New tipping law comes into effect today

A new law designed to protect tips received by workers will come into effect today.

The Payment of Wages (Tips and Gratuities) Act 2022 will see employees given legal rights over the payment of tips.

The legislation will force employers to display their policy on mandatory charges and the distribution of cash and card tips.

Adrian Cummins, chief executive of the Restaurants Association of Ireland, says staff will be taxed for tips paid electronically.

“We welcome the new legislation for tips, like gratuities and service charge. It gives more clarity for staff and for customers when they’re dining out across the country. It’s something we’ve been advocating for as an organisation.

“We will be saying to the Government that there are unintended consequences to this, which is the taxation element.”

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