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

The mayoral train is about to leave: Will we be on it? Mo Isap CEO of IN4 Group

The mayoral train is about to leave: Will we be on it?

24 Sep 2026

2

Conference showcases vibrant Lancashire built environment sector Bec

Conference showcases vibrant Lancashire built environment sector

24 Sep 2026

3

Coastal businesses to benefit from seawall improvements Promenadegardensaerial

Coastal businesses to benefit from seawall improvements

23 Sep 2026

4

£2.5m funding boost for Eden Project Morecambe eden-project-north.jpg

£2.5m funding boost for Eden Project Morecambe

23 Sep 2026

5

Warden Construction to repair historic library roof Wardenlancaster Libraryexternal Resized

Warden Construction to repair historic library roof

23 Sep 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
All In One Network
LBV Website Events GraphicAll In One Network 15 Oct 2026

All In One Network

The Leisure Box, Northlight, Glen Way, Brierfield , BB9 5NH

14:00 - 16:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

18:30 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

90 Day Business Planning Workshop
90 Day Business Planning Workshop 25 Sep 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

Employment law webinar - an update on key ERA 2025 changes
LBV Website Events GraphicEmployment Law Webinar 29 Sep 2026

Employment law webinar - an update on key ERA 2025 changes

Online, Preston, PR1 3JD

12:00 - 13:00

Preston Tech Connection Coworking Day at Society1
Preston Tech 2 29 Sep 2026

Preston Tech Connection Coworking Day at Society1

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Business on Par Burnley
Business on Par LBV Banner (1200 x 800 px).png.png 30 Sep 2026

Business on Par Burnley

Prairie Sports Village, Burnley, BB10 2FU

09:00 - 11:00

Unfair Dismissal: The critical update employers can’t afford to miss
Lancaster And Morecambe Logo 1 30 Sep 2026

Unfair Dismissal: The critical update employers can’t afford to miss

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

SheChain Live - Where Lancashire business meets opportunity
SheChain Live (3).png.png 01 Oct 2026 - 01 Oct 2026

SheChain Live - Where Lancashire business meets opportunity

Blackpool Conference Centre, Winter Gardens (Leopold Grove entrance), Blackpool, FY1 1HL

09:30 - 16:15

Breakfast Social and Coworking Day: October
Breakfast Social 01 Oct 2026

Breakfast Social and Coworking Day: October

Society1, 9-10 Cross Street, Preston, PR1 3LT

10:00 - 12:00

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 LBV129 Online Graphic
Subscribe now

Weekly news bulletin