Accepting Gifts/Cash from Non-Waiting Services from Customers, Legal/Illegal?

Hey guys,

I work in retail and I usually get tips, not a lot but like 5 dollars, 10, one time 50 every 4 to 6 months. Sometimes customers would buy me coffee, drinks, chocolates etc.

But I had a small argument with my manager regarding cash tips and gifts.

I argued that a retail employee can accept gifts or cash if it's reasonable value and if I still treat them equally like anyone else. In my retail job, it's very hard to bypass the system to have a customer have a significant advantage over other customers. For example: If a customer gives me a $20 tip for my service, and they come in the next time, I seriously cannot offer them any discounts, freebies etc etc. Therefor, I am treating that customer like any other customer.

My manager stated any cash tips or any gifts needs to be declined. I advised that accepting tips is not illegal whether its in cash form or other forms of payment such as chocolates, BUT i did say accepting tips with significant value needs to be reassessed. For example: If a customer gives me $200, I need to claim that through tax.

I remember finding a website on guidelines and the legalities of accepting gifts or cash from customers but when I tried googling it, I can't seem to find it.

But my question to you guys, what are you thoughts of it?

Edit: Just got a reply back from HR regrading gratuities and gifts. The quick answer is, YES, I can accept them on the basis that;
1 - The customer initiates the gift giving and there is no conversation between the customer and the rep hinting, revolving around tips
2 - The customer is not benefiting from the rep that receives the gift. Example: Giving discounts to products, inside information about the business etc
3 - Any financial tips will need to be declared through the ATO

Thanks the replies, my manager did not confirm this policy and she made it up. Why can another store accept tips and our store can't? Either way, case closed.

Comments

      • +1

        I had the same experience recently.

    • +1

      True . Maybe the people tipping in weird circumstances are foreigners. This is Australia. We hopefully pay workers an appropriate fair wage . Unlike countries like USA (and also on cruise ships) where workers are paid very unfair and unethical rates of pay , thus relying on tips to make up what the employer should be paying their staff .

  • Back in the day when I worked retail, there was a customer who was so happy with the service of myself and a co-worker that she bought a couple of small chocolates for us. We accepted, but we were very wary of managers being around, because we were, by retail contract, not allowed to accept anything.

  • +2

    As others have said, I don’t believe it’s illegal, but company policy might prevent it.

    We have a very strict no gift (cash or otherwise) policy and have seen people lose their job over it. When ever it happens now, I have a list of charities I point them towards, to make the donation.

    People tend to give these gifts, with an expectation: be it the same service next time, favor when it comes to decision making, so on.

    When I worked retail (many moons ago), there is no way in hell I’d want to be on camera taking money from a customer and pocketing it.

  • +2

    leaving coins for waiters is understandable. tipping sales staff is just bizarre.

  • Hi, by all means, you deserve tips for your exceptional service. However I think it is not worth the RISK of losing your job if your manager tell you not to take tips. If you think your exceptional service deserve reward, you could ask pay rise or promotion. It is clear hospitality sector has a long history of getting tips, but first time I heard a sales person receive tips. The thing is, if your service are excellent, customer will keep coming back to you, you will sell more stuff and get more commission for your sales.

  • +1

    Surely your employer is entitled to set ethical standards? Honestly I would love an employer who set black and white standards, not negotiable, at least you know where you stand. Accept his or her standards or lower yours and move on somewhere else.

  • +3

    I heard of a real estate agent making a fortune, selling lots of property by being honest to buyers.

    • Must be a Christmas fable

      • lol, I heard that from a colleague who was selling his father's property. He was complaining how real estate agent can live with themselves by being very dishonest. Later he spoke about a real estate agent he knew or he knew from someone may be long time ago, he said that agent made a fortune by being honest to both the seller and buyer.

  • Another thing, if a customer is willing to give you 20 dollar tip, in the interest of the company, the manager want you to direct the customer to buy another item rather than you take the whole lot.

  • I worked for JB in retail sales and I would get the Odd tip ranging from $5 one guy gave me $200 !! (it was a 10k sale that I looked after him) and alot of freebies from people, its frowned upon. But Its better than going to the store manager who would take it and spend it on himself for doing nothing, and my thoughts were "going
    over the top to help them with technical problems/testing stuff in store etc and missing out on sales/commission.

  • Ask your employer for a pay rise so then you can refuse tips.

    • He works in retail and you're response is ask for a pay rise haahahah good luck with that.

      • your
        *Hey, I know it’s mostly corrected the other way around and how that can be confusing so you just write “you’re” every time. It’s all good, atleast you’re making an effort

        • -1

          Great input tool!! Sorry was in a rush doing yard work but thanks grammer nazi you must be real fun at parties.

        • Grammar, not grammer. And it's not even your grammar that was being corrected, but your spelling.

      • The manager may be able to be able to swap the financial tips for penis tips ;). No1 else has made an inappropriate comment yet lol

  • You do not "claim' the tip but declare it as income if you want to legally do the right thing.

  • cough Bribe cough

  • Why would you not accept a tip, especially in retail where wages are crap.

    • Have you not read the comments on page 1?

  • +1

    If politicians can accept gold Rolex's without a whisper of corruption then you can surely accept a few dollars tip.

    Then again maybe the politicians are in fact corrupt for accepting gratuities?

    • The state owns all gifts given to politicians (in all western countries) worth more than $200 or thereabouts. The politician has the option to buy the gift at market value if they want to keep it.

      • All gifts declared as such …

        $200 is still a decent tip for the Op.

      • Ahaha good one!

  • Disregarding the whole argument of if you should or should not accept the tips/gifts…

    If you are receiving them as tips, this is taxable income and you would 100% have to report that to ATO in your tax return, and pay appropriate tax on it, regardless of amount of individual tips.

    Whether you do that or not might be hard for the ATO to ever know, but if you're going around tooting the "my boss is possibly illegally saying xyz", you really should be paying tax.. Since not paying it definitely is illegal.

    • Maybe, unless your company has stated that you cannot accept any gifts, and a lot do say this.

  • As far as if you should accept the gifts.. If I were in your situation and valued my job, hell NO would I be accepting tips from customers. If your boss said don't do it, you're in no position to argue. Be prepared to lose your job over it (and good luck appealing - I'm telling you now, you'd fail).

  • +1

    To op, you may have your own opinion about that tippinp and from what I read, I don't think you will change what you do. Just note that tip is income and please remember to declare and pay Tax.

    Cheer

    • His taxable income will be low if he keeps accepting tips after being given a clear directive from his employer. So might not be any tax to pay

    • Good luck to the ATO finding the tip on any record lol

  • -2

    Accept the tips, dont tell your manager or the ATO

    Give customers special treatment that treat you well

    This is how the world works, retail or not

  • I have worked in retail too and my store had electronics section and I can confirm that I have never been tipped.

  • If someone offers you an act of kindness accept it and say "thanks" end of story.

  • tip is not really a thing in oz. but in usa. i think oz should promo tips in more service sector. we get horrible service quite often。

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