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Cashless Tips: Who Really Gets the Gratuity?
17 Oct
Summary
- Australian businesses face no laws on how staff receive tips.
- Cashless systems deduct a percentage from prompted tips.
- Many Australians view tipping as an unwelcome US import.
Australia is experiencing a surge in cashless tipping requests, prompting debate about the practice. While prompts for 10-25% gratuities are common in cafes and pubs, there are no specific laws in Australia dictating how these tips must be paid to staff. This legal vacuum means employers are not breaking rules if they withhold tips, a situation that has caused distress among hospitality workers.
Furthermore, the cashless payment systems that facilitate these tipping requests also deduct a percentage of each transaction. This has led to criticism that the technology enabling the prompts also benefits financially from them. Public sentiment, largely surveyed on Reddit, indicates widespread dislike for the practice, with many viewing it as an intrusive US import.
Workers in service industries express mixed feelings. While appreciative of receiving tips, they face challenges with the payout logistics and uncertainty about who ultimately receives the gratuity. The appropriateness of tipping for minor services, such as purchasing a drink or for extensive services like a $600 hair appointment, is also questioned.
