The Allocation of Tips Act 2023: A fair deal for workers or a burden for employers?

The Allocation of Tips Act 2023 is a new law that will affect employers and workers in the hospitality and leisure sectors.  

The main purpose of the Act is to ensure that tips and service charges are paid fully and fairly to workers who provide the service.  

The Act will come into force in the second quarter of 2024 and the Government estimates that the Act will positively impact at least 2 million workers. 

However, the Act will also increase the cost pressure on the hospitality and leisure sectors, which are already facing challenges from rising food prices, energy bills and business rates. 

To help employers familiarise themselves with the new requirements and prepare for the changes ahead Colin Johnson, Partner and hospitality sector specialist at MHA Moore and Smalley discussed the issue with Lee Jefcott who is an employment lawyer and head of the hospitality and leisure sector at Brabners. 

You can watch this 4-minute video by clicking below. 

On 6 December from 11:00 – 12:00 Brabners are also holding a webinar delving into the detail of the new Act and you can register for a place via the link below: