Is tipping a legal right?
Tipping is not regulated by law and is not explicitly mentioned in the hospitality collective bargaining agreement. Because tipping is given by customers and not paid by the employer, it is not legally considered wages. This means that, in principle, employers cannot claim it.
What is the employer's role in tipping?
In most cases, the employer should not interfere with the distribution of tips. The staff arranges this among themselves. An exception may apply if the employer actively participates in the workplace and also receives a portion of the tip.
May tips be deducted from wages?
An employer may not deduct tips from an employee's wages. If the employer first takes gratuity itself and then distributes it or uses it for cash differences, it is considered wages and normal wage rules apply.
How is tipping distributed?
There are no set rules for the distribution of tips. Usually this is done on the basis of hours worked, but staff can make their own agreements on this. Clear agreements can prevent conflicts.
Tax and tipping: what are the obligations?
Tipping is not subject to payroll tax, but it is considered income. This means that employees are required to report tips received on their tax returns and pay income tax on them.
When sick, entitled to tip?
If an employee is sick, there is no legal right to tip. Because tips are not considered wages, there is no obligation to continue to pay sick pay.
Theft and the tip jar
When a tip jar is set up and an employee decides to keep tips received for themselves instead of putting them in the jar, this can be considered theft. It is therefore important that clear agreements are made on this within the team.
Conclusion
Tipping is an extra from customers and is not considered wages. Its distribution is often an internal matter for staff unless the employer interferes. Employees should be aware of their tax obligations and the arrangements surrounding any tip jar.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about human resources. Please feel free to contact us .
April 2025
