Tips and Gratuities Statement
A statement given to workers showing tips or gratuities received and the portion paid to the individual worker for a particular period.
Staff are entitled to understand how tips and gratuities are collected and distributed. In hospitality businesses with card tips, pooled tips or service charges, poor records can quickly lead to mistrust, staff disputes and WRC complaints.
Frequently Asked Questions
It should clearly show the tips or gratuities obtained for the period and the worker's share. The business should also be able to explain the basis used to distribute those tips fairly.
The statement should relate to the relevant payment period used by the employer. In practice, hospitality employers should align statements with their payroll or tips distribution process so staff can clearly see what they have received.
It is a statement showing the amount of tips or gratuities obtained for a period and the portion paid to the individual worker. It supports transparency around electronic tips and gratuities.