Policy Statement Template For Tips & Gratuities
The Government has introduced a Template Tips and Other Gratuities Policy Statement, Minister of Economy and Labour Jason Hayward said.
Speaking in the House of Assembly on Friday [Feb 23] the Minister said, “I am pleased to introduce in the Honourable House today a Template Tips and Other Gratuities Policy Statement pursuant to the Employment [Protection of Employee Tips and Other Gratuities] Amendment Act 2023.
Noting that the Amendment Act is due to come into operation on March 1st, the Minister said, ”Every employer whose employees commonly receive tips or other gratuities – or whose business is in an industry or sector within which employees commonly receive tips or other gratuities – shall have a clear written policy statement in place which provides for how tips and other gratuities are to be managed, protected and fairly distributed.
“To assist employers and aid in compliance with the Amendment Act, the Ministry of Economy and Labour has created a Template Policy Statement which employers can implement. This is particularly aimed at small to medium sized businesses that may not have a robust human resource structure and/or are not unionized.
“Effective 1 March 2024, all employees are to be presented with their employer’s policy statement in relation to employee tips and other gratuities and employers are to put procedures in place that will assist employees in understanding their policy statement.
“Any employer who contravenes this requirement of the Amendment Act will be liable to a civil penalty which may be imposed by the Department of Labour or the Employment and Labour Relations Tribunal.”
The Minister’s full statement follows below:
Good morning, Mr Speaker. I am pleased to introduce in the Honourable House today a Template Tips and Other Gratuities Policy Statement pursuant to the Employment [Protection of Employee Tips and Other Gratuities] Amendment Act 2023 [the “Amendment Act”].
Mr Speaker, as the Members of this Honourable House may recall the Amendment Act, which is due to come into operation on 1 March 2024, provides for the management, protection and fair distribution of employee tips and other gratuities and prohibits employers and their directors and shareholders from sharing in any tips, tip pool or any other gratuities unless provided for by the Amendment Act.
Accordingly, Mr Speaker, every employer whose employees commonly receive tips or other gratuities – or whose business is in an industry or sector within which employees commonly receive tips or other gratuities – shall have a clear written policy statement in place which provides for how tips and other gratuities are to be managed, protected and fairly distributed.
Mr Speaker, to assist employers and aid in compliance with the Amendment Act, the Ministry of Economy and Labour has created a Template Policy Statement which employers can implement. This is particularly aimed at small to medium sized businesses that may not have a robust human resource structure and/or are not unionized.
Mr Speaker, the Template Policy Statement is compliant with the requirements under Schedule 1A of the Amendment Act and includes provisions such as:
- The definitions of tips, other gratuities, tip pool and payment arrangement;
- Employees’ rights and employers’ responsibilities pursuant to the Amendment Act;
- Whether the employer encourages customers to pay tips or other gratuities;
- Whether a tip pool is permitted at the workplace;
- How other gratuities are to be collected and redistributed and by whom;
- When redistribution of other gratuities will be made in the normal course and when and employee is on leave;
- The persons to whom the redistribution of other gratuities applies;
- The employer’s criteria for the redistribution of other gratuities; and
- The investigation and resolution process for complaints filed with the employer pursuant to the Amendment Act.
Mr Speaker, this Template Policy Statement along with the Procedural Guidance published pursuant to the Amendment Act will aid in employer adherence to the legislation and will help prevent the misapplication of employees’ tips and other gratuities.
Mr Speaker, effective 1 March 2024, all employees are to be presented with their employer’s policy statement in relation to employee tips and other gratuities and employers are to put procedures in place that will assist employees in understanding their policy statement.
Mr Speaker, any employer who contravenes this requirement of the Amendment Act will be liable to a civil penalty which may be imposed by the Department of Labour or the Employment and Labour Relations Tribunal.
Mr Speaker, I am pleased to be able to address this Honourable House again and in such short order as it is a testament to the work taking place within the Ministry to strengthen the rights of employees and safeguard the protections afforded to employees within Bermuda. It has been argued for some time that employees should be able to retain their rightfully earned tips and other gratuities and we have brought this to fruition through robust and sound legislation.
Mr Speaker, I am assured by industry and other relevant employer representatives that this additional level of preparedness is welcomed and will assist with limiting any confusion that may result in any unintended abuses of the legislation.
Thank you, Mr Speaker.
All bars, restaurants etc should have to make their tips policies public. We all know tips rarely go to staff, and its just a US style 20% mark up.
The automatically included gratuity originated with collective bargaining agreements between the BIU and various restaurants decades ago, so you might want to rethink what you have just written. If the tips rarely went to staff, the BIU would be up in arms.
Hotels apart, this is going to hit local restaurants and other businesses where tips are commonplace. It is another burden being placed on local businesses.
If the PLP Government continues to add such burdens on small and medium size local businesses, they will go out of business and the PLP Government will be the only domestic employer.
Wow. Gracious enough to give them a whole week to implement this.
So thoughtful.
Seriously, why can’t we just tip servers directly, with cash. Can we please put an end to this mandatory tip automatically added? Service would improve and often, patrons may tip more than is automatically added.
Take it up with the Restaurant Division of the BIU.
TIPS AND GRATUTITES
Nobody is a angel here .
Restaurants , churches an clubs have no control as to the amount to be paid for services rendered, if any.
I quit one club which turned out to be a boozer club becuse the annual dues were beyond all reason or were the dues paid for invisible privalgies .
Are grats the tip of the iceberg !
Bermuda need to buckle up because other islands are “eating our lunch.
Service and commodes both ride on the same train .
Are tips to be considered a clubs or restaurants form of internal taxation.
Taxation these days is on the tip of every bodied tongue just lately.
People will never return to some restaurants when may have shut their doors recently .
You shoud not have to leave a restaurant with a bad taste in yu mouth ,because, of their add on automatic mandator tipping policy where the servers , cooks and not forgetting management who gets first pickings of the tips and also get paid regardless .
How servers can survive on tips, beats me !
No wonder we have so very few repeat visitors.
Some restaurants have closed recently was it poor service , and poor quality food or the kitchen turned out to be a greasy swamp.
Where are the inspectors of kitchens and rest rooms if any .
I hope Bermuda has not become not a tourist trap.
Some times the church colection plate is passed around several times, occasionally some churches are the beneficiary of virtually every thing .
Are some church books if any are not subject to audit ?
Church members leave entire estates which can be in the millions.
Sports club are in fact a small business , you never know who has their sticky fingers on the pot .
However, some clubs collect annual dues are beyond all reason they have been doing that for years and we all know the reason why.
No accountability !
The amount of dues required to suport tha club during the year creats a progressive money pool in the thousands yet the executive are un paid and work for the for the privilege.
The clubs Vice President or Rear Commodre get stuck with all the work in order to make the club function.
No wonder they and their treasures do want a second term.
how about the question of qualifications ?
There are some island family clubs are nothing more than a drinking oasis.
SPARE THE CHILDREN !