Hospitality businesses that thought the proposed tipping reforms had been shelved may need to think again. Following the withdrawal of an earlier draft revised Tipping Code in July, a new consultation has now been launched, signalling that the reforms remain on the agenda.

The consultation, which closes on 29 September 2026, seeks views on a revised statutory Code of Practice on Fair and Transparent Distribution of Tips. While the current tipping regime remains unchanged for now, the latest development suggests that increasing worker involvement in tipping arrangements remains a key policy objective.

But why has the consultation been launched so soon after the previous draft was withdrawn?

The proposals remain under consideration

The latest announcement follows the withdrawal of an earlier draft revised Code in July, which left many hospitality businesses questioning whether the proposed reforms would proceed at all. No public explanation was provided for the withdrawal at the time.

The launch of a fresh consultation suggests the proposed reforms have not been abandoned. Instead, further feedback is being sought before any revised Code is finalised and brought into force.

For employers, this provides the clearest indication yet that the focus of tipping regulation is continuing to evolve. While the current rules already require 100% of qualifying tips to be distributed fairly and transparently, the proposed reforms would place greater emphasis on how decisions around tip distribution are developed, reviewed, and communicated.

What would the revised Code change?

Many employers will already be familiar with the Government’s proposals to strengthen worker involvement in tipping arrangements. The latest consultation confirms that worker consultation remains central to the proposed reforms.

Under the revised Code, employers would be expected to:

• consult workers when developing or reviewing tipping policies;

• review tipping policies at least once every three years;

• provide workers with sufficient information to participate meaningfully in consultations;

• maintain records of consultation exercises; and

• provide workers with an anonymised summary of consultation feedback.

Consultation must be carried out through recognised trade union or worker representatives where they exist, or directly with workers where no representatives are in place.

Importantly, consultation should be conducted in good faith, with employers genuinely considering worker feedback before finalising their tipping arrangements.

Majority voting is not enough

One of the more notable features of the draft Code is its warning that consultation should not be reduced to a simple majority vote.

Instead, employers are encouraged to seek views across all affected worker groups and take reasonable steps to engage workers who may face barriers to participation, including those with language, literacy, or disability-related challenges.

This reflects a broader policy objective of ensuring that groups with less influence in the workplace are able to participate meaningfully in decisions relating to tip distribution.

Fairness remains the fundamental principle

The draft does not require all workers to receive identical shares of tips. However, employers must continue to ensure that allocations are fair and based on objective criteria.

Relevant factors may include:

• role performed;

• hours worked;

• performance;

• seniority; and

• customer intention.

The Government has also included new guidance warning against arrangements that guarantee fixed monetary amounts of tips to particular workers or categories of worker before wider distribution takes place.

Tronc arrangements remain permissible

The revised Code confirms that employers may continue to use tronc arrangements to distribute tips.

However, employers remain responsible for ensuring that such arrangements operate fairly in practice. Where employers become aware that a tronc is operating unfairly, the Code would expect them to take corrective action.

While the revised Code remains subject to consultation and is not yet in force, employers may want to consider how their existing arrangements would operate if the proposed requirements are introduced.

Greater worker involvement in tipping remains firmly on the agenda. While no immediate changes are required, employers should consider whether their existing policies could support more formal consultation in future.

Mark Taylor, Partner and Team Leader of Buzzacott Troncmaster Services

Looking ahead

The consultation closes on 29 September 2026. Until any revised Code is finalised and brought into force, employers should continue to comply with the existing statutory Code, which came into effect on 1 October 2024.

However, the proposals provide a useful indication of the direction of travel, particularly the Government’s continued focus on greater worker involvement in decisions around tipping arrangements.

How we can help

Buzzacott Troncmaster Services works with hospitality businesses to review tipping policies, assess the fairness and transparency of tip allocation methodologies, evaluate tronc governance arrangements, and identify potential compliance risks.

Whether you're looking to benchmark your current arrangements or prepare for potential future changes, our specialists can help you understand the implications of the proposed reforms and ensure your tipping processes remain robust, transparent, and compliant.

Find out more about our Troncmaster Services or speak to one of our specialists by filling in the form below.