do YOU HAVE EMPLOYEES THAT RECIEVE TIPS! WRC ARE ACTIVELY VISITING PREMISES LOOKING FOR THIS POLICY

If you have a business where the staff receive tips - the WRC have a requirement for the Employer to display a tips policy at the till and in the staff area. A copy should go to each staff member and getting them to sign it also. Failure to display this can attract a hefty fine!

A lot of business owners have moved to cash back option, the client can choose to give the cash directly to the employee and there is not a requirement to provide a statement to staff.

The main points are the follows:

Employers cannot use tips and gratuities to ‘make up’ rates of pay and cannot make a deduction from a person’s wage in relation to tips and gratuities.

• Workers are legally entitled to receive electronic tips and gratuities and they must be distributed in a fair manner. The employer must provide a statement to workers showing the amount of tips obtained in a period and the portion paid to the individual employee for that particular period.

• An employer cannot retain any share of electronic tips. However, there may be circumstances e.g., to pay tax, or bank charges arising from providing electronic modes of tipping, or only where the employer regularly performs to a substantial degree the same work performed by some or all the employees, where such an amount may be deducted that is fair in the circumstances.

• Businesses must clearly display their policy on how tips, gratuities and service charges are distributed.

• The Template for a tips policy are the following:

  Tips and Gratuities Policy Purpose From 1 December 2022, the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 introduces new rules as to how employers will have to distribute tips, gratuities and service charges amongst employees.

  The purpose of this policy is to provide transparency on how tips will be distributed among employees.

  _____________________________ are committed to our legal obligations under this referenced legislation. 

  This policy applies to all employees and to the Company. Policy What is a “tip or gratuity”? A ‘tip or gratuity’ is a voluntary payment made by a customer to, or left for, an employee or group of employees which they intended or assumed that the payment would be kept by the employee or shared with other employees.

  What is a “mandatory service charge”?

  A ‘mandatory service charge’ is a contractually imposed and receipted payment that a customer must pay, in addition to the cost of certain goods or services. It is an offence for an employer to use a term such as ‘service charge’ that leads customers to believe it will be distributed to employees if they do not actually distribute that charge.

  What is an “electronic tip”?

  An ‘electronic tip’ is a payment other than by cash. Examples include: • By debit / credit card • By smart card • By way of apps designed to facilitate payment of tips and gratuities • By means of a ‘push notification’ app Tips & Gratuities Tips and gratuities will not be used to form part of employee’s basic wage.

  The organisation will distribute any tips or gratuities received in electronic form through debit or credit card in a fair and transparent manner.

  The organisation will not retain any share of electronic tips unless. • to pay tax, or bank charges arising from providing electronic methods of tipping, or • where the employer regularly performs to a substantial degree the same work performed by some or all the employees, where such an amount may be deducted that is fair in the circumstances.

  The organisation will display this policy in a manner visible to all employees.

  Procedure This service charge (where collected by electronic means) is dispersed 100% of the tip is paid to the staff member and no service charge or charge is taken off the amount.

  The customer specifies who the tip is intended for, and it is paid daily to the staff member.

  Signed: __________                 Date: ________

  https://www.workplacerelations.ie/en/what_you_should_know/hours-and-wages/tips-and-gratuities/payment-of-wages-amendment-tips-and-gratuities-act-2022-information-guide-wrc.pdf