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
Mr. Tim Fenn:
I reiterate that what we are talking about is what would be appropriate legislation and having a clear understanding of same. As Mr. Cummins has made very clear, we do not get involved in pricing within a business. In principle, a business can decide to charge €40 or €50 for a meal, but pricing is dictated by whatever is right for the business. A business may decide to charge a service charge in certain instances, be it where service is complex or simple, but it is its decision. All we are saying is that if a business decides to charge a service charge in its contract with its customer, it gets to decide what to do with it. We suggest a business make clear to its customers what its tips, gratuities or service charge policy is. Customers will then have a choice to make. They can decide whether they want to go into a restaurant that does not give 100%, 95% or whatever the percentage is of the service charge charged to its staff. It is the restaurant that makes the choice as to whether it will apply a service charge. I reiterate the basic principle that tips and gratuities belong to the staff. There should be no situation where staff do not receive 100% of the money.
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