Tipping law delayed until October

The implementation of new tipping laws has been pushed back three months to 1 October, with the government attributing "extenuating circumstances" to the delay.

Pubs, bars and hospitality businesses have welcomed the move, as it will give on-trade businesses time to implement required changes in their operations.

The Code of Practice on the fair and transparent distribution of tips will make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all of the tips they have earned.

The measures were due to come into force on 1 July 2024, but are now expected on 1 October 2024, once they have been approved by parliament. ​The updated Code of Practice will be statutory and have legal effect, meaning it can be introduced as evidence in an employment tribunal.

"Appropriate but disappointing"

"Hospitality is a people business and it’s so important that we reward our staff through a fair and transparent tipping system," says Kate Nicholls, chief executive of UKHospitality. "We’ve been pleased to support this legislation through its journey and it’s good to see that the government has worked with UKHospitality to deliver guidance and a Code of Practice that can work for business. With the variety of businesses in hospitality, anything too prescriptive would not have been practical.  

"Delaying the implementation for a further three months is an appropriate step. It is disappointing, however, that the government has not provided greater clarification of agency workers and the payment of tips, which is a particular sticking point for businesses. 

"Given the desire from all parties involved to get this legislation right, we would urge government to work on providing greater clarity on this issue before the legislation comes into force in the autumn."

The government says that the overhaul of tipping practices is set to benefit more than 2m UK workers across the hospitality, leisure and services sectors to the tune of £200m. 

These new measures will apply to England, Scotland and Wales, while employment policy is devolved to Northern Ireland.

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