{"id":5743,"date":"2025-05-22T10:30:00","date_gmt":"2025-05-22T14:30:00","guid":{"rendered":"https:\/\/www.restaurantscanada.org\/?p=5743"},"modified":"2025-05-22T10:08:54","modified_gmt":"2025-05-22T14:08:54","slug":"worksafe-bcs-confusing-and-contradictory-gratuities-as-assessed-payroll-policy-must-be-immediately-paused-and-reassessed","status":"publish","type":"post","link":"https:\/\/www.restaurantscanada.org\/fr\/worksafe-bcs-confusing-and-contradictory-gratuities-as-assessed-payroll-policy-must-be-immediately-paused-and-reassessed\/","title":{"rendered":"WorkSafe BC\u2019s confusing and contradictory gratuities as assessed payroll policy must be immediately paused and reassessed.\u00a0"},"content":{"rendered":"\n

Both the British Columbia Restaurant & Foodservices Association (BCRFA) and Restaurants Canada are calling for WorkSafe BC to pause enforcement of their confusing and punitive all verifiable gratuities as assessed payroll policy directive that conflicts with Canada Revenue Agency (CRA) rules on direct versus controlled gratuities. WorkSafe BC must undertake a consultation to find an alternative policy solution.  <\/p>\n\n\n\n

The policy directive was quietly implemented by WorkSafe BC without any consultation or notice given to industry and has surprised restaurants who have been audited by WorkSafe BC. These audits often result in surcharges and penalties, forcing restaurants to choose between complying with conflicting gratuity definitions of direct versus controlled gratuities between the Canada Revenue Agency and WorkSafe BC. For over a year both organizations have been meeting with WorkSafe BC urging for the policy to be paused and reassessed.   <\/p>\n\n\n\n

\u201cThere has been no notice to the industry, no training, and no orientation\u201d said Ian Tostenson, President and CEO of BCRFA. \u201cRestaurants are being audited and fined for an unfair confusing WorkSafe BC gratuity policy directive they were not even unaware of. This is unfair-and reckless\u201d. <\/p>\n\n\n\n

\u201cRestaurants are between a rock and a hard place on gratuity policies\u201d said Mark von Schellwitz, Vice President Western Canada for Restaurants Canada. \u201cThey need to either comply with federal CRA direct gratuity rules where credit card gratuities are to be paid out in cash at the end of every shift and not be included in employer payroll records or comply with WorkSafe BC\u2019s gratuity policy that requires employers to record all verifiable gratuities as controlled gratuities and include them in assessed payroll. This puts restaurants into an impossible position of determining which contradictory gratuity policy to comply with.\u201d <\/p>\n\n\n\n

Enforcement of WorkSafe BC\u2019s relatively unknown gratuity policy is resulting in additional red tape and costing audited restaurants thousands in additional payroll costs at a time when the hospitality industry is already suffering. In 2024 restaurant bankruptcies hit record levels and more than half of BC\u2019s restaurants are unprofitable as they contend with large inflationary operating cost increases, declining consumer spending and labour shortages.  <\/p>\n\n\n\n

BCRFA and Restaurants Canada are jointly calling for: <\/p>\n\n\n\n