Fair Allocation of Tips Policy

Introduction

We recognise that tips are often given to you by customers to thank you for your excellent service and hard work. We acknowledge that you should be able to benefit from this additional income.

The Employment Rights Act 1996 (“the Act”) requires us to maintain a policy on the fair allocation of qualifying tips because our organisation receives qualifying tips on more than an occasional and exceptional basis.

The Act applies to qualifying tips, gratuities and service charges that are paid at, or are otherwise attributable to, our place of work. In this policy, the term ‘tips’ is used to refer to tips, gratuities and service charges.

We will ensure that all qualifying tips are passed on to our workforce (subject, where applicable, to deductions required by law i.e. income tax) and distributed in a fair and transparent manner having regard to the statutory code of practice on fair and transparent distribution of tips.

Qualifying Tips

Qualifying tips are tips that we receive directly from customers as well as tips that you receive directly from customers that the organisation exercises control or significant influence over the distribution of, whether paid by card, cash or alternative payment method.

The Act does not apply to tips that you receive directly from customers that we do not exercise control or significant influence over the distribution of i.e. cash tips given on the day of the event. They are not covered by this policy. For the purposes of this policy, our workforce includes our employees, workers and agency workers.

Accepting Tips from Customers

We neither require nor encourage customers to pay a tip. Any tips left are entirely at the customer’s own discretion.

Any tips paid in cash are retained by the individual and do not form part of the tronc (a common fund into which tips and service charges are paid for distribution to the staff). It is the responsibility of those receiving cash tips to declare the income for tax purposes to HM Revenue & Customs.

Collection, Allocation and Distribution of Tips

We collect card and pre-paid tips through Square, our commerce platform.

Currently, we allocate tips based on the following clear and objective factors that we consider fair and reasonable given the circumstances and the nature of the individual business:

1.        The number of staff working on the event, including the skipper.

2.        The amount is then evenly distributed amongst them.

We operate a tronc arrangement to allocate relevant tips which we believe is fair and reasonable. In this policy, the term ‘relevant tips’ means the qualifying tips as defined above.

We have appointed Ade Akande (Administrator) to fairly allocate relevant tips as tronc operator.

If we become aware that the tronc operator is acting in an unfair or improper manner we will take action to rectify this, which could include but is not limited to instructing the tronc operator to change their operation, replacing the tronc operator with an alternative tronc operator or terminating the tronc arrangement and establishing a different method to ensure that tips are fairly allocated and distributed.

We will keep our allocation method and its application under review (every 3 years) to ensure that it remains fair, reasonable and non-discriminatory. All employees have an opportunity to vote anonymously on how they wish tronc to be distributed. A 60% turnout for the vote is required to change or update the tipping procedure.

This policy does not make up part of your contract of employment or worker service agreement as applicable and we may make changes to it. We will consult with you on any amendments to the allocation method used and ensure that any changes are communicated to you in advance of their application. We will make any updated versions of this policy available to you.

Payments of Tips to You

You will receive payment on the first payment date (Tuesday or Wednesday following a bank holiday) following the month in which tips are paid by customers.

Any tronc payment is paid in addition to National Minimum Wage, National Living Wage and London Living Wage. We do not charge any administration fees or make any other deductions.

Record Keeping

We keep a record of all qualifying tips received by us at, or otherwise attributable to, our place of business and the amount allocated to each worker, for a period of three years beginning with the date on which the tip was paid.

Right to Request to View our Tipping Record

You have the right to make a written request to view our tipping record for a period dating back up to three years, provided you were engaged by us for the full duration of the requested period. You may make one written request to view our tipping record per three-month period. 

You are entitled to view the total amount of qualifying tips received by us at our place of business, and the amount paid to you. You are not entitled to view the amount paid to any other worker. Requests to access these records should be submitted to the Ade Akande (Administrator), which will be handled in accordance with current data protection legislation.

Resolving Issues or Concerns

If you feel you have not received the share of tips that you expected to receive, you should contact Ade Akande (Administrator) to raise your concerns in the first instance and Simon Ryder (Chief Executive) in cases of escalation. This applies equally to directly recruited workers and agency workers.

Created - Tuesday 1st October 2024