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Disclaimer: This is not legal advice. Legislation and case law change. Always consult a qualified solicitor for your specific situation.

UK Law Reference
All sections of Employment Rights Act 1996
1996 c. 18, s.27D

Section 27D — How tips etc must be dealt with

Extent: E+W+S

This version in force from 2024-10-01

Snapshot: 2026-08-24

Reproduced from legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). Amendments made after 2026-08-24 may not be reflected — always check the official text .

(1) [F1 An employer must ensure that the total amount of the qualifying tips, gratuities and service charges paid at, or otherwise attributable to, a place of business of the employer is allocated fairly between workers of the employer at that place of business.]

(2) [F1 Where a worker is allocated an amount of employer-received tips in accordance with subsection (1), that amount is payable to the worker by the employer.]

(3) [F1 In determining what would be a fair allocation of qualifying tips, gratuities and service charges under this section or section 27E (non-public places of business), regard must be had to the relevant provisions of any code of practice issued under this Part.]

(4) [F1 See also sections 27E (non-public places of business) and 27F (independent troncs).]

Amendment notes

  1. F1 Ss. 27D, 27E inserted (E.W.S.) (31.7.2023 for specified purposes, 1.10.2024 in so far as not already in force) by Employment (Allocation of Tips) Act 2023 (c. 13), ss. 2, 14(2); S.I. 2023/876, reg. 3(a); S.I. 2024/829, reg. 3(b)