New Tipping Rules for Employers Explained | Employment Law Update 2026

What are the current legal rules around staff tips and service charges and what changes are coming in October 2026? In this video, Matthew Morrison and Ben Stepney from the Employment team at Thomson Snell & Passmore discuss how employers should fairly allocate tips among workers, the importance of transparency, and the upcoming legal changes employers need to prepare for. Topics covered include: • Fair allocation of tips and service charges • Transparency requirements for employers • Written tipping policies and record keeping • Employment tribunal risks and reputational damage • Mandatory worker consultation from October 2026 • Compensation risks for non-compliance • Practical steps employers can take now If you require advice on employment law or assistance reviewing your tipping policy, please contact the Employment team at Thomson Snell & Passmore. #EmploymentLaw #HospitalityIndustry #TippingRules #EmploymentLawUK #HRCompliance #hospitalitybusiness 0:14: Introduction 0:40: Overview of the current rules 1:36: What practical guidance does this code of practice contain about the allocation of tips? 2:25: Could you provide some further detail as to the meaning of fair? 3:29: What is required in order to meet that transparency requirement? 4:53: Could you provide an overview of the upcoming changes? 6:16: How can employers ensure compliance? 7:28: Get in touch