The Government has approved the drafting of a law on tipping that would give new rights to workers.

The bill would prevent employers from counting money received from tips as part of workers’ contractual rates of pay.

Under the Payment of Wages (Amendment) (Tips and Gratuities) Bill, employers would have to clearly display policy on how card and cash tips, gratuities, and service charges are distributed.

“This new law will, for the first time, give workers legal protections over tips. It will mean that any tips received cannot be counted towards an employee’s basic pay; they must be counted as additional and separate,” said Leo Varadkar (Tánaiste and Minister for Enterprise, Trade and Employment).

The Tánaiste added that the bill would provide clarity for customers and staff.

Electronic records

“Most establishments already treat their employees fairly with regard to tips, so for many it will mean no change, other than having to display their policy clearly,” he stated.

The new law would also give employees a legal entitlement to receive tips and gratuities paid by debit card or credit card, with a provision that these should be paid out to workers in a fair, transparent and equitable manner.

The electronic record generated by these types of tips will also facilitate inspections by the Workplace Relations Commission (WRC), in the event of a complaint being made.

Previous plans for legislation on the issue had fallen after the general election of February 2020.