Ontario MPP introduces Canadian payroll compliance change
June 13, 2012
An Ontario Member of Provincial Parliament (MPP) recently introduced a private member's bill to alter Canadian payroll legislation
in the province. Specifically, the Canadian payroll compliance
change affects Ontario's Employment Standards Act by banning restaurant owners and managers from taking a cut of waitstaff tips.
Consumers "have no idea that a portion of their tip can go to anyone but the waiter," said MPP Michael Prue, as quoted by the Financial Post
"It's only fair and natural that people who do the work and who receive the tip get to receive the tip, the whole tip," he elaborated in a recent interview with CTV's Canada AM
, citing instances uncovered by the New Democratic Party in which servers are required to pay management up to 5 percent.
Opponents of the legislation, such as professor Bruce McAdams of the University of Guelph's school of hospitality and tourism management, argue that the amount is negligible and the money is not pocketed by managers and owners themselves. Rather, it is put toward offsetting fees associated with credit card processing, McAdams told the Post.