Restaurants must tell customers and staff how tips are shared under new law

'I know most people are unsure about where their tips go and what the difference between a tip and a service charge is'

A restaurant will have to display their policy on the distribution of both cash and card tips. Picture: iStock

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.