May 2023 – All Tips to be Paid to Workers
Recent legal changes mean that there is now a legal obligation on employers in Great Britain to allocate all tips, gratuities and service charges which they are paid or which they exercise control or significant influence over (qualifying tips) to workers without any deductions.
In addition, the Act
Requires employers to ensure that the distribution of qualifying tips between workers is fair
Requires employers to have regard to a statutory code of practice when complying with their obligation to allocate tips fairly
Creates remedies to be made available to the Employment Tribunal in cases where employers fail to comply, including allowing tribunals to order an employer to revise the allocation of tips or to order an employer to make a payment to one or more of their workers and
Requires businesses to make available to workers a written policy setting out how tips are dealt with and allocated between workers, and to keep and make available to workers records of qualifying tips they have received and the amount of those tips which have been allocated
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