Allocation of tips: Government supports proposed legislation

By Brabners LLP

20 Jan 2023

Christine Lbv

In this series, we’re looking at a number of employment law-related Private Members’ Bills that have received support from the government and are progressing through the House of Commons.

The focus for this blog is the Employment (Allocation of Tips) Bill, which has reached the Report stage in the House of Commons.

The main points of the Bill are as follows:

  • If the Bill comes into law, it will require employers to allocate “qualifying tips” to workers with no deductions (except than those deductions set out in tax law). According to the Explanatory Notes of the Bill, “qualifying tips” are those “tips, gratuities and service charges which they [employers] are paid or which they exercise control or significant influence over”).

  • Employers must ensure those tips are distributed on a fair and transparent basis.

  • A statutory code of practice is being developed which would set out the principles of fairness and transparency. Employers would have to have regard to the statutory code of practice. The code of practice would be admissible as evidence in the Employment Tribunal and the Employment Tribunal would have to take it into account in making decisions on the allocation of tips.   

  • Enforcement of the Bill’s obligations would be dealt with by the Employment Tribunal. These would include allowing Employment Tribunals to order the employer to revise the allocation of tips or to order an employer to make a payment to a worker or workers of up to £5,000.

  • Where tips are made on “more than an occasional and exceptional basis” an employer will be required to have in place a written policy explaining how tips are dealt with, including how they are allocated between workers. This requirement is to make it easier for workers to have the information needed to bring a claim to the Employment Tribunal.

  • A worker will have the right to request information relating to an employer’s tipping record.

  • The Bill gives the same rights to agency workers as it does to workers.

According to the government’s press release, this Bill would benefit over 2 million workers in the hospitality, leisure and services sectors.

HOW WE CAN HELP YOU

We know that employers in those sectors will be keen to follow progress of this Bill to understand how it will impact them, should it become law, and what they should do to prepare. We’ll be keeping an eye on developments. To receive our updates on this Bill and other legislation, case law and issues that may affect your People and Development issues please subscribe via our website to receive our employment law newsletter and event invitations.

Brabners in Lancashire is located at Sceptre Court, Walton Summit. If you would like to discuss anything raised in this article, please give us a ring on 01772 823921, quote “LBV” and a member of our team will be happy to assist you.  

If you would like to receive more content like this, please head to our website where you can subscribe to receive regular updates of current articles and events.

Latest news

1

University of Central Lancashire celebrates hat-trick of wins at Educate North Awards University of Central Lancashire winners at Educate North Award Winners 2025

University of Central Lancashire celebrates hat-trick of wins at Educate North Awards

04 Apr 2025

2

The Villa’s sister venue shuts its doors The Villa Levens and The VillaWrea Green (Image credit: The Villa Levens and The Villa Wrea Green)

The Villa’s sister venue shuts its doors

04 Apr 2025

3

PM urged not to retaliate over tariffs Manufacturing

PM urged not to retaliate over tariffs

03 Apr 2025

4

CMAC Group appoints Matthew Ratcliffe as chief operating officer Matthew Ratcliffe CMAC

CMAC Group appoints Matthew Ratcliffe as chief operating officer

03 Apr 2025

5

For sale signs at The Villa Villa Wrea Green has been brought to market (Image credit: The Villa Wrea Green)

For sale signs at The Villa

02 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
24 Apr 2025 - 24 Apr 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

Research and Knowledge Exchange Showcase
13421_research_knowledge_exchange_2025_600x300.jpg.jpg
LBV Hub Awards
07 May 2025 - 08 May 2025

Research and Knowledge Exchange Showcase

University of Central Lancashire , Preston, PR1 2HE

09:00 - 17:00

Enhancing Your Workforce with CPD
LBV Hub Networking
08 May 2025 - 08 May 2025

Enhancing Your Workforce with CPD

University of Central Lancashire, Preston, PR1 2HE

13:15 - 14:15

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin