New tipping rules strike right balance, says UKH

UKHospitality has praised the proposed tipping code of practice saying it “rightly enables businesses to reflect the circumstances in which they operate, without being too prescriptive and burdensome”.

The Government legislated in May 2023 to introduce the Tipping Act which sets out how tips, gratuities and service charges are processed and provides guidance on their distribution.

The legislation is due to come into effect from 1st July 2024 and affects all businesses where tips are non-incidental.

A number of areas have been highlighted for improvement, in particular how agency workers are treated by the legislation.

The current legislation requires businesses to include agency workers in tip distribution, but this could cause significant administrative difficulties and reduce tips for contracted workers.

Kate Nicholls, chief executive of UKHospitality, said: “Tips are a valued bonus for our staff and are an important way in which guests can show their gratitude for brilliant service, high-quality food or enjoyable experiences.

“Instilling fairness and transparency around tipping processes has been a focus for the sector over a number of years and I have no doubt that the sector is overwhelmingly already operating in the spirit of the new legislation.

He added: “UKHospitality has been the only trade body engaging with the Government on behalf of the whole sector on these new rules and our input has ensured that the draft rules provide much-needed flexibility for a varied and complex sector.

“Despite this, it’s absolutely critical that businesses familiarise themselves with the requirements under the new legislation and ensure they’re adhering to all its requirements. Our member-only guidance will enable businesses to do just that and I’d encourage all members to read it in detail ahead of 1 July 2024.”