A new law to protect tips and gratuities received by workers has been passed by the Oireachtas.
The Payment of Wages Bill is designed to ensure that tips and gratuities are distributed fairly to staff and to prevent employers from using tips to make up basic wages.
Businesses will be prohibited from describing mandatory charges as "service charges" unless they are treated in the same way as tips or gratuities.
The new law will give employees a legal entitlement to receive tips and gratuities paid in electronic form and requires that this money should be paid to workers in a fair, transparent and equitable manner.
The legislation will also oblige employers to display prominently their policy on mandatory charges and the distribution of cash and card tips.
"Most companies look after their staff very fairly, but this new law will stamp out bad practices where they do exist and ensure that tips are distributed fairly among staff," said Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar.
"It will also mean that tips received cannot be used as part of basic pay," he added.
Consultations will start shortly with employee and employer organisations, leading to new regulations which will give effect to the law.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
The bill requires the minister to review the legislation after it has been in effect for one year in order to assess its effectiveness and decide if further measures are necessary.
The Head of Social Policy and Employment Affairs at the Irish Congress of Trade Unions has said it is important that the new law is enforced.
Laura Bambrick told RTÉ's Morning Ireland that it is vital that employers follow the "letter and the spirit" of the legislation and do not call a service charge by another name in order to act as a work-around that will enable tip theft to continue.
