Employers to be banned from counting tips towards wages

Employers to be banned from counting tips towards wages

Regina Doherty

Employers will be banned from counting workers’ tips as part of their contractual wages under new Government plans.

A draft heads of bill approved by ministers proposes to amend the Payment of Wages Act to ensure that tips and gratuities cannot be used to satisfy a person’s contractual wages.

It also proposes a new requirement on employers to clearly display, for the benefit of workers and customers, their policy on how tips, gratuities and service charges are distributed.

Employment Affairs Minister Regina Doherty said the legislation would stop the unfair treatment of workers in “a minority of establishments”.

Ms Doherty said: “As I said previously, I will not tolerate this on my watch and now, having received approval from Government, I look forward to introducing measures which will improve the situation and, crucially, have a sound legal basis.

“I am determined to always stand up for fairness and the employment rights of low paid and precarious workers. I made significant progress in this regard with the Employment Act 2018 which restricted zero hours contracts and introduced banded hours contracts.”

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