Fair Allocation of Tips Policy

Comply with UK tipping laws

For businesses where tips are common, such as in the hospitality industry, compliance with the Employment (Allocation of Tips) Act 2023 is essential. This law requires businesses to ensure that all qualifying tips (including gratuities and service charges) are allocated fairly among workers at their place of business.

In order to com,mply with UK employment laws, businesses must have a formal written policy for the fair allocation of tips.

Inform workers and document your approach to handling tips in the workplace

This policy template is specifically written for businesses to use when there is not a tronc arrangement in place. By formally writing and documenting your business' Fair Allocation of Tips Policy, it is essential that all workers are given access to this policy, including agency workers, informing them of how you handle and allocate tips within the business.