There are rules for gratuity

Hospitality businesses are being reminded to follow the Labour Law and Regulations when collecting and distributing gratuities to employees.

This comes from the Department of Labour and Pensions, which points out that hospitality employers can begin to check their compliance with the law by ensuring that their gratuity systems have been registered with, and approved by, the Department.

Also, any wages or gratuity payments earned by an employee must be given to the employee within one week of the making of payment. The employer also has an obligation to give employees precise statements in writing showing how payments were made.

Employers who collect gratuities must also display a notice for customers stating the rate of gratuity. Any service employer who fails to display a notice in a place where it may be easily seen by a customer is guilty of an offence and liable on conviction to a fine of $10,000.

Employers who have discontinued their gratuity service, or if they have switched from one distribution plan to another, the modifications must be approved by the Director of Labour of the impending changes.

Penalties also apply to the other sections presented here.

Employers who require assistance or guidance in these matters should contact the Department of Labour and Pensions which is now located on the 2nd floor of Mid Town Plaza on Elgin Avenue and is open to the public from 9am to 4pm Monday-Friday; telephone 945-8960, fax 945-8961, confidential hotline for labour and pensions complaints 945-3073.

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