Dáil Éireann Debate, Tuesday - 13 December 2022
106. Deputy Neale Richmond asked the Tánaiste and Minister for Enterprise, Trade and Employment the way that employees benefit from the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022; and if he will make a statement on the matter. [61852/22]
View answerThe Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 came into effect on 1st December.
The new law gives employees a legal entitlement to receive tips and gratuities paid in electronic form and requires that such tips and gratuities should be paid to workers in a manner that is fair in the circumstances. Any charge called a ‘service charge’ or anything that would lead a customer to believe it is a charge for service, will have to be distributed to staff as if it were a tip or gratuity received by electronic means.
The Act prohibits employers from using tips and gratuities to ‘make up’ contractual rates of pay. An employer cannot make a deduction from a person’s wage in relation to tips and gratuities. This is to ensure that tips and gratuities are additional to the wage and are not subsumed into the wage.
The Act requires the Minister for Enterprise, Trade and Employment to review the legislation after it has been in effect for one year. This will allow the Minister to assess the effectiveness of the measures and assess whether any further measures are necessary.
This new law builds on the suite of legal rights that the Government is introducing to protect workers, which includes the Sick Leave Act 2022 and the Transparent and Predictable Working Conditions Directive.
