Are Retail Workers Allowed to Accept Tips?

Are retail workers allowed to accept tips? I could find very little information on this topic.

Customers have tried to tip me before but I simply just denied them. Today I helped this customer load up significant amount of heavy building stuff and she snuck a cheeky $50 in my apron and thanked me while I was assisting another customer.

Am I supposed to let my manager know or just keep it?

Thank you very much for the answers in advance!

Comments

  • +151

    Keep it.
    Dont tip
    Dont share it with your boss.
    Dont make it norm here in Australia.

    • +10

      End thread!

  • +35

    Why would you even say anything? Do you feel that she's going to call up the store and ask 'just wanted to check if Fireblade received the $50 I snuck in his pocket?'

    • +1

      Prob in case it was like a secret shopper or other undercover agent.

      We used to have such people pretend to be normal random customers who would call up or come in to do random checks we were trying to upsell, or confirm how complaints or ‘difficult customers’ were handled or that we were selling the ‘right’ products etc

      We had an unofficial ruling that it was NOT cool to receive tips/gifts while on the clock or on company property but anything after and off premises was fine.

      • +4

        If she was waving it in his face (in front of cameras) then fair enough not to take it, but if she snuck it in then fair game I'd say.

  • -7

    Its income so technically it has to be declared. It's why some places centralise and disperse etc.

    But it shouldn't be encouraged. Old biddies however 🤷‍♀️

    • +25

      Yeah I also declare all my tips, the money I find on the street, and the $10 I won at the casino.. The government deserves to share my tips and winnings..!

      • +1

        Not sure why the sarcasm.

        Didnt say they had to, merely said it's the legal expectation, not the moral, logical or likely one.

        🤦‍♀️

        • +1

          I was just mocking the system.. not you. You wouldn’t think the government deserves a piece of tips that were provided as gratitudes because you did something nice to someone else. What does the government have to do with it?

      • +4

        money you found or won has no tax implications for you. Though legally yes tips should be declared as income and money found handed in to police. So yes the tax man deserves a share of your income like it or not.

        • -4

          I thought you had to declare your winnings? I don’t know but I heard that people who win big amounts on tv shows get a big chunk deducted for tax before they get the money.

          • +6

            @Ridiculous Panda: no, that only applies in the USA. In Australia it is tax free.

          • @Ridiculous Panda: Only for people who make a profession of going on game shows, not your average lucky punter who went on Sale of the Century.

            • -2

              @Daabido: To add to this professional punters declare their winnings as income mostly so they can claim their losses as deductions

      • +1

        That's ridiculous, Panda.

    • +4

      It's a gift.

  • +7

    Technically you need to declare it on your tax (I wouldn't). You boss doesn't need to know anything about it, and unless you signed something saying otherwise (unlikely) you are not required to tell them. Take the cash and feel good that you don't need to feel guilty - it's not like it happens every day.

  • +69

    (Sorry in advance if the below is too sappy and long-winded for your innocent question)

    When I was 17 I worked for a few years at a hotel (pay was absolutely poo, like $30k/yr, but I remember those years ever so fondly and still think it's as one of the funnest/best job I ever had), it was my first customer facing experience and I was absolutely terrified.

    Not a few weeks in a couple was due to checked in, and I was explicitly warned that they're old and super hard to please and to just to nod and smile. Everyone avoided them like the plague.

    I was naive and had no idea what they were talking about and just spoke to the couple, they were bit meh at check-in but as the days rolled on I saw and chatted to them, they were absolutely lovely. We got talking about mundane stuffs and at some point I must've mentioned since coming to Australia (Sydney) I had never travelled anywhere.

    When they left they slipped me an envelope with a card and a fitty and gave me a hug, it was so thoughtful of them and was so damn neat and I never forgot it some 20yrs on. I've countless stories since but that moment has etched itself into my mind forever, never used it, the value of the gesture far outweighs the monetary value.

    (Your) $50 tip is certainly not nothing, people don't just give a fitty on a whim, if you've earned it (I think) you deserve it, you certainly did something right.

    Best of luck stranger.

    • +1

      *sniff

      is someone cutting onions in here?

      • *puts down cleaver*

        Yeah, sorry… prepping for a Bunnings sizzle!

    • That was genuinely an incredibly sweet story and photo.

    • +1

      Nice handwriting mate.

      • +1

        Also that $50 note came out at the end of 1995, a little less than 20 years ago.

  • +17

    I rejected a $2 tip when I was 16.

    Regretted it ever since.

    • +31

      If you invested that $2 you could have had at least $6 by now. What a waste.

      • +2

        But for all we know, elgrande could have been 16 as recent as last year.

        • That would mean they would have been 3 when they created their account. That would be impressive.

    • A lifetime of regret

    • Could have bought Bitcoin with it. Hindsight

    • You saved Australia culture. Thank you for your sacrifice poor boy.

  • -1

    Was she hot?

    • +31

      Are you implying people tip based on weather?

      • I'm thinking she was hot for something.

        • you reckon she'll come back for services unrendered?

          (should that be 'not rendered' perhaps)

    • +2

      she gave OP a tip hoping he would give her the tip

  • +4

    I took them all the time when i used to work at JB, never expected them but when i got them i kept quiet.

    I do believe it goes against the retail award and your contract etc but yolo.

  • What does your conscience tell you to do?

  • If your contract doesn’t state you cannot or you need to pass it through to the business, then you are ok to keep it.

    The only tip I ever got was to be good to my mother

  • Are Retail Workers Allowed to Accept Tips?

    First up, this is not America…. Tipping culture needs to die, even those in the US are seeing that now! It is out of control in the states.

    But if you get a tip, you can accept it. By law, it should be declared as part of your 'other' income on your tax return, but you'll be ok in this case if you don't.

  • +3

    I will accept it and would not tell anyone. And would not declare on my income tax.

  • I'd accept if I ever got offered. Sadly, never have…

  • +3

    Keep it with thanks but don't expect it to be the norm.

  • +1

    Not illegal, but some companies may have policy against it and view it very poorly, enough to take action against you. Consider a retail worker that's in a position to offer discounts or mark downs that then accepts a tip for doing so.

    • That would be more the issue. However, the employer would need to show that any discount given is unreasonable. I don’t think they could take action against you for receiving an unsolicited gift.

      • Lot's of companies have policies where gifts must be reported , declined, or handed in to be shared. I saw a guy sacked once , he loaned a customer shoes in exchange for a tip, breached policy on a regulated environment. Think about the Aust post gift scandal, boss gave employees a gift, and it ended up a drama at PM level, so companies just have serious strict policies that cover everyone. Say an employee accepts a tip and gives a customer an early heads up on specials and customer ends up being a competitor. That gets really serious in the anti compete arena.

        • Unless this is specifically mentioned in their employment agreement then there is no reason why it is a sackable issue. In relation to the loaning the shoes and the “tip” this could be considered a direct cash payment for providing a service, not a gift (which is essentially what a tip is).

          The post office issue didn’t break any policies it just wasn’t a good look. In fact she got a $1 million payout to settle it.
          https://www.theguardian.com/business/2021/aug/04/australia-p….

          I think you are mistaking a tip with a bribe.

          For a lot of companies the “gifts” are only reported if over a certain value, otherwise HR will be looking through a lot of coffee receipts.

          • @try2bhelpful: A tip is a bribe. People often sign a heap of other policies that form part of their employment agreement. Gifts reported over certain value, yes now you are onto what i am talking about. Yes the Aust post thing was an example of how these things get out of hand and a reason companies have policies on this stuff. Bottom line is, if the company has a policy against it, next time you say no or you are risking your job.

            • @tonka: I think you may have missed my points all around.

              A tip isn’t a bribe. It is paid after the fact with no strings attached to it, not before hand to guarantee provision of a service.

              The post office thing was not against policy. It was just a bad look and a bunch of politicians went haywire about it. Topped by the completely OTT comments by
              Morrison. The million dollar payout was an acknowledgement they screwed her over.

              As I’ve said the policy would need to be part of the employment agreements for someone to be fired over it. There is no inherent legal issue with someone getting a tip.

              • @try2bhelpful: Yeah, but fair is fair if you miss my points.

                • @tonka: Your points have no legal basis unless they are specifically covered in the award. The company can say they discourage this but they can’t fire people on this basis. This was, specifically, the point with the PO. They tried to say she stepped aside. It is why they paid her so much money.

  • -2

    Are Retail Workers Allowed to Accept Tips?

    I gave a tip to the girl at the Coles register this morning

    "Never wear stripes with plaid"

    She accepted it…

  • When I was in retail I think we had a policy of anything over $50 was not to be accepted. Or something like that. Regardless, someone only ever tipped me once in over 7 years. And I kept it. And I never told anybody. It would have been mighty weird rejecting a tip, and as a customer service representative you don't want to make it weird for your customers. If they offer you something (non dodgy) just take it. You are doing everyone a favour including the company.

    • -1

      And I never told anybody. It would have been mighty weird rejecting a tip, and as a customer service representative you don't want to make it weird for your customers

      Sounds dodgy…

  • Tipping has its place.

    Its not in Australia.

    I have no problem with people wanting to tip good service.

    The issue is it after a while it goes from :
    - Tipping for good service voluntarily.
    - to Everyone should tip for good service.
    - to Everyone should tip for any service.
    - to Everyone must tip for any service.

    The expectation at New York City is 20% tip now.

    I went to Canada last year, I am expected to tip a guy for making my Subway.

    • I am expected to tip a guy for making my Subway.

      I never tip when travelling…

    • I still remember eating in a very basic, not fancy at all restaurant in New York about 15 years ago… Got my bill and to my shock it had a "thanks for the 15% gratuity/tip" on there. Making it worse the service somewhere between poor and average at best.

      I was furious - turned out in very tiny print at the bottom of the menu was a *15% tip is mandatory or such crap like that.

      This is when 10% was default but was 15% was becoming more common. Highway robbery.

      • Standard is pretty much 20% now in a lot of places.
        Even ordering a coffee online you get asked for a tip.
        Pretty dumb system imo

  • +14

    If it's just the tip it doesn't count.

    • +2

      Came here searching for this comment and it didn't disappoint!

    • Until a few days later when it starts scratching like a pineapple.

  • Handling of tips is according to custom and practice in your workplace. I'd say it's uncommon in retail so just keep it to yourself, well done! If there is a policy, it will be that you're not permitted to solict tips. For hospo workers this is much more common and every workplace has its own rules on tip distribution. It's up to the taxpayer/employee whether they declare tips in their tax return.

    • +1

      I forgot to add… your employer likely has a policy on accepting gifts, although $50 is probably below the threshhold. Check to see if it includes both customers and supplier/partners.

  • -1

    There are a lot more eftpos terminals now that seem to add a step to include tips in the payment process now. I like to look straight into the sales/customer service person's eyes as I push the green tick for $0.00 tip.

    • +2

      given how uncommon, thankfully, it is here, I'd say your weird eye contact and intended message were both unnecessary.

      They prob thought you were trying to seduce them or something

      • +1

        I tell them to come see me after work for the tip and only just the tip

  • It is not illegal for retail workers to accept tips. But an employer to adopt policies prohibiting staff from accepting tips. And it can get quite nasty when one worker gets a substantial tip, and doesn't share it.

    And outside retail, accepting "tips" can be problematic. It can be seen as, and called, bribery, or accepting secret commissions. Or if the amount is large enough that it gets you into serious trouble, like in the case of nurses and care workers who somehow become significant beneficiaries in the wills of people they were looking after.

  • +1

    as a consumer, i would never tip a retail worker

    • -1

      I got two words for that: “Learn to (profanity)’ type.” Cause if you’re expecting me to help out with the rent, you’re in for a big (profanity)’ surprise.

  • You're allowed to give money to whoever you want. But in Australia you should only tip if you are very rich or you're trying to impress a hot date at a nice restaurant. Also if the waiter saves your life or provides you drugs, you should probably tip.

    • only tip if you are very rich

      sure

      or you're trying to impress a hot date at a nice restaurant.

      yeah nah ozbargainers don't want to be impressing hot dates who are impressed by that

      Also if the waiter saves your life

      i'd say if someone has just saved your life they are no longer simply your waiter, and would probably be insulted if you tried to pay them

      or provides you drugs, you should probably tip.

      hmmmmm….yeah nah

      • Yeah you're right, ugly dates are probably cheaper to maintain. But they do have higher earning potential… better consult the spreadsheets..

        • why not a hot date who also hates tipping!

    • Not true. Gaming employees are not allowed to accept any tips.

  • YES you can accept tips but don't tell your boss, don't tell anyone!

    There is no law to state retail employees can't accept tips, whether it's monetary, food or other sort of gifts.

    The only time it will become problematic, is that the business will guilt trip you to either hand it over to them, give it back to the customer or say no in the future.

    Or you will be a target by HR for accepting 'bribes' from clients/customers even though you haven't done any special favours with/to that client/customer.

  • There's no law. You do not have to declare it as income, despite other incorrect posts here.

    The correct approach is to quietly accept and keep your mouth shut.

    What you have to be careful about is if you are a retail worker than earns sales commissions.

    • -2

      So confident and yet so utterly wrong:

      What are your tax obligations?

      So, what are your tax obligations if you are on the receiving end of a gratuity or tip? Well, if it’s in the form of solid advice such as “be good to your mother” then that’s completely tax free. If it’s got a monetary value, it’s taxable.

      https://www.rsm.global/australia/insights/business-insights/…

      Tips are income. Income is taxable.

      • +2

        So I should have been declaring all those best teacher mugs and candles at the end of the year?

        • If gifted by your employer they'd be assessable for FBT as property benefits… and your savvy students don't gift cash to protect you from moral taxation dilemmas.

      • Oh wow, a google search result! A blog post with zero references. You are very intelligent.

        There is no legal definition of 'tip' in Australian law. Therefore it would actually fall under the common definition of 'gift', and that is why ATO "recommends/suggests" you report as income. There's no law. In the alternate at common law the 'tip' even received by an employee directly would be incurred by the employer, not the employee, leaving the employer to recover said 'tip' from the employee and/or any tax liability. No employer is going to do this (unless commission based for obvious reasons, but still won't happen). Good luck finding any test of this, because the ATO simply DNGAF.

        • Better tell the ATO then. Another Google search, ZOMG! Actually, I use DDG so you should hate on them I guess.

          Also, you bag my link to an article on the subject from an accounting firm, yet no offer zero evidence at all for your position.

          winner

          https://www.ato.gov.au/individuals-and-families/your-tax-ret…

          • @kale chips suck: Last updated 28 June 2018.
            Doesn't define.
            No reference to legislation

            Loser

            There is no legal definition of 'tip' in Australian law. How do I "evidence" something that doesn't exist?

  • -1

    The ATO wants to have coffee with ya.

  • I'm not sure why people are talking about tax. I don't think that's what you are asking here. I worked in retail for over 10 years and it was ok to take "tips" aka "gifts* everywhere I've worked. Some of the places have different thresholds about accepting gifts. E.g. $5 and under, no reporting needed. Under $100, get approval from area manager first. Over $100, head office needs to approve it.

  • +1

    dont make it the norm ffs

  • I really hope tipping doesn't take off here. Self service checkouts in the USA beg for tips. Yes, self serve. Just who am I tipping as I do all the work?

  • If someone's ask just say your Aunty/Uncle/Family Member came in to give you your birthday money. Its not hard no need to complicate it.

  • -2

    Apparently first world countries give money tips to service people as a way to show their wealth, compassion and generosity

    From how much discretionary money people spend on OzBargain, it can be inferred that Australians are well off, first world country people and able to pay tips on top of the servers existing wage

    It’s a good idea, tips should be mandatory and no less than 30% of the cost of the total meal bill.

    Or more if necessary

  • +1

    Please check your employment agreement, company policies etc.. they usually have guidelines around accepting benefits.

  • Yes they can, just the tip tho.

  • It should be stipulated in the EBA (enterprise bargaining agreement) or employee contract somewhere. Usually mixed in the the employee benefits, travel policy, meal allowance type sections. I've come across it listed in 3 jobs in different sectors and they were: $50, $50 and $150 (or the value of).

    Most busineses will be pretty negative on accepting anything at all as it is a slippery slope. It quickly goes from a random act of kindness from a customer that was completely unexpected; to the employee hinting, expecting or using language to suggest they deserve a little something extra. There is always going to be that one person who takes it to a level that ruins it for everyone when they start building it in as an expectation for their service (they get greedy).

    In saying all that, sounds like you went above and beyond for customer which most won't do so enjoy it. Likely have at least a $50 buffer but I wouldn't even tell your employer just because it probably opens up a can of worms that are not worth it.

Login or Join to leave a comment