Clarity Amidst the Current Conditions Chaos in our Hospitality Industry
In light of recent discussions surrounding the viral case of a South African waitress and her working conditions, it’s clear that the hospitality industry faces critical questions. Issues like tips, wages, uniform costs, and employee rights have sparked widespread debate. At Hospitality Jobs Africa, we believe in offering the calm amidst the chaos and providing clear answers to the questions swirling in this complex hospitality industry.
This article, written by Sarah Donnelly (Managing Director) and Zana Scheltema (General Manager) of Hospitality Jobs Africa, aims to provide clarity on some of the most pressing topics affecting South Africa’s hospitality workers.
Can Employers Ask Staff to Pay for Uniforms?
It’s often a requirement for waitstaff to wear uniforms. But should they be paying for them?
According to the Basic Conditions of Employment Act (BCEA), employers can ask employees to pay for uniforms, but this should be outlined in the employment contract and cannot reduce an employee’s wage below the national minimum. Transparency is key here—employers need to make sure workers are fully aware and agree to any such deductions before they occur.
Do Waiters Survive Solely on Tips?
A common misconception is that waitstaff rely solely on tips. But is this legally acceptable?
South Africa’s National Minimum Wage Act (NMWA) ensures that all workers, including waiters, must be paid a minimum wage, regardless of tips earned. Tips should be seen as a reward for good service, not as a replacement for a fair wage. According to the National Minimum Wage Flyer 2024, hospitality workers must receive at least the national minimum wage, ensuring financial stability beyond tips.
Is It Legal to Withhold a Portion of Tips for Card Transaction Fees?
As the use of credit card payments grows, many restaurants withhold a portion of tips to cover transaction fees. Is this legal?
Yes, employers can withhold a portion of credit card tips to cover transaction fees, but this practice must be clearly documented in the employment contract, as per Section 34 of the BCEA. It’s important that employees are fully informed and provide their consent to these deductions, ensuring transparency and avoiding conflict.
Can Employers Deduct Breakage Fees?
Accidents happen in restaurants, but can employers legally deduct breakage fees from their employees’ wages?
Yes, but only under specific circumstances. Section 34 of the BCEA allows employers to deduct for breakages if they are due to negligence or misconduct, and only if these deductions do not drop an employee’s wage below the minimum. Any such arrangement must be in writing, ensuring fairness and consent from the employee.
Who Pays for Runners—The Waiter or the Employer?
In larger restaurants, runners assist waiters by delivering food to tables. Who is responsible for paying them?
By law, the employer is responsible for paying all staff, including runners. While some restaurants may have agreements where waiters share their tips with runners, this must be voluntary and documented. The employer cannot force waiters to pay runners out of their own tips unless there is mutual agreement.
Who is Responsible for PAYE and UIF on Tips?
Tips often form a large part of a waiter’s income. But who is responsible for managing PAYE and UIF contributions?
Tips are taxable, and while employers do not typically deduct PAYE from tips unless they are part of formal remuneration, waiters are required to declare them in their tax returns. For UIF and PAYE on wages, it is the employer’s responsibility to make the appropriate deductions, as outlined in the Unemployment Insurance Act and the BCEA.
We Provide Calm in the Chaos
At Hospitality Jobs Africa, we understand that navigating these issues can be challenging for both employers and employees. The recent viral incident has put a spotlight on the intricacies of hospitality work, and we’re here to provide answers and guidance. By staying informed and adhering to labor laws, we can create a fair, transparent, and thriving industry.
For more information and support, feel free to reach out to our team at Hospitality Jobs Africa. We’re here to help you navigate these challenging times and ensure a brighter, fairer future for all in the hospitality sector.
Written by Sarah Donnelly (Managing Director) and Zana Scheltema (General Manager) from Hospitality Jobs Africa, in response to the current situation in South Africa’s hospitality industry.