Service and hospitality businesses in Hampshire are preparing for new tipping legislation, according to advice from Ringwood-based Ellis Jones Solicitors.

The company stresses the Employment (Allocation of Tips) Act 2023, due to take effect on October 1, requires fair and transparent tip management. The government intends for the full amount to be passed to staff.

The Tipping Act received Royal Assent on May 2, 2023, amending the Employment Rights Act 1996.

Kate Brooks, partner and head of employment/HR services at Ellis Jones, said: "There is currently no legal obligation for employers to pass on tips and service charges to employees.

"This long-awaited legislation will be welcomed in many quarters for the clarity and structure it brings to a grey area for employers, employees and consumers.

"Although the majority of businesses are responsible employers, those which fail to comply run the risk of credible employment tribunal claims.

"It is important that employers in leisure, hospitality and the service industry understand the new criteria and are ready to meet its requirements."