What can we expect to see in the legislation?
In the government’s 2016 response to the consultation on tipping gratuities, cover and service charges, it stated “The government believes that all discretionary payments for service, after tax where appropriate, should be received by the worker; or managed separately from the employer through a tronc system.”
Therefore, in accordance with the government’s response, the legislation is expected to include:
- A requirement for all employers to pass on tips to workers without any deductions, potentially no later than the end of the month following the month in which it was paid by the customer.
- A Statutory Code of Practice setting out how tips should be distributed to ensure fairness and transparency.
- New rights for workers to make a request for information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal.