- Employers must pass on all tips to workers without deductions.
- Over two million workers in England, Scotland, and Wales will benefit.
- Employers must have a written policy on fair tip allocation.
The Employment (Allocation of Tips) Act came into effect last October which now means employers must pass on all tips to workers without deductions. It’s expected to benefit more than two million workers in England, Scotland and Wales.
The law's introduction follows a long history of unfair tip practices, notably the infamous 2023 case at Cameron House in Scotland. In this instance, management were forced to repay tips that had been wrongfully taken by the hotel. Prompted by the Unite Union and growing public demand, the Government has now stepped in to ensure workers receive what they earn through tips.
The new law means employers must allocate tips to workers without deductions, and this must be fair and consistent, Employers must have a written policy covering how they allocate tips.