The Employment (Allocation of Tips) Act 2023 came into force on 1 October 2024. In addition to the previously published statutory code of practice, the government has released some non-statutory guidance on the changes to tipping legislation. This guidance provides some simple worked examples of where practices would fall inside or outside the new rules, some useful templates and a simplified explanation of the sanctions employers may face. 

The key takeaways are: 

1. Have a fair and transparent tips policy
2. Make sure all workers see the tips policy (including agency workers)
3. Remember to distribute tips to agency workers
4. Ensure that tips are pooled by location and not shared between branches of a chain 
5. Include all workers that are directly involved in providing services to customers when distributing tips
6. Keep a record of all tips distributed for at least three years
7. Address any issues promptly

Further guidance can also be found in the recent guidance published by Acas. 

Have a read of my original article or tune into the S&B People Podcast if you would like more detail on the Employment (Allocation of Tips) Act 2023.