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

Lumo launches West Coast rail service with 100 jobs in Preston Lumo train in London and staff

Lumo launches West Coast rail service with 100 jobs in Preston

22 May 2026

2

Lancashire brings £20bn of investment opportunity to UKREiiF UKREiiF

Lancashire brings £20bn of investment opportunity to UKREiiF

22 May 2026

3

Work begins on Blackpool’s Multiversity campus Multiversity in Blackpool

Work begins on Blackpool’s Multiversity campus

22 May 2026

4

New £8.7m Pleasure Beach ride opens to public Aviktas ride

New £8.7m Pleasure Beach ride opens to public

22 May 2026

5

Red Rose Awards winners gather to celebrate Lancashire business Red Rose Awards Winners Reception

Red Rose Awards winners gather to celebrate Lancashire business

21 May 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
Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Research and Knowledge Exchange Festival 2026
Spark 2026 newsletter v3-5 (1).png.png
LBV Hub Seminars
18 May 2026 - 22 May 2026

Research and Knowledge Exchange Festival 2026

University of Lancashire, Preston, PR1 2HE

10:00 - 20:00

Building a high-performance culture
business workshop.png.png
LBV Hub Seminars
03 Jun 2026

Building a high-performance culture

Media Factory, University of Lancashire, Preston, PR1 2HE

09:30 - 11:30

Chamber Breakfast Networking – June
LBV Hub Networking
03 Jun 2026

Chamber Breakfast Networking – June

Pye Motors, Morecambe, LA3 3PE

08:00 - 10:00

Society1 Breakfast Social and Coworking Day
Breakfast Social June Facebook.png.png
LBV Hub Networking
04 Jun 2026

Society1 Breakfast Social and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Yellow Day 2026
LBV Hub Fundraisers
07 Jun 2026

Yellow Day 2026

St Catherine's Hospice, Preston, pr55xu

11:00 - 16:00

Opening doors and opportunity for Tech in Preston
PTC Square June (900 x 900 px)-2.png.png
LBV Hub Networking
09 Jun 2026

Opening doors and opportunity for Tech in Preston

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Clubhouse Business Network sponsored by Orca Finance - June 2026
Padel Network.png.png
LBV Hub Networking
11 Jun 2026

Clubhouse Business Network sponsored by Orca Finance - June 2026

Clubhouse , Blackburn, BB1 3NT

14:00 - 16:00

The Business Network Central and East Lancashire
LBV Header (33).png.png
LBV Hub Networking
18 Jun 2026

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

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