Tips for employees are legalised in Ireland; The new law will come into effect on December 1
Dublin: The Payment of Wages Act, which goes into effect on December 1, will legalise service charges (tips) for employees in Ireland. The new law will primarily affect tourism, hospitality, hairdressing, taxi services, and delivery services. Any future businesses in this category will be subject to this Act as well.
The act makes electronic tips and gratuities given to employees a legal right. Employers must also demonstrate in writing how tips, gratuities, and mandatory rates are distributed among employees. Failure to do so will result in fines. Employers have been given four weeks until December 1 to prepare for the changes in the new law.
The law mandates that these payments be made fairly to workers. Electronic and non-electronic tips and gratuities will be distributed based on the employee’s seniority, experience, the value of sales generated by them, and the number of hours worked.
According to Enterprise Minister Leo Varadkar, the new law will ensure a fair distribution of tips. The Minister stated that the new law needs to be evaluated after a year to see how it has been affected by this law.
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