Automated profit & loss insights with AI cleverly layered in to help you run your business more efficiently.
Discover how AI-driven insights are transforming the way hospitality businesses optimise food and labour costs, streamline operations, and power smarter decision-making for the future.
From forecasting and workforce planning to real-time financial reporting, next-generation platforms are reshaping how leaders view their business performance. With automation handling routine processes, managers and finance teams can focus on strategy, growth, and creating better guest experiences.
Opsyte bridges the gap between finance and operations by centralising data, helping hospitality businesses work more efficiently, forecast with confidence, and respond to challenges or opportunities with speed and accuracy.
By combining automation with real-time insights, Opsyte empowers managers to optimise labour, control costs, and unlock growth potential across single sites, franchises, or multi-site groups — all in one connected platform.
Stay informed with industry news, tips, and practical guides for hospitality professionals.
New legislation is being passed through parliament that will force employers to distribute all tips and service charges in a huge and welcome change for hospitality staff. The bill has won backing from MPs as the recent private member's Bill on tips was submitted by Conservative MP Dean Russell.
The legislation is relatively complex, but we have summarised our thoughts below. You can view the Employment (Allocation of Tips) Bill directly here.
- All tips and service charges paid by customers must be paid out to workers
- Workers will include agency workers
- Tips and service charges received in a venue must be paid out to workers in the same venue
- An employee will have the right to see the employer's records detailing how tips and service charges are distributed
There is certainly a lot more to the bill, but as it is still going through Parliament, it is subject to change. We are still waiting on news regarding when the Employment (Allocation of Tips) Bill will be passed, as until it is things remain the same.
We have been working closely with Peter Davies, expert at all things Tronc and Managing Director of WMT Troncmaster Services Ltd.
Allocating tips and service charges to staff
All (100%) of the value of tips and service charges paid by customers with the exception of any tax or NI deductions must be paid out to staff. There is an additional comment to this, namely that the tips and service charge must be paid to workers by the end of the month following the month in which they were paid. So, for a tip or service charge paid on 15th August, this must be paid to staff no later than 30th September.
Multi site - cross site tips and service charges
Tips and service charge paid by customers in one site may not be used to pay staff in another site. The tip and service charge must be paid to those employees who have worked in the site that received the tip or service charge. However, it may be possible to distribute some funds to a central, non customer facing site (i.e. a dark kitchen or a head office) but this needs more detail.
Fair and transparent allocations
The new proposed legislation requires tips and service charge to be distributed 'fairly and transparently' to employees. A tronc system does NOT have to be in place for this to be fair, but if an employer contractually agrees to pay out specific amounts of tips or service charge to employees then National Insurance Contributions will be due. Where an independent and fair tronc is used, this satisfies the criteria for NI exemption. Employees additionally will have the right to ask and see that the employer has distributed 100% of the service charge and tip received. The employer cannot take or deduct any sums from the paid by customers aside from relevant taxes and NI contributions where applicable.
Agency staff
The Employment (Allocation of Tips) Bill also goes as far as declaring that agency workers must receive a fair share of tips. Effectively, Agency workers should not be penalised by being classed as agency staff, and should therefore be treated the same with tronc and tips as other employees.
We are watching this Employment (Allocation of Tips) Bill very closely and will update you on further news as it becomes available. As with anything that is being passed through parliament, the above may be subject to change!
Speak with an Opsyte expert to see how we help:
“Opsyte transformed our entire back office. Game changer.”
Unlocking Efficiency with Catering Management Software in the UK Hospitality IndustryWith the evolving digital landscape, the UK hospitality industry is turning towards smart solutions for the betterment of their businesses.…...
Decoding the Top QSR Restaurants in UK's Hospitality SectorThe UK hospitality sector has seen a significant boom in the QSR Industry over the recent years. With an array of Top…...
Unlocking Restaurant Success with Effective Restaurant Management ReportsIn the dynamic landscape of the UK hospitality industry, efficiency in restaurant management has become a key determinant of success. A critical tool…...
Understanding the Average Restaurant Profit Margin in the UK Hospitality IndustryIntroductionIn the bustling world of the hospitality industry, a key factor that drives the success of a restaurant business lies…...
Busy UK operators are stretched thin, so choosing the right Hospitality Staff Management Tools can free hours each week and bring labour costs under control. Industry experience shows hospitality setups…...
Empowering Your Business with Catering Software: A New Wave in UK HospitalityThe hospitality industry is ever-evolving, constantly embracing innovative technology to enhance customer experiences. A significant part of this industry,…...