Demystifying the new Allocation of Tips Legislation

It has been a long time coming, but a new Employment (Allocation of Tips) Bill has been passed by the UK Government and is set to come into law in 2024. It has been given Royal Assent and will soon become a reality for hospitality businesses everywhere. The best estimate is for April 2024 and the start of the new tax year.

Its impact on how tips and service charges are distributed cannot be underestimated. Every hospitality business only has a short time to meet the standards it brings.

As with all new legislation, the Code of Practice’s detail will provide the tangible answers to many questions these changes bring about. But, with this Code of Practice nowhere on the horizon, we have taken a deep dive into the new legislation and considered the main areas of change and what practical steps you can take now.

One thing is clear … doing nothing is not an option!