Operations
HOSPA’s mission is to support and connect hospitality professionals.
allocation is designed to create a level playing field across the industry, ensuring that all workers are fairly compensated for their service. But what does it mean? Key provisions of the new legislation include the following: 1. Full tip allocation: Employers are required to pass on all tips to their employees without any deductions, except for income tax.
2. Transparency and documentation: To support the fair allocation of tips, employers must implement a clear, written tipping policy. This policy should outline how tips are received, allocated and distributed within the business. Additionally, employers are required to maintain comprehensive records of all tips and their distribution, which must be accessible to employees for up to three years.
3. Fair distribution criteria: The legislation mandates that tips should be allocated based on objective criteria, including the worker’s role, performance and seniority. This approach aims to ensure tip distribution is equitable and free from discrimination.
4. Use of tronc systems: In cases where a tronc system is used it must be managed transparently and fairly.
5. Addressing disputes: The new legislation includes provisions for addressing any issues related to the distribution of tips. Employees who feel they have been treated unfairly can seek recourse through Acas or the employment tribunal system.
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Implications for the industry At HOSPA, we’ve looked at public sentiment towards tipping, and commissioned research last year found that 81% of respondents are regular tippers, with 82% of them preferring that their tips go directly to the staff. And while the new legislation aligns with these consumer expectations, it also imposes new operational requirements on businesses. With the October deadline approaching, now is the time for hospitality operators to ensure their practices are compliant. You must carefully review the latest Code of Practice, first published in April 2024, which provides detailed guidance on how to implement these changes. This involves not only revising tipping policies and documentation but also communicating these changes to staff to ensure a smooth transition. October will be here before we know it, and the time to prepare for the new legal landscape is now. At HOSPA, our mission remains to support and connect hospitality professionals, providing a platform for learning and discussion as well as – in the case of our Inspirational Leader Awards at HOSPACE – recognition. If you want to keep abreast of key developments in the industry, then be sure to come to HOSPACE. By bringing together industry leaders and celebrating what makes our industry unique, we aim to inspire and uplift the entire hospitality community, while providing access to and awareness of the latest advancements and the latest challenges that we need to be aware of. ●
You can get tickets via
www.hospace.org. Hotel Management International /
www.hmi-online.com
HOSPA
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