Starting October 1st 2024, the new Allocation of Tips Law will come into effect, revolutionising the way tips are distributed in the workplace.

This law ensures a fairer, more transparent system for all employees, guaranteeing that tips are shared equitably amongst all staff members.

This is a significant step towards promoting fairness and morale within your team.

Where to seek advice:

Ensure your business is ready for this change! You will need a tips policy and an adequate record keeping method stretching back 3 years.  

For a complementary template tips policy, book a consultation with me, today. Kalpesh Nakeshree, Head of Employment.

I am here to guide you through the process and ensure smooth adherence to the new regulations.

(Image: pic supplied)

Key Highlights of the Law:

  • Transparency- Employers are required to clearly document and communicate the tip distribution process to all employees, fostering trust within the team.
  • Fairness: Factors and methods- The accompanying Code sets out the key principles of fairness and suggests how employers can apply them to different aspects of developing and implementing a policy on the treatment of tips. The Code states that it will be for an employer to decide which specific principles best apply to its business and that, in the event of a dispute, it will ultimately be for an employment tribunal to decide whether the employer has complied with the law.
  • Scope: qualifying tips and qualifying workers- The Tips Act defines "qualifying tips, gratuities and service charges" as employer-received tips or as certain worker-received tips (those being tips which are subject to the employer's control or which are connected with any other worker-received tips which are subject to employer control)


Benefits of the New Law:

  • Employee Morale- A fair tip distribution    system can boost staff morale, leading to better service and a more positive work environment.
  • Customer Satisfaction- Happy employees tend to provide better service, increasing customer satisfaction and potentially leading to higher tips.
  • Reduced Turnover- Fair treatment of employees can reduce turnover rates, saving your business the cost and hassle of constant hiring and training.


Whether you’re a business owner seeking legal advice or an individual facing personal legal challenges, I am here to help you navigate the legal landscape with confidence and ease.

For more information please contact Kalpesh Nakeshree on York 01904 716050 or e-mail