Written policy on the fair allocation of tips, service charges, and gratuities — required in writing wherever tips are paid "more than occasionally and exceptionally" under the Employment (Allocation of Tips) Act 2023 and its statutory Code of Practice.
⚠️ This is a blank template, not legal advice: check the wording with a lawyer and adapt it to your jurisdiction and your case.
TIPPING POLICY Establishment name — effective Policy effective date
This policy is issued under the Employment (Allocation of Tips) Act 2023 and its statutory Code of Practice, in force since 1 October 2024. It applies in Geographic scope; the Act does not extend to Northern Ireland.
1. TIPS COVERED 1.1. This policy covers: Types of tips covered.
2. ALLOCATION 2.1. Tips are allocated fairly among eligible staff using the following method: Distribution method. 2.2. No tronc scheme is operated. Tips are allocated by the employer under this policy and paid through payroll with tax and National Insurance deducted as required. 2.3. Cash tips handed directly to a worker are placed in the pool at the end of the shift and allocated under this policy.
3. MANAGEMENT PARTICIPATION 3.1. Management participation in the tip pool.
4. NO DEDUCTIONS — 100% TO WORKERS 4.1. No unlawful deductions clause 4.2. 100% of tips, gratuities, and service charges received are passed on to workers; the employer does not retain any part of them, other than deductions required by tax law.
5. PAYMENT TIMING 5.1. Payment deadline
6. RECORDS AND TRANSPARENCY 6.1. Records of how tips have been allocated and paid are retained for Tip records retention (years) years. Any worker may request a copy of the tipping record relevant to them. 6.2. A worker who believes tips have not been allocated fairly should raise the matter with management, and may then use the grievance procedure. A worker may also bring a claim in an employment tribunal within 12 months of the alleged failure to comply with the Act.
SIGNATURES On behalf of Establishment name ______________
— — — ⚠️ This is a boilerplate template, not legal advice. Employment, consumer-protection, food safety, and health & safety law in the United Kingdom differs between England, Wales, Scotland, and Northern Ireland, and is changing significantly through 2026–2027 under the Employment Rights Act 2025 — have this document reviewed and adapted by a solicitor (and, for disciplinary/grievance matters, checked against the current Acas Code of Practice at acas.org.uk) before use.
Fields that belong to a switched-off clause are dimmed — they are not asked for.
e.g. cash tips, card tips, discretionary service charge
Name of the independent person/committee operating the tronc
By law, tips must be paid to workers no later than the end of the month following the month in which they were received
100% of tips must go to workers — no deductions other than those required by tax law
Statutory minimum is 3 years; workers may request their own and team data
The Employment (Allocation of Tips) Act 2023 does not extend to Northern Ireland
1 of 10 fields are taken from the company, employee or counterparty record, the questionnaire can be dictated to the AI, and the finished document comes with a number, a PDF and an acknowledgement record.