It's All About People - 19th September 2024

READ TIME - 3 minute read

Welcome Back

This week’s It’s All About People covers:

🍽️Changes to the law on tips in only 12 days
📋 Steps to ensure compliance
🗓️ Events coming up

Last Friday I got to see one of my favourite bands (again) when I went to see Texas in concert in Birmingham.

An incredible evening of music (her voice is simply incredible) and entertainment. Followed by a magical mystery tour of Birmingham thanks to Google Maps!

Now, I am back to helping our readers keep up to date with critical people topics, and this week especially important if you work in an industry that gets tips from customers…or indeed someone you love does and you want to be sure they are getting their fair share.

Let’s go…

🍽️ Tipping Law Changes

Big changes are coming to tipping laws, and from 1 October 2024, withholding tips will be illegal under the Employment (Allocation of Tips) Act 2023. Here’s what you need to know to stay compliant!

Employers will need to pass on all tips and service charges to workers without deductions and distribute them in a fair and transparent manner.

This applies to everyone working at the business, whether they’re an employee or hired through an agency.

The law is expected to put an extra £200 million into workers’ pockets. 💸

📋 What Employers Must Do:

📃 Have a written tipping policy explaining how tips are handled.

📋️ Keep a record of all tips, including how they’re allocated and distributed.

🤝 Consult with workers to ensure fairness and transparency.

Fair Distribution Factors may include:

• Job role

• Basic pay

• Performance

• Seniority or time served

Employees will have the right to challenge allocations and take disputes to a tribunal. If the tribunal finds a breach, they can compensate up to £5,000!

⏰ What Should You Do Now?

There’s no transition period – you’ll need to act now to ensure compliance. Consider:

• Reviewing or creating a tipping policy

• Consulting workers on fair allocation

• Keeping detailed records for three years 📝

It’s also worth keeping an eye on future developments – Labour has pledged to strengthen tipping laws even further - w will of course keep you up to date.

Stay tuned for next week’s email, where we’ll be discussing how to safely dismiss someone.

Have a wonderful week!

Emma

P.S. If you're a member of our HR Hub, we are adding resources and templates to help you comply with the new law. If you’re not yet a member, join us here for only £45/month.

 P.P.S.  If you are not a Hub member you can join here for only £45/month for all your HR needs.

P.P.P.S If we have not connected on LinkedIn yet, I would love to connect

Events to Join in the coming weeks (click on the links to join us)

HR Clinic (free to all, come and ask your HR questions) - 24th September 12pm 

Let’s Talk Menopause - Monthly Menopause Clinic (free to all) - 2nd October 12pm

Winter Blues - Mental Health in the Workplace Lunch and Learn (free to clients and only £35 for others) 8th October 12pm

Make Work Pay – Labour’s 100 Day Plan for HR & Leaders (Free Webinar) - 23rd October 12-1pm