Requirement to deal with tips, gratuities and service charges Section 11: Wages
Section 11 paragraph (a) modifies the usual operation of section 13 of the Employment Rights Act 1996 (right not to suffer unauthorised deductions) in respect of the amount of qualifying tips that have been allocated by an employer to a worker.
	Section 13 provides that an employer cannot make deductions from wages of a worker unless: (a) the deduction is required or authorised by virtue of a statutory provision or a relevant provision of the worker’s contract; or (b) the worker has previously signified in writing his agreement or consent to the making of the deduction.
	For the purposes of qualifying tips allocated to a worker by an employer, section 11 paragraph (a) omits ‘or a relevant provision of the worker’s contract’ in paragraph (a) of section 13 and omits the entirety of paragraph (b) of section 13. The effect of this is that the worker cannot contract out of, or consent to qualify, their right to receive tips that they have been allocated by the employer.
	Section 11 paragraph (b) modifies the definition of ‘wages’ under section 27 of the Employment Rights Act 1996 to make clear that ‘wages’ includes any amount of qualifying tips allocated to the worker under this legislation.