UKEmployment & HRLegally Required
Tips & Tronc Policy
Policy for fair allocation of tips, gratuities, and service charges to staff.
What this document covers
The Employment (Allocation of Tips) Act 2023 requires employers to distribute qualifying tips, gratuities, and service charges fairly among workers. You must have a written tipping policy, keep records for 3 years, and allow workers to request their tipping record.
Key sections included
- Policy statement
- What qualifies as a tip
- Allocation method
- Tronc system details
- Payment timing
- Record-keeping
- Complaints procedure
Frequently asked questions
Can I keep any of the tips?
No. The 2023 Act requires employers to pass all qualifying tips to workers. You can make reasonable deductions for tax but cannot retain tips for the business.
Document details
- Legal basis
- Employment (Allocation of Tips) Act 2023
- Enforced by
- Employment Tribunal
- Penalty for absence
- Employment tribunal claims for unfair tip allocation. Compensation for losses suffered.
- Category
- Employment & HR
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