The UK government has introduced a new Employment (Allocation of Tips) Act, set to take effect in October 2024, designed to ensure that all tips, gratuities, and service charges are distributed fairly to staff. This long-awaited legislation will provide greater transparency and protection for hospitality workers, guaranteeing that employers cannot withhold or unfairly distribute tips.
For businesses in restaurants, bars, hotels, salons, and other service industries, this means adapting to new compliance requirements to ensure that 100% of tips go directly to the staff who earned them. The law also introduces new record-keeping obligations, requiring employers to maintain clear records of how tips are allocated, ensuring fairness and accountability.
How EasyTip Ensures 100% Compliance
At EasyTip UK, we have always championed fairness, transparency, and efficiency in digital tipping. Our platform is already fully compliant with the new law, ensuring that businesses can easily adapt without any administrative burden.
With EasyTip:
✅ No deductions – All tips go directly to staff members, with no hidden fees or employer deductions.
✅ Seamless record-keeping – Our automated system ensures compliance with tip distribution transparency rules.
✅ Instant digital payouts – Employees receive tips directly and securely, without delays.
✅ Flexible allocation options – Configure team or individual tipping structures to fit your business model.
What Should UK Businesses Do to Prepare?
To get ready for the new tipping law in October 2024, businesses should:
🔹 Review their current tipping policies – Ensure existing tip distribution aligns with legal requirements.
🔹 Implement a transparent digital tipping system – Platforms like EasyTip ensure compliance without extra admin.
🔹 Educate staff and management – Clear communication helps teams understand their rights under the new law.
🔹 Maintain proper records – As required by the legislation, businesses must keep accurate records of all tip distributions.
By switching to EasyTip, your business can stay ahead of compliance requirements while offering staff a fair and hassle-free tipping experience.
💡 Start using EasyTip today and be ready for the new tipping law with a fully compliant, digital tipping solution! 🚀
