Press Release

Workers now legally entitled to receive tips and gratuities paid in electronic form

Date Released: 01 December 2022

The Irish Congress of Trade Unions has welcomed new laws governing the practice of tipping to hospitality workers that have come into force today. Under the Payment of Wages Act employees now have a legal entitlement to receive tips and gratuities paid in electronic form.

ICTU General Secretary Owen Reidy said: “The legislation will give workers clearer rights around the issue of tips, and give more clarity for customers, particularly those paying electronically. This has been an important campaign waged by workers in the sector and unions. The most significant benefit to workers in the hospitality sector, and indeed all sectors of the economy, is the right to collective bargaining. We in the ICTU look forward to the transposition of the EU Directive on Adequate Minimum Wages combined with legislation for the LEEF High-Level Group Report on industrial relations in Ireland in 2023 which will address this crucial issue.”

Clem Shevlin, a spokesperson for ONE Galway, the group that has campaigned on this issue since 2018, said "this legislation is a good start on improving the conditions and the lives of workers in the hospitality sector. But we mustn't stop there. Whilst electronic tips are protected for workers, there remains ambiguity about cash tips which don't appear to enjoy the same protections.  However, the service charge is returned to workers in full, a move which is welcomed by workers and unions alike".

Shevlin acknowledged the support of ICTU in the fight for better working conditions. "The tipping law shouldn't be the end of improvements for the hospitality sector. For the lowest-paid workers in our economy, there is a lot more which can be done, starting with a living wage, and better terms, and conditions so that they can build sustainable careers. We'd urge customers to be vigilant whilst enjoying themselves during the Christmas period, check their bills, and ask their server where the tips and charges go. We'd also urge the government to give hospitality workers a real meaningful gift this Christmas by tackling the inequities and bad practices in the industry, thus improving the opportunities and conditions in which they work, changes that are not just for Christmas".


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