Hospitality businesses across Swindon and beyond are being urged to familiarise themselves with a tightening of the rules around tipping, as a new piece of legislation comes into full effect this April – with stiff penalties in place for those who fall short.
The team at HR Dept Swindon, North Wiltshire and East Cotswolds, who specialise in HR support for hospitality venues, have issued a warning to pubs, restaurants, cafés and bars to ensure they are now fully compliant with the Employment (Allocation of Tips) Act 2023.
Managing Director Peter Jones explained that while the Act technically came into force last October, enforcement begins this month – and ignorance of the law is unlikely to provide much defence if challenged by an employee.
“We work with a large number of hospitality businesses, both here in Swindon and through our sister company in London,” said Peter. “These changes have serious implications for how businesses handle tips and service charges. Employers must ensure that 100% of tips go to staff, fairly and transparently, with no deductions other than tax and National Insurance.”
The new law means businesses must have a written tips policy in place, train staff on it, and keep appropriate records. More importantly, if staff feel tips are being unfairly distributed, they now have the right to take their employer to an employment tribunal.
“The fine for breaching the rules can be up to £5,135 per employee,” Peter added. “So for those who have perhaps not prioritised this issue, it’s time to take it seriously. The law applies to agency workers and those on zero-hours contracts, though not the self-employed, which does add some complexity.”
To help local businesses navigate the changes, HR Dept has put together a comprehensive guide tailored specifically to the hospitality industry, covering everything from recruitment and managing sickness absence, to wellbeing and legal obligations around tips.
Peter and his team work closely with hospitality businesses of all shapes and sizes – from bars and restaurants to private members’ clubs – offering tailored HR support to keep them on the right side of employment law.
To request a copy of the guide or discuss your business’s HR needs, contact Peter via peter.jones@hrdept.co.uk or call 01793 683 398. More details can also be found at HR Dept Swindon.
