It’s hard to believe that prior to 2015, major restaurant chains were deducting an administration fee from staff tips made by card – in some cases this was a high as 8%. As a huge 80% of all UK tipping now happens by card payment (rather than cash) the Government have suggested that businesses are less likely to pass tips onto staff.

The Allocation of Tips Bill has been in talks for a long time and is yet to be announced however, in January 2023, the bill was listed as being “in the remaining stages “ so it could be coming into force soon. The introduction of the Bill will mean the employer has a legal obligation to pay 100% of tips, gratuities, and service charge to employees – however paid and employees can bring an employment tribunal claim if this isn’t followed correctly. Under the Bill, all records of tips should be kept for 3 years and employees must have a written policy in places.

To ensure you are ready for this announcement, please contact us for a copy of our Tips and Gratuities policy or to book a call with us to discuss this imminent change, click here.