Operators urged to be well-prepared for tipping legislation

During a webinar organised by technology provider Access Hospitality, numerous speakers on the panel discussed the implications of the Employee (Allocation of Tips) Act 2023 and answered various questions from operators on changes they may need to make to their existing tronc systems.

The legislation, which received Royal Assent last spring​, includes the handling and distribution of customer tips, meaning there will be a legal obligation for hospitality firms to pass on 100% of gratuities received from customers without deductions.

It also means tips will have to be distributed by the end of the month after they were received.

Deadline approaching

UKHospitality public affairs director David Sheen said: “Business would be well advised to be ahead of the line on this as July is fast approaching.

He also highlighted the code wasn’t overly prescriptive so firms can comply in the best way that works for them but it was imperative to have a tipping policy.

He added: “Tie your policy back to the Code of Practice and the more terminology you use from the code the better.

“Your policy must be available to all members of staff and agency workers will also need access to it.

“The hospitality sector will be in the spotlight when the legislation comes in so make sure you are watertight when it comes to it.”

Discussion points

Other topics operators raised during the webinar included the definition of a tip as well as the consequences of not complying with the new legislation.

Further discussion points were whether existing tronc systems would comply, the pros and cons of an internal compared to an externally managed tronc alongside if tronc payments can be made during staff holidays and how best to prepare for July, which is when the legislation is set to come in.

Access Hospitality head of hospitality employee experience solutions Rob Paterson said: “Much of the detail of compliance will be up to each operator as they see appropriate for their business.

“But the number of questions we received for this webinar shows the level of concern about compliance and the changes operators might need to make.”