Oireachtas Joint and Select Committees

Thursday, 10 October 2019

Joint Oireachtas Committee on Social Protection

General Scheme of the Payment of Wages (Amendment) Bill 2019: Discussion

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

I am concerned by what has been proposed in the Bill and endorsed in terms of the removal of the service charge. I am also concerned from the perspective of customers. The Bill seems to suggest money that is floating around might still reach the staff. There is very little money floating around. Most people when they go into a restaurant make a decision on whether they should give a gratuity or a tip which they understand to be covered by a service charge. I randomly asked six people who were not friends what they thought was meant by a service charge and every one of them said it was a tip. Two of the six clarified that when a service charge was charged, they did not give a tip because they believed the service charge was a tip. That was their understanding. It is a view that is commonly understood by people in a restaurant. Using that logic, there is a reason a service charge is applied in serving large groups. I have spoken to restaurant and café owners who have told me that serving large groups requires a lot of more work and extra effort from staff. They have said it is good that such work is recognised via the service charge and that they include it because they feel bad when a tip is not given. Everybody understands the service charge is a tip. If I were a customer, I would be concerned to hear that I entered into a deep contractual relationship every time I ordered a plate of pasta in a restaurant and hard luck on me. How does one justify the fact that groups of five or six people are charged a service charge? Is it the case that those attending birthday parties, large family groups or those who booked their Christmas dinner need to pay more for the service they receive in a restaurant? Should the organisations state "This is the charge for a large group"? Is the restaurant that believes large groups should pay more for food and use of chairs? What is the justification for charging a service charge if it is not a tip?

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