Tips and deductions – for the hospitality sector

The government’s Good Work Plan has confirmed new rules will be brought in to ban employers from taking “administrative fees” or other deductions from staff tips.

The Employment (Allocation of Tips) Bill 2019-20, was announced in the Queen’s Speech on 14 October 2019 albeit overshadowed somewhat in the press by BREXIT!

By way of reminder to our clients – the bill will make it a legal requirement for: –

• all tips and service charges to be passed on to staff; an

• it will also require tips collected by employers to be distributed on a fair and transparent basis.

It is also proposed that a ‘Code of Practice’ will be introduced with rules for fair distribution – contracts and policies will require review and update.

The timescales for implementing any such new legislation is unknown, although we shall update