PART 1: DATES, DEFINITIONS AND OBLIGATIONS
A single reference in the contract to the participation in a Tronc does not make payments contractual. Where a Troncmaster totally controls the allocation of tips but the employer pays them, then PAYE on them is operated by the Troncmaster. Where the employer has a role in deciding the allocation of the tips, perhaps sets the distribution formula, then PAYE on them must be operated by the employer. Tips given to employees directly by the customer, through a Tronc or paid by an employer through the payroll do not count towards National Minimum Wage. The law was changed to enforce this from October 2009. In August 2015, BIS (now BEIS) issued a call for evidence (a precursor to a full public consultation exercise) on the use of tips and service charges. The consultation was issued in 2016 but transferred to the responsibility of BEIS. At the time of publication there continues to be no response to the exercise with the gov.uk website continuing to state “We are analysing your feedback”. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS The Queen’s speech at the state opening of parliament on 14 October 2019, however, indicated that one of the major bills to be put to parliament in the current period is the Employment (Allocation of Tips) Bill. However, since then the Bill has not progressed in Parliament and remains in the commons library to this day. HOLIDAYS – STATUTORY ANNUAL ENTITLEMENT All employees (and workers including agency workers) are entitled to a statutory minimum paid holiday entitlement. Self-employed workers have no such entitlement. Prior to the 1st October 2007, the minimum annual leave entitlement required by the EU Working Time Directive was 20 days, which could include bank and public holidays. At that time entitlement was pro-rated to a five-day working week (6 day workers receiving 24 days). Following consultation the Government increased the minimum entitlement to 24 days from the 1st October 2007, at the same time capping the minimum entitlement irrespective of the number of days in the employee’s working week. There are 8 public holidays per year in England and Wales (10 in Northern Ireland, and 9 in Scotland). However, the annual holiday entitlement is capped at 28 days (5.6 weeks) throughout the United Kingdom. The public holidays are not an additional right and they may be included in the annual minimum entitlement (8 public holidays + 20 additional days annual leave = 28 days minimum from 1st April 2009).
Statutory Annual Minimum Holiday Entitlement No printing, copying or reproduction permitted. Weeks p.a. Days p.a. 4.0 20 4.8 24 5.6 28
The necessary amendments are contained in The Working Time (Amendment) Regulations 2007.
Date from
Pre October 2007
01/10/2007
01/04/2009
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