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How and when are the rules changing in relation to tips?

How and when are the rules changing in relation to tips?

In September 2021 the government announced that it would reform tipping practices.

On 1st February 2022 the Shadow Minister (International Development), Yasmin Qureshi submitted a written question to the Secretary of State for Business, Energy and Industrial Strategy asking for the timeframe for implementation of those reforms.

In a written answer Paul Scully the, the Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy) responded indicating that:

  • Tips earned by workers should go to them. The government will bring forward legislation requiring employers to pass all tips to workers, as soon as parliamentary time allows.
  • The legislation will require employers to pass on all tips, gratuities, and service charges to workers without any deductions.
  • Employers will be required to distribute tips in a fair and transparent manner, where the employer has control or a significant influence over tip distribution.
  • The government will introduce a new right for workers to make a request for information relating to an employer's tipping record.
  • The government expect that any new rules will commence no earlier than one year after such legislation has passed, to give employers sufficient lead in time to adjust their business practices.

We will endeavour to keep you informed of any developments, including the publication of a White Paper.

This is not legal advice; it is intended to provide information of general interest about current legal issues.

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