Tipping policies
Since 1 October 2024, you must pass on all qualifying tips, gratuities and service charges to your workers. Where you control or significantly influence how tips are distributed, you must ensure they are shared in a fair and transparent way in line with the statutory Code of Practice on the fair and transparent distribution of tips.
You are required to:
- Maintain a written tips policy, setting out how tips are handled and distributed
- Keep records of all tips, including how they are allocated and shared between workers
- Allow workers to access to these records.
The Employment Rights Act 2025 builds on these requirements.
From October 2026, before producing the first version of your written tips policy, you must comply with:
- Recognised trade union representatives, or
- Worker representatives of those affected by the policy
You will also need to:
- Review the tips policy at least once every three years
- Consult again as part of each review.
You must also make an anonymised summary of the views expressed during consultation available to all workers at the workplace where the tips policy applies.
We can help you draft or review a tips policy, advise on consultation requirements and how to engage with representatives and help you manage risk ahead of these changes.