Tronc, tips and the new fair allocation rules

The Employment (Allocation of Tips) Act 2023 came into force in October 2024 — and one year on, hospitality operators are still catching up. Here's what you need to know.

Tips, gratuities and service charges must be allocated to workers fairly and transparently, with a written policy in place.

If you operate a tronc, the troncmaster decides allocation independently — but the underlying employer policy still needs to be fair.

Records must be kept for three years and made available to workers on request.

Get it right and tronc remains a powerful, tax-efficient way to share tips with the team. Get it wrong and the tribunal risks are real.