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HR & EMPLOYMENT LAW Jackie Le Poidevin, Editor-in-Chief, HR Adviser |
Understand Your Duties as Tipping Laws are Overhauled
If you’re a hospitality company or other business in which customers tip staff, it’s important to take preparatory steps to comply with a new law which received Royal Assent on 2 May. We look at what you need to do and what the timescale is for meeting your obligations under the legislation.
What are the New Requirements?
The Employment (Allocation of Tips) Act 2023 started life as a private member’s bill and fulfils a pledge made by the government back in 2018 to ban businesses from withholding tips and service charges from their employees. With 80% of all tips now paid by card, there are concerns that some businesses aren’t passing these onto staff.
The Act amends the Employment Rights Act 1996 so that employers must:
- Pay all tips, gratuities and service charges to workers in full without deductions.
- Ensure arrangements to distribute tips to staff, either through the employer or an independent tronc operator, are fair.
- Pay tips by the end of the month after they were given. For example, if a tip was paid on 8 April, you must pass it on to the worker by 31 May.
- Keep records of how the business has dealt with tips. Employees will have the right to view this information and can bring an employment tribunal claim if you haven’t paid them their tips correctly.
- Have a written tipping policy.
- Ensure any workers engaged via an agency also receive their share of tips.
When Do the Changes Come into Force?
Although the Act has completed its passage through Parliament, the government is now working on a code of practice with UK Hospitality and other stakeholders which will explain how to distribute tips fairly to staff. There will then be a public consultation on this followed by secondary legislation to bring the provisions into effect. This means that the changes are only expected to come into force in 1 year’s time.
What Should We Do Now?
If your business currently retains tips or service charges, you should start to plan for the new rules. You may need to manage expectations or consider bringing forward changes to your policy, as staff may believe the law has already changed.
Even if you already pass tips onto staff, you may need to update your policy on distributing tips in time for the new legislation taking effect, consult team members on the changes and communicate the new policy clearly to them. You may also need to improve your record keeping – including deciding who will maintain these records – and ensure you pay tips to staff within the required timescale.
When the draft code of practice is issued, you should read this and respond to the consultation if you wish. This will give you a clearer idea of how the requirements will work. If you don’t already comply with the government’s voluntary Code of Best Practice on tips, you could familiarise yourself with this and the model tipping policy it contains. It’s likely the new code will build on these recommendations.
Do We have Any Other Duties when Managing Tips?
Yes. The law currently bans the use of tips, gratuities and service charges to make up national minimum wage (NMW) pay. You must pay at least the NMW, with any tips paid on top.
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HEALTH & SAFETY Michael Ellerby, Editorial Board Member, Health & Safety Adviser and Risk Assessment & Compliance |
10 Simple Measures to Help Prevent Workplace Injuries from Slips, Trips and Falls
Slips, trips and falls in the workplace can result in various injuries, some of which can be severe, such as sprains and strains, fractures and broken bones, head injuries, back and spinal injuries, cuts, bruises and abrasions, and soft tissue injuries. The severity of the injury can vary depending on the height of the fall, the angle of impact and the individual’s overall health. It’s crucial that employers prioritise safety measures to prevent these injuries from occurring.
However, while the injuries may be severe, the control measures are often quite simple. Preventing slips, trips and falls is crucial to maintaining safety in many environments such as workplaces, in the home and public spaces.
Follow these tips to help prevent slips, trips, and falls:
- Keep walkways clear: remove obstacles, clutter and debris from walkways, stairs and hallways. This includes items like loose cables, rugs or mats, or any other objects that could obstruct the path.
- Clean up spills promptly: any spills, whether on floors or stairs, should be cleaned up immediately. Use appropriate signage or barriers to indicate wet areas until they are completely dry. Make sure that the signage does not create its own tripping hazard and that it is removed when no longer required.
- Use suitable lighting: ensure that all areas are well-lit, both indoors and outdoors. Install adequate lighting in hallways, staircases, entryways and other high-traffic areas. Replace burnt-out bulbs promptly.
- Secure rugs and mats: use non-slip mats or rugs with anti-skid backings, or secure them with double-sided adhesive tape or rug grips to prevent them from moving and causing a trip hazard.
- Maintain the flooring: regularly inspect and maintain the flooring in your workplace. Repair any damaged or uneven flooring, loose floorboards or tiles to prevent trips and falls.
- Wear suitable footwear: require workers to wear shoes that provide good traction and support, especially in areas where the floors may be slippery.
- Use handrails: encourage workers and visitors to use the handrails on staircases for stability and support. Maintain the handrails in a secure and good condition.
- Be mindful of weather conditions: in outdoor environments, take extra precautions during adverse weather conditions. Clear ice and snow from walkways, use salt or sand for traction and be cautious when walking on wet or slippery surfaces. Also, be aware of the dangers from water that is tracked in (consider using suitable weather mats and implementing cleaning regimes).
- Educate and raise awareness: promote awareness about slips, trips, and falls in your workplace or community. Provide training on safe walking practices and the importance of maintaining a hazard-free environment.
- Encourage reporting and ensure timely response: encourage workers to report any potential hazards, spills, or maintenance issues promptly. Implement a system for reporting and addressing such concerns in a timely manner. Treat these messages as valuable, free opportunities to prevent injuries.
Remember, preventing slips, trips, and falls requires a combination of proactive measures, regular maintenance and the promotion of a positive safety culture. Appropriate consideration of these simple guidelines can help you to reduce the risk of accidents and injuries in your workplace in a highly cost-effective manner.
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PAYROLL Sarah Bradford, Editor-in-Chief, Pay & Benefits Adviser |
Get Ready to Meet these Upcoming HMRC Deadlines
After the end of a tax year, employers need to meet a number of reporting obligations and provide information to HMRC and to employers. There are some important deadlines coming up.
Give Employees their P60 by 31 May
As an employer, you must provide all employees who were on your payroll on 5 April 2023 with a P60 by 31 May 2023. This is a certificate of their pay and deductions for the 2022/23 tax year. The employee may need this information if they have to complete a tax return or if they need proof of their income.
The P60 shows pay and tax deducted from their employment with you during 2022/23 (and any previous employment that they had in the 2022/23 tax year) and the totals for the tax year. It also shows their earnings for National Insurance purposes and the Class 1 National Insurance paid and also details of any statutory payments, such as SMP or SSP, that they received. The amount deducted in respect of student and post graduate loans is also shown.
You will be able to generate your P60s from your payroll software package. You can give employees their P60 electronically or in paper format.
You do not need to give a P60 to any employees who left before 5 April 2023 – their pay and deduction information is shown on their P45.
Provide Details of Payrolled Benefits by 1 June
If you payrolled benefits in kind in the 2022/23 tax year, you will also need to provide employees with details of their payrolled benefits, including the taxable amount of the benefit, by 1 June 2023. You can do this by email, by letter or on the employee’s payslip.
Report Taxable Expenses and Benefits by 6 July
If you provided taxable expenses and benefits to employees in the 2022/23 tax year which you did not payroll, you will need to tell HMRC about them by filing a P11D for each employee to whom benefits have been provided. This must reach HMRC by 6 July 2023.
HMRC are not accepting paper P11D returns for 2022/23, which means that you must file your P11Ds online. If you have fewer than 500 to file, you can use HMRC’s PAYE Online service. Alternatively, you can use a commercial software package to file your P11Ds. Employers who have more than 500 P11Ds to file cannot use PAYE Online and must therefore use a commercial software package to submit their P11Ds.
You must also provide employees with a copy of their P11D or details of the information contained in the P11D (for example, in list format) by 6 July 2023.
File Your Class 1A NIC Return by 6 July
You also need to file your P11D(b) with HMRC by 6 July 2023, either using PAYE Online or commercial software, as appropriate. A P11D(b) must be filed if you provided employees with taxable benefits in 2022/23 even if you do not have any P11Ds to file all taxable benefits provided in the year were payrolled.
The P11D(b) serves two purposes – it is your declaration that all required P11Ds have been filed and also your Class 1A National Insurance return for 2022/23.