From 1 October 2026, the UK’s tipping rules tighten again. This time, the focus is on ‘worker voice’, consultation and transparency. These updates do not replace the Employment (Allocation of Tips) Act 2023 (“Tipping Act”), which already requires employers to pass on 100% of tips fairly. Instead, the Employment Rights Act 2025 builds on it, adding new duties that will fundamentally change how tipping policies are created and reviewed.

What is changing?

1. Mandatory worker consultation

Employers will no longer be able to create or amend a tipping policy without consulting workers. Under the current Code of Practice, consultation is encouraged but not required. From 1 October 2026, consultation becomes mandatory and must include:

• a recognised trade union;

• elected worker representatives; or

• direct consultation with workers if no representatives exist

After consulting, employers must give workers an anonymised summary of the feedback.

2. Tipping policies must be reviewed every three years

The Act introduces a formal review cycle:

• Each tipping policy must be reviewed at least every three years

• Each review must include worker consultation that meets minimum standards of fairness and transparency.

• Workers must receive an anonymised summary of the consultation feedback.

This ensures tipping policies remain current, fair and transparent rather than being drafted once and left unchanged.

3. Stronger rights and enforcement

If an employer does not comply with the consultation requirement, workers may present a complaint to an employment tribunal. A tribunal may order the employer to compensate workers by up to £5,000 for financial loss that arises from the failure.

The new Fair Work Agency, launching April 2026, will also have enforcement powers and will support compliance across workplaces.

Who is affected?

These requirements apply to any employer who receives tips on more than an occasional basis. This includes employers who use an independent troncmaster. Even where the employer does not allocate tips, they must still consult workers on their tipping policy and comply with the transparency and review duties.

Why it matters

These changes carry clear risk for employers:

• A missed consultation may result in a tribunal claim.

• A flawed or outdated policy may lead to compensation orders.

• Poor record-keeping may result in enforcement action from the Fair Work Agency.

• A lack of transparency may increase workplace disputes, turnover and reputational risk.

It is also expected that the current Code of Practice will be updated to reflect these new duties.

For employers, the message is clear. The Government considers that, after only two years, the Tipping Act requires further strengthening and now mandates worker consultation, supported by enforcement through the employment tribunal system. These measures aim to prevent outcomes where groups of workers may be disadvantaged by majority voting or where indirect discrimination risks arise.

How we can help

These changes make it more important than ever for employers to have a tipping structure that is independent, compliant and supported by clear governance. Where a tronc is in place, it must operate in line with HMRC’s NIC rules and sit alongside a tipping policy that meets the new consultation and review duties.

Buzzacott Troncmaster Services provides independent oversight of tronc arrangements. We ensure allocations are made without employer influence and in accordance with the Tipping Act, the Employment Rights Act changes and HMRC’s NIC rules. This helps employers maintain a compliant structure, supports transparency for workers and reduces the risk of challenge under the strengthened 2026 framework.