New Law on Tip Allocation: Your Rights as a Restaurant or Leisure service Worker
New Law on Tip Allocation: Your Rights as a Restaurant or Leisure Worker
From 01 October 2024, a new law the Employment (Allocation of Tips) Act 2023 comes into force, ensuring that restaurant and leisure workers have the right to a fair and transparent allocation of tips. This is a significant step toward fairness for employees in service industries.
At Cora Employment Law, we are here to help you understand and enforce these new rights, ensuring that your hard-earned tips go where they should and are given to staff fairly.
What Does the New Law Say?
The Tipping Act requires employers to distribute all tips, gratuities, and service charges fairly and transparently. Employers are now legally obligated to:
Pass on all tips without unfair deductions.
Implement a written tipping policy that explains how tips are allocated.
Maintain records of all tips received and distributed, which workers have the right to review.
This law applies to all workers, including full-time, part-time, and agency staff, meaning no one should be left out or receive a lesser share of tips without a legitimate reason.
How Tips Should Be Distributed
Under the new law, tips can be allocated based on various factors such as hours worked, the type of role, or performance. However, employers must ensure that the method used is fair and not discriminatory. For example, tips should not disproportionately favour one group of employees over another based on age, race, or gender.
Importantly, all workers, including those in back-of-house roles like kitchen staff, are entitled to a fair share of the tips if they contributed to the customer’s service experience.
Your Rights to Transparency
Employers must be transparent in their tipping policies and processes. You have the right to request and view records of how tips are allocated at your workplace, and your employer must comply with this request within a reasonable time frame. This allows you to ensure that the distribution of tips is conducted fairly.
What If Your Employer Doesn’t Comply?
If you believe your employer is not following the law, you can ask us for advice on what you should do. We can reclaim money for you. Call today and we can advise you on your best options.
At Cora Employment Law, we specialise in helping workers recover money owed under employment laws. We can help resolve these issues if you believe your tips have not been fairly allocated.
The new tipping law is a crucial step toward fairness, but it’s important to ensure you take steps yourself to ensure your rights are protected.
If you have concerns about how tips are being handled at your workplace, contact Cora Employment Law today. We can help you recover any money owed and ensure that your employer complies with the law.
Don’t let unfair tipping practices shortchange you.
Take action now. Reach out to Cora Employment Law for expert legal support.
Call us directly for a free consultation.