Ensure Compliance with the Employment (Allocation of Tips) Act 2023 with Ascolta HR

What’s New?

Starting 1 July 2024, the Employment (Allocation of Tips) Act 2023 mandates that all tips must be passed on to employees without deductions. Non-compliance could result in fines up to £5,000 per employee.

Key Changes

- Fair Tip Distribution: Tips paid by cash or card must be allocated fairly to all employees, including those on zero-hour contracts.

- No Deductions: Employers cannot deduct bank or admin charges from tips.

- Timely Payments: Tips must be paid to employees by the end of the month following the receipt.

Why This Matters

Businesses in tipping industries must:

- Develop a Written Policy: Clearly outline how tips are allocated and distributed.

- Maintain Records: Keep accurate records of tip distribution. Employees can request this information every three months.

- Act Now: With no transition period, immediate compliance is necessary to avoid penalties.

How Ascolta HR Can Help

Ascolta HR can assist with drafting or reviewing your tipping policies, ensuring record accuracy, and achieving full compliance with the new law.

Contact Ascolta HR Today

Prepare for the Employment (Allocation of Tips) Act 2023 with Ascolta HR's expert support. Let us help you ensure seamless compliance and avoid potential claims and penalties.