New Law to Protect Workers’ Tips

John A Sinnott Solicitors, workers tips

A new law to ensure workers fairly receive their tips and gratuities has been passed by the Oireachtas. New regulations will give effect to the law after consultations with employee and employer organisations.

Most companies look after their staff very fairly but this new law will eliminate bad practices if they do exist.

The new law will be designed to:

ensure that tips and gratuities are distributed fairly to staff and to prevent employers from using tips to make up basic wages
prohibit businesses from describing mandatory charges as “service charges” unless they are treated in the same way as tips or gratuities
give employees a legal entitlement to receive tips and gratuities paid in electronic form and requires that this money should be paid to workers in a fair, transparent and equitable manner

The legislation require employers to display prominently their policy on mandatory charges and the distribution of cash and card tips. The Bill also requires that the legislation be reviewed after it has been in effect for one year in order to assess if further measures are necessary.