What Are the Rules About Tips at Work?
Are tips a legal right?
Tips are not regulated by law in the Netherlands and are not specifically addressed in the hospitality sector’s collective labour agreement (CAO). Since tips are given by customers rather than paid by the employer, they are not considered wages under Dutch employment law. This means that employers cannot claim ownership of tips in principle.
What is the employer’s role in handling tips?
In most cases, the employer should not interfere with how tips are distributed. Employees typically decide among themselves how to divide tips. An exception might apply if the employer actively works on the floor and receives part of the tips.
Can an employer deduct tips from wages?
No — employers are not allowed to deduct tips from an employee’s wages. If the employer first collects tips and later redistributes them or uses them to offset till shortages, the money is legally regarded as wages, and normal wage rules apply.
How are tips distributed?
There are no fixed legal rules on how tips must be distributed. In practice, they are often divided based on hours worked, but team agreements can differ. Clear arrangements can help avoid internal disputes.
Taxes and tips: what are the rules?
Although no payroll tax is withheld on tips, they are still considered taxable income. This means employees are required to report received tips in their tax return and pay income tax on them.
Do you receive tips during sick leave?
No, if you’re off sick, you’re not entitled to tips. Because tips are not classified as wages, there is no legal obligation to continue paying them during periods of illness.
Tips and theft: what if someone keeps them?
If a tip jar or system is in place and an employee keeps tips for themselves instead of sharing them according to the group’s agreements, this may be considered theft. That’s why it's important to establish clear agreements within the team regarding tip distribution.
Conclusion
Tips are customer bonuses and not considered part of your salary. How they’re divided is usually handled internally among staff, unless the employer is actively involved. Employees should be aware of their tax obligations and make clear agreements about any shared tipping system.
This blog was written by Mr. Stijn Blom
Employment law attorney at expatlawyer.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and regulations – with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn’s page.
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June 2025
