Experts are reminding Hexham businesses in hospitality and service industries to comply with tipping legislation.
The Employment (Allocation of Tips) Act 2023 requires all tips, service charges, and gratuities to be given in full to staff without deductions.
Julie Gunnell, associate director of growth payroll at Azets, said: "This Act has now been law for a year and employers are obliged to discharge their responsibilities fairly and pass on 100 per cent of all tips to hard-working staff who earned then.
"If not, staff can hold bosses fully accountable by bringing a claim to an employment tribunal, and this could lead the minority of businesses who continue unacceptable tipping practices being made to pay fines or compensation."
The Act covers more than two million UK workers.
These include those in restaurants, bars, retail shops, taxi firms, hairdressers, and beauty parlours.
Employers are also required to maintain accurate records of all qualifying tips and how they are distributed, keeping this information for three years.
Looking ahead to next year, the Government has confirmed that measures to enhance current tips laws will come into effect from October 2026 if the Employment Rights Bill becomes law.
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