Fair allocation of tips Policy
Introduction
We will ensure that all qualifying tips are passed on to our workforce (subject to deductions required by law i.e. income tax) and distributed in a fair and transparent manner having regard to the statutory code of practice on fair and transparent distribution of tips.
For the purposes of this policy, our workforce includes our employees and workers.
Qualifying Tips
Qualifying tips are tips that we receive directly from customers as well as tips that you receive directly from customers that the organisation exercises control or significant influence over the distribution of, whether paid by card, cash or alternative payment method. This may also include non-monetary items such as a voucher, stamp, token, or similar item that has a fixed value which can be expressed in monetary terms or exchanged for money, goods or services.
The Act does not apply to tips that you receive directly from customers, including in person and via apps, that we do not exercise control or significant influence over the distribution of. They are not covered by this policy.
Accepting tips from customers
We neither require nor encourage customers to pay a tip. Any tips left are entirely at the customer’s own discretion.
Collection, allocation & distribution of tips
All money paid by way of qualifying tip from our customers, regardless of the method used for payment, is fairly allocated to our staff. We will only make deductions from that amount that are required by law.
We allocate tips based on the following clear and objective factors that we consider fair and reasonable given the circumstances and the nature of the individual business.
We will keep our allocation method and its application under review to ensure that it remains fair, reasonable and non-discriminatory.
This policy does not make up part of your contract of employment and we may make changes to it. We will consult with you on any amendments to the allocation method used and ensure that any changes are communicated to you in advance of their application. We will make any updated versions of this policy available to you.
Payment of tips to you
Payment of tips to you will be made as part of the pay run and include the dates of that pay run (25th to 24th).
Record keeping
We keep a record of all qualifying tips received by us at, or otherwise attributable to, our place of business and the amount allocated to each worker, for a period of three years beginning with the date on which the tip was paid.
Right to request to view our tipping records
You have the right to make a written request to view our tipping record for a period dating back up to three years, provided you were engaged by us for the full duration of the requested period. You may make one written request to view our tipping record per three month period.
You are entitled to view the total amount of qualifying tips received by us at our place of business, and the amount paid to you. You are not entitled to view the amount paid to any other worker. Requests to access these records should be submitted to your Line Manager, which will be handled in accordance with current data protection legislation.
Resolving issues or concerns
If you feel you have not received the share of tips that you expected to receive, you should contact your Line Manager to raise your concerns in the first instance. This applies equally to directly recruited workers and agency workers.
In some cases, it may be appropriate to follow our grievance procedure. Further information on this is available in the Employee Handbook under grievance procedure.
