A luxury hotel in Whistler has agreed to repay $85,000 in tips that it wrongfully withheld from workers.

In 2018, the Fairmont Chateau Whistler introduced a new "tipping structure" where banquet staff tips were used to subsidize the wages of managers, which is in violation of the Employment Standards Act.

Banquet staff initially took up their grievances with the Fairmont, but were ignored.

Staff then called the United Food and Commercial Workers union, who intervened on their behalf.

The incident sparked a conversation on Twitter, with several Canadians calling the Fairmont out for withholding tips.

What a greedy thing to do. Makes me wonder when I give a tip electronically. Maybe cash is the only way. I don’t know though as I’ve never worked in food service. — Fuzzy (@brockwilcox) February 1, 2020

One user even suggested that the police should have been involved.

Whistler hotel must repay $85,000 in tips used for managers' wages https://t.co/OjmE8LCpKM



Staff should have called the Police and not the union that is theft! The Fairmont family of hotels should be ashamed of themselves. Greed knows no end! #Fairmont #whistler — Bcoutdoorman (@bcoutdoorman) February 2, 2020

The Fairmont Chateau Whistler will distribute $85,000 among roughly 60 employees.

Following the article's publication, Whistler Fairmont has reached out with a comment.

"We are concerned about the misinformation that has been reported around Fairmont Chateau Whistler’s compliance with changes in May 2019 to the BC Employment Standards Act," the Fairmont said.

"While there was a delay in implementing these administrative changes in our system, this had absolutely no impact on the amounts paid out to colleagues in the form of gratuities."

"While at no time were colleague gratuities impacted, the hotel voluntarily made a retroactive lump-sum payment to employees as a gesture of good faith to account for the period from which the legislative change was effective and the time when it became clear to the hotel that the language in the hotel’s banquet and events and tour contracts needed to be changed."