Tips & Tronc · Included on every plan

Service charge and tips, split your way — 100% to workers, every time

Configure how service charge and tips are distributed — evenly, weighted by position, weighted by hours, or however your tronc policy defines it. Every penny reaches workers; FlexiWork isn't built to let any of it sit with the business.

Free 14-day trial · No credit card needed

Manual tronc calculations in a spreadsheet are already a common source of error — and with ERA 2025 adding new consultation and record-keeping duties around tipping policy, the bar for showing your working just got higher.

What's actually changed, and what hasn't

The 100% rule isn't new — it's already settled

Since October 2024, under the Employment (Allocation of Tips) Act 2023, employers have had to pass on the full amount of tips, gratuities and service charges to workers, with no retention permitted beyond tax. That's not a 2026 change — it's been the law for nearly two years. If you've heard "employers can no longer keep any of the tips," that's accurate, but it's already in force, not something ERA 2025 introduces.

What ERA 2025 adds, expected from October 2026

What is changing is the process behind the policy. Employers will be required to consult with workers or their representatives — often through a tronc council — before creating or reviewing a tipping policy, repeat that consultation at least every three years, and publish an anonymised summary of the feedback received. Tribunal time limits for tipping-related claims are also expected to double from three to six months. The exact commencement date isn't confirmed yet, but October 2026 is the government's current expectation.

Where FlexiWork fits, and where it doesn't

FlexiWork handles the distribution mechanics — you configure the split, and it calculates who gets what and feeds it straight into wages. The consultation process itself, and appointing or maintaining an independent troncmaster, is a decision your business makes outside the software. What FlexiWork gives you is a clear, dated record of what was distributed and to whom — useful evidence if you're ever asked to demonstrate how tips were allocated.

What comes with service charge & tips distribution

Distribution

Configurable Split Rules

Evenly across everyone on shift, weighted by position, weighted by hours worked — or whatever formula your tronc policy defines. You set it once, it applies automatically.

Compliance

100% to Workers, No Retention

Built around the rule that's applied since October 2024 — service charge and tips reach workers in full, with nothing sitting with the business.

Wages

Feeds Straight into Wages

Each worker's share is calculated automatically and appears in their wage report — nothing to re-enter, nothing to reconcile separately.

Set the split once. Distribution runs itself.

1

Define Your Distribution Rules

Equal split, weighted by position, weighted by hours — whatever your tronc policy sets, configured once.

2

Service Charge Is Calculated Automatically

Every worker's share is worked out against those rules, period by period, with no manual spreadsheet involved.

3

It Lands in the Wage Report

Each worker's distributed share shows up alongside their hours and pay — one record, not two systems to reconcile.

Most rota software has no tronc distribution logic at all — it's handled in a separate spreadsheet, disconnected from wages. FlexiWork calculates the split and the wage together.

Questions, answered

Can employers keep any portion of service charge or tips?
No. Since October 2024, under the Employment (Allocation of Tips) Act 2023, employers must pass on 100% of tips, gratuities and service charges to workers, with no retention beyond tax. This has been settled law since 2024, not a new 2026 change, and FlexiWork's distribution engine is built around that requirement by default.
How can service charge be split between workers?
It's configurable: evenly across everyone on shift, weighted by position (front of house versus kitchen, for example), weighted by hours worked, or whatever formula your tronc policy sets.
What's actually changing under ERA 2025?
A new duty to consult workers or their representatives before creating or reviewing a tipping policy, repeated at least every three years, plus a published anonymised summary of that consultation — expected from October 2026, though the exact commencement date hasn't been confirmed. It changes how the policy is set, not how much workers receive.
Does FlexiWork manage the required worker consultation?
No — that consultation process, often run through a tronc council or an independent troncmaster, sits outside the software. FlexiWork calculates and records the distribution itself, giving you a clear, dated record if you're ever asked to show your working.

Stop reconciling tronc in a separate spreadsheet

Start free for 14 days. Set your distribution rules once — service charge and wages are calculated together from then on.

Start Free — 14 Days