Tip Pooling and Service Charge Policy Explainer for Staff
Draft a staff-facing explanation of tips, tip pooling and service charge handling with a fairness check, FAQ and a calculation example.
Added October 15, 2026. Written with AI assistance and checked for clarity and placeholders; not reviewed by a lawyer, accountant, clinician or other professional. How these prompts are made
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Help me draft an explainer for staff about how tips and any service charge are handled. Type of venue and roles that receive tips: [VENUE_AND_ROLES]. How tips are collected today (cash, card, service charge): [TIP_COLLECTION]. Current pooling or sharing method: [CURRENT_METHOD]. Hours worked pattern: [HOURS_PATTERN]. Concerns staff have raised: [STAFF_CONCERNS]. Produce: a plain-language one-page explanation of how money is collected, recorded, distributed and paid out, with a dated version line; a worked table with the columns Role, Hours, Points or share, Amount, showing a points-based split with the arithmetic; an FAQ of ten questions staff would ask, such as what happens on card tips, deductions, and who sees the records; a fairness check of five questions the manager should ask about the method; and a record-keeping checklist. This is a sensitive and regulated area. Rules about who may take part in a pool, what an employer may keep, tax treatment and record-keeping differ by place. Do not state any specific legal rule as fact; mark every rule-related statement [VERIFY] and tell me to confirm with the relevant authority or a qualified payroll or employment adviser. This is communication drafting help, not legal or tax advice. Do not invent my policy details. Where my method is unclear, write "Decision needed" and list the options neutrally with pros and cons. Add a worked example with invented figures: a pool of 600 shared by 3 servers with 30, 25 and 20 hours and a bartender with 25 hours at 1.5 points per hour, and compute each share.
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