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The latest news on Tips changes, which has been a real concern for the hospitality sector, confirms date of implementation has been pushed back to 1 October 2024. Link to our article providing further detail is below.

Good news for the Hospitality sector as the new tips rules have been put back to 1 October 2024. This gives businesses extra time to ensure they are ready to implement updated policies, processes and obligatory documentation. Now is the time to review Tronc arrangements and ensure they are robust to HMRC and worker challenge. #tips #troncs #hospitality https://lnkd.in/d49cHh4u

New Tipping Legislation Comes Into Force Today: What It Means for Hospitality Workers Today marks a significant change in the hospitality industry as new tipping legislation comes into force, aimed at ensuring that workers receive their fair share of customer tips. Under this new law, employers in restaurants, cafes, and hotels are legally required to pass 100% of tips and service charges directly to their staff. This ensures that no portion of these gratuities is withheld by management or used to offset wages. For years, tipping practices have been a contentious issue in the hospitality sector. Workers often rely on tips to supplement their income, yet in many cases, these funds were not reaching employees in full. The new legislation seeks to address this imbalance by safeguarding workers' rights and offering greater transparency for customers, who can now tip with confidence knowing their gratuity will go directly to the staff who served them. This change is a win for hospitality workers, boosting both their earnings and morale. For businesses, it highlights the importance of creating a fair and transparent environment, which can also improve customer satisfaction. The hospitality industry is one of the largest employers, and this new law ensures a fairer distribution of income for the hardworking individuals who keep the sector thriving. As the tipping landscape changes, it’s important for both employers and workers to stay informed and ensure compliance with the new rules to foster a positive working environment in hospitality.

The ability to levy a service charge gives the is hospitality sector an edge in a competitive market for talent. However, operators need to make sure they are ready for the new rules that come into force on 1 October 2024. Amanda Trewhella has written a useful summary of the new provisions and can help you make sure your policy complies. https://lnkd.in/epp8CcYp #hospitality #tipping

New legislation to cost 25,000 UK hospitality businesses over £60,000 a year! 🚨 Our brand new report: ‘Tipping Point: How new legislation will impact hospitality’, has revealed that the government’s Employment (Allocation of Tips) Act 2023 will push hospitality operators to breaking point, with 83% of respondents expecting to incur costs of at least £12,000 a year to comply - the equivalent of 118,690 operators across the UK. Key findings: 1️⃣ Two thirds (63%) of businesses currently take a percentage of tips from employees 2️⃣ Just 28% of hospitality companies are currently compliant with the new Act 3️⃣ Despite the new Act coming into effect later this year, less than half (42%) of hospitality workers have been told about their employer’s tipping procedures 4️⃣ Nearly half (44%) of operators and 59% of hospitality workers would consider the introduction of a Tipping Standard Practice, an official tip amount implemented ‘across the board’ for customers and a standard process for businesses to distribute tips to staff. Want to find out what else we uncovered plus tips from our senior leaders, Scott Muncaster, Matt Rawlins and Andrew Kaplan on how to prepare your hospitality business for the new Act? Read the full findings here 👇 🔗 https://lnkd.in/eUSgMwEd #hospitality #ukhospitality #tips #tippingculture #foodanddrink

A new report has revealed how the government’s Employment (Allocation of Tips) Act 2023 will push hospitality operators to breaking point, with 83% of respondents expecting to incur costs of at least £12,000 a year to comply. The Employment Act 2023 comes into effect from 1st October and will require hospitality businesses to distribute 100% of customer tips and service charges to staff. Nearly one in five claim costs could increase by £60,000 to £360,000 a year under the new regulations. Despite hospitality closures slowing, these findings come at a worrying time for the industry. Read more: https://bit.ly/3x8LDTI #UKHospitality #NewLegislation #EmploymentAct2023 #TippingPolicy

New regulations concerning the handling of tips will now be enforced starting 1 October 2024, instead of the initially anticipated date of 1 July. This change will impact a variety of employers, including those in the hospitality industry, hairdressing salons, and taxi services. The Employment (Allocation of Tips) Act 2023, commonly referred to as the ‘Tipping Act,’ was enacted on 2 May 2023. From 1 October 2024, employers will be required to pass all tips directly to their employees. Additionally, any business where workers regularly receive tips must establish a tipping policy. A significant aspect of the Tipping Act is the obligation for employers to comply with a new Code of Practice, which provides guidelines to ensure tips are distributed fairly and transparently. The code applies to any tips, gratuities, or service charges that the employer controls. However, cash tips received directly by the worker, which they retain, fall outside the scope of the Tipping Act and the Code. You can find the code of practice link in the comments below. If you don’t have a written tipping policy then it’s recommended to get this in place before 1st October. #hospitality #restaurants #tips #staff

Regulations now made bringing the Allocation of Tips Act and Code of Practice into force from 1 October 2024, as expected but Govt promises “further measures”. https://lnkd.in/ehw-vP5n. #tipping #codeofpractice #hospitality #restaurants

Happy to say all SwooPOS and Waitermate products give a complete breakdown of tips per staff member with easy access to reports, which can also be downloaded. Having been on the frontline of hospitality myself for many years I know how important those tips can be to subsidise things like meals and travel. Hopefully this will make things more transparent for everyone moving forward 👍🏽 https://lnkd.in/eRa3kZdJ

So Labor Day came and went but honoring our hospitality heroes is not one holiday in the year; it is a continuous commitment. It has become increasingly expensive to operate a hotel due to inflation on key costs -- debt servicing, insurance rates, attracting and maintaining talent, higher costs of food, fuel, laundry rates, plus a shortage of skilled workers. The industry has powered through all these challenges post-pandemic, and to date has enjoyed an aggressive pivot in revenue growth arising from remarkably high demand, higher rates, less concessions. Herein lies the disconnect between labor and hotel profits, the former claiming that they are not paid commensurate to the industry surge even as they continue to work more to compensate for continued understaffing. Read here https://lnkd.in/gZhYMTug #siteselection #hotelsourcing #hotelsandresorts #MICE #negotiation #contracting #advocacy #meetings #conferences #incentives #inpersonmeetings #siteselectionstrategistllc https://lnkd.in/giAm4Z7