Understanding the Legal Requirements for Tronc Management in the UK
The Employment (Allocation of Tips) Act 2023, now in force, marks a major shift in how tips and service charges must be handled in UK workplaces. With new rules on transparency, timing, and fair allocation, businesses must ensure they have compliant systems in place.
At the heart of many such systems is a tronc scheme and the person responsible for operating it is the troncmaster.
But who can legally be a troncmaster? What are their responsibilities? And how do they maintain compliance with HMRC and the new statutory code of practice?
Who Can Be a Troncmaster?
Here’s the good news: a Troncmaster can be either an internal team member or an external service provider. The key is that they must operate independently when it comes to tip allocation.
1. Internal Troncmaster (Employee-Led)
Often a senior team member or peer elected by colleagues.
Should be someone trusted and respected by the team.
Must not be influenced by managers or business owners when deciding distribution.
2. External Troncmaster (Third-Party Led)
Many businesses choose to appoint an external tronc provider like JustTip to manage tips.
This ensures full independence, legal compliance, and an expert handle on evolving rules.
Ideal for multi-site operators or businesses with complex staffing patterns.
Important: The employer cannot dictate how tips are distributed. Their only role is to support the process not steer it.
