In a word – yes.
It is now a legal requirement for employers to pass on tips to employees and workers under the Employment (Allocation of Tips) Act 2023, which came into force on 1st October 2024. You can read an official outline of the act here.
If you work for an employer (a client of Indeed Flex) and they receive tips on your behalf (or you receive tips but they’re controlled by the employer), during your shift, you’re entitled to receive a portion of those tips, based on the number of hours worked, level of seniority, and your performance on the day/night.
Ultimately, the client will determine what you receive, based on their individual tips policy. You are well within your rights to enquire about their tips policy, and can speak to your shift supervisor directly about it.
How does it work?
In terms of how the process works, employers are required to keep detailed records of all tips received and their distribution among workers. Workers have the right to request access to these records. Indeed Flex will then request the payment of tips to you, and facilitate the process of getting those funds into your account.
When will I be paid my tips and how will I receive them?
Employers then have one month in which to share tips with Indeed Flex and Indeed Flex will process those tips within one week of receiving them. As an example, tips received on 3rd October, must be reported to Flex by 3rd November, so you’d receive them on 8th November.
All tips will be paid via payroll and will show as ‘Tips’ on your payslip.
How will this affect the amount of tax I pay?
Don’t forget: tips, like your wages, are subject to tax and NI deductions.
Tips given to you directly do not fall under this law, above, but, assuming you keep them, you must report them to HM Revenue and Customs (HMRC) yourself. You can either do this by filling in a Self Assessment tax return or by calling HMRC directly.
HMRC may change your tax code, if needed, then your employer will deduct any tax you owe on your tips, when you get paid.