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Allocation of tips policy

This policy explains how an organisation allocates tips, gratuities and service charges to workers in line with the Employment (Allocation of Tips) Act 2023. It sets out how tips are distributed fairly, what records must be kept and how workers can raise concerns about allocation.

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1–2 minutes

Written by:

Stephen Simpson

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Use this model policy to set out how your organisation deals with tips. From 1 October 2024, the Employment (Allocation of Tips) Act 2023 requires employers to have a written tips policy available to staff if qualifying tips are paid at, or are otherwise attributable to, a place of business, unless they receive tips only occasionally and exceptionally.

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Stephen Simpson

Written by:

Stephen Simpson

Latest updates

Updated to refer to the Government’s non-statutory guidance for employers on distributing tips fairly.

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About the author

Stephen Simpson
Stephen Simpson
Principle Editor – Employment Law and Compliance

Stephen is a principal editor who has worked on the Brightmine employment law and leading practice resources for over 20 years. After growing up in Northern Ireland in the 1980s, he trained as a solicitor in England in the 1990s but soon moved into legal publishing. He was among the first recruits to Brightmine in the year before it was launched as XpertHR in 2002.

Stephen has worked on a wide range of employment law and leading practice resources, including overseeing the creation and expansion of the HR templates resource types (Policies and procedures, Letters and forms, and Contract clauses). He has written up over 1,000 reports on employment law cases and created practical guidance on a range of HR issues for the Commentary & insights tool. He also had a stint working on Personnel Today.

Areas of expertise:

Employment law, Family leave, Discrimination, Redundancy, Unfair dismissal, HR policies, Employment case law

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