New tipping laws for UK pubs, bars and restaurants start next week

New tipping laws for UK pubs, bars and restaurants start next week
-Credit: (Image: Reach Publishing Services Limited)


A new tipping law is being rolled out across UK pubs and restaurants next week. These changes - known as the Tipping Act - will be included in the Employment (Allocation of Tips) Act 2023, which was originally part of a public consultation in 2016.

The rules are due to come into effect on 1 October 2024 in England, Scotland, and Wales. The new law on tips says employers must pass on tips to workers without any deductions, a draft statutory code of practice sets out how tips should be distributed in order to demonstrate fairness and transparency and employers should have a written policy on tips and record how they manage tips.

Other new rules include workers will have rights to request information about an employer’s tipping record – this will allow them to bring credible claims to an Employment Tribunal and employers can’t alter an employee’s salary or hourly rate – earnings from tipping won’t count towards earning the national minimum wage.

READ MORE UK households who have a sofa face fines 'up to £1,000' in September

Tips must be paid within one calendar month and employers must keep a record of all tips, and workers will have the right to request to see this, the new rules also state. UKHospitality Chief Executive, Kate Nicholls, said: “We’re pleased that the code of practice recognises the variety of different business models within hospitality and that [it] is not too prescriptive.

“We’ll be working closely with the Department of Business and Trade to provide feedback from members and ensure the final date of implementation allows businesses ample time to digest the requirement under the code of practice.”

Scott Muncaster, founder and MD of three rocks, said: “The UK hospitality industry is struggling, and recent government intervention has done nothing to ease concerns from operators. This new legislation, set to come into force in October, will massively increase costs as our research has shown.

“This, coupled with reports of an outdoor smoking ban proposed by the new Labour government, is cause for concern, and may push many businesses to breaking point in the final quarter of this year and beyond.”