[UK] 5 things to know before new tipping legislation becomes law

In the UK, new legislation regarding the management and distribution of tips and service charges is expected to achieve royal assent by spring and hospitality operators must understand the changes needed to remain compliant, The Caterer reports.

Peter Davies - managing director of WMT Troncmaster Services - shared with The Caterer five key points from the Employment (Allocation of Tips) Bill:

1. All the money collected through tips and service charges paid by customers must be paid to workers. It will no longer be possible to cover the administrative costs of collecting and distributing tips and service charges including credit card fees and commissions from these funds. These costs must now be covered by the business.

2. There will be a strict timeline for the distribution of money. Monies received from customers must reportedly be paid to workers by the end of the month following the month of receipt.

3. Agency staff are to be given new rights and must be awarded tips and service charges on the same basis as directly-employed staff.

4. Businesses will reportedly be required to keep more detailed records about the collection and distribution of tips and service charges. These can be requested by workers and could be used to challenge businesses at employment tribunals, including over issues of fairness where no independent tronc exists.

5. It will not be possible to change staff contracts, even with consent, to introduce tronc systems if it affects wages. According to Mr Davies, businesses that currently do not operate tronc may have a once and forever decision to make in advance of the new rules.

In the UK, new legislation regarding the management and distribution of tips and service charges is expected to achieve royal assent by spring and hospitality operators must understand the changes needed to remain compliant, The Caterer reports.

Peter Davies - managing director of WMT Troncmaster Services - shared with The Caterer five key points from the Employment (Allocation of Tips) Bill:

1. All the money collected through tips and service charges paid by customers must be paid to workers. It will no longer be possible to cover the administrative costs of collecting and distributing tips and service charges including credit card fees and commissions from these funds. These costs must now be covered by the business.

2. There will be a strict timeline for the distribution of money. Monies received from customers must reportedly be paid to workers by the end of the month following the month of receipt.

3. Agency staff are to be given new rights and must be awarded tips and service charges on the same basis as directly-employed staff.

4. Businesses will reportedly be required to keep more detailed records about the collection and distribution of tips and service charges. These can be requested by workers and could be used to challenge businesses at employment tribunals, including over issues of fairness where no independent tronc exists.

5. It will not be possible to change staff contracts, even with consent, to introduce tronc systems if it affects wages. According to Mr Davies, businesses that currently do not operate tronc may have a once and forever decision to make in advance of the new rules.