Consultation on tipping: what's going to change?

Man holding a tablet with tipping screen inside a restaurant

The government has launched a new consultation designed to strengthen the law on tipping.

10.03.2026

Current position

In October 2024, new laws came into force which require employers to pass on all qualifying tips, gratuities and service charges to their workers. A new statutory Code of Practice came into force at the same time. 

What is changing?

The government believes that the exisiting protections don't adequately protect workers. 

S14 of the Employment Rights Act 2025 will introduce a new requirement for employers to consult with their staff before producing the first version of a tipping policy and when reviewing it. Note:

  • if you recognise a union, you should consult with it
  • if you don't you should consult with worker representatives; and
  • if you don't have those, the workers likely to be affected by the policy. 

The written policy must be reviewed with those representatives at least once every three years. And the policy must be made available to workers.

The government is also considering making changes to the statutory Code of Practice.

The consultation

The government wants to know:

  • if you have a tipping policy, whether you consulted your workers about it and have received requests to access it
  • what factors you took into account when deciding how to allocate tips (such as the type of role/work undertaken and individual or team performance)
  • how you allocate tips to agency workers, part-time workers, zero-hours contract workers and any other types of workers
  • if you will need to introduce new processes to meet your obligation to consult with staff (or their representatives) and how long it will take you to do this
  • how long it will take to consult staff (or their representatives) and share feedback and the main challenges you expect to face to reach agreement; and
  • how you will make sure that staff are aware of your policy.

In terms of the Code of Practice, the government wants to know how it could be improved to make it more helpful or clear.

When will the changes come into force?

The government has said that it will publish a full response and an updated statutory Code of Practice later in 2026. 

It expects the new legal requirements and updated Code will come into effect in October 2026. 

How to respond

You can respond here. The consultation closes on Wednesday 1 April 2026. 

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