Hotel nixes plan to skim employee tips

Employer backs down after media coverage but practice legal in some jurisdictions
By Amanda Silliker
|Canadian HR Reporter|Last Updated: 08/14/2012

In June, the Rosseau Muskoka hotel in Minett, Ont., came under fire after it sent a letter to spa staff announcing it was charging customers a higher 20 per cent gratuity fee on manicures, body wraps and other treatments — but only one-half of the tips would go to the employees performing the services.

The remainder would be given to the spa’s administrative associates (1.25 per cent) and the hotel (8.75 per cent), according to a June 27 article in the Toronto Star.

“Should continuing your employment with the Rosseau… under this new policy not be acceptable to you, your employment will terminate at the end of the four-week period as outlined in this letter,” hotel general manager Tony Tamburro wrote to spa staff.