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Troia Restaurants Tronc Arrangement

Rules regarding operation by the troncmaster

June 2024
Troia Restaurants Tronc Arrangement (‘TRTA’)

1. The TRTA is a special pay arrangement used to distributes tips, gratuities and service charges.

2. The TRTA will commence from June 2024.

3. These rules supersede any previous rules issued before this date in relation to any previous tronc
arrangement that was in place prior to the commencement of the TRTA and set out how the TRTA
troncmaster will operate the TRTA. These rules will be made available to all TRTA tronc members.

TRTA tronc funds

4. The TRTA tronc funds solely represent “employer-received tips”, as defined by the Employment
(Allocations of Tips) Act 2023¸ namely an amount paid (either spontaneously or purely discretionary with
no obligation to pay) by a customer of the Employer by way of a tip, gratuity or service charge (however
described) and received upon payment by the Employer.

5. The Employer has sole responsibility for permitting/encouraging and setting the amounts, percentages
and processes of any employer-received tips paid (either spontaneously or purely discretionary with no
obligation to pay) by customers of the Employer and received upon payment by the Employer.

6. The TRTA tronc funds do not include any “worker-received tips”, as defined by the Employment
(Allocations of Tips) Act 2023. Worker-received tips are an amount paid by a customer of the Employer by
way of a tip, gratuity or service charge (however described), which is received upon its payment by a
worker of the Employer, not the Employer.

7. The Employer will ensure that the total amount of “qualifying tips, gratuities and service charges”, as
defined by the Employment (Allocations of Tips) Act 2023 will be made available to the TRTA troncmaster
for allocation. These represent employer-received tips together with any worked-received tips that are
subject to Employer control.

8. The Employer will ensure all qualifying tips, gratuities and service charges must be made available to the
TRTA troncmaster for allocation no later than the end of the month following the month the qualifying
tips, gratuities and service charges was paid by customers of the Employer.

9. The Employer accepts that the total amount of qualifying tips, gratuities and service charges means the
actual amount paid by customers of the Employer (and accordingly any deductions from the amount paid,
whether deducted by the Employer or any other person, are to be disregarded when determining the
amount paid by said customers).

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10. The Employer will not be involved in determining the allocations of the TRTA tronc funds, namely
indirectly or indirectly deciding who is to be the recipient of the TRTA tronc funds and how much each
TRTA tronc member should receive. The TRTA troncmaster will operate without any interference or
element of compulsion from the Employer. The Employer will play no part, directly or indirectly in any
allocation of the TRTA tronc funds.

11. The Employer will not establish nor control a system that performs the allocations in such a way that the
allocations can reasonably be said to reflect and give effect to the Employer’s wishes.

The Employer

12. The Employer is Troia (UK) Restaurants Ltd.

TRTA troncmaster

13. The appointment and removal of the TRTA troncmaster can only be decided by the Employer. Regarding
removal, this process must follow the disengagement terms of any agreed engagement letter and
accompanying terms of business in place.

14. The Employer has appointed Buzzacott Troncmaster Services Limited (‘BTSL’) to act as troncmaster and
the Employer will adhere to BTSL’s terms stated in its agreed engagement letter and accompanying terms
of business. The Employer believes it is fair to make this arrangement, as defined by the Employment
(Allocations of Tips) Act 2023 and any Code of Practice issued by the Secretary of State under this Act.

15. For the avoidance of any doubt, BTSL is not the Employer nor a business partner or an official (for
example, a company director) of the Employer.

16. BTSL is an “independent tronc operator”, as defined by the Employment (Allocations of Tips) Act 2023,
operating independently of the Employer.

TRTA tronc member

17. Qualifying tips, gratuities and service charges can be allocated to workers of the Employer at that place of
business and “eligible agency workers”, as defined by the Employment (Allocations of Tips) Act 2023.

18. The TRTA troncmaster will advise a TRTA tronc member of their membership in writing.

19. Membership of the TRTA will end on the earliest of a member ceasing employment with the Employer.

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20. Any TRTA tronc member in receipt of worked-received tips (for example, cash tips) accepts their
responsibility of keeping their own record of worked-received tips and declaring these to HM Revenue &
Customs (‘HMRC’) on an annual basis.

21. The meaning of employment income for both tax credits and universal credits broadly follows
employment income for tax purposes. As such, tips (whether through service charge or cash gratuities)
may be counted as employment income, which would affect tax/universal credit entitlements.

Role of TRTA troncmaster

22. The TRTA principal troncmaster is Mark Taylor of BTSL. The TRTA primary troncmaster has deputies within
BTSL who assist with the day-to-day administration of the TRTA. The TRTA troncmaster may delegate the
day-to-day administration of the TRTA to a third party who will always act under instruction from the
TRTA troncmaster.

23. The TRTA troncmaster will operate the TRTA and allocate the TRTA tronc funds in accordance with the
requirements of both the Employment (Allocations of Tips) Act 2023 and HM Revenue & Customs
(‘HMRC’) E24 Guidance on tips, gratuities, service charges and troncs.

24. The TRTA troncmaster will ensure that the TRTA tronc funds are allocated fairly between TRTA tronc
members. In determining what would be a fair allocation regard will be had to the requirements of the
Employment (Allocations of Tips) Act 2023 and the relevant provisions of any Code of Practice issued by
the Secretary of State under this Act.

Tronc period

25. The tronc period is monthly and runs to coincide with the Employer’s payroll periods.

Awards of TRTA tronc funds

26. The TRTA troncmaster will advise the Employer monthly of the allocation value awards to TRTA tronc
members.

27. The TRTA troncmaster will confirm to the Employer that all allocation value awards have been fairly
allocated in accordance with the Employment (Allocations of Tips) Act 2023.

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28. The TRTA troncmaster will confirm to the Employer that the requirements of HMRC’s E24 Guidance on
tips, gratuities, service charges and troncs have been met and provide an accompanying Certificate of
Class 1 National Insurance contributions (“NICs”) Exemption. Through this certificate, the TRTA
troncmaster will confirm that condition 2 of Paragraph 5(3) of Part 10 of Schedule 3 to the Social Security
(Contributions) Regulations 2001 has been met and HMRC instruction NIM02922 is satisfied. Therefore,
the allocation value awards to TRTA tronc members can be disregarded from earnings and are not
subject to Class 1 NICs.

29. In accordance with HMRC’s E24 Guidance on tips, gratuities, service charges and troncs, the Employer is
responsible for operating PAYE on the allocation value awards given:

- BTSL is not the Employer, business partner or an official of Employer;

- BTSL decides the basis of the allocation value awards to each TRTA tronc member without any, direct
or indirect, interference or influence from the Employer;
- BTSL does not receive the qualifying tips, gratuities and service charges from the Employer’s
customer;
- BTSL does not handle, control or act as custodian of the qualifying tips, gratuities and service charges
from the Employer’s customer and/or allocation value awards at any point; and
- the Employer makes payment of the allocation value awards decided by the TRTA troncmaster to
each TRTA tronc member.

30. The allocation value awards to TRTA tronc members will be paid by the Employer by way of BACS
transfer, through the main payroll, together with their contractual salary. They will be paid net of Income
Tax but will not be subject to Class 1 NICs and will be shown as a separate item on the TRTA tronc
member’s payslip.

31. The TRTA tronc members should note that allocations of TRTA tronc funds do not form part of the
Terms and Conditions of their employment with the Employer. The TRTA is operated completely
independently from the Employer. Awards of TRTA tronc funds are discretionary and in addition to
TRTA tronc members basic contractual salary from the Employer.

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Contact Details

32. The TRTA tronc members can communicate with the TRTA troncmaster by email at
[email protected].

…………………………………………….

MARK TAYLOR

TRTA TRONCMASTER

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