From 1 October 2024, tips must be distributed fairly, transparently and promptly to all workers, including agency staff under the Employment (Allocation of Tips) Act 2023.  What does the new law mean?

• You’ll need to ensure that all qualifying tips are allocated fairly to workers.
• Tips must be paid in full by the end of the month in which they’re received.
• You’ll need to keep detailed records of tips received and how you’ve allocated them to employees.

To ensure you’re legally compliant you’ll need to review your current tip allocation processes, develop a clear written policy on tips and train your team to make sure everyone understands the changes. Failure to do so could cost you a lot more than keeping hold of the tips in the first place!