Tipping: Unite demands ‘flawed’ code of practice is withdrawn
Unite has demanded that a ‘flawed’ draft code of practice on the fair and transparent distribution of tips be withdrawn to allow for ‘proper consultation’.
The trade union said the government has reneged on its promise to give workers full control over the allocation of tips. Instead, the government proposes that from October 2026, employers “merely have to consult” on how tips are allocated.
Unite said the code confirms that, following consultation, employers will have “carte blanche” to decide which workers will receive tips.
The revised code states that consultation should be “genuine, proportionate, inclusive and transparent”. While employers are not required to adopt every suggestion, they should seek broad agreement that tipping arrangements are fair, reasonable and clearly understood.
Tipping code of practice
Draft code of practice on tipping released
It also confirms that workers’ support for a particular distribution method may assist an employment tribunal in deciding whether a tipping arrangement is fair and reasonable.
Unite general secretary Sharon Graham said: “Workers should have control over their own tips, pure and simple. Most customers assume they do anyway. Giving managers control, even letting them keep a slice for themselves, is clearly unfair.
“The government messed this up the first time in their code of practice on tipping. The fact that they are now repeating the same mistakes in a revised version that was supposed to address workers’ concerns is genuinely concerning.”
Unite believes the failure to give workers control over their tips will disadvantage the lowest paid, who are often on precarious contracts. Instead, tips can be used to offset the underpayment of other workers, such as kitchen staff.
Last week, the government published its response to a consultation on tipping legislation alongside a revised draft Code of Practice reflecting additional obligations introduced by the Employment Rights Act 2025.
But the union said the government has failed to consult on the details of the code on tipping, unlike other parts of the Employment Rights Act 2025.
Unite lead organiser for hospitality, Bryan Simpson, said: “This new flawed code of practice must be withdrawn. The government is showing contempt for hospitality workers who are among the most vulnerable in the economy, by not even consulting on its plans.”
“Labour promised to give workers greater control over their tips. That promise must now be honoured.”
Personnel Today has contacted the Department for Business and Trade for comment.
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