Guidance

Distributing tips fairly: non-statutory guidance for employers

Non-statutory guidance for employers on how to follow the code of practice on the fair and transparent distribution of tips.

• From: Department for Business and Trade
• Published: 27 September 2024

Applies to England, Scotland and Wales

Documents

Distributing tips fairly: non-statutory guidance for employers

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This guidance:

• aims to help employers apply the statutory code of practice on fair and transparent distribution of tips
• applies to all sectors and businesses where tips are received
• is not part of the statutory code of practice
• is not legal advice
• is not an exhaustive account of what is acceptable with either the Employment Rights Act 1996 or the statutory code of practice

Where employers choose to operate a tronc scheme under which a troncmaster decides on distributions independently of the employer, this guidance is intended to support the employer’s assessment of whether the troncmaster’s decisions are likely to be considered fair.

Employers should take independent legal advice if they are unsure of their obligations.

This guidance will be reviewed regularly and updated as necessary.

Published 27 September 2024