Dáil debates

Thursday, 7 July 2022

Payment of Wages (Amendment) (Tips and Gratuities) Bill 2022 [Seanad]: Second Stage

 

4:55 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael) | Oireachtas source

I thank the House for its support. I thank the contributors to the debate on this very important matter. It is very clear from all of the contributions from the members of the different parties that there is great support for the hospitality sector and acknowledgement of its importance and that of all of those who work extremely hard in it. Many of us have worked in the sector over the years. For many people, it is their first or second job as they go through education or find a new career. We would like to develop the sector as an important long-lasting career in itself and, as Deputy Bruton referenced, a sustainable career that is well valued and well recognised. I hope that as we improve the terms and conditions in the sector, particularly with the Bill, it will make the industry more attractive to talent and will make it a more successful career.

I hope the Bill will reward those working in the sector. It is hard work and very often people are on their feet for a long period of time. They work long and often antisocial hours. The jobs are not traditional 9 a.m. to 5 p.m. jobs. I thank Deputy Joan Collins for remaining and waiting for her slot in order to give some of the history and name the people involved in the campaign at a very early stage. It is important to recognise those workers who took a stance. I thank those who took up the campaign afterwards. Senator Gavan did a lot of work in bringing forward a Bill. That Bill was not fully acceptable the way it was. The WRC's advice was that it would not be workable or enforceable. Senator Regina Doherty brought forward a Bill when she was Minister. It built on the work of Senator Gavan and others. That Bill had gone through Committee Stage but we had a general election in 2020 and we had to go back to "Go" on the Monopoly board.

Along with the team with me in the House today I thank the Tánaiste for taking up the Bill, improving it and making changes. The legislation started in the Seanad. We amended it last week and we are now on Second Stage in the Dáil. I hope we will be in a position to complete the passage of the Bill before we rise for the summer. The Tánaiste wants to do this and I hope we are able to do so. I thank everyone for their help and support. The Senators made a great effort to get it through the Seanad last week.

The Bill is about fairness. People earn their tips. When customers give them in good faith they expect the staff to have them. They should have access to the tips and they should not be kept by an employer for any reason including to make up wages. That is not what they are about. People are rewarding service and thanking people. They are giving the tip or gratuity on the assumption that it is passed on. This is why the Bill is about fairness and making sure people get their entitlements.

The Bill is also about transparency. It is quite clear from many of the contributions today and in previous debates on the Bill that there is a misunderstanding about the term "service charge". The Bill corrects this and deals with it. If "service charge" is used as a term, the money will go as a tip to the staff. We will allow other terminology to be used because we cannot interfere. If restaurant or business owners want other structures they are entitled to have them once it is very clear that if it has to do with the service and the people employed the money is theirs. This is why people give it. Booking charges and room charges are allowable. We cannot stop this. It is a choice for business owners and the structures they charge. If there is any link to service we want to cut out any opportunity for misunderstanding.

I worked in the sector. I have always known that a service charge did not necessarily involve a tip or a payment of a gratuity. I have discovered since that most customers thought they were leaving a tip by paying a service charge. The Bill corrects this, deals with it and clarifies the position. It also makes sure that a hospitality establishment must have well displayed what its policy is on tips and gratuities, be they paid in cash or by card, and how they are distributed. This is only right and proper. It will be very clear and we will deal in regulation with how visible it will be.

An issue was raised with regard to the regulation of cash tips. Deputy Mattie McGrath touched on it. It is very hard to deal with this matter because it involves cash, which we cannot trace. The WRC has been very clear in its advice that it would be unworkable. Naturally, we are focusing on card payments, which are probably in the majority now. We are also focused on the policy of how cash and card tips will be dealt with. This will bring the change that is needed. It will bring clarity. It will help the overall attractiveness of the sector.

I thank everybody for their contributions. Deputy Griffin touched on how successful he was at getting tips when he worked in Kerry. I have no doubt this was because there were plenty of tourists there in the first place and the gift of the gab probably assisted him to get some of those tips. Many spoke about their time working in the sector and how valuable they found it. We all learned a great deal in the sector. I hope we will make it a long-term sustainable career. The Tánaiste is very clear on this point. He has shown this over the past two years through his work in the Department. If we can improve the terms and conditions to ensure work always pays, and that it is always fair and that people get rewarded for hard work, it should help many employers in the competition for talent and make Ireland a more attractive place for talent.

Deputy Griffin and others touched on talent coming here from abroad and the permit system. The Department has moved to treble the number of staff working in the sector to deal with a backlog. We recognise there is competition out there and it is difficult to source people for all of the jobs that are available. Thankfully, we have seen a major recovery since Covid. Many thought we would still be at 8% or 10% unemployment at this stage. We are below 5%. It is better than it was prior to Covid. I am delighted this is the case in the hospitality sector because it took a major hit, along with many others. The hospitality sector was asked to close its doors. In many cases staff were left not knowing what the future was. I am delighted the staff are back and the sector is fully opened and there is that choice. Many people have taken up jobs in different careers in different sectors. They had a choice. They did not have a choice when they were not allowed to go to work because of Covid.

The majority of employers do the right thing and we have to remember this. The majority of employers look after their staff extremely well and make sure they get their tips and cash. We have to recognise that employers went to great lengths during Covid to protect their staff, employees, teams and talent, as well as their customers. This should be well recognised. We have brought forward this Bill to catch those who do not look after people and who do not do the right thing. I am quite confident that the Bill will not burden anyone doing the right thing, apart from having to display the policy. There are other companies and businesses that will have to change the way they do their business and rightly so. People are entitled to this money if it has been left them to thank them for their work and their service.

The Bill gets the balance right. Deputy Bruton touched on this. It is important that the Department, which has responsibility for enterprise, trade and employment matters, gets the balance right. We are trying to protect and grow jobs, not take them for granted, future proof the economy and make sure that employees are well looked after and well protected and get thanked for their work. I thank Deputies for their co-operation.

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