Service charge set to be banned from receipts unless staff get cash

• Published date: 29 June 2022
• Author: Ciara Phelan
• Publication title: DublinLive (Ireland)

Tanaiste Leo Varadkar is expected to make a change to his new tips law which will have an impact on workers' tips and provides clarity to customers on what they are being charged for. Mr Varadkar said: "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

"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. "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."

Customers often reasonably assume service charges go to staff when that may not be the case. Fine Gael's junior Minister for Business, Employment and Retail, Damien English, will introduce the changes in the Seanad on Wednesday.

These will rename "mandatory service...