Section 27I: Written policy

Employment Rights Act 1996 · 1996 c. 18View on legislation.gov.uk

Part 2B: TIPS, GRATUITIES AND SERVICE CHARGES

Where qualifying tips, gratuities and service charges are paid at, or are otherwise attributable to, a place of business of an employer on more than an occasional and exceptional basis, the employer must have a written policy on dealing with qualifying tips, gratuities and service charges for the place of business.

A written policy for a place of business must include the following information—

whether the employer requires or encourages customers to pay tips, gratuities and service charges at the place of business;
how the employer ensures that all qualifying tips, gratuities and service charges paid at, or otherwise attributable to, the place of business are dealt with in accordance with this Part, including how the employer allocates qualifying tips, gratuities and service charges between workers at the place of business.

Where an employer is required by this section to have a written policy for a place of business, the employer must make the written policy available to all workers of the employer at the place of business.

Subsection (5) applies in a case where—

an employer is not required by this section to have a written policy for a place of business, but
the employer would be required by this section to have such a written policy if worker-received tips paid at, or otherwise attributable to, the place of business were qualifying tips, gratuities and service charges.

In that case, the employer must make the following information available to all workers of the employer at the place of business—

the fact that the employer is not required by this section to have a written policy for the place of business, and
the reasons why the employer is not required by this section to have such a written policy.

Where—

an employer makes a written policy available to workers at a place of business under this section, and
the employer subsequently amends that policy,

the employer must make the amended version of the policy available to all workers of the employer at the place of business.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.