Below are all the sections and considerations you should include when writing your businesses tipping policy, as well as best-practice suggestions to keep staff happy and fit within the “Fairness” parameters of the legislation.
Definitions in your tipping policy
- Clarify what counts as a “tip, gratuity or service charge” for your venue (cash tips, card tips, service charge added to bill, digital tips) following the guidance.
- Confirm that it applies to all workers (including zero-hours, agency, and permanent) at the venue, where the business has control or significant influence.
Allocation & Distribution
If you are using a Tronc Scheme the split allocation must be decided by an independent Tronc Master or employee tronc council and this is the criteria to be considered
- Consider criteria: hours worked, role, seniority, shift worked, etc. Make the factors clear and objective
- State when distribution happens (for instance, by the end of the month following receipt).
- Confirm that 100% of qualifying payments are passed to workers (minus any tax/NIC obligations). No deductions for business running costs, admin, etc.
- Make clear which staff are included (e.g., back-of-house vs front-of-house) and state how you handle agency staff.
- Tips collected at a specific venue must be distributed only among the staff employed at that venue and should not be shared across other locations.
Fairness & Transparency
- Explain how fairness is achieved: e.g., regular review of the allocation criteria, consultation with staff, openness on how decision-making is done
- Provide details on staff rights: they can request the tipping record, raise queries, or use internal channels to discuss concerns.
- Encourage staff involvement or representation in how the policy is applied (e.g., staff committee or meeting to discuss tronc points). This helps morale.
Record-keeping & Access
- State how the business keeps records: amount of tips received, how they were split, date/time, who got what. Must be kept for a certain period (three years recommended).
- Clarify staff rights: workers can request their own record, understand how their share was calculated, and raise a claim if they think it’s been handled unfairly.
- Say how staff can access these records (e.g., via HR, manager, digital portal) and the timeframe for requests.
Review & Governance
- Commit to reviewing the policy periodically (for example annually or every two years) to ensure it remains fit for purpose, fair and consistent.
- State who is responsible for oversight (HR, operations manager, tronc committee, independent Tronc master) and how updates will be communicated.
Tips & Tricks for Keeping Staff Happy
A great policy is one thing but making sure staff feel positive about it is another. Here are some practical tips:
- Involve your team in the design or review of the policy. Getting their input builds ownership and trust.
- Use clear language. Avoid jargon and make sure staff understand how the system works, how they benefit, and when.
- Keep administration minimal and fair. If staff feel that the system is overly complex and hard to understand morale will suffer.
- Review regularly and ask for feedback. Check if staff feel the policy is fair, if any adjustments are needed (for example with shift patterns, new roles, agency staff changes).
- Link tipping to your broader culture: show how tips recognise excellent service, align with your brand values (e.g., “We reward service excellence”) and help build a positive workplace.
