New on-the-spot fines have been announced for businesses that breach rules around giving tips to employees.
Employers who do not provide workers with their terms of employment will receive a fine of €1,500.
There will also be a €750 fine for businesses that do not provide employees with a written statement on how tips are distributed, or fail to treat a service charge as a tip.
Employers who do not display a ‘tips and gratuities notice’ or a ‘contract Workers Tips and Gratuities Notice’ will be subject to a €500 penalty.
Minister of State for Business, Employment and Retail Neale Richmond speaking at a ceremony for Workers' Memorial Day at the Garden of Remembrance in Dublin, 28-04-2023. Image: Leah Farrell / RollingNews.ieMinister of State for Business Neale Richmond said while most employers are in compliance, the fines will be another layer of protection for workers.
"Tips are an important aspect of the hospitality industry, something we are especially reminded of after a very busy Christmas period," he said.
"Protections of tips introduced last year ensure that those who earn the tips are the ones to benefit from them.
"While the majority of employers are in compliance with rules and regulations surrounding the treatment of tips, the introduction of these fines provides another layer of protection for hospitality workers and will help to stamp out bad practices where they exist.
"We believe in putting money back into people’s pockets, this includes allowing workers to keep their hard-earned tips.
"Not only do the workers deserve to keep the tips they earn, but customers who are paying these tips deserve to know where their money is going," he added.
Tips and payment for a bill on a restaurant table. Image: Lifestyle pictures / Alamy Stock PhotoInspectors from the Workplace Relations Commission (WRC) will continue to visit premises around the country to see if they are in line with the legislation.
Anyone found to be in breach can be fined by the inspectors.
If the fine is paid no further action will be taken; but where a fine is not paid, they will be referred to the WRC's internal legal affairs committee who will then decide whether to proceed with prosecution.
The Payment of Wages (Tips and Gratuities) Act came into effect on December 1st 2022 and requires a review after one year.
The legislation means employers have to display their policy on mandatory charges and the distribution of cash and card tips.
Work on a review is underway within the Department of Enterprise, Trade and Employment.
