Legislation to ensure the fair distribution of tips and gratuities to restaurant employees comes into effect today, the Ministry of Economy and Labour has warned.

The Employment (Protection of Employee Tips and Other Gratuities) Amendment Act 2023 will prohibit employers, directors and shareholders from being included in their business’s tip pool unless they regularly perform in the same tasks that employees within the tip pool perform.

Jason Hayward said: "As the ministry continues working to strengthen the protections afforded to employees and workers in Bermuda, I am confident the new law, guidance and policy template will positively impact Bermuda's workforce, ensuring all employees receive their fair share of tips and other gratuities."

The economy and labour ministry published procedural guidance to help business owners understand the finer details of the law, including what is considered work to a “substantial degree” and what it means to perform the same work as other employees.

The Amendment Act was passed last year to ensure the fair sharing of employees’ tips and gratuities.

All employers who regularly receive tips and gratuities are also required by law to have a policy statement that explains how their business collects and distributes gratuities.

The Ministry of Economy and Labour also created a policy statement template, which can be downloaded online, to help businesses create policies that comply with the new legislation.

Employers and employees with questions or concerns can contact the Department of Labour at 23 Parliament Street, Hamilton, in the old Magistrates' Court building.

It is open Monday to Friday between 8.45am and 5pm.

The department can also be contacted by phone at 297-7716 of by e-mail at departmentoflabour@gov.bm.