Accepting Gifts/Cash from Non-Waiting Services from Customers, Legal/Illegal?

Hey guys,

I work in retail and I usually get tips, not a lot but like 5 dollars, 10, one time 50 every 4 to 6 months. Sometimes customers would buy me coffee, drinks, chocolates etc.

But I had a small argument with my manager regarding cash tips and gifts.

I argued that a retail employee can accept gifts or cash if it's reasonable value and if I still treat them equally like anyone else. In my retail job, it's very hard to bypass the system to have a customer have a significant advantage over other customers. For example: If a customer gives me a $20 tip for my service, and they come in the next time, I seriously cannot offer them any discounts, freebies etc etc. Therefor, I am treating that customer like any other customer.

My manager stated any cash tips or any gifts needs to be declined. I advised that accepting tips is not illegal whether its in cash form or other forms of payment such as chocolates, BUT i did say accepting tips with significant value needs to be reassessed. For example: If a customer gives me $200, I need to claim that through tax.

I remember finding a website on guidelines and the legalities of accepting gifts or cash from customers but when I tried googling it, I can't seem to find it.

But my question to you guys, what are you thoughts of it?

Edit: Just got a reply back from HR regrading gratuities and gifts. The quick answer is, YES, I can accept them on the basis that;
1 - The customer initiates the gift giving and there is no conversation between the customer and the rep hinting, revolving around tips
2 - The customer is not benefiting from the rep that receives the gift. Example: Giving discounts to products, inside information about the business etc
3 - Any financial tips will need to be declared through the ATO

Thanks the replies, my manager did not confirm this policy and she made it up. Why can another store accept tips and our store can't? Either way, case closed.

Comments

  • +9

    As a retail employee, I definitely cannot accept any tips from customers.

    • Is that a company policy or did they give you a legal document stating it's illegal?

      This is my argument, there is a fine line between what an employee can accept and if the customers will be advantageous because of it. All comes down to what's 'reasonable'.

      • +4

        I can't remember exactly but from my perspective, it's also unethical to receive tips in my position as a retail employee.

        You would only receive tips if you worked in hospitality.

        • Thankyou.

          I would like to get further insight on why your perspective on receiving tips is unethical. Is this a general consensus perspective with all retail you have?

          Or I am assuming your retail line of work, getting tips may be seen as a bribe or it damages the company's reputation if you or other colleagues accept?

        • I'm just doing the job that I'm paid to do. Hospitality staff get tips as it's perceived that they're not as well paid plus they offer a more personalised service, and they clear away your dirty dishes.

          Small gifts like chocolates and coffee are OK in my opinion (I once had a regular customer give me a Scratchie as a Christmas present) but tips are definitely a thanks but I can't accept that gesture for me.

        • @hasher22:

          Retail is product based, and Hospitality is service based. Don't you get commissions anyway?

        • +1

          @gmail92: He should, but commissions are a company incentive to encourage you to do your best and as such, paid for by the company.

          Edit: Who keeps negging me?

        • +2

          @kerfuffle:

          And hospitality staff do not get commissions.

          It seems like he is trying to validate his double dipping although he is not willing to accept the ethical implications.

        • +13

          @kerfuffle:
          I haven't negged you, but I find your ethical refusal very strange.
          As a retailer, you are providing a personal service - you are selling the item.
          I don't know why you would have an ethical objection to a gratuity with no strings attached.

          Many employers have a policy against non-trivial gifts, but that isn't a legal or ethical requirement.

        • +1

          @mskeggs: I don’t find that my personal service warrants a tip, I suppose. Customer comes up to me wanting to purchase an item, I put the sale through, ask them if they want a bag, give them their receipt (I try and fold it neatly instead of shoving it into the bag willy-nilly) and thank them for their purchase.

        • Neutralized the neg. I don't understand why you're being negged.

        • +7

          @kerfuffle:

          I didnt neg you either, but I can see why you're getting negged.

          You started by saying you definitely can't accept tips.

          Then you changed your position to being unsure if you can or cant accept them, but you feel it's unethical.

          Then your explanation for why it's unethical was just that you don't feel you deserve them.

          Which is fine, but it's a long way from either not being allowed to, or it being unethical in any way.

        • -1

          @yolohobo: I didn't say I was unsure whether I could accept tips or not, I was unsure as to whether it was company policy or another document such as a code of ethics which I would have signed prior to the commencement of my employment regarding tips.

          Thank you for explaining it to me (and I definitely cannot accept tips)

        • +1

          @kerfuffle: Not me. Makes an interesting read this thread it does.

        • +3

          @gmail92:
          Respectively disagree. A lot of retail is service-based - otherwise we'd just order online. That's the bricks-&-morter stores main point of difference - they offer retail service, not just the product on a shelf.

          The stores that don't get that are the ones that seem confused as to why people prefer to shop online…

        • @CGradeCyclist:

          Do / would you tip at a retail store?

          However, that service is what they are paid for. Which is fairly well in Australia respective to work/effort perspective compared to a hospitality role.

        • +3

          @gmail92:

          I think if one party is eligible for tips then i dont see why that doesnt apply to other groups? I get in some countries some areas are deliberately paid less in order to push them to make up the cash through service / tips.

          But Australia isnt like that. We pay everyone quite well really. so i dont see why more and more hospitality staff are expecting tips in australia, seems to be almost a thing down here like in the US. And yet i service my clients with IT support / Technical support, I dont expect Tips for doing my job. Thats my issue with the whole tipping thing. So you are doing your job and paid by your employer only to then also expect tips and extra money from customers for just doing your job.

        • @kerfuffle:

          I can't remember exactly but from my perspective, it's also unethical to receive tips in my position as a retail employee.

          So regardless of if you signed a code of ethics form or a company policy form you still think it's unethical to receive tips in your position?

          I'm so curious, if company permitted, why is it immoral to receive tips in your position as a retail employee?

          I don’t find that my personal service warrants a tip, I suppose.

          Nothing to do with ethics, you just sold yourself short.

        • +2

          @kerfuffle:
          Apologies, I negged you when I saw your comment "who keeps negging me"
          I realise this isn't what negs are for, though I found it a little bit funny.
          Sorry again :(

        • @kerfuffle: in Australia it is more likely that the waiter makes more money than a retail worker

      • +8

        Why would someone give someone in retail a $50 tip?

        I have never ever tipped a retail employee. and here you say you get Coffee, chocolates $5 $10 etc.

        This is totally weird. Sorry but something just isnt right.

        Hell in Australia we often dont tip service employees, maybe leave some odd change.

        Come clean on what you are really doing. If I was your manager I'd be watching you like a hawk.

        • -1

          I work in retail and I've people offer me gifts, and "tips"

          For instance I sold seafood in one of the big chains, and I often had people offer me things because they felt I was giving them "great, personal service." Like one woman would order 10kgs of fish once a month, she'd come in at 9pm and I'd have the box in the cool room ready to go. She tried to leave me a $20 tip every time. I never accepted it because it was against the code of conduct I signed.

          On the other hand I had a really creepy guy come through once about a week after I'd started working, he came through my register every time he was in store and one time he said to me "Keep the change, I'll just be giving it to you later." with a sly wink. I told my supervisor what had happened, we all laughed about it but she told me to just dump it in the donation jar for a local hospital. For the record it was about $15 in change so I'm not sure if he was implying I was cheap or just really sucked at pick up lines. Haha.

          So it does happen, it's not common but it happens

      • As you say - it’s a fine line, then why not err on side of caution?
        Especially when your manager has conveyed they are not comfortable with the practice in the store.

    • +6

      Try harder. Leave your home life at home and wear a huge smile at work. You can make a profound difference in your customers life with just a smile and a friendly attitude. That kind of sales assistant get's given tips because it encourages them to stay in retail. Some people will drive half an hour out of their way for that kind of service.

  • If possible, what type of retail OP?

    • Electronics, same services like Bing Lee, Harvey Norman etc. I am floor staff just being a sales rep.

      • +8

        I mean; what stops someone from tipping you a 50, and you giving them cost price + $10?

        • +1

          In my post, I stated I cannot do that. Therefor if a customer gives me $50, I cannot give them special treatment on products they are buying.

        • +14

          @hasher22:

          The business cannot validate that, and have to draw the line somewhere.

        • +1

          @gmail92: Maybe he means he doesn't even have the appropriate system access to change the price in the terminal?

        • +4

          @John Kimble:

          Salespeople can change the sale price in most POS systems, just not below cost.

        • @gmail92: so we find someone like OP, slip them a $20 and get a deal? The new OzBargain way :p

        • +1

          @airlie50501:

          Well, that's how you can negotiate pricing with them. Technically its up to them how much they want to sell it to you for - as long as it is over cost (and I think the lower it is - the lower the commission).

          Once upon a time I did work experience at a big retailer. I wasn't on registers and didn't get commission, so I passed a few big sales (customers for raffles) to another guy, who hit his commission target and was very happy. He told me he would sell me whatever I wanted, at cost price + $10.

        • @hasher22:

          But you can though…

          huge conflict of interest.

          My brother use to work for Bing Lee… 'negotiating a price' is pretty standard

  • +19

    It's not illegal, probably more company policy.

    • +3

      Yes simple!
      I see a shitload of nonsense here though.
      An employment is an agreement signed between an employer and the employee. It says they pay you to do what they want and not to do what they don't want and is signed by you to be terminated otherwise.
      It is no one else's business if you have already been warned and you persist to be terminated.
      Simple, not illegal though.
      Wish OP the best.

  • +5

    It's definitely not illegal to accept gratuities. You need to check up on your company's Gift Policy.

  • +11

    If company policy says no then if you do accept anything then your job is at risk. If you're willing to take a calculated risk then that's for you to decide. If they terminate your employment for accepting gifts you can't do anything about it.

    • -4

      Actually not necessarily true, if you aren't breaking any laws then the company has no grounds to terminate you, company policy is not a law, legally they cannot terminate you for something that you never agreed to. if they made you sign a contract on employment specifically stating you cannot take gifts, thats entirely different.

      • +2

        "if you aren't breaking any laws then the company has no grounds to terminate you"

        have you ever been employed? lmao

      • +10

        I'd love to see that case in an employment tribunal.

        Warnings are not required for what the employer sees as a serious breach.

        Employer states employee did something they should not have done and it was written in a company handbook as a prohibited activity. The employee signed an agreement upon commencing stating they would abide to all company policies which are laid out in the company handbook It has been discussed before (a small argument as you said) and the employee continued to accept gifts.

        Go ahead…continue to accept gifts, get terminated then go to an employment tribunal. Let us know how you get on.

      • +7

        You just love making life harder for yourself, don't you?

        Your manager's said that cash tips aren't to be accepted (and given your history with, she's noted that she's informed you of that, I'm quite sure of that). And I would think "Wilful Insubordination", "Breach of Company Policy", and… well… hell… they've got you 2/3, I'll be your job they'll find a 3 if they really want to… So I have to ask, why continue to bash heads & argue with her?

      • +1

        As much as I appreciate employee protection in Australia, it’s people like you who make a case for companies to hire contractors over permanent employees.

  • All depends on the official company policy. I once was in a very similar position. I accepted tips, and I believe it wasn't against the policy. I never discussed it or mentioned it to anyone, so no managers ever knew about it in any case.

  • +1

    Whilst accepting gifts/cash from customers may not be illegal, it may be inappropriate.

    Many business will have a policy to ensure that receiving gifts/cash, could affect, or be perceived to affect their doing their jobs impartially.
    It is not really up to the employee to argue the toss.

    It's not a good look from a customer's perspective, either. I would really wonder what was going on in that shop, if I witnessed that.
    Just think back to the last days of Dick Smith.

  • +4

    Why would anyone tip you as an electronics retail floor staff? To usually get tips? You must be dodgy………….

    • +12

      I have worked in retail (grocery and food shops), and it was far from unusual for somebody to say 'keep the change' or similar if I had gone out of my way to sort out a problem or otherwise give better than usual service.
      I don't see the issue if it isn't against company policy.

      I agree it is a bit off to tip electronics store staff, but I can imagine wanting to show my gratitude if somebody called around stores to find me the last item at the clearance price or otherwise worked extra hard.

    • +1

      Quite the assumption you made. Obviously you think it's "dodgy" without knowing facts. You must not have worked in retail before.

      1 - I give amazing customer service through building rapport and meeting customer's needs even though they don't seem interested
      2 - I go out of my way to give advice to people other than whats written on paper
      3 - People tip people they feel they have been served very professionally
      4 - If they want to tip because of great service, that's their money, that's their choice.
      5 - It's obvious if someone is bribing you for a good deal, which I can't do anyways

      7 - Your mentality of accepting tips in exchange for discounts on a product is very toxic and negative. Most cases, retail staff will be tipped based on CUSTOMER SERVICE EXCEEDING EXPECTATIONS. Rarely bribery.

      Thank you very much

      • -8

        If your customer service skills are as out of this world as you say they are, you would probably have a better job.

        But you don't, and you're arguing for change.

        • -1

          Mate,

          Who said I was asking for a change? I never said I wanted change, I was asking a question, legality vs policy. You assume that people with great customer service skills will have "better jobs", in reality, people go to uni, families, they make do of what they have and are happy. Not everyone is rich, not everyone can have their dream job, not everyone is living comfortably.

          I am happy I have a job, I do my job well and there are great sales/customer service reps out there that just wanna do a good job whether they are picking up animal shit for a living or is a CEO for a company.

        • -3

          @hasher22:

          Change, as in chump change.

          chump change
          noun

          a small or insignificant amount of money.
          "it's rough, dead-end work that pays chump change"

        • +3

          @gmail92:

          Think about it this way, from a customer's perspective: you go into X store and are provided with exceptional service. You don't tip, that's cool. That's your money, that's your choice, no one is forcing you. But let's say you do, you tip $10 to that rep and the rep takes it. Let's forget about policies, lets forget about the legalities of accepting cash tips.

          Let's think of the micro-transaction that just happened. You just made that person's day by giving a gift or cash tip (again, lets forgot about the policies/law).

          Few things can happen;
          1 - You just paid for that reps lunch
          2 - You don't know how much that rep is working nor how much is getting paid on wage/salary. you didn't judge them at all based on their looks and work.
          3 - That tip is a symbol of appreciation and mutual respect between two parties that you further acknowledge their service. They gave you amazing service, thus you went out of your way to give them a tip/gift
          4 - Retail workers get abused on a daily basis, if you haven't worked in retail then you must be one of the lucky ones that don't get abused by customers each day. BUT….. that ONE…. that ONE customer that goes out of his/her way to give a gift of appreciation makes that retail workers day. It actually does.

          Now whether it's "change", it may be change to you, but it's making a retail worker smile, it's making a retail worker help their financial status, it's helping that retail working pay that tiny bit of a meal, it's a symbol that people do care. Every little bit counts.

          It may be change in your perspective but it's a different story on the receiving end.

        • @hasher22:

          You have this sense of entitlement that you specifically deserve gratuities for your work.

          Isn't providing good customer service is what you are paid for?
          I've done my time in retail, but I wasn't petty about it.

          Company policy is there for a reason, but you are apparently above that.

        • +6

          @gmail92:

          Who said I was entitled to it? Who said I was deserving of it? Who said providing good customer service in exchange for money should be the norm? Who said the company I worked for said I can/cannot take tips/gifts as an official policy? I have seen/said no such thing.

          You're assuming again.

          I said if a customer feels they got great customer service, it's up to them to tip them.

        • -2

          @hasher22:

          Declare your tips
          Tips are income. If you receive cash tips, you must declare them on your tax return –regardless of how you receive them. It makes no difference if tips come from your employer or direct from customers.

          https://www.ato.gov.au/Individuals/Working/Working-as-an-emp…

          If you are so adamant you have the right to receive tips from customers against company policy, maybe you should find a job in hospitality. You'll see how (little) work you do comparatively, to provide good service in hospitality compared to what you do.

          You wouldn't survive a day.

        • +2

          @gmail92:

          Again, I didn't say there is a COMPANY policy, my manager made the policy up. You keep assuming and twisting my words around. As people already said it, it's NOT illegal to accept it.

        • @hasher22:
          Good… Excellent plan…
          Take THAT to HR… That'll go down a treat…
          From a HR point of view, and forgive the bluntness or don't, I don't care… But here's what HR will read:

          Whinging pain in the ass employee (who's probably already on their books due to history) has sand in their vagina because their manager has prohibited them from accepting cash gifts from customers…

          Nice plan.

        • +1

          @hasher22: I disagree. Being given a tip makes it sound like you're saying you as a person is only worth that amount of money.

          Imagine you helped an old lady cross a busy road. Scenario 1: she gives a heartfelt thanks. Scenario 2: she gives you $5.

          In scenario 1 you feel pretty good about yourself, you made a difference to an old lady's day and she was grateful. In scenario 2 your thoughts and helpfulness was worth a monetary amount. You feel dirty. The lady doesn't appreciate your gesture at all, you didn't help her at all, she just paid you for services rendered. Yuck.

          I think a smile and a 'thanks!!' is worth a lot more than a tip. In fact a tip is like negative feelings - it makes you look like you think you're better than them, and you don't appreciate their extra time, you think they're just doing it for money not because they care about their customers. Service people in this country do not need it, they are paid well enough. Money is a barrier to friendliness and good cheer.

      • Are you sure this is happens in the OzBargain universe?

      • 6!!! You've just triggered my OCD… ffs, poor service mate ;)

  • +4

    you shouldn't accept the tips, otherwise it looks bad for the store. I turned down $200 the other day.

    • +17

      That sounds more like payment for a happy ending than just a tip.

      • +12

        That sounds more than just THE tip.

        • +3

          Fantastic, now I have Archer stuck in my head.

        • Great, isn't it? :D

  • I am not sure of cash but various other industries receive gifts. Car sales persons, Real estate agents, Doctors etc often do get expensive gifts.

  • +6

    Your manager has given an reasonable (even if not liked) instruction regarding this… Why waste time trying to ascertain if your actions were legal or not?
    Sounds like you're either trying to be a smartass, or you don't really want your job any more (which, given it's retail based and it's also this time of year, is completely understandable). It's not a case of legality here, rather policy.

  • +18

    There is absolutely no reason to ever tip anyone in Australia - and doing so just creates an entitlement mentality.
    As for tipping sales staff on the floor of an electronics retailer - people must be out of their mind.

    • +1

      In the USA it's out of control. All EFTPOS terminals ask you how much you'll tip, with the default rate being 10%. Other options include up to 20% and higher.

      • +6

        Tipping is just a crazy minefield.
        I have always believed it is the responsibility of the EMPLOYER to pay the staff, not the customer.

      • +1

        @cluster

        Maybe out of control, but NOT that out of control that retail sales staff get tips!! Even the US doesnt do that.

        I suspect the OP is just trolling…

    • America has a different system. Tipping works in the USA because of their incentive system (low minimum wages). It encourages great service as staff are dependent on tips to make a livable wage.

      In Australia, for better or worse, the livable wage is already built into the prices. And because of our guaranteed high wage in Australia, we always get great service 😊

  • +3

    The only service industry that I'm aware of in Australia where it's illegal to tip is at a casino. Try it one day. The dealer must always refuse.

  • +1

    When I was in retail, the company originally had a "no gifts" policy, however that changed and we were able to accept gifts from customers. We didn't work on commission though.

  • +1

    Doesn’t your manager dislike you and vice versa? Are your fellow co-workers accepting tips or are you the only one? Why make life harder for yourself, just follow the damn company policy and decline tips!

    • -3

      It's her own policy. It's not the company's policy, in-which I need to find out through HR. I just spoke to another rep from another store and they can accept 'gifts' or 'financial tips' within reason.

      But my manager also told a Sony rep, who is NOT hired under the company I work but a rep that goes from store to store to educate on products to us, my manager told him that he cannot accept financial tips and my manager made an official complaint to his manager. But I said she had no grounds to tell a Sony rep what he can/cannot do.

      The conversation came up when a customer forgot her wallet, and the sony rep called her as there was a number in the wallet and the customer gave $50 to the sony rep and my manager told me that story. My manager had no right to interfere and make a complaint with an outsourced rep telling him he cannot accept tips.

      • +3

        It's her own policy. It's not the company's policy, in-which I need to find out through HR

        When your manager issues you a reasonable direction, that becomes as good as company policy. Legalities are irrelevant at this point. It then becomes a case of insubordination if you continue to ignore reasonable directions from your manager and you risk being fired.

      • While operating within the business the manager most definitely CAN tell the Sony rep what he can and cannot do while on premises, especially around such practises. Any store is within their rights to make it a policy that people working their cannot accept tips, gifts or financial incentives of any kind. Unless your company has a an explicit different policy that overrides your managers then their word for want of a better word is law.

        • It seems like the OP is trying to manage the manager.

          There is a reason why they have that role, and not you.
          Quit telling them what to do, in what I assume, is not a friendly manner

  • This should be according to the company policy.The decision to give tips is best left to the customer to make provided its legal

  • I've gifted / tipped someone who works in retail like this and him and his network of mates save me a ton of money

    They are a little aware of people who can shit stir so I'll just drop a couple of bottles of nice scotch or something into his car one day while he gathers up my goodies every now and then.

    Always more than one way to do something if it's valued.

    • You’ve just described bribery.

      • it's called doing something appreciative for someone who owes me nothing, to be clear the gift or tip whatever you want to call it happened years after because i felt that they do so much yet i can't do anything in store to tip.

        It was never expected by him and it's not what gave me the discount

        So no there was no pre meditated knowledge that deals were done on that basis ;

        A he would continue to help me out with as much as possible
        B it was something i decided to give one day
        C Not once was it used to get the discount

        Some people are genuinely nice when you talk to them like people and not just bark commands at them. so i thought i'd repay him one day

        Maybe look up bribery and have another go

        • +1

          you got a discount. You paid less than you otherwise would. You don't think it was a result of looking after your mate. Was your friend doing this for every single person or just you?

          This is precisely why many places have policies preventing employees from accepting gifts.

        • +1

          @ChickenTalon:

          Please re read again you're clearly missing the point, if i'd said come on you can knock more off it and i'll drop a bottle of scotch your way then yes bribe.

          but no read again!!!!!!!

        • +1

          @Toons: you didn’t say

          happened years after

          in your first post. You said

          I’ll just drop a couple of bottles… while he gathers up my goodies every now and then.

          Implying an ongoing reciprocal arrangement. When that arrangement benefits you in terms of

          goodies

          It becomes a pretty clear case of bribery. If those “goodies” are items from his employer and you haven’t paid in full for them it’s also theft on his behalf and recieve stolen goods on yours.

          But if you gave someone a few bottles of scotch years after they helped you obtain some goodies perfectly legally then no, that’s not bribery.

          It’s also totally irrelevant to the situation of regularly accepting tips that the OP describes, so why would you post it?

        • -4

          @ChickenTalon: making a lot of assumptions mate all of which are wrong to the point.

          including your point on relevance read the entire post people have questioned why you would even tip someone who works in retail i gave my point of view.

          and here is another you have been wrong from the second you opened your mouth so therefore i'm deeming you irrelevant and you're asking me why would i post it!!!!

          Go bug someone else with your assumptions and accusations.

  • +3

    If a customer gives me $200, I need to claim that through tax.

    I thought all tips needed to be declared.as taxable income?

    • +1

      tips need to be declared. I assume that all tips need to be declared but it's quite hard to assess. I reckon most people either leave it out or guesstimate it on their tax return.

  • +2

    Worked in retail for couple of years and had customers offer me various gifts and tips but always declined because it didn't really feel right taking money or gifts for simply doing my job. I assume it would be frowned upon by management but don't think it was illegal as per say.

    Although I did once accept a cookie a customer baked for me :D

  • +2

    What are my thoughts on it?

    Absolutely not! I just cannot accept gifts from customers!
    (manager walks out of earshot)
    Alright give me the dough, I'll see what I can swing

    You don't owe anything to anyone. Whats the worst that happens, you lose your crappy job? please
    If you feel bad about it, why not take some of the money and give it to charity?

  • Just take it in the spirit that it is given in.

  • +1

    If you dont want it you can give it to me!

  • +1

    This is Australia, we do not tip and will not accept the import of such ideas from north america.

    • +1

      Thanks for saying this.
      Just returned from US, and these days the advertised cost of food is only slightly lower than Australia.
      It ends up being a lot more once you add taxes (~8% - 10.25%) and add 18% tip on top of that.
      Factor in currency rates and it ends up being super expensive. The old notion that food in US is cheaper no longer applies.
      E.g. a $14 burger in San Fran ends up costing USD18, that’s AUD24!

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