Leisure Sector Update: Tipping Rules Are Changing - Is Your Business Prepared?
Welcome to the Harrison Drury Leisure Sector Newsletter. Your regular update on legal developments across the leisure, hospitality and tourism sector. Our aim is to keep you informed, prepared and ahead of the curve with insights tailored to support you and your business.
Changes to the law on tipping are on the horizon, and leisure and hospitality businesses should begin preparing now. The government is asking for feedback on new proposals designed to make tipping processes fairer and more transparent for workers.
A major focus is staff involvement. The proposals would require employers to consult employees when creating or updating tipping policies, ensuring everyone has a clear understanding of how tips are collected, shared and paid.
Feedback is also being sought on the current rules, including existing legislation, the supporting code of practice and the guidance many employers follow. The consultation aims to gather real‑world insight from businesses and workers so that future rules are practical, fair and easy to apply.
This is a good opportunity for operators to review their tipping policies to ensure they clearly outline:
- How tips are collected
- How they are distributed
- The criteria used for distribution
- How staff can raise any questions or queries
Transparent processes help build trust and reduce risk of disputes, especially in workplaces where tipping forms a significant part of staff income.
This consultation is an opportunity for you to raise your views to government either through a trade body or directly by email to be sent to [email protected], or via the government’s dedicated portal by clicking here.
We have a team of solicitors across a range of legal disciplines all with significant experience in supporting businesses in the leisure sector. Meet our leisure sector team to see how our team can help support you. If you wish to subscribe to our leisure newsletter, please do so here.