27 Nov The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022
The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 prohibits the use of tips and gratuities to ‘make up’ contractual rates of pay for employees and will come into effect on December 1st 2022. Here are the key aspects of the legislation that employers need to ensure are implemented:
Display prominently their policy on the distribution of both cash and card tips.
Ensure tips and gratuities are outside the scope and not included in an employee’s contractual pay.
Ensure that they distribute all tips fairly, equitably and in a transparent manner, that are received in electronic form, through debit or credit cards or smart phones.
Ensure any charge called a ‘service charge’ or anything that would lead a customer to believe is a charge for service, is distributed to staff as if it were a tip or gratuity received by electronic means.
Ensure that employees are provided with a statement showing the amount of tips obtained and the portion paid to each individual employee.
And finally employers should note that fines of up to €2,500 can be imposed by the WRC for non compliance with the legislation.