New tipping rules could give workers more say over how tips are shared

The main change is that workers are expected to have a greater voice in how tipping policies are developed and reviewed.

The draft Code says employers should consult workers when creating or reviewing a tipping policy. Where there is a recognised trade union or worker representative, consultation should usually take place through them. Where there are no representatives, employers should consult affected workers directly.

Employers would also need to review their tipping policy at least once every three years and make an anonymised summary of the views expressed during consultation available to workers.

This could be particularly important in restaurants, bars, hotels, cafes, salons, delivery businesses and other workplaces where tips or service charges are paid regularly.

Fair distribution does not always mean splitting tips equally among all workers.

An employer may use a system that reflects how the business operates, such as who served customers, how many hours people worked during the relevant period, and whether tips were clearly intended for a particular worker or team. The important point is that the system should be fair, transparent and based on clear reasoning, rather than arbitrary decisions or hidden arrangements.

Workers should also be fairly represented across the business. This may include front-of-house staff, kitchen or support staff, agency workers, part-time staff and workers on zero-hours arrangements, where they helped provide the service.

Unfair tipping arrangements can affect groups of workers differently. For example, a policy may appear neutral yet still disadvantage certain workers in practice, including those with protected characteristics under discrimination law.

The draft Code makes clear that employers should not try to avoid the law by giving tips, gratuities or service charges a different name.

Whether a payment is covered by the tipping rules depends on what it is, not on the label used. That means an employer should not simply rebrand a service charge as something else if, in substance, it is a tip or gratuity intended to reward service.

Workers should look beyond the label used and ask how the money is handled, especially when customers appear to be paying extra to recognise good service.

Yes. Workers have the right to see tipping records.

The draft Code says employers must keep records of qualifying tips paid at, or attributable to, the place of business. Workers can make a written request to view tipping records covering up to three years, provided they worked for the employer throughout the requested period.

The employer must provide the relevant tipping record within four weeks. The information should include the total amount of qualifying tips received at the relevant place of business and the amount allocated to the worker making the request.

Data protection should not be used as a blanket reason to withhold information. The draft Code states that a fair tipping policy should be explainable without disclosing personal data and that data protection rules should not be unduly relied on to withhold relevant information.

Tipping is not just a technical employment law issue. For many workers, especially in hospitality and service roles, tips can make a real difference to their weekly income.

Customers may also assume that a tip or service charge will go to the people who served them. If that does not happen, or if workers cannot understand how tips are shared, trust can quickly break down.

The revised Code is intended to make tipping arrangements more transparent. Workers should be able to understand the policy, know how tips are allocated, and have a route to raise concerns if they believe the system is unfair.