Allocation of Tips
Fairness
Allocating and distributing tips fairly does not necessarily require employers to allocate the same proportion of tips to all workers. There may be legitimate reasons why employers choose to allocate different workers different proportions of tips.
Employers should use a clear and objective set of factors to determine the allocation and distribution of tips. The choice of factors should be fair and reasonable given the circumstances and the nature of the individual business.
The government code of practice on fair and transparent distribution of tips provides some factors which may be considered by employers, though this list is illustrative rather than exhaustive.
Type of role / work for example distribution between front of house and backroom workers
Basic pay (and how workers…
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Effective from 1 October 2024 the Employment (Allocation of Tips) Act 2023 creates the legal obligation for employers across all sectors to allocate tips, gratuities and service charges which they are paid or which they exercise control or significant influence over to workers without any deductions.
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