Is your business ready for the new law regarding payment of tips to staff?
On 1 July 2024, the Employment (Allocation of Tips) Act 2023 comes into force, requiring businesses to allocate and distribute all qualifying tips, gratuities, and service charges to their workers in a fair and transparent way.
Overview of new law around paying tips
On 1 July 2024, the Employment (Allocation of Tips) Act 2023 comes into force.
This law requires businesses to allocate and distribute all qualifying tips, gratuities, and service charges to their workers in a fair and transparent way. It applies to any business that receives a qualifying tip from a customer, so whilst it will particularly affect businesses in the hospitality industry (hotels, restaurants, coffee shops, and bars) it will also impact hairdressers, taxi companies, and other such businesses that regularly receive tips.
The law also sets out that tips must be distributed by the end of the month after the month in which the tip was paid, and that you have to keep a record of how every tip has been dealt with.
This new legislation is complex, and also given it will not impact the majority of businesses who do not regularly receive tips, we are not going to set out chapter and verse in this article. Instead, we have prepared a detailed briefing note, and if you would like to receive a free copy of our briefing note please contact our Employment team by emailing Eleanor Disney via edisney@leathesprior.co.uk and we will send this to you.
If your business receives tips on more than an occasional or exceptional basis, the new law provides that you must have a written policy detailing how you will deal with tips. Leathes Prior has already begun assisting businesses with drafting their own bespoke tipping policy and advising on the necessary legal issues arising. If your business would like to instruct us to prepare a policy for you, or you would like a quotation for such, please also contact us as set out above.
Updates to auto-renewing subscriptions: What can businesses do to prepare?
Lucy Matthews & Harry Smith in our Corporate & Commercial Team share an update on the Digital Markets, Competition and Consumers Act 2024 (“DMCC Act”) and the introduction of a new regime for consumer subscription contracts due to take effect in Spring 2027.
Uncorking Change: Current Legal Trends Shaping UK Viticulture
Viticulture is now widely recognised as one of the UK’s fastest growing agricultural sectors, supported by investment, climate change and consumer demand. Against that backdrop, the legal landscape is evolving quickly, and vineyards, investors and rural estates must keep pace with a combination of regulatory reform, environmental changes and labour pressures which are materially shaping how vineyards are established and operated. Rebecca Allen, Senior Associate in our Agriculture Team discusses the evolution of viticulture in the UK.
EPCs for Non-Domestic Property: The Latest Changes
The UK Government has announced a significant change to its proposed approach to energy efficiency standards for non-domestic property in England and Wales. For owners, investors and occupiers of commercial property, this is one of the most important developments in the EPC regime since the introduction of MEES. Rebecca Millard, Senior Associate in our Commercial Property Team explains...
Updates to auto-renewing subscriptions: What can businesses do to prepare?
Lucy Matthews & Harry Smith in our Corporate & Commercial Team share an update on the Digital Markets, Competition and Consumers Act 2024 (“DMCC Act”) and the introduction of a new regime for consumer subscription contracts due to take effect in Spring 2027.
Uncorking Change: Current Legal Trends Shaping UK Viticulture
Viticulture is now widely recognised as one of the UK’s fastest growing agricultural sectors, supported by investment, climate change and consumer demand. Against that backdrop, the legal landscape is evolving quickly, and vineyards, investors and rural estates must keep pace with a combination of regulatory reform, environmental changes and labour pressures which are materially shaping how vineyards are established and operated. Rebecca Allen, Senior Associate in our Agriculture Team discusses the evolution of viticulture in the UK.
EPCs for Non-Domestic Property: The Latest Changes
The UK Government has announced a significant change to its proposed approach to energy efficiency standards for non-domestic property in England and Wales. For owners, investors and occupiers of commercial property, this is one of the most important developments in the EPC regime since the introduction of MEES. Rebecca Millard, Senior Associate in our Commercial Property Team explains...
Leathes Prior advises Complete Strategy on sale to Flint Global
Alex Saunders, Partner in Leathes Prior's Corporate Team, advised Complete Strategy on the sale of its business to Flint Global. The acquisition marks Flint Global's first acquisition and represents the first step in its M&A growth strategy.
%20(1).webp)
Maternity Services in England: Recent Reports and What They Mean for Families
In a follow up to our recent article on maternity safety, Polly Langford, Partner in our Personal Injury & Clinical Negligence Team has written on the findings of the Ockenden Report and what this means for families.
Competing uses of farmland - what the new Land Use Framework means for your business
The Government has published the Land Use Framework – which DEFRA says is “a plan for delivering new homes, nature restoration, clean energy and food security." Rebecca Allen, Senior Associate in our Agriculture Team explains what this means and what to consider for your business.
Changes to qualifying period: Time to rethink probation periods?
From 1 January 2027, the qualifying period is reducing from two years to six months. But the reality is that the new law will apply to all employees who have already accumulated at least six months of continuous employment by this date. This means that now is the right time for employers to be reviewing their employment contracts and rethinking strategies on probationary periods.
Proposals for reform of cohabitation rights on the death of a cohabitating partner
Georgia Sartin, a Solicitor in our Property and Contentious Probate Team explores the government’s recent open consultation ‘a fairer end to relationships’ published on 5 June 2026, , in respect of the proposals for reform for cohabitants in the intestacy framework and 1975 Act claims.
%2520cropped.webp)
Who is accountable for maternity safety? The case for a maternity commissioner following the birth trauma inquiry.
The safety of maternity services in England has been under intense scrutiny in recent years, now, a national campaign has been launched for the appointment of a dedicated Maternity Commissioner.
What is the difference between a share sale and an asset sale?
When running a business, company founders and shareholders will inevitably, at one stage or another, want to consider potential succession options, the most prominent being an exit by way of trade sale. Hugo Persad, Trainee Solicitor in our Corporate Team provides an overview of what the difference is between a share sale and an asset sale.
.webp)
UK GDPR Update: What the Data (Use and Access) Act 2025 Means for Organisations
While several updates under the Data (Use and Access) Act 2025 came into force on 5 February 2026, the next key development for organisations is still to come. From 19 June 2026, organisations will be legally required to implement a formal complaint handling process for data protection matters. This is a significant shift, placing greater emphasis on resolving issues internally before they escalate to the regulator.
.webp)
Selling a Probate Property: A Guide for Executors
Acting as an Executor can feel daunting, especially if there is a property which needs to be sold as part of the estate administration process. If you have been appointed as an Executor and you are unsure where to begin, here are some key things to consider.
%2520website.webp)
Leathes Prior's Personal Injury & Clinical Negligence Team Secure Settlement for Client
Kate Smith (Senior Associate) and Kimberley Nelson (Paralegal) were instructed in relation to a workplace personal injury claim, and successfully secured a five-figure settled for the client.
.webp)
New Restrictions to Charitable Giving: What You Need to Know
Changes to UK tax law regarding charitable giving took effect from 6 April 2026. Following legislative amendments in the Finance Act 2025-26, the generous tax exemptions associated with charitable gifts - specifically Inheritance Tax (IHT) exemptions - will be restricted to gifts to UK-registered charities. Ejike Ndaiji, Partner in our Wills, Trusts, & Probate and Charities Team explains...
