![]() 5.4.4.3 Employee taxation responsibilities.However, studies of the practice in America suggest that tipping is often discriminatory or arbitrary: workers receive different levels of gratuity based on factors such as age, sex, race, hair color and even breast size, and the size of the gratuity is found to be only tenuously related to the quality of service. From a theoretical economic point of view, gratuities may solve the principal–agent problem (the situation in which an agent, such as a server, is working for a principal, such as a restaurant owner or manager) and many managers believe that tips provide incentive for greater worker effort. Giving a tip is typically irreversible, differentiating it from the reward mechanism of a placed order, which can be refunded. Tipping may not be expected when a fee is explicitly charged for the service. A fixed percentage service charge is sometimes added to bills in restaurants and similar establishments. government workers and more widely police officers the tips may be regarded as bribery. It is illegal to offer tips to some groups of workers, such as U.S. The customary amount of a tip can be a specific range or a certain percentage of the bill based on the perceived quality of the service given. However, in some places tipping is not expected and may be discouraged or considered insulting. In some countries, it is customary to tip servers in bars and restaurants, taxi drivers, hair stylists and so on. Tips and their amount are a matter of social custom and etiquette, and the custom varies between countries and between settings. Strike out paragraph or paragraph not applicable.A gratuity (often called a tip) is a sum of money customarily given by a customer to certain service sector workers such as hospitality for the service they have performed, in addition to the basic price of the service. Payment may please be made in cash/open or crossed bank Cheque.Īs the amount of gratuity payable is less than Rupees one thousand, I shall request you to arrange for payment of the sum to me by Postal Money Order at the address mentioned above after deducting postal money order commission therefrom.Ģ. ![]() ![]() I was rendered totally disabled as a result of Department/Branch/Section where last employed.Ĥ. I beg to apply for payment of gratuity to which I am entitled under sub-section (1) of section 4 of the Payment of Gratuity Act, 1972 on account of my superannuation/retirement/resignation after completion of not less than five years of continuous service/ total disablement due to accident/ total disablement due to disease with effect from the …………… Necessary particulars relating to my appointment in the establishment are given in the statement below:ģ. ![]()
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