Mariana (name withheld) worked as a waitress in a restaurant in Quito from 2016 to 2018. During that period, like any formal worker, she went on vacation and enjoyed her days off. He received a salary, but not a 10 percent tip, which is regulated by Ministerial Agreement 7 of March 8, 2007.

This regulation is in force and explains that the beneficiaries are entitled 10% consumption allowance for all workers are subject to the Labor Law, which provides for their own services in companies or facilities of hotels, bars and restaurants of the first and second categories.

Mariana was fired and filed a lawsuit against her former employer seeking payment for this case. The judge ruled in favor of the worker and ordered payment for $4,176which corresponds to the years 2016 and 2017.

The labor lawyer Vannessa Velásquez He leads the case and explains that the verdict was in the first instance, that is, in the Land Court, but it is waiting for it to be confirmed in the Land Court.

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“The letter (data on the restaurant’s income) was requested from the Tax Administration (SRI), but in the end the employer presented it and with these documents the judge makes a table and determines what was the value of the sale, how many workers were then attached and how much they had to pay (to one another). They calculated the value and gave a total of $4,176,” says Velásquez, who hopes the case will be resolved soon so the worker can use the tips he didn’t receive.

This 10% consumption supplement, which is charged in restaurants, bars and hotels and which appears on invoices as ‘services’, must be paid to the workers, and the employer is in charge of preparing a monthly chart on sales and tipsin accordance with Article 4 of the ministerial agreement.

“Eventually there’s a box closing, that closing can be checked, having a summary of the day’s sales so you know what percentage you’re going to tip. An additional table must be generated, it does not enter into the role of payment”, explains Velásquez and adds that not all employees of the facility should receive, but only those who are related to the provision of the service such as waiters: “You cannot take what concerns the workers who are in the administration, that’s another mistake, that’s why the tips are dissolved who try to distribute them among everyone”.

If a business collects $10,000 in sales per month, 10% equal to $1,000 is deducted. If there are eight workers, the value is divided and ends up at $125 each for that month. They, as food, they must receive a document stating that it is a tip, as it is a separate item from the salary.

“It is value for service and IESS does not tax. And since it is a document that I have to justify before the Ministry of Tourism and Labour, I have an independent document. It is not part of the salary,” Velásquez points out.

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Apart from this, Adriana Gutiérrez, Administrative Coordinator for Human Talent at Casa Grande Universitypoints out that this 10% should be considered part of it organizational responsibility. “So that all staff and their managers know the amounts generated by the said concept.”

There are companies in the country that take this value into account on the invoice, while others do not. The latter usually deliver a piece of paper with the word tip to be placed on the table and taken by the worker. Faced with this, Gutiérrez emphasizes compliance. “(The ministerial agreement) indicates that it is mandatory to collect and pay the value of tips to workers for all facilities under the management of the Ministry of Tourism. TOYes, even if the tip value is not stated on the bill, it must be paid by the employerGutierrez says.

Meanwhile, Velásquez claims that if the employer does not comply with this provision, the worker can file a complaint or lawsuit so that the judge could calculate the unpaid amount through an official letter to SRI.

Actually, This amount is also shared for those workers who are on annual leave, sick leave, maternity leave or breastfeedingaccording to letter F of Article 4 of Ministerial Agreement 7.

What information must be contained in the document given to me by my employer?

The employer will provide each worker with a liquidation of the payment of 10% of the tip, a document that must contain the following information:

“The employer must keep certificates of monthly payment of value to each worker until the 15th of the following month in the month to which the payment relates,” the document states, and that it is necessary to send the labor inspector copies of the pay slips signed by the workers.