CABINET HAS APPROVED the publication of a new law that will give customers clear information on where their tips and service charges go and prohibit the use of tips to ‘make up’ contractual rates of pay.
The Payment of Wages (Amendment) Bill, brought forward by Tánaiste Leo Varadkar, will provide clarity to workers on the meaning of tips, gratuities and service charges.
The new legislation will also place tips and gratuities, but not service charges, outside the scope of a person’s contractual wages, and will oblige employers to display prominently their policy on the distribution of both cash and card tips.
Employers will also be obliged to distribute fairly, equitably and in a transparent manner how tips that are received in electronic form – such as through debit, credit cards or smart phones.
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