Oireachtas Passes Tips Law

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.

"Most companies look after their staff very fairly, but this new law will stamp out bad practices where they do exist and ensure that tips are distributed fairly among staff," said Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar.

Consultations will start shortly with employee and employer organisations, leading to new regulations which will give effect to the law.