Restaurant takes 15% of waiters' tips

Published Oct 18, 2007

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By Niemah Davids

A well-known city restaurant has defended its decision to deduct 15 percent of waiters' tips a shift, following the labour department enforcing a minimum wage rule for the hospitality industry earlier this year.

Staff at Nelson's Eye restaurant in Gardens told the Cape Argus they had been "forced" to give back 15 percent of their cash tips since the new minimum wage policy came into effect.

Two workers, who spoke to the Cape Argus on condition of anonymity, said since the new ruling waiters at the restaurant had been paid R8,50 an hour, but they also had to declare 15 percent of their cash tips a night.

In the past they relied solely on tips for remuneration.

"When the new regulation was in the pipeline, management agreed they would pay us a wage but we were also informed that they were going to take a percentage of our cash tips a night for any breakages," one said.

The staffer said waiters at the restaurant were bitter and regarded the rule as unfair.

"The tips belong to us," the waiter said, adding that they were something extra that waiters earned for their hard work and long hours.

"I have a few friends working in this industry and they've never experienced anything like this either."

Another employee at the restaurant said the process "cannot be legal".

"They should not be allowed to take our tips," she said.

But Steven Albert, owner of the restaurant, said it had followed all the right procedures when deciding to deduct 15 percent of the total tip earnings.

"The way in which I run my business is completely ethical. We are entitled to claim an amount from our waiters.

"It's standard practice," he said.

Albert said compared to what other restaurants charge, his 15 percent was "peanuts".

He said "each and every restaurant" in South Africa required a percentage of their waiters' tips.

The Federated Hospitality Association of Southern Africa (Fedhasa) Cape Region said it was not aware of the Nelson's Eye policy "at all".

"Tips are added by guests in recognition of good service - at least that is how it should be," said Nils Heckscher, Fedhasa chairperson of the Cape region.

He said the association did not support "the notion of deducting tips" and said it had never heard of other restaurants who supported this rule.

He said some restaurants charged a service fee, where tips were added to a bill, but this was for bills that were settled by credit card.

"Credit cards are subject to a commission of up to 5 percent that the merchant needs to pay," he said.

However, he added, service charges and tips were two different issues.

Administration manager at Ocean Basket Waterfront, Liesl Wilmot, agreed.

"We have never taken a percentage of our waiters' tips and have never deducted money from their salaries either," she said.

The amount waiters earned a day, tips included, "belongs only to them".

Herman Kotze, head manager of Cattle Baron Sea Point, agreed. "The law says no restaurant is allowed to touch its waiters' tips," he said.

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