In a word – yes.
It is a strict legal requirement for employers to pass on tips to employees and workers under the Employment (Allocation of Tips) Act 2023. Under UK tipping laws, businesses must maintain a fair and transparent tipping structure for their workplace.
If you work a shift for an Indeed Flex client and customers leave tips, gratuities, or service charges that the client controls, you are entitled to receive a fair allocation of those tips in accordance with the client's written tipping arrangements.
Ultimately, the client determines the exact breakdown based on their individual tipping policy (which may factor in considerations such as hours worked, role, or department). You have the right to access the client's written tipping policy. If you have questions about how it applies to your shift, you can speak to the client or your shift supervisor.
How does it work and what are my rights?
Clients are required to keep detailed records of all tips received and their distribution for three years. As a worker, you have the right to request a statement of your tipping history from the client no more than once every three months.
In line with statutory regulations, clients must ensure their tipping policies are periodically reviewed and remain accessible to the affected workforce. Indeed Flex acts strictly as a payment facilitator. Once the client, or where applicable the independent Troncmaster, provides your final tip allocation to us, we ensure it is processed through payroll.
How are tips calculated?
Indeed Flex does not determine how tips are allocated. The final amount payable to each worker is calculated by the client in accordance with its written tipping policy or, where the client operates an independent Tronc, by the independent Troncmaster.
Once the final amount has been provided to Indeed Flex, we process the payment through payroll. If you have any questions about how your tip was calculated, you should speak to the client or, where applicable, the independent Troncmaster.
When will I be paid my tips and how will I receive them?
By law, the client must allocate and pay your tips to Indeed Flex no later than the end of the month following the month the customer left the tip. Once Indeed Flex receives those funds, we are required to pass them to you by the end of the following month. However, we always aim to process your tips via our nearest weekly payroll cycle as soon as the client releases the funds.
Example Timeline:
October 3rd: A customer leaves a tip during your shift.
November 30th: The client’s deadline to calculate and transfer that tip to Indeed Flex.
December 31st: The absolute deadline for you to receive it from Indeed Flex.
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 passed to you via payroll are treated as earnings, and so are subject to standard Income Tax and National Insurance deductions.Tips that are given directly to you by a customer, without being controlled or influenced by the client, are not covered by the Employment (Allocation of Tips) Act 2023. You remain responsible for declaring any tax due on those tips to HMRC. HMRC may change your tax code, if necessary, and then your employer will deduct any tax you owe on your tips, when you get paid.