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Need advice.
09/06/2012 04:44:31
Re: Management and Customer Tips

The Management of my club has recently decided to withhold and deduct 20% from the total tips each month to use as funding for the events that the club might host in the future Also they plan to deduct 20%-40% from the remainder of the tips for that month depending on how many days the staffs do not have a valid reason for being absent. They're incentives given by the customers for services rendered. As far as I know tips are not part of a staffs wages neither are they taken out of whatever purchase the customer makes. Rather the customer gives tips out of their own pocket. So s this withholding and deduction of tips legally allowed or is this robbery in plain sight? I would really like some advice on this matter.
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KL Siew
09/06/2012 08:29:04
This is quite a common practice especially it the hotels and restaurants. Tips collected from customers are distributed among employees based on tip-points of each category of employees. Employees in certain places can earn more from tips than their basis salary. However, one common complaint is the management of the money collected and the lack of transparency.
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