The alert has come from employment and jobs specialist Michelle O’Connor who has spoken out ahead of the Government’s new Employment (Allocation of Tips) Act coming into force on 1 October.
The ‘Tipping Act’ as it’s commonly known, will usher in a new Code of Practice which will ensure the fair distribution of tips and service charges for over two million workers in the hospitality sector.
In a sweeping change it will see, for the first time, hospitality businesses like pubs and restaurants having to pay tips at the end of each month, producing written policies, maintaining stringent records of payments, and disclosing how tips have been allocated. It will also give powers for workers to request information on tips if they feel there has been wrongdoing.
Michelle O’Connor, a director at Midlands firm Pineapple Recruitment, said: “There are many pubs, hotels and restaurants across the UK who are unprepared for the changes to how they manage tips from 1 October.
“But more importantly, it’s great news for workers as the allocation of tips will be more closely monitored and distributed transparently, meaning a new system of fairness across the board. It’s good news from that perspective, but there are many businesses who simply aren’t prepared for the change.
“There are complex details and processes they must prepare for in the coming weeks to ensure they are compliant with the legislation, even around record keeping and producing a clear policy on how tips are being managed.
“If employers in the hospitality sector don’t stay one step ahead, then the consequences of any breach through a complaint can be wide ranging, especially as tribunals will be given new powers to compensate workers for up to £5,000 for a proven breach.
“That’s money many pubs, hotels and restaurants don’t have to throw away, so they must get ahead now, take the right advice, and prepare for a new way of working which really will change the landscape.”
For more information, readers can contact the team at Pineapple Recruitment through www.pineapple-recruitment.co.uk.