HR & employment 2 signers 2 pages 13 blanks to fill in

Tip Pooling Agreement

Put the house rules for sharing tips in writing, so every server, bartender and runner knows how their share is worked out.

Use this template — free See the agreement Signers don’t need an account
Tip pooling agreement
The blanks in brackets are what you fill in. FileIt adds each signer’s signature and date boxes.
Tip pooling agreement — page 1 of 2
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Use this template Fill in the blanks, name who signs, and send — from FileIt eSignature.

What is a tip pooling agreement?

Arguments about tips can sour a good team fast. Someone thinks the bar takes too much, a new runner doesn't know why their share looks small, or nobody is sure whether the shift lead is in or out. A short written agreement settles those questions before they start and gives each person something to check their payout against.

This agreement names the venue and the start date, then sets out what goes into the pool (all tips, card tips only or cash only), which roles share and who is excluded. You choose how shares are calculated — points per hour, a fixed percentage per role, or an equal share per hour — and can list the points or percentages for each role. It covers when shares are paid, that tips are paid on top of wages, the records you keep for each pay period, and how a staff member raises a question about their share without it being held against them.

Best for
Restaurants, bars, cafés, hotels and salons that pool gratuities
Signed by
The employer and each participating staff member
Share methods
Points per hour, fixed percentage per role, or equal per hour
Length
About 2 pages

When to use a tip pooling agreement

  • Launching a tip pool at a new restaurant or bar
  • Bringing kitchen staff into an existing front-of-house pool
  • Moving from cash tip jars to a card-tip pool
  • Onboarding a new server so they understand how tips work from day one
  • Writing down an informal arrangement the team has used for years

What you fill in

13 blanks, then the name and email of each person who signs: employer, staff member.

1 The parties

  • Employer (business name)*
  • Venue or location the pool covers*
  • Staff member's full name*
  • Staff member's role*
  • Pool arrangement starts*

2 The pool

  • What goes into the pool* all tips and gratuities left by customers, whether in cash, by card or through an app · tips and gratuities paid by card or through an app only · cash tips only
  • Roles that share in the pool*
  • Who does not share*

3 Shares

  • How shares are worked out* Points per hour worked · A fixed percentage per role · An equal share per hour worked
  • Points or percentages by role

4 Payment

  • When shares are paid* with the next regular pay · weekly, by bank transfer · in cash at the end of each shift
  • Who to ask about a share*
  • Governing law*

5 Who signs

  • Employer signature and date, job title · The owner or manager who runs the pool.
  • Staff member signature and date · One participating staff member. Send a copy to each person in the pool.

What the tip pooling agreement covers

  1. What goes into the pool
  2. Who takes part
  3. How shares are worked out
  4. Payment
  5. Records
  6. Questions and disagreements
  7. General

Using the tip pooling agreement, step by step

1 Name the venue and the staff member

Enter the business, the venue the pool covers, the staff member's name and role, and the date the arrangement starts.

2 Define the pool

Choose what goes in, list the roles that share one per line, and say who does not share — owners and managers are excluded by default.

3 Set the shares and payout

Pick the calculation method, add the points or percentages for each role, choose when shares are paid and name the person who answers questions.

4 Send to each person in the pool

Send one copy to every participating staff member. You and each staff member sign, and every signed copy is saved to your vault.

Tips before you send it

  • Check the local rules before you start: many places limit who may share in a tip pool and ban managers or owners from taking part.
  • Post the current points or percentages somewhere staff can see them, and update the agreement when they change.
  • Keep each period's pool record with your payroll records so you can answer a question quickly.
  • Explain the calculation with a worked example during training — it heads off most disputes.

Sign it online in minutes

  1. Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
  2. Name who signs. Tick “This is me” for your own part. FileIt builds the PDF with every signature, date box on the right line, and you can check or move anything before sending.
  3. Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in your vault and emailed to everyone.
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Tip pooling agreement: frequently asked questions

Can managers take part in the tip pool?

In many places they can't, and the template excludes owners, managers and supervisors by default. You can edit who is excluded, but check the rules where you operate first.

Does each employee need to sign?

Yes. Send a copy to each participating staff member so every person has their own signed record of how the pool works.

What if someone thinks their share is wrong?

The agreement names a contact who checks the records and corrects any underpayment in the next payout, and says raising a question will never be held against anyone.

Can I change the points later?

Yes. The agreement says you'll give at least two weeks' written notice before changing the roles, points or percentages, unless the law requires a change sooner.

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