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Q&A: New tips and gratuities legislation

© Copyright LexisNexis 2024. All rights reserved.

30 September 2024 / Jez Howson

Issue: 4955 / Categories: Comment & Analysis

Jez Howson discusses the changes to how tips and gratuities are managed within the hospitality industry.

The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) effective from 1 October 2024 introduces significant changes to how tips and gratuities are managed within the hospitality industry.

What are the main provisions of E(AT)A 2023?

The key provision is that it will be unlawful for employers to withhold tips or service charges from their employees. The legislation mandates that 100% of the tips generated in a workplace must be distributed fairly and transparently to employees.

The background to this legislation stems from concerns over the withholding of tips by employers. An estimated £200m was being retained by companies depriving workers of their rightful earnings. This Act which affects over two million workers was introduced following a lengthy consultation process aimed at addressing this widespread issue.

Employers are now required to implement the necessary measures by 1 October 2024 as no transition...

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Q&A: New tips and gratuities legislation

© Copyright LexisNexis 2024. All rights reserved.

30 September 2024 / Jez Howson

Jez Howson discusses the changes to how tips and gratuities are managed within the hospitality industry.

The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) effective from 1 October 2024 introduces significant changes to how tips and gratuities are managed within the hospitality industry.

What are the main provisions of E(AT)A 2023?

The key provision is that it will be unlawful for employers to withhold tips or service charges from their employees. The legislation mandates that 100% of the tips generated in a workplace must be distributed fairly and transparently to employees.

The background to this legislation stems from concerns over the withholding of tips by employers. An estimated £200m was being retained by companies depriving workers of their rightful earnings. This Act which affects over two million workers was introduced following a lengthy consultation process aimed at addressing this widespread issue.

Employers are now required to implement the necessary measures by 1 October 2024 as no transition...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4955

Categories: Comment & Analysis [1]

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