New legislation has come into force across the UK, ensuring more transparency around the distribution of tips in the UK. These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions, a landmark moment for those working in hospitality and other service industries.
A business spearheading a fairer tipping system is Irish founded, JUSTTIP™ , a cashless tipping solution that allows customers to tip employees directly without the need for cash. JUSTTIP™ provides a tipping platform that exists separately from each business with end-to-end transaction reports and complete transparency for employees and customers. The business has been leading the Irish solution since the same legislation was passed in 2022.
Founded by 22 year olds James Fahy and Ciara Walsh, JUSTTIP™ is currently being rolled out across Ireland and the UK. Offering a more flexible tipping solution, whilst bringing businesses in line with updated tipping legislation, JUSTTIP Flex allows customers to choose their tip amount in a separate transaction from paying the bill, thus increasing servers’ tips while separating them from the business’ income.
Ciara Walsh, Co-founder of JUSTTIP explained: “We understand that traditional tipping models can be inconvenient with manual cash distribution often leading to inaccuracies and delays for hardworking employees; or employees losing out on tips altogether as many customers no longer carry cash. We developed our Flex solution to modernise the tipping experience and create an environment where tips are paid easily, quickly and fairly, which in turn lends itself to a more gratifying experience for customers.”
With tipping legislation in the UK updated on October 1st, companies must now provide clear information to customers on how tips are shared among employees, promoting transparency and trust in the tipping process. Legislation also states that staff should receive a breakdown of electronic tips received and how they are distributed, and guarantees employees the right to receive their tip, protecting them from unfair distribution. All tips generated through JUSTTIP’s systems are collected and pooled and distributed weekly directly to the employees’ bank accounts bypassing the employer’s business completely.
For employers JUSTTIP removes the National Insurance liability paid by the business and eliminates archaic administrative burdens and the costs associated with tip distribution thanks to the easy to use employer portal to monitor tip collection. For employees, tips are paid directly to their bank account every Wednesday.
JUSTTIP Co-founder James Fahy added: “As the hospitality industry continues to embrace digital transformation, JUSTTIP remains committed to driving innovation and setting new standards for excellence. We guarantee regulatory compliance for businesses and equitable tip sharing for employees.”
JUSTTIP was founded in July 2021 by Ciara Walsh and James Fahy.
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