New tipping legislation welcomed
by Mark Corcoran and Róisín McKane
 
Katie explained that there is a review mechanism built into the legislation that will need to be monitored.
Katie explained that there is a review mechanism built into the legislation that will need to be monitored.

Fórsa has welcomed the announcement of a new law which will protect the income of hospitality workers.

 

The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 is designed to protect tips received by workers working in the hospitality industry. The Act will guarantee employees’ rights to receive tips electronically, as well as on top of their pay rather than as part of it. Under the new rules the basic wage of an employee must also be clearly stated and not beefed up to include a contribution of tips, as was the practice in some restaurants.

 

The new legislation also means that any charge referred to as a ‘service charge’, or anything that would lead a customer to believe it is a charge for service, must now be distributed to staff as though it were a tip or gratuity in the traditional sense.

 

The main sectors where the measures will apply include tourism, hospitality, hairdressing, taxi, and delivery services. If not adhered to, employers could be found guilty and liable in certain circumstances, with fines of up to €2,500.

 

Head of Fórsa’s Services and Enterprises Division, Katie Morgan, welcomed the news.

 

“When we give a tip to a hospitality worker, it’s because we want to reward them for the service that they have provided, not because we want to boost the pockets of their employers. The Act introduces new rules about how employers share tips, gratuities, and service charges amongst workers. It also makes it illegal for employers to use tips or gratuities to make up basic wages,” she said.

 

Katie explained that there is a review mechanism built into the legislation that will need to be monitored.

 

The law does require a review of the legislation in a years’ time so the union movement will keep an eye on its overall effectiveness and how it is being implemented,” she said.

 

The Fórsa-backed ONE Galway initiative, which comprises of trade unions, student unions and community groups working together as one movement, has long campaigned to improve tipping practices and give workers ownership of their tips.

 

The group has echoed support for the legislation.

 

“ONE Galway has said time and again, that people are willing to work and remain in a sector where there is decent pay, adherence to the range of employment legislation to which they are entitled, and dignity and respect in all interactions,” said a spokesperson.

 

The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 will come into effect on December 1st.

 

It’s never been more important – or easier – to get the protections and benefits of union membership. Join Fórsa HERE or contact us HERE.

LikeLike (0) | Facebook Twitter