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, Innovation, Science and Trade and Department for Business and Trade
• Published: 29 June 2026
• Last updated: 29 July 2026
  Show all updates

  1. 29 July 2026

     This code of practice was previously laid before Parliament, but has been withdrawn so that a new public consultation can be held on its content. The substantive content in the revised code of practice remains the same.

  2. 29 June 2026

     First published.

Applies to England, Scotland and Wales

Documents

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

Unnumbered act paper

PDF, 414 KB, 24 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.

A new public consultation will be held on this code of practice. The details and timings will be confirmed in due course. For now, employers should continue to follow the existing code of practice.