Section 27W — Restrictions on contracting out of this Part

(1) [F1 A prohibited reimbursement provision in an agreement between an employer and a worker (whether in a contract of employment or not) is void.]

(2) [F1 A provision in an agreement is a “reimbursement provision” if it purports—]

(a) [F1 to require the worker to make a payment to the employer, or]

(b) [F1 to reduce any part of the wages payable to the worker by the employer.]

(3) [F1 A reimbursement provision is “prohibited” if there is a relationship between—]

(a) [F1 the payment or reduction, or the amount of the payment or reduction, under the reimbursement provision, and]

(b) [F1 either—]

(i) [F1 the worker being allocated qualifying tips, gratuities and service charges, or]

(ii) [F1 the worker receiving worker-received tips that are not qualifying tips, gratuities and service charges.]

(4) [F1 The circumstances in which there is a relationship of the kind mentioned in subsection (3) include circumstances where—]

(a) [F1 the possibility of the worker being allocated qualifying tips, gratuities and service charges,]

(b) [F1 the amount of qualifying tips, gratuities and service charges to be allocated to the worker,]

(c) [F1 the possibility of the worker receiving worker-received tips that are not qualifying tips, gratuities and service charges, or]

(d) [F1 the amount of worker-received tips that are not qualifying tips, gratuities and service charges to be received by the worker,]

[F1 is wholly or partly dependent on the reimbursement provision having been agreed.]

(5) [F1 This section is without prejudice to section 203 (restrictions on contracting out).]

Amendment notes

1. F1 Ss. 27U-27Y and cross-heading 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. 10, 14(2); S.I. 2023/876, reg. 3(c); S.I. 2024/829, reg. 3(j)