Hospitality 'service charges' to be banned unless going straight to staff

• Published date: 29 June 2022

The move will be brought forward as part of a new Bill on tips that is before the Seanad on Wednesday afternoon

The amendment to the Bill will effectively ban so called service charges unless the charge goes straight to staff.

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"Our overall objective with the Bill is to prevent employers from using tips or gratuities to make up basic wages and to introduce transparency about how tips and service charges are distributed," Mr Varadkar said.

"Customers really can't be sure what services charges are used for or whom they go to. Voluntary services charges are clearly the same as a tip or a gratuity but by definition, mandatory service charges are not. As things stand, you're expected to pay, without any information on where the money goes," he said.

"I'm happy we've been able to come up with a solution now, which will effectively ban employers from using the term 'service charge' or any similar term, unless the money goes straight to staff. Employers must be explicit about any additional charge and where it goes, once this new law comes into force."

The amendments will be brought to the Payments of Wages Tips and Gratuities Bill this afternoon and will rename "mandatory service charges" as...