Members' clubs collect gratuities through member accounts and house charges rather than at the table, and staff often serve the same members for years. That makes fairness both more visible and more sensitive — and it makes a documented, independently administered allocation essential.
Account-based gratuities: Gratuities billed to member accounts are received by the club, so the Tips Act applies in full and the money must be passed on without deduction.
Long-tenure teams: Length of service is a legitimate weighting factor, but it has to be written into the rules rather than applied informally.
Committee governance: House committees often want a say in allocation. Committee involvement can compromise the tronc's independence — the rules must sit with the troncmaster.
Typical allocation model: Role-weighted points per hour, with an optional documented long-service element.
Clubs distributing £150,000 a year of member gratuities typically save around £20,000 in employer NIC.
Can the house committee set the allocation? No — if the employer or its representatives set the allocation, the scheme loses the National Insurance treatment. The committee can be consulted; the troncmaster decides.
Can we reward long service through the tronc? Yes, if it is written into the rules and applied consistently. It must be a troncmaster rule, not a management instruction.
Do member gratuities count as qualifying tips? Gratuities received by the club on behalf of workers are within scope of the Tips Act and must be passed on in full.