbot Gateway

20 May 2025

2

Skiddle raises over £750,000 for charities Skiddle cheque presentation to Alder Hey Hospital

Skiddle raises over £750,000 for charities

20 May 2025

3

Former Victorian Hotel approved for residential conversion The site

Former Victorian Hotel approved for residential conversion

19 May 2025

4

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing Oliver Webber, Tracy Clavell-Bate and Tim Webber from Barnfield Group with Cllr Phil Riley, second from right, Leader of Blackburn with Darwen Council

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing

19 May 2025

5

Two Cuckoo Gins named winners in The Gin Guide Awards 2025 Mark Long

Two Cuckoo Gins named winners in The Gin Guide Awards 2025

19 May 2025

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
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

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

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

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

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
22 May 2025 - 22 May 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Preston Freelancer Meet-Up: May
Freelancer Meet-Up May.png.png
LBV Hub Networking
22 May 2025 - 22 May 2025

Preston Freelancer Meet-Up: May

society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Amber River True Bearing quarterly investment seminar
LBV Hub Seminars
22 May 2025 - 22 May 2025

Amber River True Bearing quarterly investment seminar

Cottons Hotel & Spa , Knutsford, WA16 0SU

16:00 - 18:00

Liverpool Business Expo 2025
https---cdn.evbuc.com-images-881365363-4862066883-1-original.20241023-085714.jpeg.jpg
LBV Hub Awards
23 May 2025 - 23 May 2025

Liverpool Business Expo 2025

Aintree Racecourse , Liverpool , L9 5AS

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – May 29
Artboard 15.png.png
LBV Hub Seminars
29 May 2025 - 29 May 2025

Advantage: AI – A Workshop for Business Leaders – May 29

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

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 LBV122 Online Graphic
Subscribe now

Weekly news bulletin