Government

Tips and Gratuities

Published date: June 9, 2026

Note: Effective June 30th, 2026, a new Employment Standards Act will come into force. This page will be updated with new information after that date. To learn more about these changes, please see Changes to the Employment Standards Act.

Tips and gratuities are the property of the employee who earned them and no employer can require an employee to share a tip or gratuity with that employer. In addition, an employer can not pass on any administrative charges to an employee.

An employer, however, can adopt a policy of pooling tips and gratuities for the benefit of employees and must advise an employee in writing at the time of hiring that this policy is in effect.

This information is meant to serve as a guide only.  The reader is strongly advised to consult the Employment Standards Act to view the legislation.  Where any difference exists between this information and the Act, the Act will be considered correct.

General Inquiries

Labour and Industrial Relations

Atlantic Technology Centre
Suite 306, 3rd Floor
176 Great George Street
Charlottetown, PE C1A 4K9

Phone: 902-368-5550
Toll-free: 1-800-333-4362
Fax: 902-368-5476