A top recruitment expert has warned restaurant and pub owners to "stay one step ahead" of law changes in the coming weeks.

The alert comes ahead of the Government's new Employment (Allocation of Tips) Act, which will come into force on Tuesday, October 1.

Referred to as the 'Tipping Act', the new legislation is about to initiate a significant shift in the hospitality sector as it ushers in a new Code of Practice.

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The legislation, which will ensure the fair distribution of tips and service charges, will impact over two million workers.

The act will see businesses have to pay tips at the end of each month, produce written policies, keep records of payments and disclose how tips have been allocated.

If breaches occur, hospitality workers can demand an explanation.

Michelle O’Connor, a director at Worcester-based firm Pineapple Recruitment, said: "There are many pubs, hotels and restaurants across Worcestershire unprepared for the changes to how they manage tips from Tuesday, October 1.

“But more importantly, it’s great news for workers as the allocation of tips will be more closely monitored and distributed transparently, meaning a new system of fairness across the board.

"It’s good news from that perspective, but there are many businesses across the county who simply aren’t prepared for the change.

She added: “There are complex details and processes they must prepare for in the coming weeks to ensure they are compliant with the legislation, even around record keeping and producing a clear policy on how tips are being managed."

Ms O'Connor said: "If employers in the hospitality sector don't stay one step ahead, then the consequences of any breach through a complaint can be wide-ranging, especially as tribunals will be given new powers to compensate workers for up to £5,000 for a proven breach.

"That’s money many pubs, hotels and restaurants don’t have to throw away, so they must get ahead now, take the right advice, and prepare for a new way of working which really will change the landscape."

For more information about the changes, the team at Pineapple Recruitment can be contacted through www.pineapple-recruitment.co.uk.