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Michael Powner, Isobel Goodman and Hauwa Ottun write for Law 360 on the Tips Act

Michael Powner, Partner, Isobel Goodman, Associate, and Hauwa Ottun, Trainee Solicitor, write for Law 360 on what employers should know about the Tips Act.

The Employment (Allocation of Tips) Act, colloquially known as the Tips Act, was first presented as a private members' bill in Parliament in June 2022 and aims to make it unlawful for employers to make deductions from the tips given to their staff.

The act received royal assent on May 2, 2023, and, while the act was originally due to come into force on July 1, it is now not expected to come into force until Oct. 1 — although the forthcoming general election on July 4 may have a further impact on the implementation date.

In the article, the team set out the background to the act, shed light on the updated tipping code of practice, and comment on key trends and potential impact.

The code of practice under the act is clearly a welcome development for workers in the hospitality sector, addressing prior concerns and aiming to ensure a fair and transparent distribution of tips. While it is heartening to see the government's commitment to fairness, the practical application of the code will be the true test of its efficacy. As the hospitality industry adapts to these changes, the full impact of the act remains to be seen.

Read the full piece in Law 360 here.

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