There will be new requirements on employers to clearly display their policy on how both card and cash tips, gratuities and service charges are distributed. All electronic tips must be distributed fairly and in a transparent way. This new law will, for the first time, give workers legal protections over tips. It will mean that any tips received cannot be counted towards an employee’s basic pay, they must be counted as additional and separate.
The aim of the Payment of Wages (Amendment) (Tips and Gratuities) Bill is to:
An important element of the new law will be to give employees a legal entitlement to receive tips and gratuities paid in electronic form (that is, by debit or credit card) with a provision that these tips and gratuities should be paid out to workers in a fair, transparent and equitable manner. A fair and equitable distribution will be context specific and is likely to take into account matters such as staff hours, busy and quiet periods, a worker’s role in service delivery, customs and practice etc. This new law builds on the suite of legal rights that the
Government is introducing to protect workers, which includes the Sick Leave Bill, the Transparent and Predictable Working Conditions Directive and the right to request remote work.