Businesses and workers to have their say on tipping legislation 

Public consultation is seeking input on the possible weaknesses in the current legislation and how improvements can be made

Legislation requiring businesses to display information on how tips are distributed to staff has been in place since December 2022. 

The Government has launched a public consultation into legislation around how businesses handle tips to see where improvements can be made.

The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 came into effect on December 1, 2022, and the legislation requires a review after one year to assess its impact.

Under the legislation, every employer is required to display information on how tips are distributed to employees. It must state whether tips are distributed to and among employees and the way they are distributed.

It also must make clear whether mandatory charges, or any portion of them, are distributed to and amongst employees, and if so, the way they are distributed and the amounts so distributed.

An employer who does not comply could be found guilty of an offence and could be fined.

The consultation is seeking input on the possible weaknesses in the current legislation and how improvements can be made.

Announcing the public consultation, Junior Minister at the Department of Enterprise Neale Richmond said these protections have been in place for over a year now and “we are seeking to hear from both workers who receive tips, as well as business owners, as to how this is working in practice, and where possible improvements can be made”.

“While the vast majority of employers treat employees and their tips well, where issues arise, employees can turn to the Workplace Relations Commission if they feel they have been unfairly treated,” he said.

The deadline for submissions is 3pm on Thursday, February 22.