The Employment (Allocation of Tips) Act 2023 received Royal Assent last week. The commencement date has not been announced but, according to the government release, will be in about one year’s time.
In brief, it requires employers to ensure all tips and service charges are allocated fairly between its workers (note: workers, not employees).
‘Fairly’ is not actually defined, but employers are required to have regard to a Code of Practice. The Code of Practice is being developed and will be put out for consultation in due course.