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.

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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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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.

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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.

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Introducing

Distribute service charges or credit card tips, transparently.