Gerry Horkan (Fianna Fail) | Oireachtas source

The amendments are specific to owner-managers of pubs and so on. The information can be on the menus or it might not be. If we are going to have information put on menus, we can have a lead-in time so that places do not need to reprint menus that they had printed the previous week because of the legislation. Many of us tip, whether it is lounge staff or someone working in a restaurant. One will often pay for a meal by credit card and give the tip in cash so that somebody gets it. I understand that in places where there is a compulsory service charge of 10% or 12.5% for groups over six, for instance, that often does not go to the employee, although people might think that it does. The Minister of State or Senator Gavan might confirm my understanding that those service charges at whatever rate will end up in a pot controlled by employees to be distributed among staff one way or another, whether it is lounge staff, bar staff, chefs, waiting staff and so on.Under this Bill, a tip, be it 10%, 12%, 15% or 20%, will end up in a pot to be controlled by employees and distributed among them, be that kitchen staff, chefs, lounge, bar and waiting staff and so on. As already stated by Senator Reilly, the concern is that the system could become so organised it would come to the attention of Revenue and it might deem the gratuities received by each staff member to be additional income and, therefore, subject to tax. I do not think any of us want to see a situation where this money would be subject to USC, PAYE and PRSI. Also, the employer could be deemed liable because he or she knew this was happening within the business. We are doing great work in terms of this Bill but we need to be careful that we do not end up doing a disservice to these people who are, by and large, generally in the lower paid sector of society.