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THE GOVERNMENT WILL not support new legislation to cover the payment of tips but says it will considering amending existing laws if a new “collective agreement” does not work.
The new agreement will seek to have restaurants and hotels sign up to a pledge that they will not use the proceeds of tips to subsidise part of an employee’s wage.
It is illegal for companies to use tips as part of an employee’s minimum wage but it is not illegal for them to use tips as part of a stated salary above that.
Independents 4 Change TD Joan Collins raised the issue during Leaders’ Questions on Wednesday and said Tánaiste Simon Coveney had mistakenly said the practice was illegal in a response to her in March.
In response to Collins, Bruton said that the Low Pay Commission had advised that legislation in the area would not be justified and instead advised that a “code of practice on tipping” would be preferable.
Speaking on Newstalk’s Pat Kenny Show yesterday, Minister for Employment Affairs Regina Doherty said that the Restaurants Association of Ireland and hotel groups are keen to sign up to a collective agreement.
“It was easy to get cooperation around the table from restaurant association representatives, from hoteliers because they all want and are in the main treating their staff as we would want our own family members to be treated,” the minister said.
Doherty added that she hoped the collective agreement would be signed within weeks:
It is a very small number of people that are causing this issue, we will stamp it out though. But I want to improve the industry and to ensure that the employees, who are in the main younger citizens earning a few bob, but also people who are full-time employees supporting families.
“Which is why the employee rights need to be clear and they will be clarified hopefully that we will sign up to in a couple of weeks.”
“If the collective agreement does not work, I will make a change to the Payment of Wages Act to outlaw tips being included in any contracted arrangement,” the minister added.
Sinn Féin has been critical of the government’s approach with Senator Paul Gavan stating that he was left “in bewilderment” by the minister’s comments.
“Minister Doherty and her department appear to think you can have a collective agreement that does not include trade unions,” Gavan said yesterday.
This is a truly bizarre statement to make. The nature of this agreement appears to be limited in scale, without tackling the key issues of a legal right of workers to the tips they earn, and the ongoing scandal of service charges being withheld from workers.
Gavan has tabled his party’s Protection of Employee Tips Bill, which is due before the final stage of the Seanad in June.
If passed into law, the bill would make it illegal for an employer to withhold, deduct, or demand the return of a tip from an employee without a lawful excuse.
The minister said yesterday she was in favour of the spirit of what they bill attempted to achieve but that she opposed it due to “unintended consequences”.
In her Dáil on Wednesday, Deputy Collins described restaurants using tips to subsidise wages as ” loophole” and a “disgraceful practice”.
The TD referenced previous concerns she had voiced about the The Ivy restaurant in Dublin.
“On the weekend of 6 April, The Ivy restaurant, possibly on legal advice, changed its policy of applying a service charge to tables or five or more to include all tables,” Collins said.
In a statement in March, The Ivy said: “100% of credit card tips are shared amongst the entire 150 staff members (excluding management)”.
“A gratuity per hour is paid to every staff member in addition to their contractual hourly wage and is guaranteed by the company in that any shortfall, regardless of whether any tips are paid by patrons, will be made up by the company,” the statement read.
Ban tipping
@Nomad: We should collectively agree not to tip. We’re going the way of the US; A nightmarish landscape where you need more small bills than a stripper earns in a week just to get through your day of tipping anyone and everyone that smiles at you crooked.
@Toomasu Sumitsu: slight exaggeration there! :) I live in the US and barely carry cash. Tip in restaurants or bars where someone provides a service for example. Other than that, day to day, there’s not too many other places where a tip is necessary.
@Nomad: stupid comment! Think before you type!
Always give a tip in cash and pass it on discreetly. In my case it’s always aimed at the person who served me. The establishment already get their pound of flesh with service charges etc.
I wouldn’t knowingly eat in a place that confiscates the staffs tips, no matter how good their food is.
@Milk The Drones: it’s great that you tip but you forget that more people serve you that the just the waiter/waitress. what about the staff who prepare your food, pour your drink, wash the dishes, clean the table after your gone etc etc?
@Roy Dowling:
A lot of waiters are college kids trying to make their way in FG’s Ireland. On min wages and living in overpriced rented shoe boxes (if they can find one) and crippled with fee’s.
They could do with the money so drop them a few shekels and don’t be looking for excuses to be a cheap bassturd. Your own kids might appreciate the same one day.
@Milk The Drones: a lot of kitchen staff, Porter’s, cleaners, dish washers don’t have the opportunity to experience college. I’m guessing that was Roy’s point that behind the scenes these staff rarely see tip’s.
@Roy Dowling: When you get the bus, don’t just tip the driver. What about the mechanics and cleaners who facilitate the service?
@Milk The Drones:
What about all the staff that make a career in the hotel and restaurant business ?.
Tips should be for all staff not just the servers.
I was a chef for most of my life, never got any tips nor did anyone else working in the kitchen or in any other area except the servers
Expecting FG to actually regulate this industry to protect the livelihoods of those affected by the greed of restaurant owners is very unrealistic. This “collective agreement” is an unenforceable cop out, and they know it.
FFG will tax tips next..
@Willy: Next?
this is a lot of bluff and bluster over something that has an easy to implement best practice solution….looking at our european counterparts for inspiration we should just see how this exact same problem was addressed in Germany – the government simply agreed that no taxes are not due to paid on tips …this is basically because it is accepted that most earnings are in the minimum range level and tipping for service and seen as a tax free way to earn more money – the business are taxed on it as extra income if they try anything funny to keep it….staff who earn the tips keep them , and people giving the tips know its for the staff and its tax free ……now FFS can we not just implement a similar sensible solution to this in Ireland for ONCE .
@Dave Hammond:
That system would be rife for abuse.
If tips are income they should be taxed. like all other income. The simple solution is ban tipping, and separate service charges. Its is the responsibility of employers to pay their employees, not the responsibility of the customers.
When favourable tax rates was introduced during the recession and seen the hospitality industry make record profits and continue today this should have been addressed, mind you there should be a working minimum living wage setup as per recommendation but that’s another day’s argument.
I was Japan recently and they don’t do tipping. Trying to just result in mass confusion. It is actually wonderful. No panic at the end of a meal and total certainty on the price.
I’ve never minded tipping but when you actually aren’t allowed to I started to realise how silly the whole thing is.
I’m not going to stop tipping here (unless everyone else also stops!
Jesus, that was a hard read.
Can we get a proof reader for Journal articles? We could pay in tips
Cant afford to do restaurants so dont do tipping home cooking s the best stick your feet up watch wat u want to watch listen to wat u want to listen to and no children allowed to run riot around u home cooking bliss
Irish are the worst customers to have in a bar. Born and bred in Dublin, Spending the last 10 years working in different bars around Europe I can say from experience that the Irish are by far the most demanding, troublesome then ANY other nationality, which on top of this NEVER tip. Bar and restaurant staff rely on tips to boost up there wage, the fact that anyone could say “ban tipping” or to ” not tipp at all” is small minded and has cleary never worked in the hospitality industry.
I give the tip in cash to the waitress, even if service is included. As to banning tips! Most server earn a pittance, so their tips are very much needed.
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