Hotel claims snatching waiters’ tips was to ‘assist’ govt
The management of De Duine Hotel, a Henties Bay establishment at the centre of a gratuity controversy, claims its plan to retain tips paid to employees was intended to assist government in ensuring proper tax compliance.
In a letter dated 24 March, the hotel informed its waiters that a new gratuity clause would be added to their contracts. According to the clause, all tips would remain the property of the hotel and could be distributed at management’s discretion or used to cover costs.
Notably, the policy allows waiters to keep their tips throughout the month; however, these amounts would be considered “loans in advance” and partially deducted from their salaries.
The letter states: “At month end, a portion of the total gratuities received by a waiter will be logged as a loan against their salary up to an amount determined by management. Any gratuities exceeding this determined loan amount will remain as extra income for the waiter.”
Staff members were asked to sign the agreement so it could be incorporated into their employment contracts.
Hotel owner Nico van der Westhuisen this week denied that the policy had been implemented, describing the circulated document as a draft still under review.
“It is nowhere near being finalised – I am in discussions with labour and finance officials,” he said. “The primary goal of this exercise is to assist the Receiver of Revenue and the ministry of labour.”
Van der Westhuisen argued that the measure was designed to ensure transparency and compliance with tax laws, particularly concerning electronically paid gratuities.
“We don’t want to get into trouble with the Receiver of Revenue – we just want to do the right thing,” he said.
He explained that when tips are paid via card transactions, they are recorded as company income, which may have tax implications.
“We need to clarify with the receiver how this should be handled. It has not been implemented; it is merely an exercise,” he added.
Auditor questions legality of policy
An independent auditor noted that electronically received gratuities should be treated separately from company income and paid directly to employees.
“If tax authorities require such payments to be logged as company income, this could be legally challenged,” the auditor said. “Tips should be immediately disbursed to the waiters and should not be part of the company’s earnings.”
The auditor further remarked that the Receiver of Revenue should not have any issues with properly allocated gratuities.
Government launches investigation
The Ministry of Justice and Labour Relations has confirmed it has launched a formal investigation into the employment practices at De Duine Hotel following the circulation of the controversial gratuity policy on social media last week.
The clause has sparked alarm among labour advocates and the public, with many arguing that it effectively deprives employees of their rightful earnings. Critics have labelled the practice exploitative and potentially unlawful.
“Hotel De Duine is engaging in theft – stealing [money] from its customers meant for its workers,” said Henties Bay councillor Sifried Garoeb.
Responding to the matter, executive director in the ministry of labour Lydia Indombo confirmed that the minister had ordered an investigation.
“We have dispatched a team to investigate, and they are currently in the field,” Indombo said.
“A report will be submitted to the ministry and a decision will be made based on the findings and recommendations regarding the terms and conditions of employment and the company’s policies.”
She emphasised the importance of a balanced investigation: “Both sides of the story must be considered – including the employer’s perspective. Let our team conduct their work so that we can make an informed decision on the way forward.”
New justice and labour minister Wise Immanuel told Namibian Sun that he was expecting a formal report from his officials yesterday. He acted swiftly by delegating a team to look into the matter after it surfaced on social media.
In a letter dated 24 March, the hotel informed its waiters that a new gratuity clause would be added to their contracts. According to the clause, all tips would remain the property of the hotel and could be distributed at management’s discretion or used to cover costs.
Notably, the policy allows waiters to keep their tips throughout the month; however, these amounts would be considered “loans in advance” and partially deducted from their salaries.
The letter states: “At month end, a portion of the total gratuities received by a waiter will be logged as a loan against their salary up to an amount determined by management. Any gratuities exceeding this determined loan amount will remain as extra income for the waiter.”
Staff members were asked to sign the agreement so it could be incorporated into their employment contracts.
Hotel owner Nico van der Westhuisen this week denied that the policy had been implemented, describing the circulated document as a draft still under review.
“It is nowhere near being finalised – I am in discussions with labour and finance officials,” he said. “The primary goal of this exercise is to assist the Receiver of Revenue and the ministry of labour.”
Van der Westhuisen argued that the measure was designed to ensure transparency and compliance with tax laws, particularly concerning electronically paid gratuities.
“We don’t want to get into trouble with the Receiver of Revenue – we just want to do the right thing,” he said.
He explained that when tips are paid via card transactions, they are recorded as company income, which may have tax implications.
“We need to clarify with the receiver how this should be handled. It has not been implemented; it is merely an exercise,” he added.
Auditor questions legality of policy
An independent auditor noted that electronically received gratuities should be treated separately from company income and paid directly to employees.
“If tax authorities require such payments to be logged as company income, this could be legally challenged,” the auditor said. “Tips should be immediately disbursed to the waiters and should not be part of the company’s earnings.”
The auditor further remarked that the Receiver of Revenue should not have any issues with properly allocated gratuities.
Government launches investigation
The Ministry of Justice and Labour Relations has confirmed it has launched a formal investigation into the employment practices at De Duine Hotel following the circulation of the controversial gratuity policy on social media last week.
The clause has sparked alarm among labour advocates and the public, with many arguing that it effectively deprives employees of their rightful earnings. Critics have labelled the practice exploitative and potentially unlawful.
“Hotel De Duine is engaging in theft – stealing [money] from its customers meant for its workers,” said Henties Bay councillor Sifried Garoeb.
Responding to the matter, executive director in the ministry of labour Lydia Indombo confirmed that the minister had ordered an investigation.
“We have dispatched a team to investigate, and they are currently in the field,” Indombo said.
“A report will be submitted to the ministry and a decision will be made based on the findings and recommendations regarding the terms and conditions of employment and the company’s policies.”
She emphasised the importance of a balanced investigation: “Both sides of the story must be considered – including the employer’s perspective. Let our team conduct their work so that we can make an informed decision on the way forward.”
New justice and labour minister Wise Immanuel told Namibian Sun that he was expecting a formal report from his officials yesterday. He acted swiftly by delegating a team to look into the matter after it surfaced on social media.
Comments
Namibian Sun
No comments have been left on this article