Hospitality Left Waiting as Government Withdraws New Tipping Code
- Emma Oates
- 1 day ago
- 2 min read
Hospitality businesses across the UK have been left facing uncertainty after the Government withdrew its revised Statutory Code of Practice on the Fair and Transparent Distribution of Tips, just weeks after publishing a draft version.
The revised Code was intended to support changes introduced under the Employment Rights Act 2025, including new requirements for employers to consult workers when creating or reviewing tipping policies. However, following criticism from trade unions and industry bodies, ministers have confirmed that the updated Code has been withdrawn and will be reconsidered before any changes are introduced.
What Was Due to Change - Code of Practice on the Fair and Transparent Distribution of Tips?
The draft Code proposed several new measures designed to increase employee involvement in tipping arrangements, including:
Mandatory consultation with workers before introducing or changing a written tipping policy.
A requirement to review tipping policies at least every three years.
Providing workers with an anonymised summary of consultation feedback.
The existing legal requirement to distribute 100% of qualifying tips, gratuities and service charges fairly and transparently would have remained unchanged.
Why Was the Code Withdrawn?
Trade union Unite argued that the revised Code failed to deliver on the Government's commitment to give workers greater control over how tips are distributed. While employers would have been required to consult staff, the draft guidance still allowed them to make the final decision on tip allocation.
Following these concerns, the Government has withdrawn the revised Code and is expected to revisit the proposals before introducing a replacement. Until then, businesses should continue following the current statutory Code of Practice that came into force alongside the Employment (Allocation of Tips) Act 2023.
What Does This Mean for Hospitality Employers?
Although the revised guidance has been withdrawn, the core legal obligations remain in force. Employers must still:
Pass 100% of qualifying tips and service charges to workers.
Ensure tips are allocated fairly and transparently.
Maintain a written tipping policy where qualifying tips are received regularly.
Keep records of tip allocation and distribution.
Employment tribunals can continue to consider the statutory Code when deciding disputes relating to tip allocation, making compliance as important as ever.
Why Independent Tronc Management Matters
With the legal framework continuing to evolve, many hospitality businesses are looking for greater certainty around their tipping arrangements.
An independently managed tronc can help businesses demonstrate that tips are allocated fairly, transparently and consistently. Troncmaster Solutions provides independent tronc management for restaurants, hotels, pubs, bars and other hospitality businesses, helping employers comply with UK tipping legislation while giving employees confidence that gratuities are being distributed impartially.
By working with an independent troncmaster, businesses can reduce administrative burden, maintain clear records and minimise the risk of disputes as tipping legislation continues to develop.
As the Government prepares to consult on a revised Code of Practice, ensuring your tronc scheme is independently managed and fully compliant is one of the best ways to future-proof your business.
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