Margaret Murphy O'Mahony (Cork South West, Fianna Fail) | Oireachtas source

Although tips are discretionary, many employees in the service industry, particularly the hospitality sector, depend on them to complement their basic weekly wage. Many of those in the service industry in west Cork fall in the category described as "underemployed persons" or persons who work part time, although they are seeking full-time employment. Such a situation is further compounded by the nature of the work, which is seasonal, with many businesses only operational during the summer months. In that regard, the provision of tips bears even more significance to an employee. Aside from the reliance on those moneys by the employee, it is necessary that there be clarity and transparency not only for the employee but also the employer and consumers. Policy information pertaining to tips and gratuities should be clearly displayed in all premises where tips may be handed over to employees.

The Minister has pledged to amend the Payment of Wages Act to ensure tips do not form part of the contracted rate of pay, which should go without saying. I am concerned that the measure does not go far enough. Nothing short of total transparency is acceptable.

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