Senator Ollie Crowe has this week welcomed The Payment of Wages (Amendment ) (Tips and Gratuities ) Act 2022 which will see employees given legal rights over the payment of tips. The legislation will come into effect from December 1 2022.
The Act gives 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 manner that is fair.
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 distribution of tips can take into account factors such as the seniority or experience of an employee, the value of sales generated by them or the number of hours worked.
Employers will be required to display information on how tips, gratuities and mandatory charges are shared or distributed among staff.
Senator Crowe noted the legislation had been supported by the hospitality sector.]
“This legislation has been widely supported across the hospitality sector which reflects that the vast majority of businesses have always acted honourably and distributed tips in a fair manner. Certainly, that has long been the case in Galway.”
Senator Crowe said however the small minority of cases where businesses had not provided for a fair distribution of tips among employees had placed doubt in to the mind of customers and this legislation would now provide certainty for staff and consumers alike.
“There have obviously been a number of cases in recent years where it has been highlighted that not every business has been acting in a fair manner. This legislation will ensure a very small minority of businesses can no longer behave in that way and it will provide certainty to customers who will now know with clarity exactly how any tips they choose to leave will be distributed,” he said.
