Employers are set to be banned from using the term “service charge” on receipts unless the money goes directly to the staff member which is set to impact the hospitality industry.
Tanaiste Leo Varadkar is expected to make a change to his new tips law which will have an impact on workers’ tips and provides clarity to customers on what they are being charged for. Mr Varadkar said: “Our overall objective with the bill is to prevent employers from using tips or gratuities to make up basic wages and to introduce transparency about how tips and service charges are distributed.
“Customers really can’t be sure what services charges are used for or whom they go to. Voluntary services charges are clearly the same as a tip or a gratuity but by definition, mandatory service charges are not.
