The Government are to introduce legislation to prevent employers making deductions from tips following the 2016 consultation.
Expected measures in the proposed new legislation are;
- Requirements for employers to not to make any deductions from tips received by their staff, including administration charges, other than those required by tax law.
- Requirements for employers to distribute tips in a way that is fair and transparent and have a written policy on how tips have been dealt with and for this to be recorded.
- Provisions to allow workers to make a request for information relating to an employer’s tipping record.
- Requirements for employers to have regard to a statutory Code of Practice on Tipping. It is expected that this would replace the existing voluntary code of practice, published in 2009.
The response also confirms that breach of these obligations will be enforced in employment tribunals.
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