Government approves ‘tip theft’ proposals

Minister for Employment Affairs and Social Protection, Regina Doherty TD, has received Government approval to proceed with new measures that aim to regulate how employers treat tips and gratuities

The Government is responding to recent reports suggesting that certain employers have been using tips to satisfy employee’s contractual rates of pay. Minimum wage rules prohibit employers from using tips to satisfy minimum rates of pay but as the law stands, employers are permitted to use tips to pay salary entitlements above minimum wage.

The new legislation will:

  • ensure that tips and gratuities cannot be used to ‘make-up’ or satisfy a person’s contractual wages
  • require employers to clearly display, for the benefit of workers and customers, their policy on how tips, gratuities and service charges are distributed

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