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Thirteen tourism companies from Ireland travelled to Dubai this week to join Tourism Ireland at Arab...

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Ireland Meets Mid East
Ireland at Dubai Summit
Hospitality Welcomes 9% VAT Extension
Arizona Calling

Tip Law Offers Transparency

Tips received by restaurant and bar staff will not be allowed to form part of a worker's pay under new a law published this week. The Payment of Wages (Amendment) Bill will compel businesses to prominently display their policy on the distribution of both cash and card tips and service charges so that customers are better informed about how tips are treated.tips

It will also oblige employers to distribute all tips that are received in electronic form through cards or smartphone payments in a fair and transparent manner.

‘I know most people are unsure about where their tips go and what the difference between a tip and a service charge is,’ Minister for Employment Leo Varadkar said. ‘From now on, establishments will be required to clearly show how everything is distributed and where it goes. This goes for whether you pay by cash or card.’

Under the new Bill, the employer must provide a statement to workers showing the amount of electronic tips obtained in a period and the portion paid to the individual employee for that particular period. An employer will be allowed to take into account certain factors when deciding how to distribute tips, including the seniority or experience of an employee, the value of sales generated by them and the number of hours worked, but all employees must be consulted on the policy that is introduced.

The distribution obligations will not affect businesses where tips are managed by employees themselves, such as a ‘tronc’ system used in many businesses. According to the draft bill the new law will:

Place tips and gratuities outside the scope of a person’s contractual wages;
Oblige employers to display prominently their policy on the distribution of both cash and card tips and service charges. The customer will be better informed about how tips are treated;
Oblige employers to distribute fairly and transparently all tips that are received in electronic form i.e. through cards or smartphones.

Adrian Cummins, the Chief Executive of the Restaurants Association of Ireland (RAI), told the Irish Examiner that they welcomed the publication of the bill and would be encouraging that it is enacted as quickly as possible.

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