2019News

Companies get mixed signals regarding tipping from government

Fast food companies are awaiting a ruling from the Superior Administrative Court (TSA) to decide whether or not to remove the 10% they add to bills of delivery and take out orders. ProConsumidor Resolution 380-2016 had ordered fast food places and bars to not collect the 10% “tip” charge on orders for delivery or take-out.

The Dominican Association of Fast Food and Casual Dining Establishments (Adecor) and the National Hotel & Tourism Association told reporters from Diario Libre that the Ministry of Labor requires that the 10% be collected regardless of the type service. The Ministry of Labor says the 10% is a wage compensation paid to employees of these establishments. Labor Code (Law 16-92) in its Article 228 establishes that commercial establishments that serve food must add the 10% (a tip) to all invoices and that these funds be paid to the employees.

Adecor and Asonahores affiliated establishments say they will continue to charge the 10% until the TSA decides on the matter, explained Claudia Castaños, legal advisor to the Adecor.

Diario Libre

2 September 2019