The Government has announced a proposed new law, “as soon as parliamentary time allows”, which 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 way, where they have control or significant influence over tip distributions.
Legislators also intend to introduce a new right allowing workers to request information relating to an employer’s tipping records, to enable them to bring a credible claim to an employment tribunal if an issue arises.
The new law is likely to commence no earlier than one year after the legislation has been passed, which should provide employers with enough time to adjust their employment practices to ensure compliance.
If you have any queries regarding the above, please do not hesitate to contact a member of the employment team at Glaisyers ETL – Employment@glaisyers.com
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