Tips and Gratuities

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.
Published date: 
December 1, 2016
Workforce and Advanced Learning

General Inquiries

Labour and Industrial Relations
161 St. Peters Road
PO Box 2000
Charlottetown, PE   C1A 7N8
Phone: (902) 368-5550
Toll-free: 1-800-333-4362
Fax: (902) 368-5476

hawalsh@gov.pe.ca