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ARTICLE · 14 APRIL 2016

Ontario Passes New Legislation Governing Tips And Gratuities

Dickinson Wright PLLC
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Ontario restaurants, bars and other businesses with employees who receive some of their pay through tips and gratuities will face new laws governing how these tips are collected and distributed to employees beginning this summer.

CanadaEmployment and HR
Kathy Le
Kathy Le
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Ontario restaurants, bars and other businesses with employees who receive some of their pay through tips and gratuities will face new laws governing how these tips are collected and distributed to employees beginning this summer. The regulations have yet to be developed, but the new laws will take effect on June 10, 2016.

Under Bill 12, An Act to Amend the Employment Standards Act, 2000 With Respect to Tips and Other Gratuities (Bill 12) (passed in December 2015) an employer will be prohibited from withholding, deducting, or collecting tips or other gratuities from an employee unless authorized to do so under the Employment Standards Act, 2000 (ESA). Bill 12 defines "tip or other gratuity" as:

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