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2024 employment law round up…and a look ahead to 2025
Discover key 2024 employment law updates, including flexible working changes, redundancy protection, and the new duty to prevent harassment.
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The Employment (Allocation of Tips) Act 2023 has received Royal Assent and will ensure that approximately two million employees not only have their tips protected going forwards but will also be able to see an employer’s tipping record.
The Government has said that employees will collectively get roughly £200m back by keeping tips that in some businesses would have been withheld.
Cash tips paid directly to a worker generally become the legal property of that individual, however, payments made by card are directly paid to the employer and become the legal property of the employer.
The Act’s intention is to prohibit the practice that is currently adopted by some businesses of retaining all or part of tips paid by card instead of passing them on in full to staff.
The provisions introduced by the Employment (Allocation of Tips) Act include:
A breach of the rules will enable workers to bring a claim in the Employment Tribunal, which could result in the employer being required to revise the tip allocation to the worker and/or pay compensation.
While there is currently no confirmation as to when the new legislation will come into force, it is expected to be announced later this year, with the Act likely coming into force in 2024. The associated Code of Practice will also be drawn up this year following a formal consultation.
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