It comes after the introduction of the Employment (Allocation of Tips) Act 2023, which states all tips must be paid to staff – with no deductions.
The new code of practice will come into effect on 1 July 2024, and states that employers should use a clear and objective set of factors to determine the allocation and distribution of tips.
The choice of factors should be fair and reasonable given the circumstances and the nature of the individual businesses.
There are several factors which may be considered by employers when setting up their tipping policy, including considerations such as type of role, performance, length of time served and customer intention.
UKHospitality chief executive Kate Nicholls said: “The code of practice has been much anticipated and it’s positive that it has finally been published so that the sector can provide feedback and begin to plan.
“On initial reading, we’re pleased that the code of practice recognises the variety of different business models within hospitality and that the code of practice is not too prescriptive, allowing tips to be based on the circumstances of a role, for example.
“We’ll be working closely with the Department of Business and Trade to provide feedback from members and ensure the final date of implementation allows businesses ample time to digest and implement the requirement under the code of practice.
“More guidance on how the overall legislation will operate, alongside the code of practice, is expected soon and we will continue to analyse these updates as they come.”
The code of practice will be consulted on, with responses open until 22 February 2024