If you wait tables, pour wine at an airport bar or work a temporary shift in a hotel, tipping law can make a real difference to your monthly income. Since 1 October 2024, UK law has said those tips belong to workers. This guide explains, in plain English, what the tipping law in the UK covers, when you should be paid, how to check your share, what changes are coming before the end of 2026, and what to do if something looks wrong.
What is the tipping law in the UK?
The tipping law in the UK is the Employment (Allocation of Tips) Act 2023, in force since 1 October 2024 in England, Scotland and Wales. It requires employers to pass 100% of qualifying tips, gratuities and service charges to workers, without deductions other than tax, and to share them fairly and transparently.
It is backed by a statutory Code of Practice on fair and transparent distribution of tips. Employment tribunals must take the code into account when they decide a claim.
Which tips are covered?
The law covers “qualifying” tips. In simple terms, that means:
- Card and online tips paid to the business, including tips added on a card machine or app.
- Service charges, including a discretionary service charge added to the bill.
- Cash tips the employer controls, for example cash collected into a shared pot that management allocates, or cash handed over to be shared.
It does not cover cash tips that a customer hands to you personally and that you keep without your employer having any say in how they are shared. Those are yours, although they are still taxable (see below).
Tip, service charge or cover charge: what’s the difference?
| Term | What it usually means | Covered by the tipping law? |
|---|---|---|
| Tip or gratuity | A voluntary extra amount a customer chooses to give | Yes, if paid to the business or controlled by it |
| Service charge | An amount added to the bill for service, often discretionary (for example 12.5%) | Yes |
| Cover charge | A fixed charge per person, often for bread, entertainment or a table | It depends on how it is described and used; check your venue’s tipping policy |
If a bill shows a service charge, that money should reach staff. If you’re unsure how a charge at your venue is treated, the written tipping policy should explain it.
What must your employer do?
| Employer duty | What it means for you |
|---|---|
| Pass on 100% | No deductions for card fees, breakages, admin or “house” share. Only deductions required by tax law. |
| Share fairly | Tips must be allocated fairly between workers, following the code of practice. |
| Pay on time | Qualifying tips must be paid no later than the end of the month after the month the customer paid them. |
| Have a written policy | If tips are received more than occasionally, there must be a written tipping policy available to all workers. |
| Keep records | Records of how tips were dealt with must be kept for three years. |
| Answer requests | You can ask for your tip records; your employer has four weeks to respond. |
What counts as “fair”?
The code of practice does not set one formula. It lets employers weigh factors such as hours worked, role, basic pay, length of service and the customer’s intention. What it does not allow is keeping tips back for the business, or using tips to top up pay to the minimum wage.
Do tips count towards the National Minimum Wage?
No. Since 1 October 2009, tips, gratuities, service charges and cover charges have not counted towards National Minimum Wage pay. From April 2026, the National Living Wage for workers aged 21 and over is £12.71 an hour; the rate for 18 to 20-year-olds is £10.85. Your basic pay must meet the right rate before any tips are added.
Your right to see tipping records
You have the right to ask your employer for information about tips at your workplace. Under the 2023 Act:
- Make the request in writing, saying it is a request for tip records and which period it covers (up to the last three years).
- Wait up to four weeks. Your employer must respond within four weeks of the date of your request.
- One request every three months. You can’t make more than one request in any three-month period.
- Keep a copy of your request and any reply.
The records should show how qualifying tips were dealt with, so you can compare them with what you received.
Agency and temporary workers: are you covered?
Yes. Eligible agency workers are covered. The law treats the business where you work (the hirer, sometimes called the “principal”) as if it were your employer for tipping purposes. That business must include you in a fair allocation.
If your share of tips is paid through your agency rather than directly, the agency must pass it on to you, again by the end of the following month and without deductions other than tax. If you work through an agency, ask at the start of an assignment how tips at that venue are shared and how your share reaches you.
This matters at airports and large venues, where temporary staff often work alongside permanent teams on the same shift.
How are tips taxed?
Tips are taxable income. According to HMRC guidance:
- Tips paid through payroll or a tronc have Income Tax deducted by your employer. Whether National Insurance applies depends on how involved the employer is in deciding who gets what.
- Cash tips paid directly to you are not subject to National Insurance, but you must tell HMRC about them (through Self Assessment, your personal tax account or by phone), so your tax code can be adjusted.
What is changing in 2026?
The Employment Rights Act 2025 adds new duties for employers. Based on the government’s response to its consultation on strengthening tipping law, employers will have to:
- Consult workers before writing a tipping policy or making significant changes to it, through a recognised trade union, worker representatives or directly with workers.
- Review the tipping policy at least every three years, with consultation each time.
- Share a summary of the feedback from consultation with workers.
These changes were expected on 1 October 2026. In July 2026, the government withdrew the draft revised code and confirmed the changes would instead be introduced “by the end of the year”. Check GOV.UK for the final start date.
Separately, from 1 October 2026 the time limit for most employment tribunal claims doubled from three to six months.
What to do if you think you’re not getting your tips
- Read the tipping policy. Ask your manager where to find it if you haven’t seen it.
- Ask questions informally first. Mistakes in payroll do happen.
- Request your tip records in writing (see above).
- Raise a written grievance if the answer doesn’t add up.
- Contact Acas for free, impartial advice and early conciliation. Early conciliation is normally required before a tribunal claim.
- Consider a tribunal claim. Claims about tips being withheld or unfairly shared can be brought within 12 months. For breaches of the policy or records duties, a tribunal can award up to £5,000 compensation for financial loss. Time limits for some claims changed on 1 October 2026, so check the current limit with Acas before you decide.
Questions to ask before you accept a hospitality job
Tips are a fair thing to ask about at interview. You could ask:
- Is there a written tipping policy, and can I see it?
- How are card tips and service charges shared, and who decides?
- Is there a tronc, and who runs it?
- When are tips paid, and do they show on my payslip?
- If I’m placed through an agency, how does my share reach me?
Asking clearly and politely shows you understand the role. Our guide to mastering the interview has more on how to frame questions like these.
Key takeaways
- The Employment (Allocation of Tips) Act 2023 has applied since 1 October 2024.
- Employers must pass on 100% of qualifying tips and service charges, fairly, by the end of the following month.
- Cash tips you keep personally aren’t covered, but they are taxable.
- You can request tip records once every three months; your employer has four weeks to reply.
- Agency workers are covered.
- Tips never count towards the minimum wage.
- New consultation and review duties are due by the end of 2026.
Frequently asked questions
Can my employer keep part of the service charge?
No. Under the tipping law in the UK, employers must pass 100% of qualifying tips and service charges to workers. The only deductions allowed are those required by tax law, such as Income Tax.
When should I receive my tips?
Qualifying tips must be paid no later than the end of the month after the month in which the customer paid them. For example, tips paid by customers in October should reach you by the end of November.
Are cash tips covered by the tipping law?
Cash tips are covered if your employer controls or significantly influences how they are shared, for example a shared pot. Cash a customer gives you personally, which you keep, is not covered, but it is still taxable.
Do agency workers get a share of tips?
Yes. Eligible agency workers are covered. The business where you work must treat you as if it were your employer when sharing tips, and if your share goes through the agency, the agency must pass it on without deductions.
Can my employer use tips to pay my minimum wage?
No. Tips, gratuities, service charges and cover charges do not count towards National Minimum Wage pay. Your basic pay must meet the legal minimum on its own.
What is a tronc?
A tronc is a pooled arrangement for sharing tips, often run by a “troncmaster” who decides how tips are split. Tronc payments still have Income Tax deducted, and the fairness rules still apply.
What is changing about tipping law in 2026?
Under the Employment Rights Act 2025, employers will have to consult workers on their tipping policy and review it at least every three years. The government has said the changes will be introduced by the end of 2026.
Looking for your next hospitality role?
At E-Global we place candidates in hospitality roles, from wine waiters at major UK airports to chefs in London, in both temporary and permanent positions. Browse current job openings or register with E-Global so our team can match you to roles that suit your experience. Employers can contact us about staffing support.
If you’d like to understand other workplace rights, our guide to sleep-in shifts in UK care work explains pay rules for a different kind of shift.
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