Navigating the Employment (Allocation of Tips) Act 2023

On 15 December 2023, The Secretary of State for the Department of Business and Trade issued a ‘Code of Practice’ to promote fairness and transparency around the allocation of tips across the hospitality sector.

Despite the announcement, many operators were still left with uncertainty and questions on how the Act and Code of Practice would be applied and successfully integrated into the day-to-day running of their businesses.

Following discussions with our clients and contacts who flagged these concerns, we have responded to the consultation, highlighting points which are not reflected in the draft legislation, or Code of Practice, including key challenges such as:

• The impact on moving staff to new sites or venues which need revitalising.
• Extending the ‘place of business’ to include ‘pop-up’ venues which are seen as an extension to an established venue.
• Review the timing for the distribution of tips.
• Administration relating to agency workers.

We are waiting for a formal response to the consultation, at which point further guidance will follow.

If you would like advice or to discuss anything regarding the new Act, please don’t hesitate to contact Nick Bustin, Employment Tax Director, or your usual haysmacintyre contact who would be happy to help.

Click here to read the full Government legislation.