The Biggest Tip Split in TiPJAR History – and What It Might Be Telling Us About Hospitality in 2025

The Biggest Tip Split in TiPJAR History – and What It Might Be Telling Us About Hospitality in 2025

Ben Thomas, CEO at TiPJAR

Last week, we processed the highest volume of weekly tips in TiPJAR’s history.  

A new high-watermark record isn’t unusual for us this past year – we’ve seemed to hit them almost every month!  But this one felt different. It was the first time we’ve seen tip distribution reach a run rate of £100 million a year. 

I remember doing our first-ever tip payout only a few short years ago.  It was about £50 to our first 12 users, via individual manual bank transfers completed at my kitchen table whilst my endlessly understanding wife Tara read the figures from a spreadsheet!  So this number for all of us at TiPJAR felt like a pretty big deal. 

It’s clearly a moment for appreciation.  Growth at the pace we’ve achieved is very, very hard work (that number represents nearly 500% year on year, for the record), so we’re hugely grateful to our incredible team who have worked tirelessly to realise the vision of fast, fair, transparent tipping. Equally, we are so thankful to our customers who trust us to do that for their teams, and to the tens of thousands of users we know now rely on us to get them their tips as fast as is humanly possible, week in, week out. 

In parallel, though, we wonder if our journey points to something exciting happening in hospitality, around how we think about teams, motivation, appreciation, and how technology is unlocking new opportunities. 

Perhaps because what we’ve learned is that any conversation about tips, service charges and how this money gets to teams is really a conversation about the intersection of strategy on three things: revenue, people and service. 

Big Days and Bigger Questions 

Key trading days have always mattered in hospitality—but in 2025, we’re seeing something shift. Operators seem less inclined to just hope for a strong day. They’re planning for them, optimising and engaging teams in new ways to make every moment count. 

Take the Butcombe Group, who saw a 31% year-on-year sales increase this Mother’s Day. That kind of uplift is striking—but what’s driving it? Could it be that a motivated team, one that feels recognised and fairly rewarded, is key to unlocking these moments? 

When team members can see their tips in real time, understand how they’re shared, and access them when they need—it makes sense that it will have a tangible impact on morale and performance – and frankly the sheer bloody minded will we so often rely on our teams bringing to make these big moments happen!  

A Budget That’s Tightening the Screws 

The April 2025 budget is already being felt across the sector. Increased NICs, higher National Living Wage—it’s more pressure on margins that were already thin for many. For many operators, the question isn’t just how to stick to the rules but how on earth to do whilst building something sustainable? 

In this context, team retention isn’t just nice to have—it’s business-critical. And in a very tough context for everyone out there, financial wellbeing plays a huge part. According to recent research from KAM, 32% of hospitality workers are facing significant financial stress. Many are still living paycheque to paycheque. 

Again, we’re seeing that tipping done well makes a massive difference.  Can instant access to some regular additional income, reducing the risk of becoming reliant on credit products, payday loans, or paying to draw early from a month end pay-cheque – help bridge the gap between financial insecurity and stability?   

For many, if it does, maybe it can help people view their role as the start of a career, rather than the stop-gap sometimes teams are forced to consider their hospitality role? 

New Laws, New Expectations 

Six months in, the new tipping legislation has started to settle into the fabric of the industry. 100% of tips must go to staff. Distribution must be transparent. What once felt like best practice is now the law. 

But compliance, while essential, might only be the start. Many of the businesses we work with aren’t just looking to tick a legal box—they’re rethinking their approach entirely. They want to celebrate their teams. They want to build cultures where fair reward isn’t an afterthought and instead is seen as the way to build ever-improving service. 

So we find ourselves wondering—what happens when tipping becomes strategic? When it’s woven into team engagement, brand reputation, and even recruitment? Could tipping—when done well—be one of hospitality’s most underused tools? 

Can transparency around tips build more trust between operators and teams, and does that create a better customer experience?  Does being served by a happy, motivated and trusting team member, proud to represent their brand, make a difference?  We think it very probably does, and are building tantalising evidence to prove it—but it’s a space that deserves more exploration. 

A Record That Raises More Questions Than It Answers 

Yes, last week was a record-breaker for us.  And yes, we are proud and we are so appreciative of everyone who has been a part of bringing our vision for a new way in tipping even closer to reality.  But, it’s made us more curious too! 

Why are more people tipping? Why has it become a bigger part of public consciousness than ever before? Why are some teams seeing extraordinary uplift while others struggle? What can we learn from those who are thriving—and how can we share that more widely? 

At TiPJAR, we don’t pretend to have all the answers. But we’re committed to being part of the conversation, discovering them with the amazing community of operators and teams that we support. As we go, we’ll keep innovating and building, with new features like Spend & Save, and connecting our users to sources of advice and support, and doing our best to listen and learn as the industry evolves. 

To every team member who gave brilliant service last week and shared in that £100m —thank you hugely for your trust.  To every operator rethinking how you recognise and reward your teams—we see you and we’re here for you.  And to everyone trying to build a stronger, fairer hospitality business—we’re right there with you, asking the same questions. 

Here’s to many more milestones—not just for us, but for us all in the wonderful, creative, inspiring, challenging, passionate, joyous, community that is hospitality! 
 

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The Last 12 Months at TiPJAR: Immense Growth & Exciting Times Ahead

The Last 12 Months at TiPJAR: Immense Growth & Exciting Times Ahead

A business insights piece by George Robinson, Chief Financial Officer at TiPJAR

When I joined TiPJAR a few months ago, I knew I was stepping into something special. A company with strong values, dedicated to supporting hospitality workers, and driven by innovation—what’s not to love? But I have to admit, as CFO, my favourite part? The numbers. Wow, what a year it’s been! 

Phenomenal Growth 

 From December 2023 to December 2024, TiPJAR saw a 260% increase in tips being processed. That’s not just growth—that’s a game-changing leap!  

This kind of expansion doesn’t happen by accident; it’s a testament to the tireless work of our team and the incredible operators who have embraced digital tipping and tronc solutions. Fullers, Vagabond, St Austell, and Robinsons are just a few of the hospitality giants who have put their trust in TiPJAR, and their commitment to fairness, transparency, and efficiency in tipping has played a huge role in this success. 

Looking to the Future 

 The most exciting part? We’re just getting started. 

Our momentum isn’t slowing down, and we have some major developments on the horizon. We’ve just announced the pre-launch of Spend & Save, an innovative new product that is set to redefine the way hospitality businesses manage and incentivize their teams.  

Backed by a UK Smart Grant, this initiative represents a huge leap forward in how hospitality workers can spend and save their tips. I am excited to see the positive impact this has over the next year. 

A Heartfelt Thank You 

 We also want to extend a huge thank you to our investors—those who have put their trust (and their money) into TiPJAR. Their belief in our mission and their support have enabled this ridiculous growth, and we couldn’t have achieved these milestones without them. 

Of course, none of this would be possible without the operators who trust us to manage their tips and tronc. We take this responsibility incredibly seriously, and it’s inspiring to work alongside businesses that share our vision for a fairer, more transparent tipping culture. 

And a massive shoutout to the unbelievable TiPJAR team—every single person here has contributed to this immense growth. Their dedication, passion, and relentless drive to innovate have made these achievements possible. 

So, here’s to the next 12 months—if they’re anything like the last, we’re in for one hell of a ride! Stay tuned, because big things are coming. 

 

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Navigating the 2025 Budget: What Hospitality Businesses Need to Know

Business

TiPJAR - Ben thomas - ceo

The recent UK budget announcement for 2025 brought both challenges and opportunities for businesses in hospitality. With a rise in the National Minimum Wage, an increase in employer National Insurance Contributions (NICs), and adjusted business rates, these changes will significantly impact the bottom line for pubs, bars, and restaurants across the country. 

As a sector already operating on tight margins, hospitality businesses now face the dual task of managing higher costs while keeping their doors open and teams motivated. Let’s dive into what these changes mean for the industry and explore how businesses can adapt to stay resilient. 

National Minimum Wage Increase: Supporting Your Team in Challenging Times

The budget announced a 6.7% increase in the National Minimum Wage, which will rise to £12.21 an hour from April 2025. 

While this increase reflects the importance of providing workers with a fair income in light of rising living costs, it also creates new pressures for hospitality businesses. Industry commentators estimate that the cost per FTE employee will rise by around £2,500 per annum. 

Labour costs already represent a substantial portion of a hospitality business’s expenses, so these changes will likely strain operational budgets even further. For employers, balancing this wage increase with a commitment to providing excellent guest experiences may require thoughtful adjustments, whether through menu pricing, operational efficiencies, or careful workforce planning. 

NICs Increase and Threshold Reduction: Managing the Added Costs

From April 2025, the threshold for employer NICs will be reduced by 45% to £5,000 per annum. In addition, employer NICs will increase by 1.2%, adding over £600 in additional NICs per employee for businesses. 

This adjustment impacts not only payroll expenses but also overall staffing strategies, making it even more vital for hospitality businesses to streamline operations. 

Some businesses may look into more flexible staffing models, while others may choose to invest in technology that supports efficiency or offsets administrative costs. Regardless of the approach, finding solutions to navigate these added expenses will be essential. 

Business Rates Relief: A Welcome Breathing Space

The budget’s 40% relief on business rates for hospitality and leisure businesses, capped at £110,000, comes as a welcome reprieve. This measure, effective from April 2025, provides some relief against rising operational costs. 

For businesses eligible for this support, the additional capital could go toward staff training, technology upgrades, or even renovations to enhance the guest experience. 

While this relief won’t fully offset other rising costs for many, it offers some breathing room, enabling businesses to reinvest in areas that could lead to long-term operational resilience. 

Alcohol Duty Reduction: Incentivizing In-Venue Spending

The 1.7% reduction in alcohol duty on draught products is perhaps intended to encourage more in-venue spending. However, as it brings draught prices down by only around 1p per pint, most operators feel this is unlikely to make a significant impact. 

That said, it may signal further incentives to encourage more foot traffic or prompt patrons to stay longer, increasing revenue per customer. 

In a sector where customer experience is key, even a small duty reduction is welcome as a positive change. 

Staying Resilient Through the Changes

The hospitality industry has been called upon constantly in recent years to show resilience and adaptability. So far, it has not been found wanting, and tribute must be paid to the operators and teams that ensure our restaurants, bars, cafes, pubs, and hotels continue to offer a warm welcome and brilliant experiences. 

The 2025 budget brings both pressure points and some support measures. The key to moving forward, as always, is to focus on sustainable, long-term practices that strengthen businesses. 

At TiPJAR, we’re here to support hospitality businesses by offering a digital tipping solution that makes tip distribution easy, transparent, and compliant. By helping businesses fairly reward their teams, TiPJAR provides a way to foster team satisfaction and retention even amid budget constraints. We believe that, with the right tools and strategies, hospitality businesses can adapt to these changes and continue to deliver the brilliant experiences that keep guests coming back! 

So, let’s keep that momentum going and tackle these shifts together, creating workplaces that stay strong, inspired, and well-equipped for the future! 

Reflecting On The First 7 Days Of The Fair Tips Act

Business

Yesterday, October 1st, 2024, marked a significant moment for everyone in the hospitality industry: the Employment Allocation of Tips Act officially came into effect. At TiPJAR, we’ve been passionate about fairness and transparency since day one, so seeing this legislation become a reality feels like a huge victory, not just for us but for all the hardworking staff out there who rely on tips.

Here’s what’s been going on at TiPJAR in the last 7 days and why we’re so excited about this change.

A Proud Moment for the Industry

When we started TiPJAR in 2019, we set out to solve one problem: making sure tips went directly to the people who earned them, with no funny business. We’ve always believed that staff should get 100% of their tips, and it’s incredibly rewarding to see this principle become law across the entire industry.

This new legislation means businesses can no longer pocket a portion of workers’ tips. It’s the kind of change that will make a real difference to the lives of so many people, and we’re proud to have been advocates for this shift from the beginning. We’ve been totally humbled by the entire country’s response to the change so far, and can’t wait to see how it affects our industry long-term.

Changes to Our Product Fees & a CAll To Action For Card COMPANIES

As part of this shift, we’ve made some changes to how some of our products work. One of our core values has always been ensuring TiPJAR is completely free for staff to use. To keep it that way, we’ve updated how fees are charged on some of our products. For example, with our Tap to Tip and PDQ solutions, we’re now making it mandatory for customers to cover transaction fees, rather than leaving it optional.

This means that when someone leaves a tip, 100% of it goes to the team, every time! It’s a small but important step in making sure everything is fair and transparent. And while these changes are new, they’ve been really well received by both staff and customers, which is a big win for everyone. You can see a breakdown of exactly how these fees are charged, by product here.

But here’s the thing—while we’ve found ways to make sure staff aren’t paying these fees, there’s a bigger issue at play. Card issuers, like Mastercard and Visa, still charge fees on tips, and we believe that needs to change. These fees don’t serve the staff, and they don’t reflect the purpose of a tip. After all, a tip is a reward for great service—it’s meant for the person who served you, not for financial intermediaries to take a slice.

We strongly believe that card issuers should reconsider and remove fees on tips. The industry has taken a massive step forward with this new law, but it would be even better if companies like Mastercard and Visa followed suit by waiving fees on these transactions. We’re committed to doing everything we can to drive those costs down, but a wider change in the system would make a huge difference to everyone in the hospitality industry.

Last-Minute Scramble by Some Operators

What’s surprised us the most over the past week is just how many businesses left their compliance to the last minute. While we’ve been working with operators for months to prepare for the new rules, many businesses only started scrambling to get ready in the final days before the deadline.

We’ve been taking on a lot of new clients, helping them get compliant quickly. It’s great to see businesses doing the right thing—even if they’re a bit late to the party—and we’re happy to help them get there! If you need some guidance on how to approach the legislation, feel free to get in touch!

Collaborating with the Government

One of the things we’re most proud of as a business is how closely we worked with the Department for Business and Trade (DBT) on the guidance for this legislation. Our CEO, Ben, was even quoted on the government’s official page about the new law, which was a fantastic moment for us as a team. You can read more about that here.

Being able to contribute to something so positive for the industry has been an incredibly rewarding experience for all of us at TiPJAR.

Staying True to Our Values

It’s no secret that some businesses are already trying to bend the rules of the new legislation. We’ve seen a few instances of troncmasters allowing several practices that clearly go against the spirit of the Act.

At TiPJAR, we’ve always put staff first, and that’s not going to change. We’ll continue to work closely with operators to ensure they’re compliant, but we’ll never compromise our core value of making sure tips go straight to the people who deserve them with total fairness and transparency.

A Huge Thanks for All the Support

We’ve been blown away by the warm reception we’ve received over the past few days. From new clients to media outlets, the response has been incredible. We were even featured on ITV News last night, which you can check out [here](https://www.itv.com/news/2024-10-01/where-will-your-tip-go-new-law-stops-businesses-pocketing-staff

We also want to take this opportunity to thank our partners, clients, and news outlets for amplifying our message of fairness and transparency. The support has been overwhelming, and we’re excited to continue playing our part in this industry transformation.


Looking Forward

The Employment Allocation of Tips Act is just the beginning of a more equitable tipping culture in the UK. At TiPJAR, we’re committed to staying at the forefront of this change, continually improving our products and ensuring that tipping remains a transparent, fair, and positive experience for everyone involved.

If you’re a business looking for help in staying compliant, we’re here to support you. Together, let’s create a better future for all workers.

The Employment (Allocation of Tips) Act is Here!

The Employment (Allocation of Tips) Act is Here!

Life beyond the tipping legislation: The exciting road ahead for hospitality
A Thought Leadership by Dan Hawkie, CCO of TiPJAR 

As of October 1st, it’s official: The Employment (Allocation of Tips) Act is now live! The changes in the new legislation are significant, aiming to bring much-needed transparency and fairness to how tips are distributed across the hospitality sector and other tipped industries. Throughout the development of this act, TiPJAR has been collaborating closely with the Department for Business and Trade, lending our expertise to help shape a framework that truly meets the needs of both workers and businesses.

For those looking for a deeper dive into the specifics, we’ve created a range of resources you can access here. But now that the Fair Tips Act is in effect, it’s not just about compliance; it’s about embracing this change and understanding the broader benefits it brings.

A win-win for businesses and employees alike

The new tipping legislation is not just a legal obligation but a powerful opportunity for operators to build stronger, more motivated teams. Yes, there are potential penalties for non-compliance, but let’s focus on the opportunities:

  • Guidance: For far too long, there hasn’t been a level playing field regarding how operators manage tips or tronc, which has meant those that are doing the right thing, haven’t always reaped the rewards in the same way as operators that may have mismanaged these funds. Undoubtedly there are contentious issues with the legislation but at least everyone now must follow the same rules, and those that look after their teams fairly will inevitably come out on top.
  • Better attraction and retention: Fair and transparent tipping practices are not just the law now, they can also be a powerful tool to attract, engage, and retain top talent.
  • Cost savings: With a legitimate tronc policy in place, employers don’t pay national insurance on tips, which could save your business thousands.
  • A more motivated team: By utilising technology, we have a much better opportunity to enhance our tronc policies to reward better performance. With service charge now being so widely used, it has unfortunately bred complacency in pockets of our sector, which has led to diminishing service levels. By rewarding team members appropriately for working busier shifts, providing better service and selling more, this is a great opportunity to stand out from your competition.

This is Just the Beginning…

The Fair Tips Act marks a significant shift, but there are still plenty of opportunities on the horizon. At TiPJAR, we’re excited to explore new ways to enhance the benefits of tipping for both employees and employers:

  • A ‘bank-like’ savings pot: Imagine a separate pot where employees can save their tips with interest—like a digital piggy bank.
  • A digital card: Making tips go further than ever before. A dedicated card for employees to spend their tips directly, with access to hundreds of high street discounts and cashback.
  • Financial education: We believe in empowering employees with financial knowledge, helping them gain greater financial freedom and security.

We’re fortunate to work in a brilliant industry where we hear heartwarming stories of the impact that tips can have on people’s lives.  Life beyond the legislation is an exciting place for both employers and employees, and TiPJAR will be there every step of the way to support.

So, embrace the change, explore the opportunities, and let’s work together to create a fairer, more transparent future for everyone in hospitality. Exciting times are ahead!

Millions to take home more cash as Tipping laws comes into force
Official Release from The Department for Business and Trade 

Laws to ensure workers keep all of their hard-earned tips comes into effect

Changes expected to boost wages by putting £200 million back in the pockets of workers

Comes ahead of employment rights bill which will go further to strengthen workers rights and make work pay

From today [Tuesday 1st October], millions of hard working and dedicated workers will benefit from new laws which will ensure they keep 100% of the money they have earned through tips.

Introduced through a Private Members’ Bill last year, the Employment (Allocation of Tips) Act and the statutory Code of Practice on fair and transparent distribution of tips came into force today. 

These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions.

From today, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal. 

Most employers already pass on tips to the staff who earn them; however these laws will crack down on the minority of businesses who continue unacceptable tipping practices.

Employers in the wrong could be made to pay fines or compensation to staff, with workers able to hold bosses fully accountable through employment tribunals.

The Department for Business and Trade estimates that today’s changes will mean around £200 million will be received by workers that would otherwise have been retained by these employers. 

It is hoped that this will build further trust between customers and businesses, as well as create a level playing field for all businesses through the fair and transparent distribution of tips across the board. 

Minister for Employment Rights Justin Madders said:  

“When you tip someone for good service, you expect them to keep all their tip. They did the work – they deserve the reward. 

“This is just the first step of many in protecting workers and placing them at the heart of our economy. We will be introducing further measures on tipping to ensure workers get their fair share of tips. 

“Britain’s outdated employment laws require an urgent update. This Government will ensure they are fit for the modern economy and deliver on our plan to Make Work Pay.” 

This government will go even further to strengthen workers rights through our Employment Rights Bill which will ensure workplace rights are fit for a modern economy, empower working people and drive economic growth. 

The legislation will be delivered in close partnership with business and civil society and will strike the right the balance between improving workers’ rights while supporting businesses across the country that pay people’s wages.

Andrew Tighe, Director of Strategy and Policy at the BBPA, said:  

“This new framework will introduce a level playing field for all businesses, ensuring that those who were not already passing on all tips to their staff will now be required to. 

“A greater a degree of consistency and transparency when dispersing tips will benefit both existing and new staff alike.  

“We would urge all operators to review the guidance and ensure their policies are compliant with the legislation.” 

Ben Thomas, CEO of TiPJAR, said: 

“Our hospitality and service industries are powered by a wonderfully diverse and exceptionally talented workforce. For the first time, these millions of workers can trust that tips employers collect on their behalf will always be passed to them. 

As a business providing a platform to get tips to workers quickly, fairly and transparently, we wholeheartedly welcome today’s announcement. We look forward to continuing our work with the DBT and government to develop further guidance as the principles of the legislation are put into practice, supporting businesses across the sector to operate to a consistent and equitable standard in handling tips.” 

 

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Save More, Spend Smarter

Business

TiPJAR Wins UK Smart Grant to Supercharge Revolutionary Spend & Save Product for Hospitality Workers 

The Fair Tip Act is just around the corner, and everyone is talking about it including the US election candidates! TiPJAR supports over 60,000 users and 12,000 operators to share fair and transparent tipping and help businesses reward and motivate their staff.

We’ve also got some huge news—TiPJAR has been handpicked by the UK government, out of thousands of applicants, to receive the UK Smart Grant! This isn’t just any grant; it’s the rocket fuel we need to launch our groundbreaking and pioneering Spend & Save product to tens of thousands of hospitality workers around the world.

So, what’s the big deal about Save & Spend? Glad you asked! It’s our latest and greatest invention that puts hospitality employees first, giving them limitless opportunities like never before. Here’s how it works:

Save: Employees can now hit the pause button on their tip payouts, whether they’re collected through QR codes, Tap to Tip machines, PDQs, or even via Supertronc. Instead of getting their tips right away, they can stash them in a savings pot and watch it grow—interest included! It’s like a piggy bank, but way cooler.

Spend: But wait, there’s more! When they’re ready to spend those hard-earned tips, they can do it with their very own TiPJAR card, and guess what? They’ll get cash-back at 1000s of high-street venues. Who wouldn’t want a slice of that action?

We weren’t kidding when we said we’re pioneering—nobody else is doing this! TiPJAR exists because tipping was broken, and we had the perfect fix. Now, with Save & Spend, we’re not just fixing it, we’re flipping it on its head and turning it into something incredible.

"TiPJAR has come so far in just 5 years, and I'm immensely proud of what we've achieved for tipped workers. With the launch of our 'Spend and Save' product, we're entering an exciting new phase. It's always been my vision for workers to maximize their tips, and this new feature is a crucial step in making that a reality."
james brown
James Brown
Co-founder - TiPJAR
"At Honest Burgers, we’re excited about TIPJAR’s new features that will directly benefit our teams. The ability to save tips within the app and earn interest has been a long-requested feature, and we’re thrilled it’s now becoming a reality. Additionally, the new TiPJAR card would allow our teams to spend their tips with ease and enjoy discounts at high street brands. These updates would provide greater financial flexibility and added value for our employees, further enhancing their experience with TIPJAR."
Tommy Giraux
Head of Projects - Honest Burger

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Fair Tips Talks – Episode 6: Reactions To The Final Code Of Practice

Fair Tips Talks

EPISODE 6

REACTIONS TO THE final CODE OF PRACTICE

Let’s dive deep into the  Final Code of Practice under the Fair Tips Act, which has been officially released by the Department of Business and Trade this afternoon (Monday 22nd April). Originally scheduled for implementation from July 1, 2024, the start date has now been shifted to October 1, which we imagine is designed to give operators additional time to prepare!

The changes in the new code are significant and aim to increase transparency and fairness in how tips are distributed not just within the hospitality sector but also in other tipped industries. Throughout the development of this code, TiPJAR has been working closely with the Department of Business and Trade. Our goal has been to lend our industry expertise to help shape a framework that addresses the needs of both workers and businesses effectively.

LISTEN ON SPOTIFY

Or watch on Youtube:

Highlights of the Final Code of Practice:

  • Clarification on Agency Workers: The updated legislation clarifies that for the purposes of tip allocation, the ’employer’ is regarded as the business that hires the agency worker. If tips are passed to Agencies for payment to workers, the Agency retains the obligation to ensure no deductions from tips (aside from income tax). This ensures that agency workers are treated equitably in line with directly employed staff concerning tip distribution.
  • Emphasis on Hours Worked: The code now includes hours worked during the period that tips were received as a factor to consider in businesses implementing a ‘fair’ distribution under the legislation.
  • Encouragement for Worker Consultation: The code strongly advises employers to engage with their workforce in developing tipping policies and reinforces that team members’ view of “fairness” will be a consideration.
  • Exclusion of Digital Direct Tips: Tips collected digitally, directly from customers to staff, are not considered employer-received tips and are out of scope, subject to correct operation of these platforms and relevant HMRC guidance.
  • Anti-Discrimination Safeguards: Strengthened provisions to prevent any form of discrimination in the distribution of tips, ensuring fairness for all employees regardless of background or characteristics.
  •  

Download our easy guide to the legislation

Dive deep into the intricacies of the imminent Fair Tips Act, and grasp what it signifies for hospitality enterprises in its evolving framework.

Enter your details to download our easy guide:

What is TiPJAR?

TiPJAR® is an award-winning cashless tipping and tronc platform that allows individuals and teams to receive cashless tips directly from customers, then distribute them transparently and fairly amongst the team.

We are a start-up on a global mission to help tipped workers in the emerging cashless society, to help businesses reward and motivate their best staff, and to help customers say thank you for great service.

Seamlessly Integrated into your workflows

The world’s only solution that effortlessly integrates into your existing payment flows for a streamlined tipping experience.

designed for enterprise

TiPJAR offers a comprehensive solution tailored to meet the unique needs of large-scale businesses.

Financial technology, built like a bank

With robust financial technology at its core, TiPJAR offers a secure and reliable platform, built to meet the highest complaince standards.

A solution for any kind of business

From restaurants to hotels, TiPJAR is the go-to solution for any kind of business looking to revolutionize their tip management.

Totally compliant with new legislation

A fully compliant solution that ensures your business meets all the requirements of new legislation, while keeping your teams happy!

A revolution built with purpose

We exist to help empower tipped workers with instant access to their tips, financial security, unrivalled transparency, and most of all – a method with which they can collect and share tips across teams fairly.

But our mission doesn’t stop there. We also equip businesses with a powerful tool to reward, motivate, and retain their exceptional staff, eliminating the notorious administrative headaches associated with tips on a global scale. We understand the challenges faced by businesses in managing this crucial aspect, and we are here to provide a game-changing solution.

TiPJAR® Accounts
1
Registered Users
0
Tips Processed Annually
£ 10 M+
Transactions
0.1 M+

Introducing

Distribute service charges or credit card tips, transparently.

Fair Tips Act: The Final Code Of Practice is Here

Business

Let’s dive deep into the  Final Code of Practice under the Fair Tips Act, which has been officially released by the Department of Business and Trade this afternoon (Monday 22nd April). Originally scheduled for implementation from July 1, 2024, the start date has now been shifted to October 1, which we imagine is designed to give operators additional time to prepare!

The changes in the new code are significant and aim to increase transparency and fairness in how tips are distributed not just within the hospitality sector but also in other tipped industries. Throughout the development of this code, TiPJAR has been working closely with the Department of Business and Trade. Our goal has been to lend our industry expertise to help shape a framework that addresses the needs of both workers and businesses effectively.

Highlights of the Final Code of Practice:

  • Clarification on Agency Workers: The updated legislation clarifies that for the purposes of tip allocation, the ’employer’ is regarded as the business that hires the agency worker. If tips are passed to Agencies for payment to workers, the Agency retains the obligation to ensure no deductions from tips (aside from income tax). This ensures that agency workers are treated equitably in line with directly employed staff concerning tip distribution.
  • Emphasis on Hours Worked: The code now includes hours worked during the period that tips were received as a factor to consider in businesses implementing a ‘fair’ distribution under the legislation.
  • Encouragement for Worker Consultation: The code strongly advises employers to engage with their workforce in developing tipping policies and reinforces that team members’ view of “fairness” will be a consideration.
  • Exclusion of Digital Direct Tips: Tips collected digitally, directly from customers to staff, are not considered employer-received tips and are out of scope, subject to correct operation of these platforms and relevant HMRC guidance.
  • Anti-Discrimination Safeguards: Strengthened provisions to prevent any form of discrimination in the distribution of tips, ensuring fairness for all employees regardless of background or characteristics.
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We are honoured to have consulted on this vital Code of Practice, which clarifies how employers should handle tips passed to their dedicated teams. At TiPJAR, we are dedicated to promoting fairness and transparency in tip distribution, and we believe this Act will greatly benefit millions of tipped workers and help level the playing field across various sectors. We are excited to support businesses as they navigate these changes and seize the opportunities they bring.

The legislation mandates that all tips and service charges be distributed to staff without deductions, requiring businesses to adopt a clear and equitable distribution system. This reflects a broader legislative acknowledgment of the hard work by industry employees and aims to safeguard their earnings.

Further Insights from the New Code:

  • Handling of Non-Monetary Tips: The code provides guidelines for the fair distribution of non-monetary gratuities, like vouchers and service tokens, ensuring they are assessed for their monetary value and shared appropriately.

  • Record-Keeping Best Practices: Businesses must now keep detailed records of all tips received and their distribution for three years. TiPJAR offers solutions to help businesses maintain these records accurately and securely.

  • Support Systems for Workers: In collaboration with industry partners, TiPJAR is set to facilitate access to information and advice to help workers understand their rights under the new legislation and how to address concerns.

  • Industry-Wide Collaboration and Education: We are initiating collaborations with hospitality associations to offer educational programs about the new code, preparing the industry to adopt these improved standards.

  • Feedback and Continuous Improvement: We are establishing channels to gather feedback from both employers and employees on the effectiveness of the new practices, which will guide any necessary adjustments or updates in collaboration with the Department of Business and Trade.

At TiPJAR, we are committed to ensuring a seamless transition to the updated tipping practices and helping our industry embrace a fairer, more transparent future.

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We Are At A Tipping Point

We are at a tipping point

A thought leadership piece by Ben Thomas, CEO at TiPJAR

Whilst many in the industry have welcomed the new tips legislation as a needed levelling of the playing field for all, the truth for many is that the timing could not really be worse. 

Not only following some of the most challenging years in living memory (I won’t list what we’ve faced these past years because it’s frankly just too depressing) but now the 1st July deadline comes in the wake of the largest increase in minimum wage most of us can remember. Justifiable in the context of a cost-of-living crisis and lingering high inflation, but very, very hard to accommodate for already stretched hospitality businesses. 

Hospitality businesses have always been hard to run.  Margins are tight, competition is intense and the rate of failure has never been higher. 

So it shouldn’t surprise us that although most businesses publicly claim the service charges and tips they collect go to staff, the truth is most have been forced to adopt a policy of retaining some amount of tips and service charges historically.  The intention being to cover the substantial costs of getting this money to staff in a way that is “fair” (whatever that means in each circumstance) and recouping what they view as other legitimate costs for staff benefits. 

Regrettably, over time, some pushed this further than the government could tolerate.  Hence we’re now faced with a requirement that every penny of these funds is paid to staff, within a narrow time frame, and only to those staff (usually) who work in the place they were collected as their normal job. 

Those that retained some portion of the funds to cover costs now face a hole in the P&L. Others who took the view that head office or non-site staff should get a share too (after all they unquestionably contribute, so why shouldn’t they?) now face the government simply disagreeing with this practice, and big shortfall in head office salary budgets. 

I’ve probably heard every story around treatment of tips and service charges.  From 90% retained by the business (justified because it allows them to pay fair wages) through to head office team members whose salaries were up to 80% comprised of tronc (because they impact all the customers’ experience).   

But has the time has come for all of us to let go of judgement about any of this?  The “naming and shaming” and the blaming breaks my heart – because there is almost always a real, valid, struggling business at the centre fighting to grow, to thrive and trying their best to look after their people,  customers and investors.  Equally on the other side, the virtue-signalling and heckling of others just doesn’t help. 

So let’s stop, and instead can we put the energy into working out together how we get to where we now need to be? 

 Over the past few months we’ve seen the whole sector go through what feels like a classic change process.  First denial – disbelief that the government would possibly stick to such a seismic change.  Then anger and resistance, with real rage that even the card processing fee (money which we don’t even get) can be clawed back from the service charges or tips collected. 

It’s understandable that some are questing to move into exploration – and testing new approaches.  We’ve seen businesses – in my view bravely – try new things.  Some have included an optional additional charge on the bill rated as a percentage of spend, being up front this is to help fund the overall experience.  Unfortunately, the swift response from Customers and the press was not good.  We should be grateful to them.  Now we know. 

Others have trialled fixed cover charges – but have found it difficult to do this at a level that makes a difference, and again, customers are quick to challenge, less likely to then optionally tip or pay an optional service charge, and few have been able to maintain it. 

Given this, there really are only three things to think about if you have been operating a service charge with a retention for the business:  Whether or not to maintain it and at what level, and how much to increase your revenue or reduce costs as a result. 

Starting by understanding what level of service charge is needed to maintain what for your business is an acceptable level of tronc to competitively attract, retain and reward your on-site team is the first decision.  This is where the service charge should be set, because that is all we’re now allowed to do with it. 

If that creates disparity, because you were sharing across sites (now not allowed) you’ll need to review remuneration policy.  Perhaps there is a top up in lieu at delivery-heavy, low service charge sites. Unconventional, yes, but possibly necessity. 

Then, this will leave a shortfall – based on the wage increases you’ve needed, any portion of the service charge which previously may have funded head office or off-site staff distributions, and any amount you used to retain.  This can only be covered by increased revenue – price increases or for the brave, targeting growth and getting more customers through the door – or reducing costs if you’re lucky enough to have scope to do so. 

This is an uncomfortable reality. Yet as with so much in business, the winners will be those who are fastest to get to through the change process.  It’s time to push to reach acceptance and then build commitment to make these difficult decisions.   

Help is out there – in particular our partner business The Tronc Advisor is offering Propel subscribers a first-come-first-served discounted fixed price review of any operators’ current position, and can provide fast and simple feedback on the decisions they may need to consider. 

Working in the hospitality industry is a great privilege, a world full of wonderful people, incredible innovative businesses, and real passion for creating amazing life-enriching experiences for our guests.  Whilst the changes we’re facing are very challenging, I believe our sector is rich in tenacity, creativity and drive to overcome them, if we can work together with honesty, positivity and the considerable force of our collective will. 

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Free E-Learning Courses – The Fair Tips Act

Free E-Learning Courses - The Fair Tips Act

The hospitality industry is on the brink of a transformative era. With the impending enforcement of the Employment (Allocation of Tips) Act 2023 on 1st October 2024, a seismic shift is set to occur, benefiting over two million workers in the UK’s hospitality, leisure, and services sectors. For many businesses, the preparation to align with this legislation—and the commitment to ensuring fair pay for their teams—is already underway.

Navigating the complexities of managing, distributing, and calculating tips can be daunting, especially considering the varying contract terms that affect our industry. There are so many intricate details and nuances to consider before the legislation becomes active.

That’s why Access CPL Learning and TiPJAR have developed these FREE training courses to help you ready your operations for the legislation and bolster your teams with confidence!

Your Preparation Playbook

We’ve synthesised the expertise from leaders like UKHospitality, The Tronc Advisor, and TiPJAR into a preparatory checklist:

  1. Clarify Policies and Procedures: Equip your team with a transparent, accessible guide to the new tipping protocols.

  2. Evaluate Current Systems: Review your HR and payroll systems now to meet the legislation’s reporting demands.

  3. Craft a Fair Tipping Strategy: Consider developing or revising your tipping policy, contemplating the use of tronc systems and whether to manage them internally or externally.

  4. Consult with Third Parties: Engage with agencies to ensure fair tip distribution practices for contract staff.

  5. Appoint a Troncmaster: Weigh the advantages of in-house versus external troncmasters for handling your tipping system.

  6. Prepare for Reporting Obligations: Prepare to meet transparency demands; maintain records of all tips and clearly communicate how long these records are retained.

  7. Leverage Existing Software: Explore features in your current payroll or scheduling software that could facilitate tipping policy management.

  8. Revisit Holiday Pay Practices: Ensure your holiday tronc payment practices comply with the new law.

  9. Educate Your Team: Comprehensive training will be key to ensuring a thorough understanding of rights, fair tip allocation, and building trust within your team.

Learning to Lead

In partnership with TiPJAR, Access CPL Learning, part of the Access Group, has created fresh, free e-learning courses to guide managers and team members through the new legislation, enhancing comprehension and ensuring everyone is well-equipped to move forward confidently. We’re committed to updating our courses in tandem with any changes, including those stemming from the still-evolving draft Code of Practice.

Your Next Steps

Arm your managers and team members with our free courses. We’re devoted to supporting operators in fostering fair and transparent tip allocation, empowering teams, and fortifying the hospitality sector’s integrity.

Stay ahead of the curve, and support your team with these new courses:

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