The consultation period for the Government’s ‘Make Work Pay: Strengthening The Law on Tipping’ ends this Wednesday, April 1st at 11:59pm. These consultations give businesses and employees a voice on existing tipping laws in place in the UK, and a chance to weigh in on the changes being imposed under the Employment Rights Act. These changes will make it mandatory for employers to consult with staff, or when possible a union representative, before creating a tipping policy for the business. Tipping policies would also have to be reviewed and updated at least every 3 years (with a staff consultation each time).
Why is the legislation changing?
These changes are being introduced under the broader Employment Rights Act, which will impose several changes to employment law across the next two years to strengthen worker’s rights across the country. This includes whistleblowing protection, an effective end to 0 hour contracts, and day-one rights to several worker benefits that previously had a probationary period.
How can I prepare?
Best practise for preparing for these changes is to set up a Tronc committee. This is a panel of staff members, ideally chosen by the staff themselves, with a range of roles and experience in the business. These cannot be employers, HR, or anyone else with influence – this could lead to your Tronc not being compliant and NIC exemption could be revoked. Not only this, but if your business faces an employment tribunal for non-compliance, you could face paying up to £5,000 per affected employee.
It is important to start preparing for these changes now to avoid surprises and avoid penalties. Setting up your Tronc committee is not only a good way of keeping on top of this legislation change, it also gives your employees more of a voice in the Tronc process leading to increased transparency and staff morale.
To have your say on the Make Work Pay proposal, you can fill out the e-form here or email responses to tipping@businessandtrade.gov.uk. Get your responses in by 1st April 11:59pm to be heard!
