Insights
A new tipping law is being introduced by the government which will be active by December 1 st, 2022.
This new law will protect tips earned by workers, making it a legal entitlement and it will ensure even electronic tips would be paid to employees. It also makes it illegal for employers to use tips or gratuities to make up basic wages.
Tips do not need to be paid equally amongst staff, more can be distributed to senior staff or employees working longer hours, but an employer needs to inform customers with their policy on how tips are distributed amongst their staff.
Employers who do not comply with the new law will be penalised with a fine. The Workplace Relations Commission will be investigating cases when tips are not distributed, and they can reimburse on any unlawful tips.
Any charges that would mislead a patron into thinking they are tipping a worker such as service charges needs to be distributed to staff.
Failure to comply with the display obligations could lead to a fine. This is law is being introduced to protect workers from bad practises.
The new law will be revisited in a year to measure its success and to revise it if necessary. Businesses have until December 1st, 2022, in order to structure their tipping policy to comply with the new legislation.
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