The Department for Business and Trade (DBT) is now the Department for Business, Innovation, Science and Trade (BIST). ICB has written about the update to their delivery timetable of employment law reforms contained in the Employment Rights Act 2025. With regards reforms to the allocation of tips, we want to update you further.
On 16 July 2026, the renamed BIST updated their Employment Rights Act 2025 delivery timetable and ICB commented that this referred to reforms to ‘tipping law’:
- Expected October 2026; but
- Delayed with delivery ‘by the end of 2026’
The reforms will introduce a new requirement for employers to consult with workers at their place of business, supported by an updated Code of Practice.
On 29 July 2026, BIST announced that the previously-published Code will be subject to a new consultation before it is laid before the UK Parliament for approval. Therefore, the version has been withdrawn.
For Bookkeepers
It is important the Code of Practice is correct, so expect a public consultation that will support employers and their obligation for the fair and transparent distribution of tips, gratuities and service charges.
Importantly, until another Code of Practice is issued, employers must continue to operate in accordance with the current (2024) version.