blogs > Tips and Troncs

When you leave a tip at a restaurant or hotel, do you know where that money actually goes? Many places use a tronc scheme or “tip pooling” to share tips among all staff. While sharing sounds fair, these systems often...

Running a tronc scheme (a system for pooling and distributing tips among staff) seems straightforward, but mismanaging it can lead to legal issues, employee dissatisfaction, reputational damage and unwanted attention from HMRC. Here’s a comprehensive guide on pitfalls to avoid....

Unlike countries such as the United States, where tipping culture is deeply embedded in the wage structure, the UK takes a different approach. This has evolved considerably in recent years, particularly with the introduction of the 2023 Employment (Allocation of...

Running a tronc scheme in your hospitality business brings many benefits. But the success of your tronc often comes down to one key person – your Troncmaster. It is so much more than a fancy title; the role comes with...

In our latest blog, we answer some of the common questions asked of us by employees in the hospitality industry regarding tips received by businesses on behalf of employees and the implications of the new Allocation of Tips Act. If...

Tips are a big deal in restaurants and hotels. Staff count on them, and owners need to handle them properly. Plus, the Employment (Allocation of Tips) Act 2023 sets down regulations and rules about how tips can be distributed. Although...

The Employment (Allocation of Tips) Act 2023 now in place, not only addresses how employers must proceed and process tips received from customers for employees but also includes specific reference to agency workers engaged within hospitality. This has proved to...

What we know (and importantly, what no one knows yet!) The Government issued the Code of Practice (CoP) to accompany the Employment (Allocation of Tips) legislation on 29 July 2024. The legislation set out the intention of the law, the...

Why do you need a tronc scheme? Tips, service charges, gratuities, call them what you will, they are an established part of the hospitality sector and a much-needed source of income for hospitality workers. When tips were given in cash,...