Some restaurant owners and managers take part in this: receiving a portion of the tips left by customers. This is, after all, a perfectly legal act in Ontario. A new bill, however, plans on making this illegal.
Introduced by Michael Prue from the New Democrat MPP, the bill makes amendments to the existing Employment Standards Act. In essence, it will ban owners and managers from taking a cut off waiters’ tips.
Currently, the act stipulates that servers could have 100% of their tips taken by their employer. Although the act regulates work hours and wages among other work conditions, it makes no mention of tips. If the bill is passed, the act will be amended to the effect that employers can no longer take any part of the tips.
According to Mr. Prue, “The bill is very simple. We are not opposed to what is called a bill sharing, but we are opposed to what is called a tip out. The manager expecting a portion of the tips is [a form] of blackmail.”
The bill is actually being introduced for a second time, after it died in the committee level.
Statistics Canada reports that an average couple spends around $1,850 on restaurants, with a 15% tipping rate. That means around $275 in annual gratuities—part of which goes to the restaurant owner.
According to Labour Minister Linda Jeffrey, she’s looking forward to the discussion of the issue. She said, “We care deeply about the workers and we want to make sure that employee rights are protected under the Employment Standards Act.”
An argument by the Ontario Restaurant, Hotel and Motel Association is that tips are matters that should be sorted out by employers and employees. There is nothing wrong with the existing model, which is efficient. After all, there’s little protest about it.
For restaurant owners in Ontario, do you think taking part of waiters’ tips should be made illegal? Are you willing to protect your right to part of the gratuities?
How do you report a resort that gives its staff NO tips? That keeps them for managment?
Hi Shelley. The laws are a bit different province to province, but your first call should be to the Ministry of Labour. If you are in Ontario, you may also want to call your local MPP. I’ll continue to monitor the comments we get on this. I have had a few discussions about it with servers I know and will pursue more data. I’ll keep you posted here. Best wishes, Karen
I work in a restaurant and i am forced to pay 4% of total net sales to the “house” and another 1.5% to the other staff memners.The owner says that he needs it because we brake glasses,etc.Is this legal to do in Ontario?thanks
Hi angrywaiter.
Unfortunately this is currently legal in Ontario, but legislation is being discussed that would make it illegal. If you want to contact your MPP (and have anyone you know who is sympathetic to the idea contact them too), you may be able to help move the idea along. We’ll keep an eye on the situation as well.
Best wishes,
Karen
Hi Karen,
Could you please tell me what is the status of this bill?
Thank you,
–
Patrick Ng
Hi Patrick.
I will check in with MPP Prue on this and post an update.
Thanks for asking.
Karen
Sad the ban never came to pass. It’s a rampant issue in much of Ontario. Where I worked, the boss figured out that the servers were hiding their tips as to avoid a large payout (which he pocketed) so he makes them pay a percentage of their GROSS SALES now. It’s deplorable! Most servers pay that thief about 100.00 weekly.
Taking a percentage of a server’s tips is legal in Ontario. Taking a percentage of his or her sales IS NOT, even if the server agreed to it upon hiring. (those cute “waiver my rights/new hire” forms
The problem, as I’ve encountered in meeting with local Mps and the Ministry of Labor, is that NOBODY in power seems to want to touch the issue. And if a server becomes a “rat” on the boss, there are a million and one ways to make her life miserable. This province truly makes me sad.
I have a friend in Toronto working as a waitress in an expensive restuarant. She’s paid minimum wage. In Canada a few years, she’s not familiar with our culture wrt tipping which where I live, Montreal, is dependent on the service but generally is 15%., and often 20%.
She works 7 hour shifts serving 30-50 customers a night and makes <$50 in tips.This represents <$ 2.per person in tips on the avge bill before taxes the 40-50$ range. The owner keeps all the tops and doles out piecemeal shares to the 2 servers. I estimate they rake in $500+ /night and pay the two servers $ 40-50 each.
The other night a customer returned a meal that cost $ 25, The owner was angry at the waitess, so to appease the owner, the server gave her a $ 20 bill.
My friend is afraid to complain because she is afraid to lose her job.
What is the status of this bill in Ontario? To whom should we complain?l
Hi All.
“Bill 49 – The Protecting Employee Tips Act” has got some traction and is making its way through the political system. There is a new post on it (blogged April 30th). In answer to Larry Oh, complain to Michael Prue’s office. They’re trying to help.
Karen