Tips and gratuities belong to the employee who received them, and the employer cannot keep them or treat them as the employee's wages without an agreement between the employer and the employee.

If an employer charges customers a surcharge instead of paying tips or gratuities, the amounts collected must go to the employee, and the employer cannot keep them or treat them as the employee's wages without an agreement.

The employer cannot require the employee to share tips or gratuities with the employer.

Employers may pool tips and gratuities for the benefit of some or all employees, but they cannot claim a proprietary interest in the pooled tips and gratuities.

Employers must distribute all surcharges and pooled tips and gratuities to employees within a certain period, and they cannot pass on any administrative charges to employees. Employers must advise employees of any pooling policy when they are hired.

PEI ESA s.17.1