{"id":9386,"date":"2024-09-25T09:21:00","date_gmt":"2024-09-25T09:21:00","guid":{"rendered":"https:\/\/www.brightmine.com\/uk\/?post_type=resources&#038;p=9386"},"modified":"2026-04-27T17:43:09","modified_gmt":"2026-04-27T17:43:09","slug":"employment-allocation-of-tips-act-2023","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/uk\/resources\/total-rewards\/benchmarking\/employment-allocation-of-tips-act-2023\/","title":{"rendered":"What to know about the Employment (Allocation of Tips) Act 2023"},"content":{"rendered":"\n<div class=\"wp-block-group alignwide has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-b5fc8583 wp-block-group-is-layout-constrained\" style=\"border-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-7fc3d43a wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:70%\">\n<p class=\"\">by <strong>Stephen Simpson<\/strong>, Brightmine Principal Editor- Employment Law and Compliance<\/p>\n\n\n\n<p class=\"\">From 1 October 2024, the Employment (Allocation of Tips) Act 2023 and its accompanying statutory code of practice introduce rules that <a href=\"https:\/\/www.brightmine.com\/uk\/solutions\/reduce-compliance-risk\/\">require<\/a> employers to be fair and transparent in how they manage and distribute tips. What do employers in the affected sectors \u2014 including restaurants, hotels, hairdressers and other similar services industries \u2014 need to know about the new legislation?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"jurisdictions-new-tips-legislation\">Which jurisdictions does the new tips legislation cover?<\/h2>\n\n\n\n<p class=\"\">The&nbsp;<a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2023\/13\/contents\" target=\"_blank\" rel=\"noreferrer noopener\">Employment (Allocation of Tips) Act 2023<\/a>&nbsp;and&nbsp;its accompanying <a href=\"https:\/\/www.gov.uk\/government\/publications\/distributing-tips-fairly-statutory-code-of-practice\" target=\"_blank\" rel=\"noreferrer noopener\">statutory code of practice<\/a>&nbsp;cover England, Wales and Scotland.<\/p>\n\n\n\n<p class=\"\">The Act and code of practice do not apply in Northern Ireland. However, the Department for the Economy proposes the introduction of similar rules via the&nbsp;<a href=\"https:\/\/www.economy-ni.gov.uk\/sites\/default\/files\/consultations\/economy\/good-jobs-consultation.PDF\" target=\"_blank\" rel=\"noreferrer noopener\">Good Jobs Employment Rights Bill<\/a>. No timetable has been set for their introduction in Northern Ireland.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tips-covered\">Which tips are covered?<\/h2>\n\n\n\n<p class=\"\">The new rules on the fair and transparent allocation of tips apply to &#8220;qualifying tips, gratuities and service charges&#8221;. This means either:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">Tips that the employer receives and shares with staff (referred to as &#8220;employer-received tips&#8221;); or<\/li>\n\n\n\n<li class=\"\">Tips given directly to staff, but where the employer controls or influences how they are shared (referred to as &#8220;worker-received tips&#8221;).<\/li>\n<\/ul>\n\n\n\n<p class=\"\">When considering whether a tip is a qualifying tip under the legislation, it makes no difference:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">What the employer calls the payment, whether that is a &#8220;tip&#8221;, &#8220;gratuity&#8221; or &#8220;service charge&#8221;.<\/li>\n\n\n\n<li class=\"\">How the payment is made, whether that is by cash, credit card, debit card or via a digital platform.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group is-layout-flow wp-block-group-is-layout-flow\" style=\"border-left-color:var(--wp--preset--color--secondary-blue);border-left-width:5px;padding-right:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<p class=\"has-text-align-left has-medium-font-size\" style=\"font-style:normal;font-weight:500\">&#8220;Employers should be mindful of the risk of indirect discrimination if a criterion means that fewer tips are allocated to a group of workers that contains a disproportionate number of individuals with a particular protected characteristic. For instance, distribution by percentage based purely or mainly on length of service is potentially discriminatory against younger workers unless it can be justified.&#8221;<\/p>\n<\/div>\n\n\n\n<p class=\"\">A payment in the form of an item that has a monetary value and can be exchanged for money, goods or services is a qualifying tip. For example, a chip in a casino or a shopping voucher in retail would be a qualifying tip.<\/p>\n\n\n\n<p class=\"\">Tips that are given directly to the worker and that they are entitled to keep are not caught by the legislation because the employer does not control or influence how they are shared.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"fair-allocation-of-tips\">What is meant by the fair allocation of tips?<\/h2>\n\n\n\n<p class=\"\">Neither the Employment (Allocation of Tips) Act 2023 nor the accompanying statutory code of practice is prescriptive about how tips are allocated.<\/p>\n\n\n\n<p class=\"\">For example, there is no obligation on employers to distribute tips evenly between all the workers at a particular location \u2014 although for some employers an even distribution may be the simplest solution.<\/p>\n\n\n\n<p class=\"\">The statutory code of practice states that some of the criteria that employers may take into account when allocating tips are:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">Type of role\/work, e.g., distribution between front of house and backroom workers.<\/li>\n\n\n\n<li class=\"\">Basic pay (and how workers are engaged).<\/li>\n\n\n\n<li class=\"\">Hours worked during the period when tips are received.<\/li>\n\n\n\n<li class=\"\">Individual and\/or team performance.<\/li>\n\n\n\n<li class=\"\">Seniority\/level of responsibility.<\/li>\n\n\n\n<li class=\"\">Length of time served with the employer.<\/li>\n\n\n\n<li class=\"\">Customer intention.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group is-layout-flow wp-block-group-is-layout-flow\" style=\"border-left-color:var(--wp--preset--color--secondary-blue);border-left-width:5px;padding-right:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<p class=\"has-text-align-left has-medium-font-size\" style=\"font-style:normal;font-weight:500\">&#8220;Unusually for UK employment law, the Employment (Allocation of Tips) Act 2023 makes it is a specific legal requirement for affected employers to have a\u00a0written tips policy\u00a0in place. Where an employer is required to have a written tips policy for a place of business, the policy must be made available to all workers at that place of business. This includes agency workers.&#8221;<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"risk-of-discrimination\">What about the risk of discrimination?<\/h2>\n\n\n\n<p class=\"\">When setting these criteria, employers should be mindful of the risk of indirect discrimination if a criterion means that fewer tips are allocated to a group of workers that contains a disproportionate number of individuals with a particular protected characteristic.<\/p>\n\n\n\n<p class=\"\">For instance, distribution by percentage based purely or mainly on length of service is potentially discriminatory against younger workers unless it can be justified.<\/p>\n\n\n\n<div class=\"wp-block-group alignfull has-secondary-light-gray-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-fcdab8bb wp-block-group-is-layout-constrained\" style=\"margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h2 class=\"wp-block-heading has-text-align-center has-large-font-size\">Want to make smarter, more-informed decisions?<\/h2>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-font-size\" style=\"font-size:clamp(14px, 0.875rem + ((1vw - 3.2px) * 0.274), 16px);font-style:normal;font-weight:500\"><a class=\"wp-block-button__link has-secondary-blue-color has-primary-white-background-color has-text-color has-background has-link-color wp-element-button\" href=\"\/uk\/products\/hr-compliance-centre\/?intcmp=hrcc-resources|cta-single|dark|banner|hrcc-product-page|learn-more\" style=\"border-radius:100px\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tronc-scheme-allocation\">What if we allocate tips under a tronc scheme?<\/h2>\n\n\n\n<p class=\"\">For an employer that uses an independent tronc operator to distribute tips, the employer is generally deemed to be allocating tips fairly.<\/p>\n\n\n\n<p class=\"\">However, an employer that engages an independent tronc operator is still expected to:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">Apply the principles of fairness to any instructions or framework that it sets for the tronc operator.<\/li>\n\n\n\n<li class=\"\">Take action if it becomes aware that the tronc operator has acted unfairly in the allocation of tips.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group has-alabaster-gray-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-80fb368b wp-block-group-is-layout-constrained\" style=\"border-bottom-left-radius:25px;border-bottom-right-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<h3 class=\"wp-block-heading\">Did you know?<\/h3>\n\n\n\n<p class=\"\">The word &#8220;tronc&#8221; derives from a phrase that emerged in 1920s France. &#8220;Tronc des pauvres&#8221; refers to the collection of boxes for donations to the poor.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"other-key-principles\">Apart from fairness, what are the other key principles?<\/h2>\n\n\n\n<p class=\"\">While it is left to employers to decide how to allocate tips, certain principles come through loud and clear from the Act and code of practice:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">Other than statutory deductions such as income tax, the &#8220;total amount&#8221; of qualifying tips paid by customers must be passed on to the workforce. For example, the employer cannot make deductions from tips to cover the cost of engaging a third-party provider to run a tronc scheme.<\/li>\n\n\n\n<li class=\"\">Tips earned by workers at a particular location should not be shared with workers at a different location. For example, a restaurant chain should ensure that tips earned at one of its locations go to the workers there and are not given to workers at another of its locations. (There is an exception in the Act for employers that want to allocate tips gathered at public-facing locations to workers at non-public facing-locations.)<\/li>\n\n\n\n<li class=\"\">The Act makes clear that the fair allocation of tips applies to all workers. This includes agency workers, who for these purposes should be treated as if they are directly employed. The employer can pass tips that an agency worker has earned to the agency for it to make payment to the agency worker.<\/li>\n\n\n\n<li class=\"\">There is a specific provision in the Act that requires employers to distribute a tip to staff no later than the end of the month following the month in which the tip is paid by the customer. Similarly, an agency must ensure that an agency worker receives a tip no later than the end of the month following the month in which the tip is paid by the customer. For example, a tip that a customer gives on 8 April must be distributed no later than 31 May.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group has-alabaster-gray-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-80fb368b wp-block-group-is-layout-constrained\" style=\"border-bottom-left-radius:25px;border-bottom-right-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<h3 class=\"wp-block-heading\">Did you know?<\/h3>\n\n\n\n<p class=\"\">Under pre-existing laws, employers are not allowed to include tips when ensuring that staff are paid the national minimum wage. Any tips that they receive must be over and above the national minimum wage.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tipping-records-required\">What tipping records are employers required to keep?<\/h2>\n\n\n\n<p class=\"\">Under the new laws, employers are required to keep records of tips for three years, beginning with the date on which the tip was paid to the worker.<\/p>\n\n\n\n<p class=\"\">Staff have a new right to request access to the employer&#8217;s tipping records, which means that affected employers need to put in place a right-to-request process.<\/p>\n\n\n\n<p class=\"\">The new right includes the right to see information dating back three years on:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">The total amount of qualifying tips received by the employer at the place of business.<\/li>\n\n\n\n<li class=\"\">The total amount of qualifying tips paid to the individual who has made the request.<\/li>\n<\/ul>\n\n\n\n<p class=\"\">There are some limits on what staff can ask for \u2014 they can make only one such request in any three-month period. They can make requests only for periods during which they worked for the employer.<\/p>\n\n\n\n<p class=\"\">In addition, a worker is not entitled to access to information about the qualifying tips paid to any other member of staff.<\/p>\n\n\n\n<p class=\"\">The employer has four weeks from the date of the request to provide the information.<\/p>\n\n\n\n<div class=\"wp-block-group has-alabaster-gray-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-80fb368b wp-block-group-is-layout-constrained\" style=\"border-bottom-left-radius:25px;border-bottom-right-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<h3 class=\"wp-block-heading\">Did you know?<\/h3>\n\n\n\n<p class=\"\">While not a specific requirement of the new legislation, having in place an internal tips complaints procedure can be a useful way for employers to maintain fairness and transparency.<\/p>\n\n\n\n<p class=\"\">The procedure should have a clear route via which staff can raise concerns or complaints about any aspect of the employer&#8217;s tips allocation.<\/p>\n\n\n\n<p class=\"\">Workers should be encouraged to raise issues informally at first and to take a formal route \u2014 such as complaining formally under a grievance procedure \u2014 only if the problem cannot be resolved informally.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"written-tips-policy\">Should employers have a written tips policy in place?<\/h2>\n\n\n\n<p class=\"\">Unusually for UK employment law, the Employment (Allocation of Tips) Act 2023 makes it is a specific legal requirement for affected employers to have a written tips policy in place.<\/p>\n\n\n\n<p class=\"\">The Act requires employers to have a written tips policy if qualifying tips are paid at, or are otherwise attributable to, a place of business, unless they receive tips only occasionally and exceptionally.<\/p>\n\n\n\n<p class=\"\">Where an employer is required to have a written tips policy for a place of business, the policy must be made available to all workers at that place of business. This includes agency workers.<\/p>\n\n\n\n<p class=\"\">The law is not prescriptive about the way in which the policy is communicated. It can be provided:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-brightmine-list-item-spacing-small\">\n<li class=\"\">In electronic form &#8211; for example, emailed to staff or uploaded to the intranet; or<\/li>\n\n\n\n<li class=\"\">As a physical document &#8211; for example, pinned to a noticeboard or in a hard copy staff handbook.<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Employers should inform all affected workers of any changes to the tips policy, ideally well in advance of the change and certainly no later than the date on which the changes to the policy take effect.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column lnrs-hide-block-on-mobile is-layout-flow wp-block-column-is-layout-flow\" style=\"border-left-color:var(--wp--preset--color--secondary-gray);border-left-width:2px;padding-left:10px;flex-basis:30%\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained wp-container-1 is-position-sticky\">\n<div class=\"wp-block-group has-bleach-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-a36fa716 wp-block-group-is-layout-constrained\" style=\"border-radius:14px;padding-top:10px;padding-right:15px;padding-bottom:15px;padding-left:15px\">\n<h3 class=\"wp-block-heading\">Navigate HR complexity with confidence<\/h3>\n\n\n\n<p class=\"\">With Brightmine, you can build powerful people strategies, implement best practices and set your organisation up for a brighter future.<\/p>\n\n\n\n<p class=\"\">Learn how our tools, resources and automation can empower you and your team.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/uk\/solutions\/?intcmp=cta|blog|solutions|learn-more\" style=\"border-radius:25px\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-layout-constrained 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&#8230;<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t<div class=\"lnrs-resource-hub-widget__resource\" style=\"background-color: #f3f2f0\">\n\t\t\t\t\t<a href=\"https:\/\/www.brightmine.com\/uk\/resources\/hr-compliance\/employment-law-updates\/employment-rights-act-era-changes-implemented-so-far\/\"><div class=\"lnrs-resource-hub-widget__resource_image\" style=\"background-image: url(https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2026\/03\/09090759\/colleagues-reviewing-information-together-on-laptop-in-office.webp);\"><\/div><\/a>\n\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__inner_content\">\n\t\t\t\t\t\t<div class=\"content-top\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__categories\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"lnrs-resource-hub-widget__category\">Commentary and Insights<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"title\" style=\"color: #00728B\"><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/hr-compliance\/employment-law-updates\/employment-rights-act-era-changes-implemented-so-far\/\">The ERA era: The changes implemented so far<\/a><\/h3>\n\t\t\t\t\t\t<p style=\"color: #202526\">The Employment Rights Act 2025 introduced the most significant changes to UK employment law in decades, but its &#8230;<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t<div class=\"lnrs-resource-hub-widget__resource\" style=\"background-color: #f3f2f0\">\n\t\t\t\t\t<a href=\"https:\/\/www.brightmine.com\/uk\/resources\/meet-brightmine-at-the-hr-consultancy-festival-2026\/\"><div class=\"lnrs-resource-hub-widget__resource_image\" style=\"background-image: url(https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2026\/05\/30162023\/85df4ac3-9531-4f03-b807-9874a3ddf4c5_80_1_20.jpeg);\"><\/div><\/a>\n\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__inner_content\">\n\t\t\t\t\t\t<div class=\"content-top\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"lnrs-resource-hub-widget__categories\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"lnrs-resource-hub-widget__category\">Events<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"title\" style=\"color: #00728B\"><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/meet-brightmine-at-the-hr-consultancy-festival-2026\/\">Meet Brightmine at the HR Consultancy Festival 2026<\/a><\/h3>\n\t\t\t\t\t\t<p style=\"color: #202526\">Brightmine is sponsoring and attending the HR Consultancy Festival 2026, a one\u2011day event bringing together HR consultants, practitioners &#8230;<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\n<\/div>\n<\/section><\/div>\n\n\n\n<div class=\"wp-block-group has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-fcdab8bb wp-block-group-is-layout-constrained\" style=\"border-radius:25px;margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h3 class=\"wp-block-heading has-large-font-size\">About the author<\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-658170e2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100px\">\n<figure class=\"wp-block-image size-thumbnail is-resized is-style-rounded\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/09\/18065019\/Stephen-Simpson-150x150.jpg\" alt=\"Stephen Simpson, Acting content manager - employment law and compliance at Brightmine\" class=\"wp-image-8924\" style=\"object-fit:cover;width:100px;height:100px\" srcset=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/09\/18065019\/Stephen-Simpson-150x150.jpg 150w, https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/09\/18065019\/Stephen-Simpson-300x300.jpg 300w, https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/09\/18065019\/Stephen-Simpson-768x768.jpg 768w, https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/09\/18065019\/Stephen-Simpson.jpg 800w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"\"><strong>Stephen Simpson<\/strong><br>Principal Editor &#8211; Employment Law and Compliance, Brightmine<\/p>\n\n\n\n<p class=\"\">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.<\/p>\n\n\n\n<p class=\"\">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 &amp; insights tool. He also had a stint working on Personnel Today.<\/p>\n\n\n\n<p class=\"\">Connect with Stephen on <a href=\"https:\/\/www.linkedin.com\/in\/stephen-simpson-editor\/\" target=\"_blank\" rel=\"noreferrer noopener\">LinkedIn<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-0fd240ca wp-block-group-is-layout-constrained\" id=\"newsletter\" style=\"margin-top:0;margin-bottom:0;padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<h2 class=\"wp-block-heading has-text-align-center has-large-font-size\">Sign up to receive expert HR insights from Brightmine<\/h2>\n\n\n\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-ebe15cfa wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center\">Join our community and stay updated with industry trends, expert insights, valuable resources, webinar invites\u2026 and much more.<\/p>\n\n\n\n<p class=\"has-text-align-center\">Sign up now and receive regular updates straight to your inbox!<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-contact-form-7-contact-form-selector is-style-flex-layout\" redirectaftersubmission=\"https:\/\/www.brightmine.com\/uk\/thank-you-insights-email\/\">\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f10351-o1\" lang=\"none\" dir=\"ltr\" data-wpcf7-id=\"10351\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/uk\/wp-json\/wp\/v2\/resources\/9386#wpcf7-f10351-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"10351\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f10351-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_title\" value=\"Newsletter\" \/>\n<\/fieldset>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"elqFormName\" value=\"sparknewsletter\" type=\"hidden\" name=\"elqFormName\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"elqSiteID\" value=\"1006146\" type=\"hidden\" name=\"elqSiteID\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"sfid\" value=\"\" type=\"hidden\" name=\"sfid\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"cmpid\" value=\"\" type=\"hidden\" name=\"cmpid\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"elqCookieWrite\" value=\"0\" type=\"hidden\" name=\"elqCookieWrite\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"elqCustomerGUID\" value=\"\" type=\"hidden\" name=\"elqCustomerGUID\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden a-s-text\" id=\"a-s-text\" value=\"\" type=\"hidden\" name=\"a-s-text\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"Market\" value=\"UK\" type=\"hidden\" name=\"Market\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"Website\" value=\"Website\" type=\"hidden\" name=\"Website\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"utm_source\" value=\"\" type=\"hidden\" name=\"utm_source\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"utm_medium\" value=\"\" type=\"hidden\" name=\"utm_medium\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"utm_campaign\" value=\"\" type=\"hidden\" name=\"utm_campaign\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"utm_content\" value=\"\" type=\"hidden\" name=\"utm_content\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"utm_content_type\" value=\"\" type=\"hidden\" name=\"utm_content_type\" \/>\n<input class=\"wpcf7-form-control wpcf7-hidden\" value=\"\" type=\"hidden\" name=\"Source\" \/>\n\n<div class=\"c-grid  form-fields\">\n<div class=\"form-inputs-container\">\n<div class=\"inputs-container\">\n<div><span class=\"wpcf7-form-control-wrap\" data-name=\"firstName\"><input size=\"40\" maxlength=\"35\" minlength=\"2\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" id=\"FirstName\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Name\" value=\"\" type=\"text\" name=\"firstName\" \/><\/span><\/div>\n<div><span class=\"wpcf7-form-control-wrap\" data-name=\"EmailAddress\"><input size=\"40\" maxlength=\"320\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Business email address\" value=\"\" type=\"email\" name=\"EmailAddress\" \/><\/span><\/div>\n<div><span class=\"wpcf7-form-control-wrap\" data-name=\"Country\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" name=\"Country\"><option value=\"\">Your country \/ region<\/option><option value=\"United Kingdom\">United Kingdom<\/option><option value=\"United States\">United States<\/option><option value=\"Afghanistan\">Afghanistan<\/option><option value=\"Aland Islands\">Aland Islands<\/option><option value=\"Albania\">Albania<\/option><option value=\"Algeria\">Algeria<\/option><option value=\"American Samoa\">American Samoa<\/option><option value=\"Andorra\">Andorra<\/option><option value=\"Angola\">Angola<\/option><option value=\"Anguilla\">Anguilla<\/option><option value=\"Antarctica\">Antarctica<\/option><option value=\"Antigua and Barbuda\">Antigua and Barbuda<\/option><option value=\"Argentina\">Argentina<\/option><option value=\"Armenia\">Armenia<\/option><option value=\"Aruba\">Aruba<\/option><option value=\"Australia\">Australia<\/option><option value=\"Austria\">Austria<\/option><option value=\"Azerbaijan\">Azerbaijan<\/option><option value=\"Bahamas\">Bahamas<\/option><option value=\"Bahrain\">Bahrain<\/option><option value=\"Bangladesh\">Bangladesh<\/option><option value=\"Barbados\">Barbados<\/option><option value=\"Belarus\">Belarus<\/option><option value=\"Belgium\">Belgium<\/option><option value=\"Belize\">Belize<\/option><option value=\"Benin\">Benin<\/option><option value=\"Bermuda\">Bermuda<\/option><option value=\"Bhutan\">Bhutan<\/option><option value=\"Bolivia, Plurinational State\">Bolivia, Plurinational State<\/option><option value=\"Bonaire, Sint Eustatius and Saba\">Bonaire, Sint Eustatius and Saba<\/option><option value=\"Bosnia and Herzegovina\">Bosnia and Herzegovina<\/option><option value=\"Botswana\">Botswana<\/option><option value=\"Bouvet Island\">Bouvet Island<\/option><option value=\"Brazil\">Brazil<\/option><option value=\"British Indian Ocean Territory\">British Indian Ocean Territory<\/option><option value=\"Brunei\n    Darussalam\">Brunei\n    Darussalam<\/option><option value=\"Bulgaria\">Bulgaria<\/option><option value=\"Burkina Faso\">Burkina Faso<\/option><option value=\"Burundi\">Burundi<\/option><option value=\"Cambodia\">Cambodia<\/option><option value=\"Cameroon\">Cameroon<\/option><option value=\"Canada\">Canada<\/option><option value=\"Cape Verde\">Cape Verde<\/option><option value=\"Cayman Islands\">Cayman Islands<\/option><option value=\"Central African Republic\">Central African Republic<\/option><option value=\"Chad\">Chad<\/option><option value=\"Chile\">Chile<\/option><option value=\"China\">China<\/option><option value=\"Christmas Island\">Christmas Island<\/option><option value=\"Cocos (Keeling) Islands\">Cocos (Keeling) Islands<\/option><option value=\"Colombia\">Colombia<\/option><option value=\"Comoros\">Comoros<\/option><option value=\"Congo\">Congo<\/option><option value=\"Congo, the Democratic Republic of the\">Congo, the Democratic Republic of the<\/option><option value=\"Cook Islands\">Cook Islands<\/option><option value=\"Costa Rica\">Costa Rica<\/option><option value=\"Cote d&#039;Ivoire\">Cote d&#039;Ivoire<\/option><option value=\"Croatia\">Croatia<\/option><option value=\"Cuba\">Cuba<\/option><option value=\"Cura\u00e7ao\">Cura\u00e7ao<\/option><option value=\"Cyprus\">Cyprus<\/option><option value=\"Czech\n    Republic\">Czech\n    Republic<\/option><option value=\"Denmark\">Denmark<\/option><option value=\"Djibouti\">Djibouti<\/option><option value=\"Dominica\">Dominica<\/option><option value=\"Dominican Republic\">Dominican Republic<\/option><option value=\"Ecuador\">Ecuador<\/option><option value=\"Egypt\">Egypt<\/option><option value=\"El Salvador\">El Salvador<\/option><option value=\"Equatorial Guinea\">Equatorial Guinea<\/option><option value=\"Eritrea\">Eritrea<\/option><option value=\"Estonia\">Estonia<\/option><option value=\"Eswatini\">Eswatini<\/option><option value=\"Ethiopia\">Ethiopia<\/option><option value=\"Falkland Islands (Malvinas)\">Falkland Islands (Malvinas)<\/option><option value=\"Faroe Islands\">Faroe Islands<\/option><option value=\"Fiji\">Fiji<\/option><option value=\"Finland\">Finland<\/option><option value=\"France\">France<\/option><option value=\"French Guiana\">French Guiana<\/option><option value=\"French Polynesia\">French Polynesia<\/option><option value=\"French Southern Territories\">French Southern Territories<\/option><option value=\"Gabon\">Gabon<\/option><option value=\"Gambia\">Gambia<\/option><option value=\"Georgia\">Georgia<\/option><option value=\"Germany\">Germany<\/option><option value=\"Ghana\">Ghana<\/option><option value=\"Gibraltar\">Gibraltar<\/option><option value=\"Greece\">Greece<\/option><option value=\"Greenland\">Greenland<\/option><option value=\"Grenada\">Grenada<\/option><option value=\"Guadeloupe\">Guadeloupe<\/option><option value=\"Guam\">Guam<\/option><option value=\"Guatemala\">Guatemala<\/option><option value=\"Guernsey\">Guernsey<\/option><option value=\"Guinea\">Guinea<\/option><option value=\"Guinea-Bissau\">Guinea-Bissau<\/option><option value=\"Guyana\">Guyana<\/option><option value=\"Haiti\">Haiti<\/option><option value=\"Heard Island and McDonald Islands\">Heard Island and McDonald Islands<\/option><option value=\"Holy\n    See (Vatican City State)\">Holy\n    See (Vatican City State)<\/option><option value=\"Honduras\">Honduras<\/option><option value=\"Hong Kong\">Hong Kong<\/option><option value=\"Hungary\">Hungary<\/option><option value=\"Iceland\">Iceland<\/option><option value=\"India\">India<\/option><option value=\"Indonesia\">Indonesia<\/option><option value=\"Iran, Islamic Republic of\">Iran, Islamic Republic of<\/option><option value=\"Iraq\">Iraq<\/option><option value=\"Ireland\">Ireland<\/option><option value=\"Isle of Man\">Isle of Man<\/option><option value=\"Israel\">Israel<\/option><option value=\"Italy\">Italy<\/option><option value=\"Jamaica\">Jamaica<\/option><option value=\"Japan\">Japan<\/option><option value=\"Jersey\">Jersey<\/option><option value=\"Jordan\">Jordan<\/option><option value=\"Kazakhstan\">Kazakhstan<\/option><option value=\"Kenya\">Kenya<\/option><option value=\"Kiribati\">Kiribati<\/option><option value=\"Korea, Democratic People&#039;s Republic of\">Korea, Democratic People&#039;s Republic of<\/option><option value=\"Korea, Republic of\">Korea, Republic of<\/option><option value=\"Kosovo\">Kosovo<\/option><option value=\"Kuwait\">Kuwait<\/option><option value=\"Kyrgyzstan\">Kyrgyzstan<\/option><option value=\"Lao People&#039;s Democratic Republic\">Lao People&#039;s Democratic Republic<\/option><option value=\"Latvia\">Latvia<\/option><option value=\"Lebanon\">Lebanon<\/option><option value=\"Lesotho\">Lesotho<\/option><option value=\"Liberia\">Liberia<\/option><option value=\"Libyan Arab Jamahiriya\">Libyan Arab Jamahiriya<\/option><option value=\"Liechtenstein\">Liechtenstein<\/option><option value=\"Lithuania\">Lithuania<\/option><option value=\"Luxembourg\">Luxembourg<\/option><option value=\"Macao\">Macao<\/option><option value=\"Macedonia, the former Yugoslav Republic\n    of\">Macedonia, the former Yugoslav Republic\n    of<\/option><option value=\"Madagascar\">Madagascar<\/option><option value=\"Malawi\">Malawi<\/option><option value=\"Malaysia\">Malaysia<\/option><option value=\"Maldives\">Maldives<\/option><option value=\"Mali\">Mali<\/option><option value=\"Malta\">Malta<\/option><option value=\"Marshall\n    Islands\">Marshall\n    Islands<\/option><option value=\"Martinique\">Martinique<\/option><option value=\"Mauritania\">Mauritania<\/option><option value=\"Mauritius\">Mauritius<\/option><option value=\"Mayotte\">Mayotte<\/option><option value=\"Mexico\">Mexico<\/option><option value=\"Micronesia\">Micronesia<\/option><option value=\"Moldova, Republic of\">Moldova, Republic of<\/option><option value=\"Monaco\">Monaco<\/option><option value=\"Mongolia\">Mongolia<\/option><option value=\"Montenegro\">Montenegro<\/option><option value=\"Montserrat\">Montserrat<\/option><option value=\"Morocco\">Morocco<\/option><option value=\"Mozambique\">Mozambique<\/option><option value=\"Myanmar\">Myanmar<\/option><option value=\"Namibia\">Namibia<\/option><option value=\"Nauru\">Nauru<\/option><option value=\"Nepal\">Nepal<\/option><option value=\"Netherlands\">Netherlands<\/option><option value=\"New Caledonia\">New Caledonia<\/option><option value=\"New Zealand\">New Zealand<\/option><option value=\"Nicaragua\">Nicaragua<\/option><option value=\"Niger\">Niger<\/option><option value=\"Nigeria\">Nigeria<\/option><option value=\"Niue\">Niue<\/option><option value=\"Norfolk Island\">Norfolk Island<\/option><option value=\"Northern Mariana Islands\">Northern Mariana Islands<\/option><option value=\"Norway\">Norway<\/option><option value=\"Oman\">Oman<\/option><option value=\"Pakistan\">Pakistan<\/option><option value=\"Palau\">Palau<\/option><option value=\"Palestinian Territory, Occupied\">Palestinian Territory, Occupied<\/option><option value=\"Panama\">Panama<\/option><option value=\"Papua New\n    Guinea\">Papua New\n    Guinea<\/option><option value=\"Paraguay\">Paraguay<\/option><option value=\"Peru\">Peru<\/option><option value=\"Philippines\">Philippines<\/option><option value=\"Pitcairn\">Pitcairn<\/option><option value=\"Poland\">Poland<\/option><option value=\"Portugal\">Portugal<\/option><option value=\"Puerto Rico\">Puerto Rico<\/option><option value=\"Qatar\">Qatar<\/option><option value=\"Reunion\">Reunion<\/option><option value=\"Romania\">Romania<\/option><option value=\"Russian Federation\">Russian Federation<\/option><option value=\"Rwanda\">Rwanda<\/option><option value=\"Saint Barth\u00e9lemy\">Saint Barth\u00e9lemy<\/option><option value=\"Saint Helena, Ascension and Tristan da Cunha\">Saint Helena, Ascension and Tristan da Cunha<\/option><option value=\"Saint\n    Kitts and Nevis\">Saint\n    Kitts and Nevis<\/option><option value=\"Saint Lucia\">Saint Lucia<\/option><option value=\"Saint Martin (French part)\">Saint Martin (French part)<\/option><option value=\"Saint Pierre\n    and Miquelon\">Saint Pierre\n    and Miquelon<\/option><option value=\"Saint Vincent and the Grenadines\">Saint Vincent and the Grenadines<\/option><option value=\"Samoa\">Samoa<\/option><option value=\"San Marino\">San Marino<\/option><option value=\"Sao\n    Tome and Principe\">Sao\n    Tome and Principe<\/option><option value=\"Saudi Arabia\">Saudi Arabia<\/option><option value=\"Senegal\">Senegal<\/option><option value=\"Serbia\">Serbia<\/option><option value=\"Seychelles\">Seychelles<\/option><option value=\"Sierra\n    Leone\">Sierra\n    Leone<\/option><option value=\"Singapore\">Singapore<\/option><option value=\"Sint Maarten (Dutch part)\">Sint Maarten (Dutch part)<\/option><option value=\"Slovakia\">Slovakia<\/option><option value=\"Slovenia\">Slovenia<\/option><option value=\"Solomon Islands\">Solomon Islands<\/option><option value=\"Somalia\">Somalia<\/option><option value=\"South Africa\">South Africa<\/option><option value=\"South Georgia and the South\n    Sandwich Islands\">South Georgia and the South\n    Sandwich Islands<\/option><option value=\"South Sudan\">South Sudan<\/option><option value=\"Spain\">Spain<\/option><option value=\"Sri Lanka\">Sri Lanka<\/option><option value=\"Sudan\">Sudan<\/option><option value=\"Suriname\">Suriname<\/option><option value=\"Svalbard and Jan Mayen\">Svalbard and Jan Mayen<\/option><option value=\"Sweden\">Sweden<\/option><option value=\"Switzerland\">Switzerland<\/option><option value=\"Syrian Arab Republic\">Syrian Arab Republic<\/option><option value=\"Taiwan\">Taiwan<\/option><option value=\"Tajikistan\">Tajikistan<\/option><option value=\"Tanzania, United Republic of\">Tanzania, United Republic of<\/option><option value=\"Thailand\">Thailand<\/option><option value=\"Timor-Leste\">Timor-Leste<\/option><option value=\"Togo\">Togo<\/option><option value=\"Tokelau\">Tokelau<\/option><option value=\"Tonga\">Tonga<\/option><option value=\"Trinidad and Tobago\">Trinidad and Tobago<\/option><option value=\"Tunisia\">Tunisia<\/option><option value=\"Turkey\">Turkey<\/option><option value=\"Turkmenistan\">Turkmenistan<\/option><option value=\"Turks and Caicos Islands\">Turks and Caicos Islands<\/option><option value=\"Tuvalu\">Tuvalu<\/option><option value=\"Uganda\">Uganda<\/option><option value=\"Ukraine\">Ukraine<\/option><option value=\"United Arab Emirates\">United Arab Emirates<\/option><option value=\"United\n    States Minor Outlying Islands\">United\n    States Minor Outlying Islands<\/option><option 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By registering your details, you understand that your personal data will be handled according to our <a href=\"https:\/\/risk.lexisnexis.com\/group\/privacy-policy\/\" target=\"_blank\">Privacy Policy<\/a>. \n<\/p><input type=\"hidden\" name=\"client_id\" class=\"client_id\" \/><input type=\"text\" class=\"elq-itemhp-tel5\" name=\"Telephone5\" value=\"\" style=\"width:100%;\" autocomplete=\"2S0OI3\">\n\t\t<input type=\"text\" class=\"elq-itemhp-tel6\" name=\"Telephone6\" value=\"\" style=\"width:100%;\" autocomplete=\"DduwX4\">\n\t\t<input type=\"text\" class=\"elq-itemhp-tel7\" name=\"Telephone7\" value=\"\" style=\"width:100%;\" autocomplete=\"8ihsaF\"><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Employment (Allocation of Tips) Act 2023 requires employers to be fair and transparent in how they manage and distribute tips. Here&#8217;s what affected employers need to know.<\/p>\n","protected":false},"author":24,"featured_media":11265,"comment_status":"closed","ping_status":"closed","template":"wp-custom-template-new-resources","categories":[53],"tags":[],"topic":[26,59],"class_list":["post-9386","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-c-and-i","topic-benchmarking","topic-employment-law-updates"],"_lnrs_read_more":"","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What to know about the Employment (Allocation of Tips) Act 2023<\/title>\n<meta name=\"description\" content=\"The Employment (Allocation of Tips) Act 2023 takes effect on 1 October 2024. 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