Tip-Out Policy Generator for UK Hospitality
Since 1 October 2024, the Employment (Allocation of Tips) Act 2023 requires employers to pass on 100% of tips to workers with no deductions, allocate them fairly, and keep a written tipping policy.
Tipping rules in the United Kingdom
Since 1 October 2024, the Employment (Allocation of Tips) Act 2023 requires employers to pass on 100% of tips to workers with no deductions, allocate them fairly, and keep a written tipping policy.
- 100% of tips go to workers
- Employers must pass on all qualifying tips, gratuities and service charges to workers without deductions (other than those required by law, such as tax), and pay them no later than the end of the month following the month the tip was received.
- A written policy is mandatory
- Where an employer’s workers receive tips more than occasionally, the employer must have a written tipping policy, make it available to all workers, and keep records of how tips were allocated for three years.
- Allocation must be fair and transparent
- Tips must be distributed fairly, following the statutory Code of Practice. The Act applies in England, Wales and Scotland — it does not extend to Northern Ireland.
Summary for general guidance only — not legal advice. Confirm the current rules for your specific situation.
Build your policy
Support roles (from your calculator)
- Bar5%
Describe who splits the remaining pool. Leave blank for “the team”.
Copy pastes clean, unformatted text. Print keeps the letterhead.
Preview
BzzTip-Out & Tip Pool Policy
[Business Name]
This policy explains how tips are shared at [Business Name]. It applies to all tipped shifts and is designed to be transparent and consistent for the whole team.
1. Tip-Outs (Off the Top)
At the end of each shift, the following support roles are tipped out first, as a percentage of total tips:
- Bar: 5% of total tips
These amounts are taken off the top before any remaining tips are pooled.
2. Pool Distribution
Whatever remains after tip-outs is pooled and divided among the team in proportion to the hours each person worked that shift. The pool is divided by total hours to give a per-hour rate, then each person is paid their hours at that rate.
All payouts are calculated to the cent so the shares always add back to the total collected.
3. Eligibility
Managers, supervisors, and owners do not keep or take a share of employees' tips. Tipping rules vary by country and, in the United States, by state — this policy follows the applicable law where we operate.
4. Timing
Tip-outs and pooled tips are reconciled and distributed at the end of each shift.
Acknowledgement
By working tipped shifts, team members acknowledge they have read and understood this tip-out policy.
This document is a template to help set expectations and is not legal advice. Tip-pooling and tip-credit rules differ by country and state — confirm your policy complies with the law where you operate.
Generated by Bzz · bzz-app.com
Saved on this device — edit anytime and reprint.
A smoother shift, fairer tips
Bzz is a free digital buzzer for restaurants and bars. Guests scan a QR code and get pinged when their table’s ready — so you turn tables faster and your team earns more to share.
Questions
- Is a written tipping policy required in the UK?
- Yes. Under the Employment (Allocation of Tips) Act 2023, in force since 1 October 2024, employers whose staff receive tips more than occasionally must have a written tipping policy and make it available to workers.
- Can UK employers deduct anything from tips?
- No. Employers must pass on 100% of qualifying tips, gratuities and service charges to workers, with no deductions other than those required by law, and pay them by the end of the following month.
- Do I have to re-enter my staff and percentages?
- No. The generator reuses the roles and percentages you entered in the tip-out calculator (saved in your browser). If you haven’t used it yet, it starts with a common example you can edit.
- Is this UK tipping summary legal advice?
- No. It’s a plain-English summary of the named law with a link to the primary source, provided for general guidance. Confirm the current rules for your specific situation before setting a policy.