Restaurants to be required to explain where tips go

Restaurants to be required to explain where tips go

Leo Varadkar

Restaurants will be required to set out their tipping policy to customers under new legislation aimed at protecting employees’ tips, the government has announced.

Tánaiste and enterprise minister Leo Varadkar said the legislation, approved by ministers yesterday, would address concerns about “some businesses not passing on tips to workers”.

Although ministers “don’t think it’s widespread”, Mr Varadkar said the “pandemic has changed things [as] more and more people are paying electronically”, TheJournal.ie reports.

He added: “Restaurants will have to inform customers what their tips policy is. Where tips are paid in electronic form, that there’s legal obligation on the employer to make sure that that money goes to the workers is distributed in a fair and equitable manner.

“What this is all about is protecting the pay that workers get, that you can’t use tips to make your minimum pay rates, any pay rate for that matter.”

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