Government consults on revised Tipping Code of Practice
The Code of Practice on Fair and Transparent Distribution of Tips originally came into effect on 1 October 2024, along with specified provisions of the Employment (Allocation of Tips) Act 2023.
The Government has published a new draft revised Code of Practice and launched a consultation on the proposed changes. The consultation is open until 29 September 2026, after which, subject to the statutory approval process, the revised Code will replace the existing Code. It is thought this will be in October 2026.
The revised Code follows the Government’s earlier consultation on strengthening the law on tipping in 2026 and reflects amendments introduced by the Employment Rights Act 2025.
The proposed changes include:
- new requirements for employers to consult with workers at their place of business when developing or reviewing their tipping policies;
- where recognised trade union or other worker representatives exist, consultation should be carried out through those representatives; otherwise, employers should consult workers directly;
- employers will be required to make an anonymised summary of the views expressed during the consultation available to workers;
- employers must review their written tipping policy at least once every three years;
- whether a payment falls within the scope of the legislation will depend on its substance rather than the terminology used; and
- further clarification on the treatment of cash, electronic and non-monetary tips.
The proposed changes are intended to provide greater clarity around the treatment and distribution of tips and increase worker involvement in the development and review of employers’ tipping policies.
Employers should continue to follow the existing Code while the revised Code remains subject to consultation and parliamentary approval.
For further information or to discuss how this may affect your business, please get in touch with KKnox@ortolan.com or jjones@ortolan.com
Posted on 09/20/2026 by Ortolan
