Mary Butler (Waterford, Fianna Fail) | Oireachtas source

Fianna Fáil is in favour of increased transparency for workers and consumers in terms of how tips and gratuities are treated and to make it clear to consumers that tips and gratuities are voluntary. We recognise that many employers act in a fair and reputable manner and that many businesses have their own individual arrangements in place regarding the distribution of tips. Moreover, while we also recognise that this is not a black and white issue, we are concerned that some employers behave in an unscrupulous manner and that must be addressed. That is the reason Fianna Fáil supports the Bill.

We recognise that those who work in the hospitality, leisure and service industry play a crucial role in the economy and we are committed to supporting and protecting staff working in those industries. Fianna Fáil believes all workers should be paid a fair and decent wage. It is imperative that the Government addresses issues regarding low paid, precarious work and underemployment which, unfortunately, are too common a feature across several sectors in the economy. Many workers in those industries depend on tips.

One could ask what is a tip. A tip is a sum customarily given by a client or a customer to a service worker in addition to the basic price. Tipping is completely different to a purchase. It is an amount one gives because one values good service. Tips should always be for the staff and should never be seen as a service charge. It is clearly a gratuity payment to recognise good service and good treatment. Unfortunately, we have heard recently that some employers in the restaurant business keep the tips and use them to supplement wages for employees. That is the reason this legislation is important. When a customer leaves a tip, he or she assumes the tip goes to the server not to the employer of the person.

The Bill is short, with three clear aims: introduce a provision prohibiting an employer from withholding tips or other gratuities from an employee; making a deduction from an employee's tips or other gratuities; or causing the employee to return or give his or her tips or other gratuities to the employer. Electronic payments by debit card or credit card have become popular. I always leave a tip in cash, which makes it easier for the server or employee to receive the payment. When it is included in an electronic payment of the bill, it is much more difficult for all concerned. People who work in low-paid jobs depend on the few bob they earn every week in tips. I am pleased to support the Bill.

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