Tipping Policy Consultation Requirements from 2026
Tipping rules tighten from October 2026. On top of the existing duty to allocate tips fairly and keep a written policy, employers will have to consult workers before setting that policy and review it regularly.
This matters most to hospitality, but it reaches any business where staff receive tips, gratuities or service charges.
This guide explains the new consultation and review duties and what a compliant written tipping policy contains.
What Is Changing
The fair allocation rules came from the Employment (Allocation of Tips) Act 2023, which requires employers to pass on tips fairly and keep a written tipping policy. The Employment Rights Act 2025 adds consultation and review duties from October 2026.
From that point you must consult workers or their representatives before creating a tipping policy, review the policy at least every three years, and summarise the views workers expressed.
The Consultation Duty
Before you create or revise a written tipping policy, you must consult the representatives of a recognised trade union or worker representatives. Where there are none, you consult the workers likely to be affected.
The same consultation process applies each time you review the policy. The point is that the people who receive tips have a say in how they are shared.
The Three-Yearly Review
You must review the written tipping policy at least once every three years. A policy that is set once and never revisited will not meet the duty.
The GOV.UK timeline puts these requirements at October 2026, with an updated statutory Code of Practice expected alongside.
What a Compliant Tipping Policy Contains
- How tips, gratuities and service charges are collected and shared.
- The basis for allocation and why it is fair.
- How and when workers were consulted, with a summary of their views.
- How often the policy is reviewed, and when it was last reviewed.
- Records of tips received and distributed, kept as the Tipping Act requires.
Enforcement
The new duties are enforceable by a complaint to the employment tribunal. Where a worker suffers financial loss because an employer failed to comply, compensation of up to 5,000 pounds may be awarded.
Tipping Changes at a Glance
| Duty | Detail |
|---|---|
| Consult before setting | Consult workers or representatives before creating a tipping policy |
| Review | At least once every three years, with the same consultation |
| Record views | Summarise the views workers expressed |
| Enforcement | Employment tribunal complaint, up to 5,000 pounds for financial loss |
| From | October 2026 |
How Policy Pros Can Help
We write tipping policies that meet the fair allocation rules and the new consultation and review duties, with a consultation record you can show. Our policy document reviewing service checks an existing tipping policy against the 2026 changes.
See the October 2026 checklist for the wider wave, and our HR policies and procedures service for the supporting documents. The official position is in the Acas Employment Rights Act 2025 hub.
Frequently Asked Questions
When do the new tipping rules start?
The consultation and review duties are due to take effect in October 2026 under the Employment Rights Act 2025, with an updated statutory Code of Practice expected alongside. They build on the fair allocation rules already in force under the Employment (Allocation of Tips) Act 2023.
Do we have to consult workers about our tipping policy?
Yes. From October 2026 you must consult workers or their representatives before creating a written tipping policy, and again each time you review it. You must also summarise the views workers expressed.
How often must a tipping policy be reviewed?
At least once every three years. Each review must follow the same consultation process, so a tipping policy that is set once and never revisited will not meet the duty.
What happens if we do not comply with the tipping rules?
A worker can complain to the employment tribunal. Where a worker suffers financial loss because of the failure, compensation of up to 5,000 pounds may be awarded, on top of the reputational risk in a tip-reliant business.
Which businesses do the tipping rules apply to?
Any business where workers receive tips, gratuities or service charges. Hospitality is the obvious case, but the rules reach hairdressing, taxis, delivery and other tip-reliant sectors regardless of size.
