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United Kingdom·Advisory, Conciliation and Arbitration Service

Tipping policies will require consultation and three-yearly review

Acas expects the new duties by the end of 2026. Employers must prepare to consult on policies and disclose anonymised feedback, with the review timetable counting from when a policy was first shared.

By Taxxa AI Oy · Published 25 August 2026

Payroll & Labour

Employers will have to consult workers or their representatives on tipping policiesAcas and review those policies at least every three years under the Employment Rights Act 2025Acas. Acas says the changes have not yet taken effectAcas and will come into force by the end of 2026Acas, making this a preparation issue for employers handling qualifying tips and service charges.

The statutory wording requires consultation before producing the first version of a written policy for a place of business.Legislation Employers must consult representatives of a recognised independent trade union representing workers likely to be affected, or representatives appointed or elected by those workers with authority to be informed and consulted on their behalf.Legislation If there are no such representatives, the employer must consult the workers likely to be affected directly.Legislation

The new section 27I(3C) expressly requires an employer to consult the representatives or workers described above as part of every review of the written policy.Legislation The first review must take place within three years beginning with the first day the first version of the policy was made available.Legislation The legislation expressly includes a first publication date that falls before the new subsection comes into force.Legislation Subsequent reviews must be completed no more than three years after the previous reviewLegislation, so employers should retain the original policy date as well as their review history.

After a required consultation, the employer must make an anonymised summary of the views expressed available to all its workers at the place of business.Legislation That statutory audience is broader than simply those who responded to the consultation.Legislation

Acas summarises the forthcoming change as a requirement to update the policy at least every three years.Acas The Act's precise requirement is to review it, with consultation on every reviewLegislation; it does not say that every review must result in an amendment.Legislation Employers should build a consultation and review process around that distinction.

The existing written-policy duty applies where qualifying tips, gratuities and service charges are paid at, or attributable to, a place of business on more than an occasional and exceptional basis.Legislation The policy must explain whether tips are required or encouragedLegislation and how qualifying amounts are dealt with, including their allocation between workersLegislation. Employers must make the policy, and any amended version, available to all their workers at that place of business.Legislation

The legal basis is section 14 of the Employment Rights Act 2025, amending section 27I of the Employment Rights Act 1996.Legislation

Record when each tipping policy was first made available and prepare consultation, three-yearly review and anonymised feedback arrangements for the forthcoming duties.

Sources

  1. What the law says
  2. Employment Rights Act 2025
  3. Employment Rights Act 2025
  4. Employment Rights Act 1996

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