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 will not comment on anything that would bring the wonderful people in the Competition and Consumer Protection Commission down on us. To suggest, however, that there would be legislation which could preclude a business from charging for service is, to my mind, possibly unconstitutional. Ultimately, one has a customer and a business offering a product or service. This is a willing buyer, a willing service and a contract. It is the same as any contract law anywhere in the world. If there are concerns about how employees in this industry are being looked after - and we are now seeking to create some new regulation to help and benefit them - this is what we should be focusing on. I do not believe it is an issue, but if there is concern around whether or not a particular charge or price is being used to divert moneys away from staff then the best way to deal with that is to be open and clear about what the policy is in the restaurant in that regard. The business - be it a restaurant or hotel - may decide to tell the customer that it keeps all the service charge, which is one option. The business may decide to tell the customer that all of the service charge goes to the employees. That might have to be couched with another six paragraphs to explain that taxation and other aspects have to be deducted. If it is decided, via this legislation, to outlaw the charging for service in a contract, I believe that would be way outside the remit.
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