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Establishing a successful recruitment process and clear written employment contracts for new employees can have a major impact on your business.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Tipping Act brings new rules for employers from October

17 September 2024

New legislation could see millions of UK workers taking home more money in tips as the government introduces a Code of Practice on tipping that comes into force in October.

Millions of UK workers could take home an estimated £200 million more of their hard-earned cash, according to the government, as new legislation on tipping comes into force from the first of October. The legislation will require many employers to overhaul the way that they manage tips and it could benefit more than two million workers across the hospitality, leisure and services sectors.

Many hospitality workers rely on tips to top up their pay and are often left powerless if employers don't pass on service charges from customers to their staff.

The Code of Practice on the fair and transparent distribution of tips will make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all of the tips they have earned. The government is encouraging all businesses to follow the new requirements before they come into legal effect.

Commenting on the new legislation, Rufus Hood, country manager UK at Coople, said: "On 1 October, the government's 'Tipping Act' will come into force, meaning that companies that collect tips from customers will have new legal responsibilities regarding distributing them among staff, including agency workers. Companies will also be required to have a written tipping policy and share it with staff, as well as being required to keep records of any tips for three years.

"This will mostly apply to companies where customers regularly pay tips either with cash or card - putting money in a tip jar, making a card payment, or scanning a QR code. Any business where the employer receives the tip before the staff do will now be required to pay their employees their tips by the end of the following month."

Rufus Hood describes this as "major news for the hospitality sector, particularly bars and restaurants". He added: "On one hand, the Act puts additional pressure on businesses in an industry that is already facing high costs and low bookings. However, agency workers will now be legally entitled to the tips customers decide to pay, which will be very welcome news for these staff, who make up a large proportion of the workforce in hospitality."

Written by Rachel Miller.

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