New tipping law comes into force

Businesses have been banned from withholding tips or service charges from their staff under new rules that came into force on 1 October.

London: 020 8150 3945

Milton Keynes: 01908 925235


Luton: 01582 250045

Stevenage: 01438 583905

Email hello@adamparkers.co.uk

Businesses have been banned from withholding tips or service charges from their staff under new rules that came into force on 1 October.

All tips, whether in cash or by card, must now be shared between workers by law in Britain, with millions of workers such as those working for cafes, pubs, restaurants, taxi companies and hairdressers most likely to benefit.

If an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.

The law means tips must be passed to employees by the end of the following month from when they were received.

The Department for Business and Trade has predicted the new law will mean a further £200 million will be received by workers rather than their employers.

Minister for Employment Rights Justin Madders said: 

'When you tip someone for good service, you expect them to keep all their tip. They did the work - they deserve the reward.

'This is just the first step of many in protecting workers and placing them at the heart of our economy. We will be introducing further measures on tipping to ensure workers get their fair share of tips.

'Britain's outdated employment laws require an urgent update. This Government will ensure they are fit for the modern economy and deliver on our plan to Make Work Pay.'

Internet link: GOV.UK

acca.png quickbooks.png xero.png freeagent.png
About our team

We are an experienced and approachable group of professionals passionate about helping businesses thrive. We’ll listen to your ideas, problems, and queries to find the best solution based on your requirements. We'll also ensure that we’re always available to discuss your finances. With a range of specialisms and several years of finance experience between them, you can be sure that the right people are looking after your company affairs.

More about us

London Office
3rd Floor, 45 Albemarle Street
Mayfair
London
W1S 4JL

Tel: 020 8150 3945

Milton Keynes Office
590-598 Elder Gate
Milton Keynes
MK9 1LR

Tel: 01908 925235

Luton Office
Unit A, Station House
Midland Road
Luton
LU2 0HS

Tel: 01582 250045

Stevenage Office
25 Town Square
Stevenage
SG1 1BP

Tel: 01438 583905

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

© 2025 Adam Parker Limited. All rights reserved. powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.