Seanad debates

Tuesday, 1 February 2022

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

 

2:30 pm

Photo of Regina DohertyRegina Doherty (Fine Gael) | Oireachtas source

I thank Senator Ahern for sharing his time because I am an interloper today. I thank the Tánaiste for introducing this Bill. I was involved in it when I was Minister. The Tánaiste is well aware that when Governments fall, priorities are not always the same for the following Minister, who may have a different agenda. I am grateful that he followed through on this. The past couple of years have been horrendous for the hospitality and service industries. The timing is very appropriate.

There is an old saying that all politics is personal. The reason this Bill is so personal for me was that I met some of the people making complaints about their employers. The Tánaiste is right to point out that it is usually only a small number of employers who abuse the trust of their employees. The latter were treated appallingly. We have many really good employers in the main, but when employers are bad, they really are bad. The employees I met were just so lovely, genuine and hard-working. They actually enjoyed working in their industry. Not only is it a very people-oriented industry but, because of the tips, it can also have benefits. Owing to tips, people can train, be in education or spend time at home with their children while still working and earning a decent living. However, when the trust is eroded, it can feel really personal.

There are one or two aspects of the Bill that I believe are really important. Knowledge is key in that power is given to the patron when he or she knows exactly what the tips policy is. It is important that the policy be displayed prominently in a way that makes it clear to every patron. Thus, patrons will know exactly where their money is going and will be in control. If there is any doubt about a service charge or a percentage of a tip going somewhere they do not want it to go to, they can use their feet and pay cash directly to the person they want it to go to. Therefore, displaying the policy is really important.

As Senator Ahearn said, I am aware the Tánaiste would have liked to do something about service charges. Maybe it should be explored further. Again, knowledge is important in that if somebody is aware that the service charge is going entirely to the establishment, but not the staff, he or she can decide how to or whether to tip.

I am fully supportive of 99% of the Bill. There is one aspect I ask the Tánaiste to consider amending, if he does not mind. It is the proposed section 4B. When people tip these days by using their card, the transaction has to go through the till system. Very few employers declare tips and pay tax on them. They do a cash-out at the end of the night or week and the tips are then distributed according to establishment policy. I would like the Tánaiste to take the control away from the employer. In the proposed section 4B, it is outlined that when an employer is changing the policy, he or she must consult the employees. The employer should not have to consult; he or she should have to obtain consent. Ultimately, if I go into an establishment and leave €5, €25 or another amount behind, it is because I will have appreciated the good service. In many cases, I will not mind whether 75% goes to the young lady or man who has served me and 25% goes to the people who have cooked the meal; it is up to them to work it out. However, it is certainly not something that should be controlled by the employer. He or she should, under the policy, have the consent of those who are working hard and earning the tips daily.

I thank the Tánaiste for introducing this Bill. It will mean an awful lot to the people who work in and support the industry.

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