This activity does not contravene the Act.” The pool is disbursed to all employees who do not receive tips at the end of each shift according to a formula agreed to by the employees. The following example about tip pools is direct from the Employment Standards Branch website: “An employer requires all employees who receive tips to put 15% of tips received into a pool. You might be surprised by what your employees suggest. What, for example, do your employees do about tips? Many of your successful competitors have worked with their employees to develop tip pools to ensure that all workers share in each other’s success. There are a variety of ways you can move your employees to a strong team-focussed environment. Attracting and retaining the best staff comes down to strong management and developing a sense of team. Creating an environment where every worker is looking out for their fellow team members, means they will be looking out for your business. They instead look to inclusive and improvement driven companies.
What are alternatives to protect your business and minimize costs in the long term? Get the best employees! Good employees have choices and steer away from employers with punitive policies. Any perceived savings get quickly washed away: penalties can reach up to $10,000, any monies collected must be returned to employees, and the damage in the court of public opinion can be significant. As attractive as recouping business costs are at the expense of employees, employers face an even greater risk if they contravene the Act. Theft, damage, uniforms, and dining and dashing are all considered a cost of doing business. The Employment Standards Act is clear that “employers cannot require that an employee pay for any portion of an employer’s business cost”. These can take many forms, but are most commonly things like dine and dash funds, breakage, uniform rentals, and administration fees.Īs tempting as these are, they are illegal. To protect themselves, many employers institute policies that are funded by their employees. Employers often feel the pressure to recoup business costs when things happen that are out of their control: theft, damage, breakage, poor quality of work, etc.
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