Location: Northern Ireland
Rep.of Ireland
Location: Northern Ireland
Rep.of Ireland
Home / Articles / Am I legally required to share tips with staff?

Am I legally required to share tips with staff?

Posted in : First Tuesday Q&A NI on 8 August 2024
Chris Fullerton
Arthur Cox NI
Issues covered: Tipping legislation NI; Good Jobs Employment Rights Bill; Employment (Allocation of Tips) Act; Hospitality tips

Various employers (particularly in the hospitality and service sectors) in NI accept tips, gratuities and service charges either in cash or via electronic means. 

Tips that are under the control of the employer may (to the extent they are not kept by the employer) be distributed to workers in cash, via payroll, or distributed via a tronc. Through using troncs, the burden of National Insurance on both employers and workers is reduced, whereas any tips paid via payroll are liable to income tax and National Insurance deductions.

In the rest of the UK, changes are being introduced to the way tips are dealt with. The 2023 Employment (Allocation of Tips) Act was passed into law and is due to

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This article is correct at 08/08/2024
Disclaimer:

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Chris Fullerton
Arthur Cox NI

The main content of this article was provided by Chris Fullerton. Contact telephone number is 028 9023 0007 or email Chris.Fullerton@arthurcox.com

View all articles by Chris Fullerton