Tipping in Toronto
Ontario law treats a tip as the employee's money, and treats a service charge on the bill as a tip.
The legal definition covers three things: a payment voluntarily made or left by a customer to an employee, a payment voluntarily made by a customer to the employer for employees, and a service or similar charge imposed by the employer where a reasonable person would believe the payment would be kept by an employee or shared among employees.
An employer is prohibited from withholding, making deductions from, or making an employee return their tips, except as the Employment Standards Act permits. Debit card processing fees and any other type of processing fee cannot be deducted. Credit card processing is the exception: the definition of a tip excludes the greater of the tip multiplied by the percentage the credit card company charges and the tip multiplied by 1.5 per cent.
Tips can lawfully be pooled and redistributed among some or all of the employees at the workplace, so a tip left on a card does not necessarily go to the person who served you.
Because a service charge already counts as a tip, adding a further amount on top of one is a second gratuity rather than a correction to an untipped bill.
- Government of Ontario: tips or other gratuities · checked 2026-09-03
