An operator's guide to the revised code of practice on tipping

The Revised Code of Practice on Tipping

Katie Linstead, VP of compliance and operations, Grateful, discusses what’s actually changing, and what it means for tronc operators before the Code goes live by the end of 2026.

Why the Code is changing

This Code of Practice was previously laid before Parliament, but has been withdrawn so that a new public consultation can be held on its content. The DBT confirmed on 29/07 that they do not expect the substantive content in the revised Code of Practice to change.

On 19 August 2026 the government opened a second public consultation on the draft revised Code, run by the Department for Business, Innovation, Science and Trade. It closes at 11:59pm on 29 September 2026. The substantive content of the Code is not expected to change, so the guidance below still stands.

The sensible position is to prepare against the draft as written and adjust at the margins if the final version shifts.

The headline change: mandatory consultation

Consulting staff used to be encouraged but optional. Now it’s becoming mandatory.

You must consult workers at the place of business, aiming for broad agreement that allocation is fair, reasonable and clear. Required both when first developing a policy and at every subsequent review. Still advisory, not binding: you needn’t act on every suggestion, but you must evidence fairness and transparency.

Method matters: what genuine consultation means

Good faith. Considered, with real time for people to take part. Not a box-ticking exercise.

Not a simple vote. A majority vote is explicitly warned against; it can favour the largest group.

Reach everyone. Take reasonable steps to hear minority groups and quieter voices.

Remove barriers. Account for language, disability, culture, literacy and the nature of the role.

A three year cycle: make sure to include time for analysis

A hard requirement, not a recommendation. The clock runs whether or not anything has changed, so set a trigger before each three-year mark.

Break feedback down by site, role and seniority to test it is representative. If 70% of responses come from managers asking for a bigger share, that is not a mandate: either encourage more non-management voices, or document the skew as your reason for not acting.

New: the anonymised summary

Share the summary. After consulting, give all workers at the site an anonymised summary of the views expressed.

Keep the record. A reasonable written record of the process, the views raised and the outcome.

Two new artefacts. Reviews now generate a consultation record and a summary document for staff.

Enforcement: why keep them ready

Documentation used to be what you produced when something went wrong. Now it is what you keep on the shelf in case someone asks. Three parties can come looking.

HMRC. As has always been the case where a tronc scheme is in place, they may ask for records where a tronc scheme is in place, to check it is being operated correctly.

Employment tribunal. Since October 2024, may request all relevant data to reach a judgment in a case brought by a worker.

The Fair Work Agency. New. Can investigate without a tribunal case as the trigger. How that will work in practice is not yet clear, possibly similar to NMW regional focus.

“Fairness is judged on the scheme as a whole, not on isolated examples that look generous or ungenerous.” Draft Revised Code of Practice, 2026

The quiet shift: where you serve versus what you do

The test: do you personally interact with customers, or physically prepare, handle or serve what they receive at that specific site? If not, are you intrinsically involved in generating the hospitality or experience?

Biggest impact on multi-site and group operators. The Code gives a principle, not a postcode, so assess each model case by case.

Your preparation checklist

1. Respond to the consultation on the draft revised Code before it closes on 29 September 2026.

2. Update policy templates to describe the 2025 Act consultation process.

3. Build a documented consultation process and review cycle, beyond a single majority vote.

4. Put a process in place to produce and distribute the anonymised summary.

5. Track each policy's three-year review date so consultation isn't missed.

6. Reassess non-public facing roles and fixed rates in tronc, case by case.

7. Watch for the final Code to land and confirm nothing has shifted from the draft.

Access the full key insights from Grateful’s webinar, The Revised Tipping Code: What’s Actually Changing – A No-Nonsense Guide — click here.