We let you know last year that a new Employment Bill would be heading our way; and the latest news is that it’s coming.
It include measures that ensure tips, gratuities and service charges must ALL go to your stylists in full.
The new law will mean that:
• You will not be able to make any deductions from tips received by your staff;
• You will be required to distribute tips through a fair and transparent process;
• There must be a written policy on tips, and records retained to show how tips have been dealt with;
• You may use a tronc to distribute tips and they must be dealt with no later than the end of the month following the month it was paid by a client;
• Your staff will be able to request information relating to an employer’s tipping record;
• You will have to comply with the new statutory Code of Practice on Tipping.
Where employers fail to comply with these measures, they can be taken to Employment Tribunal by their staff.
The Employment Bill will be brought forward when Parliamentary time allows, and it is expected the rules will commence no earlier than one year after the Bill has passed, so you have plenty of time to get anything set up.
Even if you don’t get involved with tips (and sensibly leave it as a client-stylist transaction, you should still ensure you have a written policy on tips which all of your staff should sign to say they have read it.
Here’s an article we wrote around tips that would be worth reading, even if you don’t think you get involved with them.