What changes will the new tipping bill bring?
- Fair distribution of tips: All tips received from an employer’s customers will need to be fairly distributed amongst workers at a place of business – this includes both non-public facing and public-facing staff. Tips that are distributed would include employer-received tips (e.g. paid by a customer as part of payment) as well as worker-received tips (e.g. tips given to workers by customers directly).
- How tips are paid: tips would be paid to workers in cash or deposited in their bank accounts along with their usual pay by no later than the end of the month, following the month in which the tip was paid by the customer. However, employers may have the option to pay a ‘qualifying’ tip instead of money, in the form of a stamp, voucher, token or similar which is of a fixed monetary value, and is capable of being exchanged for money, goods or services.
- New worker rights and updated legislation: The current ‘Employment Rights Act 1996’ will be updated to reflect the new changes, and a Code of Practice is being developed by the government and other stakeholders to help guide employers and workers on how to implement the new laws. Employers also won’t be allowed to make any unauthorised deductions from tips, such as costs stemming from breakages or accidents caused by a worker during a shift.