The government has given more information about when it will introduce new laws requiring employers to pass on all tips to workers. The government has said previously that tips earned by workers should go to the workers that customers intended them for.
The new laws will require employers to pass on all tips, gratuities and service charges to workers without making any deductions. If businesses have control or significant influence over how tips are distributed then they will be required to distribute tips in a fair and transparent way. To help employees bring employment tribunal claims where necessary, the government proposes to introduce a new right for workers to make a request for information relating to an employer’s tipping record.
There is currently no clarity on when these new rules will come in. The government says the laws will be brought forward ‘when parliamentary time allows’. However, employers will be comforted by the government’s plan to give businesses a year’s grace after bringing in the new legislation, to allow for business practices to be adjusted. Although the ball has been kicked into the long grass, employers who may be affected by these new laws should start to think about how they will change their current practices in order to comply with them in due course.
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