New measures proposed in relation to distribution of tips

New measures proposed in relation to distribution of tips

The Minister for Employment Affairs and Social Protection is hoping to introduce new measures in relation to tips and gratuities.

Regina Doherty wants to introduce an amendment to the Payment of Wages Act so that tips cannot be used to make up or satisfy contracted rates of pay.

She also wants employers to clearly display their policies on how tips, gratuities and service charges are distributed in their premises.

Minister Doherty says these new measures would ensure fairness for workers and greater transparency for customers.

A Private Members Bill, entitled the 'National Minimum Wage (Protection of Employee Tips) Bill is to return to the Seanad this week and will be opposed by the Government.

The Low Pay Commission's 2018 Report on the matter has strongly advised against introducing heavy regulation or primary legislation in this area.

New measures proposed in relation to distribution of tips

It warned that it was unworkable from both an adjudication and enforcement point of view.

The Commission also warned that there could be unintended negative consequences for low paid workers such as the reclassification of service charges.

"I believe that all sides of the House want something done to ensure that low paid workers who depend on tips are properly protected," said Minister Doherty.

"However, it is important that whatever measures are introduced are not only effective but also avoid any unwanted side effects.

"The current Private Members Bill, while well-intentioned, is a blunt instrument and may actually act against the interests of those it seeks to protect."

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