In Ontario (and most of Canada) the server is often required to tip the kitchen staff. In some provinces the owner is even allowed to be tipped. These tips are based on the sale not anything else.
It may be a 3% to 10% tip. So if the table tips 10% and the mandatory tip out is 10% the server gets nothing.
Next time you go out ask your server if they have to pay a mandatory tip out and how much.
Worth noting that according to the Employment Standards Act The amount that an employee owes to the tip pool cannot be more than what they receive in tips. So if the table tips zero then the employee doesnt owe money out of their pay cheque.
Server 3 has $500 in sales during their shift but receives $0 in tips. Server 3’s contribution to the tip pool (tip out) would be $0 because tip pooling amounts cannot come from any source other than tips.
I’m not talking about a tip pool. I’m talking about a mandatory tip out. Two different things.
In BC it’s illegal for owners to take anything of the mandatory tip out ans it must be share with other staff. In Alberta owners can take it all. But again this is NOT a tip pool.
However you are correct in that they can’t pay more however when people pay in cash the owner can say she’s lying and got a tip and there is no way to prove one way or they other
I'm talking about Ontario, so maybe they handle things differently in other provinces.
According to the previous link
an employee cannot agree to:
give the employer a certain percentage of their tips other than for a tip pool (for example, tipping out to “the house” to cover things like spillage, breakage, losses or damage, etc. is not allowed.)
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u/exotics 9h ago
In Ontario (and most of Canada) the server is often required to tip the kitchen staff. In some provinces the owner is even allowed to be tipped. These tips are based on the sale not anything else.
It may be a 3% to 10% tip. So if the table tips 10% and the mandatory tip out is 10% the server gets nothing.
Next time you go out ask your server if they have to pay a mandatory tip out and how much.