New Guidelines for Tips and Gratuities in the Workplace

Written by on May 2, 2016 in Employment Law Blog
Ontario Ministry of Labour

Effective June 10, 2016, it will be illegal for employers to retain a portion of their employee’s tips and other gratuities, except under certain circumstances permitted under the Employment Standards Act, 2000 (ESA).

If incidents such as spillage, breakage, losses or damages occur, employers will be prohibited from making deductions or withholding tips or gratuities from their employees to cover the costs.

These amendments come as a result of Bill 12 Protecting Employees’ Tips Act, 2014, and apply to all employers and employees covered by the ESA in workplaces where tips and gratuities are received. For example, this will apply to employers and employees in bars, restaurants, hair and nail salons, catering firms, taxis, etc.

For more details, visit the Ontario Ministry of Labour.

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