New tipping laws have come into force today, which is set to provide a major boost to workers' rights in Ireland.
The Payment of Wages Act 2022 will see employees in the hospitality sector given a legal requirement to receive tips and gratuities paid in electronic form. According to the new laws, tips and gratuities should be paid in a manner that is fair, including the "service charge" which is automatically on bills around Ireland.
Here's everything you need to know about the new tipping laws in Ireland and how it may affect you.
Read more: Dublin pubs: Publicans slam moves by Heineken to hike prices of pints from today
What is the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022?
The new Payment of Wages (Amendment) (Tips and Gratuities) Act officially came into effect on December 1. The new laws will see changes on how employees receive tips, gratuities and service charges.
One key change means it is now illegal for employers to include tips or gratuities as part of a worker's basic pay.
How will tips now be distributed?
For cash tips, these are usually given directly to the employee. However, tips that are given through smart phones or by card must be distributed fairly to employees.
For electronic tips, employers will have to take into account these factors:
- the seniority or experience of the employee
- the number of hours they worked
- the value of sales or revenue generate
- if the employee is full-time or part-time
- the employee's role as part of the service provided
Employers will now have to give employees a statement within 10 days on the tips distributed. This would include the total number of tips and how much was paid to the employee.
Among the changes introduced in the new legislation is the protocol for what happens with a service charge. Any charge called "service charge" that may lead a customer to believe it is a charge for the service provided by the business must also be distributed to employees like a tip.
Employers must display 'Tips and Gratuities' Notice
As part of the new legislation, employers will have to display their policy on cash and electric tips in their premises. The notice must state:
- if tips and distributed to and among staff
- the amount and the way tips are distributed
- if there are any service charges distributed
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