The Ministry of Economy and Labour wishes to remind the public that the Employment (Protection of Employee Tips and Other Gratuities) Amendment Act 2023 (the “Amendment Act”) and the Procedural Guidance for determining the distribution of tips and other gratuities come into effect tomorrow, 1 March 2024.
The public is reminded that the Amendment Act passed last year ensures the fair distribution of employee tips and other gratuities. The new law prohibits employers and their directors and shareholders from sharing in any tips, tip pool or any other gratuities unless they regularly perform, to a substantial degree, the same work performed by some or all the employees who share in the tips, tip pool or redistribution of other gratuities.
The Ministry has published Procedural Guidance to accompany the Amendment Act, which also takes effect tomorrow, 1 March 2024. The Procedural Guidance outlines what it means to perform work to a substantial degree, what it means to perform the same work as some or all of the employees who share in the tips, tip pool or redistribution of other gratuities and what Labour Relations Officers will consider when reviewing complaints in this regard.
As required by law, all employers who regularly receive tips and other gratuities must have a Policy Statement that advises on the management of tips and how other gratuities are collected and redistributed.
To assist businesses that may not already have such a Policy Statement in place, the Ministry has created a template Policy Statement that businesses may incorporate to ensure compliance with the legislation. An online template Policy Statement for employers to complete and download is available at Tip and Other Gratuities Policy Statement (forms.gov.bm).
The Minister of Economy and Labour, Jason Hayward, explained, "As the Ministry continues working to strengthen the protections afforded to employees and workers in Bermuda, I am confident the new law, guidance and policy template will positively impact Bermuda's workforce, ensuring all employees receive their fair share of tips and other gratuities."
Employers, employees and their representatives with questions or concerns should contact the Department of Labour at 23 Parliament Street, Hamilton, in the old Magistrates' Court building. The Department of Labour is open Monday to Friday between 8:45 am and 5:00 pm and can be contacted via phone at 297-7716 and email at departmentoflabour@gov.bm.