It’s a slice of American culture that’s becoming more and more prevalent in the UK: tipping.
Everything from sitting down in a restaurant to taking a taxi or ordering a pizza is slowly becoming more and more demanding around tips and tipping as well as the dreaded ‘optional service charges’ that are automatically slapped on your bill.
Sometimes there’s even a service charge AND a gratuity fee, both slapped on separately, often adding up to more than 25% of the total bill.
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And since we might be tight Yorkshire folk with one eye on the bottom line, it’s important to note that there’s been a change to tipping law in 2024 that could see you landed with a £5,000 fine if you get it wrong.
The Employment (Allocation of Tips) Act 2023 comes into force this spring, April 2024.
The new law change is aimed at making tipping and tips fairer for service workers, waiters, waitresses, and the likes.
It means that tips must now be handed directly to staff – and the same goes for tips by any other name, so service charges, gratuities, you name it.
Employers will also be mandated by law to publish a policy outlining how tips are allocated, whether by cash or card.
Employers must maintain records on how tips are distributed and workers will have the right to access them.
Employees will also be able to take their employers to a tribunal to claim up to £5,000 in compensation for not being given their tips.
Don’t worry though – you won’t be fined for tipping someone incorrectly. However, you will be able to check any restaurant’s tipping policy before asking for that ‘optional service charge’ to be removed.
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