Here’s everything you need to know about the new law on tip allocation.

From 1 October 2024, tips must be distributed fairly, transparently and promptly to all workers, including agency staff, under the Employment (Allocation of Tips) Act 2023.

What does the new law mean?

* You’ll need to ensure that all qualifying tips are allocated fairly to workers.

* Tips must be paid in full by the end of the month after the month in which they’re received.

* You’ll need to keep detailed records of tips received and how you’ve allocated them to employees.

What do you need to do now?

To ensure you’re legally compliant, you’ll need to review your current tip allocation processes, develop a clear written policy on tips and train your team to make sure everyone understands the changes.

Failure to do so could cost you a lot more than keeping hold of the tips in the first place!

We’re here to help.

If you’re feeling stuck, or don’t have the time to figure this out for yourself, we can help.

Book in for a confidential chat and let’s get it sorted.