With an increasingly casualised and underemployed workforce within the hospitality industry, and with mainly “vulnerable” workers such as young people, international students and women being exposed to these conditions, it is vital to be aware of your rights and responsibilities when working in your local café, bar or restaurant. For instance, the practice of tipping is becoming increasingly more popular in Australia. Though it is not customary to tip, the practice has gained momentum and is now fairly common in the industry. So in a country where tipping is not compulsory, what should happen when a grateful customer hands you a $20 note?
In Australia, the hospitality industry is regulated by the Hospitality Industry (General) Award 2010, which was consolidated by Fair Work Australia. The Award states the prescribed rights employees and employers have when working in the hospitality industry, including minimum wage, leave entitlements, hours of work and termination procedures.
However, the Award does not, in any manner, cover any rules or regulations regarding tips. This means that in Australia, tipping is an unregulated practice and there is no legal precedent to govern the hospitality industry’s tipping procedures. Therefore, tip distribution is largely left to the restaurant’s own policy or practice, which in turn is influenced by customs and practices within the wider industry. Common arrangements include pooling tips to be shared equally between staff members, or saving all tips to be used in end-of-year functions such as Christmas parties. However, these practices are in no way regulated, and are thus open to misuse and abuse by management or employees.
What are your options if you believe that your tips are being taken unfairly?
As the usual legal duties between employers and employees continue to exist such as the contractual duties arising from your employment contract, tipping distribution may be covered through one of these areas of law – for instance, if the company’s tipping procedure is covered in the employment contract. This is just one instance of where tipping may be regulated through another area of law. If you are concerned, It is important to seek legal advice so that a solicitor can fully examine your employment situation in order to gain a fair and just outcome.