Every week in our Money blog, we answer questions about your financial problems or consumer disputes. This week, a reader asked if their boss was allowed to take a cut of their tips.
Elliott asked: “Can my boss take a cut of the tips that are shared between the staff if the boss works the shift?”
We spoke to Caroline Walker, managing director at Cavendish Employment Law, to get her thoughts.
First, it’s not quite clear if the boss in question is the owner of the company or an employee themselves.
Caroline says if the manager is an employee and was part of service on a particular shift, it would be reasonable for the tips to be shared with them.
But she adds that if they took tips not related to their service, or against the specific policy of the business, there would be grounds to raise a formal grievance.
Caroline breaks down here what UK employment law says about this topic:
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“Under the Employment (Allocation of Tips) Act 2023 that came in on 1 October, employers have to pass on tips to workers. This legislation prevents employers from keeping any part of the tips for their costs and aims to ensure hospitality workers receive 100% of tips, gratuities and service charges,” she says.
“Prior to this legislation, employers could take 20-30% to cover their costs of the business, including tax, breakages or even staff parties. They also had no rules on when the payments had to be made or any obligation to be transparent over the calculation of the payments.”
Caroline describes the new legislation as a “welcome change”.
The legislation specifically says that, as of the start of October, the employer has to ensure:
100% of tips or service charges are paid to the employee;
No deductions at all are permitted for any reason;
Tips are distributed to workers/employees no later than the end of the month after it was paid;
Tips must only be distributed within the “same place of business” meaning they cannot be pooled and distributed between multiple locations;
Agency workers will also have the right to be allocated a share of the tips but this must be paid for by the agency they work for;
The employer must also provide a written record of the breakdown of the amount available, proof that tips are paid entirely to the workers/employees and assurance it is paid by the relevant date.
If the employer fails to provide these records, the workers can bring claims in the employment tribunal, Caroline says.
“If the reader believes the employer has previously failed to account for their tips, or particularly if they have failed to comply with these obligations since 1 October, they should submit a formal grievance to the employer setting out their concerns, which the employer will be obliged to investigate and respond to,” she says.
“If their response is either not forthcoming, or confirms they have breached these obligations, they will be able to present a claim in the employment tribunal.
“By submitting the formal grievance, the reader will be able to establish whether any tips have been retained and they can include a request for the written confirmation referred to above.
“It is possible, particularly if this is a small employer, that they may not be aware of their obligations and this will provide them with an opportunity to become aware of these obligations.”
This feature is not intended as financial advice – the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:
The captain of the Solong – the container ship involved in the crash in the North Sea – is a Russian national, the vessel’s owners has said.
The rest of the crew were Russian and Filipino nationals, according to shipping company Ernst Russ.
It comes after police said a man had been arrested on suspicion of gross negligence manslaughter in connection with Monday’s collision.
Humberside Police said a 59-year-old is in custody to allow enquiries to take place, and officers are talking to those involved to find out what happened.
The force added investigators have started a criminal probe into the cause of the collision between the Stena Immaculate and Solong off the coast of East Yorkshire on Monday, and are working with the Maritime and Coastguard Agency.
One person remains missing and is presumed dead.
The tanker was operating as part of the US government’s tanker security programme, a group of commercial vessels that can be contracted to carry fuel for the military when needed.
Ship tracking software showed the Stena Immaculate was stationary as the Solong sailed towards and into it.
This breaking news story is being updated and more details will be published shortly.
A man has been arrested on suspicion of gross negligence manslaughter in connection with the ship collision in the North Sea.
Humberside Police said the 59-year-old is in custody to allow enquiries to take place, and officers are talking to those involved to find out what happened.
The force added investigators have started a criminal probe into the cause of the collision between the Stena Immaculate and Solong off the coast of East Yorkshire on Monday, and are working with the Maritime and Coastguard Agency.
Ernst Russ, the owner of Solong, later confirmed the man detained was the ship’s captain. The shipping firm called him “the master of the ship” – which is understood to be the same as a captain.
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1:41
Map shows moment of collision in North Sea
Senior Investigating Officer, Detective Chief Superintendent Craig Nicholson, said: “Humberside Police have taken primacy for the investigation of any potential criminal offences which arise from the collision between the two vessels.
“Extensive work has already been carried out, and we are working closely with our partners to understand what happened, and to provide support to all of those affected.
“Following enquiries undertaken by my team, we have arrested a 59-year-old man on suspicion of gross negligence manslaughter in connection with the collision, this follows the conclusion of search operations by HM Coastguard for the missing crew member of the SOLONG.”
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4:21
North Sea: Sailor presumed dead
He added: “Our thoughts are with the family of the missing crew member, and I have appointed family liaison officers to make contact and provide support to the family.
“The man arrested remains in custody at this time whilst enquiries are under way, and we continue speaking with all those involved to establish the full circumstances of the incident.”
Ernst Russ added in a later statement that it could confirm the master of the Solong “has been detained by Humberside Police in the UK”.
“The master and our entire team are actively assisting with the investigations,” the shipping firm said.
“Out of respect for the investigation and all involved we will not comment further at this time.”
Image: HM Coastguard said in an update that the Solong is still alight
US tanker Stena Immaculate was anchored off the coast of East Yorkshire when the Solong crashed into it at around 9.45am on Monday.
Some 36 people were brought safely to the shore, but one person was reported missing from the cargo ship.
Image: At least one tank of Jet-A1 fuel onboard the Stena Immaculate was ruptured, its operator said
At around 11.20pm, the Solong started to drift southwards away from the crash site. HM Coastguard said in an update earlier on Tuesday that the ship is still alight.
Tugboats are in the vicinity to ensure it remains away from the coast
Transport Secretary Heidi Alexander said the container ship is expected to stay afloat, after a minister told parliament that it could sink earlier in the day.
She said she met with the Maritime and Coastguard Agency’s chief executive Virginia McVea, and was “pleased to have been informed that early indications suggest that both vessels are now expected to stay afloat”.
Ernst Russ also denied reports the vessel was carrying sodium cyanide and said: “There are four empty containers that have previously contained the hazardous chemical.
“These containers will continue to be monitored.”
Stena Immaculate was carrying 220,000 barrels of Jet-A1 fuel in 16 tanks, at least one of which was ruptured, its operator also said.
Triple killer Kyle Clifford has been handed a whole-life sentence for murdering his ex-girlfriend, her mother and her sister.
Warning: This article contains distressing details.
The sentence imposed by Mr Justice Bennathan means he will never be released.
The former soldier, 26, admitted murdering BBC racing commentator John Hunt’s wife Carol Hunt, 61, and their daughters Louise, 25, and Hannah, 28.
He also pleaded guilty to false imprisonment of his former partner Louise, as well as possession of the crossbow used to kill her and her sister, and the 10-inch butcher’s knife he stabbed their mother to death with.
Image: Louise Hunt
Pic: Facebook
Clifford denied raping Louise, who had broken up with him 13 days before the four-hour attack in the Hunt family home on 9 July last year.
But he was found guilty by a jury last week after a trial at Cambridge Crown Court, which he refused to attend, prompting police and prosecutors to brand him a “coward”.
The judge paid tribute “to the astonishing dignity and courage” of the victims’ family, including John Hunt and his surviving daughter Amy, who hugged after the sentence.
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1:33
Footage shows Clifford fleeing the Hunt family home
They, along with Hannah’s partner Alex Klein, had read emotional victim impact statements in court as Mr Hunt said hell would roll out the “red carpet” for him.
He said the evidence showed Clifford “to be a jealous man, soaked in self-pity – a man who holds women in utter contempt”.
The court heard Clifford, from Enfield, north London, began planning the murders after Louise ended their 18-month relationship in a message on 26 June.
Image: Carol Hunt pictured with her husband John Hunt.
Pic: Facebook
He tricked his way inside before stabbing her mother to death in what prosecutors said was a “brutal knife attack”, then lay in wait for an hour for Louise to enter the house.
Clifford held her for more than two hours, as he restrained her with duct tape and raped her, then shot her through the chest with a crossbow moments before her sister Hannah got home and was also killed.
He fled the scene and shot himself with the weapon as armed police descended and is now paralysed from the chest down.
Image: The recovered crossbow.
Pic: Hertfordshire Police
Image: The 10-inch butcher’s knife Clifford used was never found but police released an image of the packaging.
Pic: PA
The judge told Clifford, who didn’t attend his sentencing hearing, he went to the Hunt family home to launch “a murderous attack” on his ex-girlfriend’s family.
“You first killed her mother Carol, who even on that day showed you nothing but kindness in the moments before you attacked her,” he said.
“You raped and killed Louise who had been as gentle as she could in ending her relationship with you, after your arrogance and anger proved too much for her to stand.
“Then you murdered Hannah Hunt, who had done nothing to harm you save supporting her little sister.”
The jury wasn’t told Clifford had searched for Andrew Tate’s podcast less than 24 hours before the murders.
Prosecutor Alison Morgan KC said “it is no coincidence” he turned to the “poster boy for misogynists – a poster boy for those who view women as possession to be controlled” the night before committing such “acts of violence against women”.