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BRANAGANS
Accountancy Services Ltd
01709 327 215 | info@branagans.co.uk
November 2024 | New Tipping Regulations Ensure Staff Receive Full Amounts
Business owners whose employees receive tips from customers must now ensure that every penny is passed on to the workers, with no portion kept by the business owner. This new rule, effective from October 1, is expected to inject around £200 million into the pockets of employees in industries such as hospitality. This change emphasises fair compensation for workers and promotes transparency in the handling of tips. Business owners should be aware of these regulations to ensure compliance and support their staff effectively.
The changes require all tips, gratuities, and service charges to be passed to employees without any deductions. Any employer who fails to adhere to this can be taken to an employee tribunal. Most business owners do pass on all tips, but there are still some who fail to do this, something the Government deems "unacceptable tipping practices".
Justin Madders, Minister for Employment Rights, said: "When you tip someone for good service, you expect them to keep all their tip. They did the work -
"Britain's outdated employment laws require an urgent update. This Government will ensure they are fit for the modern economy and deliver on our plan to Make Work Pay."
OTHER MEASURES TO STRENGTHEN WORKERS' RIGHTS
This is just one measure on the cards to improve the rights of workers to ensure they are treated fairly by employers. Errant bosses can expect to be punished if they fail to meet the expected standards.
The Employment Rights Bill "will ensure workplace rights are fit for a modern economy, empower working people and drive economic growth" according to the Government. The aim is to create a balance between protecting workers' rights and supporting businesses across the UK.
Ben Thomas, CEO of TiPJAR, said: "Our hospitality and service industries are powered by a wonderfully diverse and exceptionally talented workforce. For the first time, these millions of workers can trust that tips employers collect on their behalf will always be passed to them.
"As a business providing a platform to get tips to workers quickly, fairly and transparently, we wholeheartedly welcome today's announcement. We look forward to continuing our work with the DBT and government to develop further guidance as the principles of the legislation are put into practice, supporting businesses across the sector to operate to a consistent and equitable standard in handling tips."
You can find more information on the Code of Practice: Distributing tips fairly: statutory code of practice on Gov.uk, along with non-
LET US HELP YOU
If your business handles tips and you want to ensure that you're meeting your legal requirements, speak to us at Branagans Accountancy Services. We are happy to provide the help and guidance you need to navigate these regulations effectively. Contact us at 01709 327 215 or email info@branagans.co.uk for expert assistance.
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