Minister Admits Service Charge Shortchanging Workers, Promises Fix in 3–6 Months

Deandrea Hamilton | Editor

Turks and Caicos, August 29, 2025 – Hospitality workers across Turks and Caicos are being shortchanged on service charges — a fact openly acknowledged by Deputy Premier and Labour Minister Jamell Robinson, who this week promised a fairer, clearer system of distribution within three to six months.

Appearing on the PNP’s weekly Facebook program This is What’s Up, Robinson conceded what many front-line staff have long suspected: the 10 percent service charge, mandated by law to be collected on every restaurant, bar, and hotel bill, has not been consistently or fairly passed on to workers.

“Based on the data we’ve collected so far, the service charge hasn’t been distributed fairly whatsoever,” Robinson said. “What we’re going to be looking at is what the formula ought to be to ensure that the lion’s share goes to front-line staff — the people actually serving the guests.”

When the law was first introduced years ago, the service charge was supposed to be equally shared among all employees. But under industry pressure, that provision was dropped, allowing management to set their own distribution formula. On paper, gratuities already go directly to line staff, but in practice, Robinson admitted, management has absorbed a disproportionate cut of the service charge. The result has been decades of discontent, with housekeepers, bartenders, waiters, and kitchen staff watching as their legally promised share dwindled behind closed office doors.

Industry veterans recall that early proposals envisioned a “Trunk Master” — an independent figure responsible for tallying the service charge “trunk” each month and distributing payments transparently. But without a formalized, standardized system, the responsibility instead fell on individual hotel managers, leaving staff little recourse to challenge questionable payouts. In most destinations, strong unions or worker associations push back against such practices. In Turks and Caicos, however, union representation is virtually absent, leaving hospitality workers without a structured advocate.

That vacuum means oversight of service charge distribution often falls to anonymous payroll clerks or managers with conflicting interests. As one observer put it: “In the absence of unions, this crucial role falls precariously on someone nondescript — a payroll officer or HR rep — and workers are left to simply trust that the math adds up. It’s no wonder abuse has flourished.”

Robinson said the government has received survey data on the issue and intends to finalize recommendations soon. He stressed the administration’s priority is to redefine who qualifies as “front-line staff” and ensure that the group receives the bulk — if not all — of the 10 percent service charge. “This has been on the radar forever. Now we want to settle it once and for all,” Robinson said.

For the country’s more than 4,000 hospitality workers, the Deputy Premier’s words are welcome, but patience is thin. They have heard promises before. Unless the government moves quickly to legislate a formula, the service charge will remain a loophole for management rather than the safety net of fairness it was meant to be.