Understanding The Employment (Allocation of Tips) Bill

The UK government’s Employment (Allocation of Tips) Bill legislation, which aims to ensure that all tips are fully and fairly paid to staff, is a massive win for the hospitality industry. The legislation is especially positive for staff themselves because it gives them greater confidence they will receive their fair share of all the tips that they worked so hard to earn.

For many, tipping represents a considerable proportion of their income, so this legislation is even more significant.
Read on to discover how EasyTip can help your business comply with the new Employment (Allocation of Tips Bill) and even benefit from it.

The main legal obligations for employers and rights for workers contained in the Bill are:

  • The full amount of tips must be allocated fairly
  • All tips must be paid no later than the end of the month- following the month in which it was paid by the customer.
  • The employer must have a written tipping policy and a copy must be made available to all staff
  • Customer tips should not be shared between multiple business sites

Staff members must be allocated tips fairly

The new Bill states that 100% of all tips must be paid to staff members. This will ensure that all staff receive the full amount that their customers intended to give them.

At EasyTip, we provide two tip collection and distribution methods that ensure tips are shared fairly. Our individual tipping method ensures tips are sent directly from customers to the recipient. Our common tipping method allows tronc tools to distribute tips fairly.

Provide full contactless tipping transparency for your customers and staff

Another crucial requirement contained in the Bill is that there must be full transparency both for customers leaving tips and for staff receiving them. EasyTip’s tipping dashboard already offers customers that transparency, with dedicated tipping profiles for all staff members so they can either choose to tip individual staff members, or split the tip. This level of transparency helps customers feel confident that their contactless tips are going exactly where they want them to go.

Through the Bill, a new statutory Code of Practice will be developed that will enable staff members to get full visibility on how tips are being collected and distributed, as well as providing guidance on how to develop and implement a fair tipping strategy. This will include a legal requirement for businesses to keep a record of all tips received.

If that sounds daunting, or onerous, it doesn’t have to be! With EasyTip, you will have access to your own tipping dashboard that records your entire digital tipping history, the perfect solution for complying with the upcoming Bill. Staff and business owners can not only have full transparency on tips collected via their personalised dashboard, the tips can also be fairly distributed, based either on working hours, or on individual teams or per individual. All monthly tip data can be downloaded in Excel or PDF at any time by accountants and business owners, and distributed to all staff members. EasyTip provides an auto-generated tipping policy based on the tronc masters criteria. The policy is available for all staff members within the app to view at any time.

All tips must be paid in full no later than the end of the month

The bill also states that employers must ensure that all tips are paid to workers no later than the end of the month that follows the one in which it was paid by the customer.

With EasyTip, tip distribution has never been easier and we can guarantee that all tips are paid out to staff members in time to meet this new legal requirement. EasyTip has several payout options available for users starting from  daily, weekly or monthly payouts. Whatever option that is chosen, employers can guarantee that with EasyTip, all staff members receive their tips within the required timeframe.

Customer tips should not be shared between multiple business sites

The Bill also states that tips paid by customers at a particular restaurant may not be shared with workers at a different outlet owned by the same employer. When signing up with EasyTip, each individual outlet has its own dedicated tip collection account and QR code. This means that, by using our cashless tipping platform, business owners can be confident that the staff tips collected at one site are distributed accordingly.

Why you should start enabling contactless tips with EasyTip

Earning cashless tips with EasyTip is quick, easy and 100% transparent for business owners, staff and customers alike. Customers can leave a tip and review the staff member who served them by simply scanning the QR code on personalised merchandise or on their receipt. All cashless tips are sent directly to the customer’s chosen recipient, or to the pot of tips to be shared based on working hours, and will appear on the staff member’s tipping profile where they can track their tips live.

The Employment (Allocation of Tips) Bill is a significant development for any business whose staff are accustomed to receiving tips, and owners and managers may be concerned at the amount of work required to comply with its provisions. At EasyTip, we can help you navigate these questions and offer hospitality and services staff the most efficient cashless tipping solution.

Your business can benefit from our contactless tipping platform at no cost to you. So, why not sign up today for free? It’s quick, easy and free to join! Get in touch with us and we will be delighted to help you get connected to our contactless tipping platform and stay compliant with the Employment (Allocation of Tips) Bill. 

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Your business may benefit from our contactless tipping platform at no cost to you. So, why not sign up today for free? It’s quick, easy and free to join. Get in touch with us and we will be delighted to help you get connected to our electronic tipping platform

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