A tipping policy can look tidy on paper while the people affected by it have no clear way to question how it works. Front of house, kitchen, casual staff and agency workers may all experience the same scheme differently, particularly when hours, roles and service patterns move from week to week.
The government is consulting on a revised statutory code that would put worker consultation into the way tipping policies are created and reviewed. For hospitality operators, the immediate decision is whether to respond before the deadline. The practical preparation can begin even if the business has nothing to submit.
What is happening, and when?
The revised tipping code consultation was published on 19 August 2026. It closes at 11.59pm on Tuesday 29 September 2026 and applies to England, Scotland and Wales. Tipping law is devolved in Northern Ireland.
The consultation concerns a draft revised statutory code, not a rule that takes effect when the consultation closes. The government says it will consider responses, publish a full response and, if the Secretary of State proceeds, lay a final draft code before Parliament.
The official document says the new legal requirements and revised code are expected to take effect in late 2026, subject to parliamentary approval of the code. It also says the exact arrangements will be confirmed later. Read the consultation document and timetable.
What already applies?
The existing tipping rules came fully into force on 1 October 2024. Where an employer receives tips or controls their distribution, qualifying tips must be allocated fairly and transparently and passed to workers without deductions other than those required by law. Payment must be made by the end of the month after the month in which the customer paid the tip.
Businesses where qualifying tips arise on more than an occasional and exceptional basis must already maintain a written tipping policy, make it available to relevant workers and keep tipping records. Workers also have rights to request access to those records. These current duties are summarised in the existing statutory code.
The 29 September deadline does not replace those rules, change the deadline for distributing tips or require a business to adopt the draft code immediately.
What would the future duties add?
The Employment Rights Act 2025 creates new requirements around the development and review of written tipping policies. They have not yet commenced.
Under the proposed framework, employers would need to:
- consult recognised trade union representatives when they exist, other worker representatives where appropriate, or affected workers directly where there are no representatives
- review the written tipping policy at least once every three years and consult again as part of that review
- make an anonymised summary of the views expressed during consultation available to workers at the place of business
The draft revised code says consultation should be genuine, proportionate to the business and supported by enough information for workers to understand the proposed allocation model. It also says a simple majority vote should not be treated as the default, because the largest or most vocal group may not represent every worker affected.
Consultation would be advisory rather than binding. The employer would not have to accept every suggestion, but it would need to show that the process and final approach met the requirements of fairness and transparency.
This is draft guidance. Its wording may change after consultation and parliamentary consideration.
Who should pay attention?
Pubs, bars, restaurants, hotels, event venues and other businesses that receive or control tips or service charges should review the proposals. The draft code includes permanent, temporary, part-time, zero-hours and eligible agency workers within its discussion of fair allocation.
Using an independent tronc does not make the issue irrelevant. The draft code recognises independent tronc arrangements, while retaining responsibilities around the fairness of the framework and action where an employer becomes aware of an unfair or improper arrangement.
Operators should avoid assuming that one policy can simply be copied across a group without checking how each place of business handles tips and which workers are affected.
What a hospitality business should check now
- Find the current policy. Confirm that each relevant venue has a written policy, that the version in use is clear and that workers can actually access it.
- Map the affected groups. Include kitchen, floor, bar, supervisors, casual and agency workers where relevant. Do not rely only on the people most likely to speak in a team meeting.
- Write down the allocation factors. Record the objective reasons used to divide tips, such as hours worked, role, responsibility or customer intention. Check that the written policy matches the scheme in practice.
- Trace a recent distribution. Follow tips from receipt to allocation and payroll or tronc payment. Check the dates, records and treatment of starters, leavers and agency workers.
- Plan the consultation route. Identify whether recognised trade unions or worker representatives exist, who would organise the process and how workers on different shifts would be able to participate.
- Keep evidence without collecting opinions carelessly. Plan how views, decisions and an anonymised summary could be recorded while protecting personal information.
- Check the tronc handoff. Ask the tronc operator or payroll provider what information it will need and which part of the consultation and record trail remains with the employer.
If the draft creates a genuine operational difficulty, the consultation asks businesses to explain the challenge and suggest where the code could be clearer. Use a concrete, anonymised example rather than a general objection. The official consultation page includes the online and email response routes.
What remains uncertain?
The consultation deadline is confirmed. The revised code is not final, parliamentary approval has not happened, and the exact commencement date has not been announced.
The draft also refers to further non-statutory guidance, including worked examples, that is not yet complete. Operators should therefore prepare their records and consultation process without treating every sentence in the draft as settled law.
The practical point: respond by 11.59pm on 29 September if the business has useful evidence to contribute. Whether or not it responds, it should be able to find its current tipping policy, explain how the allocation works and identify who needs a voice when that policy is next reviewed.
Topics: Tips, tronc, service charge, employment law and worker consultation.
General information only: This briefing is not legal, tax or payroll advice. Check current official guidance and obtain advice on your circumstances before changing a tipping policy, tronc arrangement or payroll process.