Statutory guidance

Distributing tips fairly: revised statutory code of practice

Guidance for employers and workers on the fair and transparent distribution of tips.

• From: Department for Business and Trade
• Published: 29 June 2026

Applies to England, Scotland and Wales

Documents

Draft revised code of practice on fair and transparent distribution of tips

Unnumbered act paper

PDF, 245 KB, 28 pages

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Details

This revised code of practice provides guidance to employers and workers on the fair and transparent allocation and distribution of tips, gratuities and service charges.

The code of practice was first published after the passage of the Employment (Allocation of Tips) Act 2023, which makes it mandatory for all tips to be passed on to workers without deductions.

It has been revised following the passage of the Employment Rights Act 2025, which makes it mandatory for employers to consult with workers at their place of business when developing or revising their written tipping policies.

It is due to come into effect, subject to Parliamentary approval, in October 2026.

Published 29 June 2026