The question of who owns the tips in Canada is a Provincial matter.
Each province has the authority to make legislation on employee and employer rights on wages, tips, gratuities and so on.
For example, Ontario passed legislation that says that employees have legal ownership of their tips.
Can Employers Keep Tips in Alberta?
There is currently no mention of tip ownership in the Alberta Employment Standards Code.
Therefore, yes, employers can keep tips and gratuities in Alberta.
When a province doesn’t have any legislation on the subject, they are considered to be “silent”.
Alberta, Nova Scotia, Saskatchewan, Nunavut, and Yukon are all “silent” when it comes to legislating tip collection.
Tip Collection Legislations across Canada
It is up to individual employers to set up a system for tip collection if they so choose.
As an employer, you should communicate clearly with your staff what your policy is on tips. Typically this should be stated in the employment contracts.
Some businesses allow their staff to simply pocket cash tips or collect in a jar. In the event of a non cash payment (credit card, debit card, cheque, etc) an employer may pay the tip to the employer at a later date, within a reasonable time frame.
Many service and hospitality industries use a concept called ”Tip Pooling”. This is a method of sharing all the tips with multiple staff members. Tip pooling is legal in Alberta.
Can Salaried Managers Collect Tips in Alberta?
As tips and gratuities are not regulated by the Alberta Employment Standards Code, it is up to the individual employer.
There is no provincial law that forbids a Salaried Employee from accepting a tip.
Yes a salaried manager can collect tips in Alberta, unless an employment policy says otherwise.
In Summary
- Yes, an employer can keep tips in Alberta.
- The question of tip ownership in Canada is provincial. Some provinces, such as Ontario, have laws that ensure tip ownership by employees.
- Tips and Gratuities are not considered wages in the Employment Standards Code. There is no provincial regulation on the matter.
- It is up to employers how they handle tip collection. Employers are encouraged to state tip collection policies ahead of time in the employment contract.
- Alberta has no legislation against salaried employees accepting tips. This is also an individual business policy decision.
