New law to protect workers’ tips

A new law to protect tips and gratuities received by workers has been passed by the Oireachtas.

The Payment of Wages Bill is designed to ensure that tips and gratuities are distributed fairly to staff and to prevent employers from using tips to make up basic wages.

Businesses will be prohibited from describing mandatory charges as “service charges” unless they are treated in the same way as tips or gratuities.

The new law will give 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 fair, transparent and equitable manner.

The legislation will also oblige employers to display prominently their policy on mandatory charges and the distribution of cash and card tips.