Banquet workers at the Fairmont Chateau Whistler are getting a hefty tip-out, after management agreed to repay a portion of gratuities.

According to the United Food and Commercial Workers local 1518, the hotel has agreed to repay approximately $85,000 in tips to about 60 workers in the banquet department.

"They're ecstatic. This is a lot of money," said Kate Milberry, press secretary with the union.

"Some workers are getting close to $3,000 in wrongfully withheld tips."

Staff said under a previous tipping structure, 20 per cent of gratuities were distributed to catering sales managers.

A change to the Employment Standards Act in B.C. in spring of 2019 made it illegal for employers to take any tips, except in cases where they perform exactly the same job as the staff.

"We're talking about precarious workers, part-time workers, students and sometimes workers who have to hold two jobs," said Milberry.

According to Milberry, the employees had repeatedly raised the issue with management before seeking help from the union in 2018, which then filed two complaints with the Employment Standards Branch.

"As a result of our looking into the issue and then the Employment Standards Branch starting an investigation, Fairmont voluntarily decided to repay $85,000 in withheld gratuities," said Milberry

Voluntary tip-out

In a letter sent to staff, Fairmont management said it agreed to make the retroactive gratuity payments which have been reviewed and approved by the Employment Standards Branch.

"Even though gratuities were never decreased or withheld, the hotel voluntarily decided to make retroactive payments to employees," the hotel told CBC News in a e-mailed statement.

"The hotel's gratuity distribution system has always been and remains completely transparent and fully compliant with the Employment Standards Act."

The hotel also says it has made adjustments to the banquet staff's contracts to comply with changes to the Employment Standards Act in May 2019.

Milberry acknowledged that Fairmont was not found guilty of violating the Employment Act or disciplined, but rather volunteered to pay the money.

"They haven't been ordered to do so but I think it indicates that the workers were, in fact, correct in their allegation that these were their gratuities that they deserved," she said.