Statutory Instruments
2024 No. 831
TERMS AND CONDITIONS OF EMPLOYMENT
The Employment (Allocation of Tips) Act 2023 (Code of Practice on Fair and Transparent Distribution of Tips) Regulations 2024
Laid in Parliament
29th July 2024
Made
25th July 2024
Coming into force
1st October 2024
The Secretary of State makes these Regulations in exercise of the powers conferred by section 27Q(3) of the Employment Rights Act 1996 (“ the 1996 Act ”)( 1 ).
Under section 27P(1) of the 1996 Act( 2 ), the Secretary of State may issue a code of practice for the purpose of promoting fairness and transparency in the distribution of qualifying tips, gratuities and service charges( 3 ).
Under section 27Q(1) of the 1996 Act, the Secretary of State proposed to issue a Code of Practice on Fair and Transparent Distribution of Tips (“the Code of Practice on Tips”).
In accordance with section 27Q(1) of the 1996 Act, the Secretary of State consulted the Advisory, Conciliation and Arbitration Service, published a draft of the Code of Practice on Tips, considered any representations made about the draft and modified the draft Code of Practice on Tips accordingly.
Under section 27Q(2) of the 1996 Act, the Secretary of State decided to proceed with the draft Code of Practice on Tips. The Secretary of State laid the draft Code of Practice on Tips before both Houses of Parliament, the draft was approved by resolution of each House and the Secretary of State is issuing the Code of Practice on Tips in the form of that draft.
Citation, commencement and extent
1. —(1) These Regulations may be cited as the Employment (Allocation of Tips) Act 2023 (Code of Practice on Fair and Transparent Distribution of Tips) Regulations 2024 and come into force on 1st October 2024.
(2) These Regulations extend to England and Wales and Scotland.
Appointed day for the Code of Practice on Tips
2. —(1) The Code of Practice on Tips comes into effect on 1st October 2024.
(2) In paragraph (1), “ the Code of Practice on Tips ” means the code of practice issued by the Secretary of State under section 27P(1) of the Employment Rights Act 1996 on Fair and Transparent Distribution of Tips which was laid in draft before Parliament on 22nd April 2024 and approved by resolution of the House of Commons on 14th May 2024, and by resolution of the House of Lords on 24th May 2024.
Justin Madders
Parliamentary Under-Secretary of State
Department for Business and Trade
25th July 2024
1996 c. 18 . Section 27Q was inserted by section 9 of the Employment (Allocation of Tips) Act 2023 (c. 13) .
Section 27P was inserted by section 9 of the Employment (Allocation of Tips) Act 2023.
Qualifying tips, gratuities and service charges are defined in section 27C(2) of the Employment Rights Act 1996 as inserted by section 1 of the Employment (Allocation of Tips) Act 2023.