Employment law evolves the fastest – whether by case authorities or new legislation. 2024 is no different, with a few new laws fast approaching. These include a law on “tipping” coming into effect from 1st July 2024 under the Employment (Allocation of Tips) Act 2023.
A Code of Practice on the fair and transparent distribution of “tips”, is being introduced at the same time. Employers should now pass on all tips without deductions, (save for tax) and amongst other things they should have a written “tipping” policy accessible to all employees.
If an employer controls tips amongst their teams and it is felt the employer has not acted fairly or transparently, disputes can now be dealt with at mediation, or workers may submit a claim to the Employment Tribunal. Although Employment Judges must take the new code into account, any failure to observe the code, does not in itself amount to proof that an employer has acted unfairly. Cash tips paid directly fall outside of the Act’s scope. Perhaps another reason to retain cash,
to reward good service, rather than an anonymous business assuming control of ‘tipping their staff’?
Hire and Re-fire.
The practice of ‘fire and rehire’ occurs when an employer dismisses an employee and offers to rehire them, but on new terms. Perhaps unsurprisingly any fresh terms tend to be more favourable toward the employer. This may occur when any consultations between the parties to vary terms fail - with examples of poor conduct such as British Airways and P & O Ferries hitting the news.
Going forward under the Government’s new Code of Practice, employers might well face ‘up-lifted’ claims for unfair dismissal should they try the same approach.
Finally keep an eye out for the Worker Protection (Amendment of Equality Act 2010) Act 2023, coming into effect in October. This compels employers to take reasonable steps to prevent sexual harassment in the workplace. The UK’s HR teams will be busily writing policies as you read this.