Section 27W Employment Rights Act 1996

Section 27W of the Employment Rights Act 1996 is about Restrictions on contracting out of this Part. It provides as follows:

(1)A prohibited reimbursement provision in an agreement between an employer and a worker (whether in a contract of employment or not) is void.

(2)A provision in an agreement is a “reimbursement provision” if it purports—

(a)to require the worker to make a payment to the employer, or

(b)to reduce any part of the wages payable to the worker by the employer.

(3)A reimbursement provision is “prohibited” if there is a relationship between—

(a)the payment or reduction, or the amount of the payment or reduction, under the reimbursement provision, and

(b)either—

(i)the worker being allocated qualifying tips, gratuities and service charges, or

(ii)the worker receiving worker-received tips that are not qualifying tips, gratuities and service charges.

(4)The circumstances in which there is a relationship of the kind mentioned in subsection (3) include circumstances where—

(a)the possibility of the worker being allocated qualifying tips, gratuities and service charges,

(b)the amount of qualifying tips, gratuities and service charges to be allocated to the worker,

(c)the possibility of the worker receiving worker-received tips that are not qualifying tips, gratuities and service charges, or

(d)the amount of worker-received tips that are not qualifying tips, gratuities and service charges to be received by the worker,

is wholly or partly dependent on the reimbursement provision having been agreed.

(5)This section is without prejudice to section 203 (restrictions on contracting out).

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Source: legislation.gov.uk
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