From 1 October 2024, the Employment (Allocation of Tips) Act 2023 came into force.
If your business collects or controls tips, service charges, or gratuities, you are now required to:
• Pass 100% of the amount to workers, with no deductions other than standard tax and National Insurance
• Ensure tips are distributed in a fair and transparent way
• Keep a written policy on how tips are shared, and retain records for three years
• Provide access to those records if an employee requests them
This law is particularly relevant for hospitality, leisure, and personal service businesses.
Stronger protection from sexual harassment
Also from October 2024, a new legal duty was introduced under the Worker Protection (Amendment of Equality Act 2010) Act 2023.
Employers now have a legal responsibility to take reasonable steps to prevent sexual harassment in the workplace, including by third parties such as clients or customers.
Failure to meet this duty could result in tribunal compensation being increased by up to 25 percent.
This is a significant change, and we recommend employers:
• Review existing harassment policies and training
• Consider how to raise awareness across all levels of the business
• Ensure staff know how to report issues confidentially