Local Fianna Fáil Minister for Trade Promotion, Digital and Digital Regulation, Deputy Robert Troy, has welcomed Oireachtas the approval of The Payment of Wages (Amendment ) (Tips and Gratuities ) Bill last night.
This new law, once signed and enacted by the President, will ensure that tips and gratuities are distributed fairly to staff. The law also provides that employers will also be prohibited from describing mandatory charges as “service charges” unless they are treated in the same way as tips or gratuities.
“This new law builds on the suite of legal rights that the Government is introducing to protect workers, which includes the Sick Leave Bill, the Transparent and Predictable Working Conditions Directive and the right to request remote work.
“While I know that most businesses act fairly and in the interest of their staff, this law will prevent bad practices and ensure staff rights are protected. It means that tips received from customers cannot be used as basic pay and will aim to eliminate bad practices in companies.”
“Payment of Wages Act will benefit both hospitality staff and customers; employees will know their rights in regard to the allocation of tips and gratuities while customers can be assured that their tips are being managed fairly and correctly,” Deputy Troy asserted.
This new law will give employees the right to receive tips and gratuities paid in electronic form which has become popular as more and more customers pay using card.
The payment of tips, gratuities and ‘service charges will consider the hours an employee has worked, value of sales income or revenue generated and the worker’s role in service delivery and so on.
Consultations will start shortly with employee and employer organisations, leading to new Regulations which will give effect to the Act.