Dáil Éireann Debate, Thursday - 7 October 2004
56 Dr. Upton asked the Minister for Enterprise, Trade and Employment if he intends to take steps to ensure that service charges, imposed on customers in hotels and restaurants, are passed on to the staff who provide the service; and if he will make a statement on the matter. [23684/04]
Amharc ar fhreagraThe generality of employees engaged in the restaurant and hotels sectors their have rates of pay and other conditions of employment set out in employment regulation orders issued through the Labour Court. The details of each employment regulation order are devised by a committee, known as a joint labour committee, representative of the employers and employees in the sector concerned. Some employment regulation orders have restricted geographical application.
Currently, there are two employment regulation orders covering employees in the catering sector, that is, catering joint labour committee for areas other than the areas known until 1 January 1994 as the County Borough of Dublin and the Borough of Dún Laoghaire, operationally known as the country catering ERO, and the catering joint labour committee for areas known until 1 January 1994 as the County Borough of Dublin and the Borough of Dún Laoghaire, operationally known as the Dublin catering ERO.
There is one employment regulation order for employees in the hotel sector. This order applies to workers employed in a hotel undertaking anywhere throughout the State except the County Borough of Cork and the areas known until 1 January 1994 as the County Borough of Dublin and the Borough of Dún Laoghaire. Operationally this is referred to as the hotel ERO. Employees not covered directly by the terms of the hotel ERO rely on the protections provided under the National Minimum Wage Act 2000.
With regard to a service charge the country catering ERO states that a service charge, where levied, will be distributed among all staff, excluding all management personnel and trainee managers. Service charge will be paid on the payroll system covering service charges collected in the corresponding pay period, but not less frequently than on a monthly basis.
With regard to a service charge, the Dublin catering ERO states that "in accordance with the provisions of the National Minimum Wage Act 2000, service charge, when distributed to employees through the payroll, can form part of the weekly earnings referred to above".
With regard to a service charge the hotel catering ERO states that "where service charge is distributed to an employee through the payroll, the amount so distributed can form part of the weekly earnings referred to above. This and other components, which may be taken into account to determine an employee's average rate of pay, are set down in Part I of the Schedule to the National Minimum Wage Act 2000."
With regard to a service charge Part I of the Schedule to the National Minimum Wage Act 2000 states that "The amount of any service charge distributed to the employee through the payroll ..."— is a reckonable component in the calculation of average hourly rate of pay. It should be noted that Part II of the Schedule concerns non-reckonable components of pay and includes under item 5 —"Any amount distributed to the employee of tips or gratuities paid into a central fund managed by the employer and paid through the payroll".
The labour inspectorate of my Department has responsibility for the enforcement of the statutory minimum rates of pay and other conditions of employment set out in various enactments, including the National Minimum Wage Act 2000 and the employment regulation orders mentioned above. In inspecting an employer's records, to confirm compliance with relevant employment rights obligations, an inspector is concerned to ensure that relevant employees are receiving the appropriate statutory minimum rate of pay. While a service charge, as a reckonable component per the provisions above, may be incorporated in an individual's pay calculations the inspector will only be concerned to ensure that the correct statutory minimum is being paid.
There are no plans, at present, to change existing legislation in this area. However, the employment regulation orders are subject to regular review by the relevant joint labour committees.
