21st November 2022

TIPS & GRATUITY POLICY

Purpose

It is [____________________] Limited’s policy to outline our tips and gratuity practices for all employees of the Company. In addition, this policy is to set out the procedures that will be followed when distributing tips.

Eligibility

All employees of the Company will be eligible for tips and gratuities under this policy.

Definitions

A tip or gratuity is a voluntary payment made by a customer to or left for an employee or group of employees or to the employer which they intended or assumed that the payment would be kept by the employee or shared with other employees.

A mandatory service charge is a contractually imposed and receipted payment that a customer must pay, in addition to the cost of certain goods or services.

Tips & Gratuities

The Company allows customers to tip or offer gratuities by way of cash, electronic tips and services charges. These tips are paid to all employees in addition to their wages. The Company does not make any deductions to employee’s tips.

Distribution of Tips

The Company operates a tip-pooling system where all tips earned received by employees are collected into a pool and is then redistributed by a Manager.

Electronic tips

Electronic tips received will be distributed fairly and in a transparent manner.

The following factors will be considered when distributing tips to employees:

  1. The employee’s seniority and/or experience
  2. The value of our service and products
  3. The number of hours worked by the employee
  4. If the employee works full time or part time
  5. The employee’s role in service delivery

CASH TIPS

Procedures

All tips received by way of cash must be placed in the Tip jar located in X.

It is the employee’s responsibility to provide any cash tips received to Management. This way Management can keep track of the tips for tax purposes and will be able to distribute the tips fairly amongst staff.

Electronic tips will also be distributed fairly amongst staff.  Electronic tips are tips which are automatically received by the Company through payments made on Credit or Debit cards.

There is a tip pooling arrangement in place to ensure all tips are shared with the front of house staff in the restaurant, as well as with the back of house staff. The Company pools all the tips together and distributes the tips fairly amongst employees, taking into account factors such as the employee’s hours worked, duties, and responsibilities.

[______________________] Limited will write to each employee weekly when distributing the tips to confirm the total amount of tips received overall in that period, as well as the amount of tips given to that specific employee.

__________ Limited vouches to consult with employees before making a change to the way in which tips are distributed.

Should you have any questions about the above please do not hesitate to speak with Management.

Yours sincerely,

____________________

NAME

POSITION

COMPANY