Tips & Gratuities Policy

Tipping Policy for Workers

Purpose

This policy sets out how tips, gratuities, and service charges are managed and distributed among workers, ensuring compliance with the Employment (Allocation of Tips) Act 2023. It aims to promote fairness, transparency, and trust within the workplace.

Scope

This policy applies to all workers employed by the company, including full-time, part-time, temporary, and agency workers, regardless of contract type.

Key Principles

  1. Fair Distribution

    • All tips, gratuities, and service charges under the company’s control will be distributed fairly among workers.
    • Allocation will be based on clear and objective factors such as hours worked, role performed, and customer feedback (where applicable).
    • Tips will not be subject to unauthorized deductions, except for those required by law, such as tax.

  2. Transparency

    • Workers will have access to a written tipping policy outlining the allocation process and the factors used to determine distribution.
    • Workers may request access to records of tip allocations for the period they worked with the company.

  3. Timely Payments

    • Tips will be paid no later than the end of the month following the month in which they were received.

  4. Inclusivity

    • All workers who contribute to the service provided, including back-of-house staff and agency workers, will be considered in the tipping process.
    • Different roles may receive different allocations based on objective and predefined criteria.

Worker Rights

  1. Access to Information

    • Workers may review records detailing the total tips received and their distribution, as applicable to their role and tenure.

  2. Grievance Procedure

    • If workers believe tips are not allocated fairly or in compliance with this policy, they may raise a grievance with management or HR.
    • Disputes unresolved internally can be escalated to Acas for mediation or to an employment tribunal.

  3. Protection Against Retaliation

    • Workers raising concerns about tipping practices will be protected from retaliation or adverse treatment.

Employer Obligations

  1. Written Policy and Record-Keeping

    • Maintain a written tipping policy and ensure it is accessible to all workers.
    • Keep detailed records of tip allocations for at least three years to demonstrate compliance.

  2. Compliance with Legal Requirements

    • Adhere to the statutory Code of Practice on tipping, ensuring fair, transparent, and non-discriminatory allocation.

  3. Worker Consultation

    • Regularly review and update the tipping policy in consultation with workers to reflect best practices and operational changes.

Limitations and Exclusions

  • Tips given directly to workers by customers without employer involvement are not covered under this policy.
  • Service charges are included only if under the company’s control.

Effective Date

This policy will come into force on October 1, 2024, in compliance with the Employment (Allocation of Tips) Act 2023, and will be reviewed annually to ensure continued relevance.

For questions or more details about this policy, workers are encouraged to contact [HR or Designated Manager].

This policy ensures workers are treated equitably and transparently regarding tips and gratuities, fostering a fair workplace culture.