Tipping code agreed between ALMR and union Unite

The code will establish a set of ‘good tronc principles’ for the fair and transparent pooling and distribution of tips, service charges and gratuities. 

Tronc is a pay arrangement used to distribute tips, gratuities and service charges, run independently of the employer by a ‘troncmaster’. PAYE tax is due on any gratuities distributed and the troncmaster is responsible for calculating and deducting this.  

The new code establishes that when a company is involved in distributing tips, staff members are fully engaged with the process that is independent, transparent and provides for genuine allocation, as well as for dispute resolution. 

The Government has yet to release the findings of its own consultation into tipping, which it launched in May 2016.

A guide detailing all the information in the agreed code is expected to be launched in the next few months.

ALMR chief executive Kate Nicholls said it was important to have a “workable and transparent code” in place.

“Venues carry out an important tax collecting role when they distribute tips and this must be acknowledged. We also want a system that rewards staff members and ensures that those employees working hard to earn their tips do not miss out,” said Nicholls.

“The ALMR is proud to have worked with Unite to establish a set of principles that offer our support to those people who make the UK’s innovative and lively eating and drinking-out sector such a success. This code will provide employers, employees and customers with peace of mind that tips are being distributed legally and fairly.”

Unite regional officer Dave Turnbull said: “Unite is pleased to have joined forces with the ALMR to create a code that seeks to bring greater fairness and transparency to tipping for customers and staff. 

“Much of the confusion and mistrust around tips and service charges has been caused because customers and staff have been kept in the dark over how they are shared out and who gets what.

“The code is a work in progress with both sides committed to making this work in the interests of all concerned. At the heart of the Unite-ALMR code is an agreed position on the need for greater tipping transparency. Giving staff a say in how tips are shared out is a step in the right direction.”

Unite and the ALMR will monitor the implementation of the code and have established a joint process under which complaints of code violations raised by staff or customers can be investigated and tackled.