New Law Guarantees 100% of Tips

A big win for Hospitality workers! The new Employment (Allocation of Tips) Act ensures hospitality workers receive 100% of their tips and service charges, improving fairness across the industry.

Key changes:

• Tips must be paid by the end of the following month.
• A written policy on tip allocation is required.
• Tips are distributed where they were earned, not pooled across locations.
• An estimated £200m previously retained by employers will go to workers.

Nick Icke, Head of Hospitality, commented: “This law finally ensures that hospitality workers receive the rewards they deserve for their hard work. For too long, staff have been short-changed on the tips they’ve rightfully earned. This change not only recognises their dedication but reinforces a fairer, more transparent culture across the sector. It’s a big win for the people who are the heart and soul of our industry.”

For more details, visit The Caterer.