Tips at work - The law and what will change next year

Since October 2024 there has been direct legislation covering tips at work. In short, this is what employers should know:

·         Employers must pass on all tips, service charges and gratuities directly to employees

·         Employers are not allowed to deduct any sums from those tips save for statutory deductions

·         Tips must be distributed in a fair and transparent way

·         Employers must keep records.

These rules apply regardless of whether the tip comes through the employer or not.

As of next year, the law is changing on this subject, along with so many other areas of employment law. The Employment Bill will be adding statutory force to the contents of the ACAS Code on tips (What the law says - Tips and service charges - Acas) as well as requiring employers to consult with staff ahead of introducing a clear policy on the distribution of tips. This will come into force in October.

You can become alive to all of the changes due in 2026 as well as get updated on changes in the last 12 months at our employment seminar on 14th January 2026.

Click HERE to reserve your place.