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ARTICLE · 09 MAY 2016

New Ontario "Tip" Protection Legislation

Torkin Manes LLP
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On June 10, 2016, Ontario's Bill 12 ("Protecting Employees' Tips Act, 2015") will come into force (the "Act").

CanadaEmployment and HR
Peter C. Straszynski
Peter C. Straszynski
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On June 10, 2016, Ontario's Bill 12 ("Protecting Employees' Tips Act, 2015") will come into force (the "Act").

The Act amends the Employment Standards Act 2000 (the "ESA") to protect tips and gratuities that "a reasonable person would be likely to infer" are intended either for direct receipt by the employee or for redistribution to employees.

The Act prohibits employers from:

  • withholding tips or gratuities from employees;
  • making deductions from an employee's tips or gratuities; or
  • causing an employee to return or give up tips or gratuities.

Employers may withold or deduct from tips or gratuities where authorized by statute or court order, or where the deduction or withholding are intended for redistribuition to employees.

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