Ollie Crowe (Fianna Fail) | Oireachtas source

I welcome the Tánaiste. I acknowledge Senators Doherty and Gavan, and former Senator Ó Clochartaigh, my own county man, for the work they did before the Government brought forward this legislation. I welcome the Bill, in the main, because it will provide certainty for workers. Most hospitality businesses in west Galway have almost always treated their employees well and divided tips fairly. On occasion, there have been incidents where that has not been the case, but it has been a minority of businesses that have not followed the tradition. When the tips campaign was at its height during the last 18 months, I noticed that most employers in Galway city fully supported it.

From my experience, tips create trust between the employee and the employer, and that naturally leads to longer employment and to people working in places for several years and beyond. This is an important factor, because if there is trust between the employee and the employer, then at least progress is being made. Ultimately, the customer will feel that employees are doing their jobs and feel more comfortable. This creates certainty.

The legislation will also provide greater certainty for customers as it will require businesses to display their cash and credit tipping policies in a prominent place. Customers who choose to tip should be entitled to know where those tips will go, and this Bill will provide that certainty. It is particularly welcome that this Bill will give employees a legal entitlement to receive tips and gratuities paid in electronic form, with the provision that these tips and gratuities should be paid to workers in a fair, transparent and equitable manner. Fair and equitable distribution will be context-specific and is likely to consider factors such as staff hours, value of sales income, revenue generated, workers' role in service delivery and whether employees have full-time or part-time contracts of employment, as Senator Craughwell referred to earlier.

Again, most businesses were already dividing tips in a fair manner, but the small numbers that were not have attracted considerable coverage in recent years. That has had a negative impact on workers. People want to tip for good service, but they are reluctant to do so because they are not confident that tips paid electronically will end up with the employees. Many people working in the hospitality industry are eager to see this Bill passed because they believe it will impact considerably on the tips that customers will choose to give when there is full transparency regarding how such tips will be distributed. In many cases, the €30, €40 or €50 made each evening is vital for people’s living arrangements and pays for the reasonable quality of life that people deserve. This legislation will also improve people's motivation to work in the hospitality sector. That is an important aspect.

This legislation is supported by all business owners with whom I have spoken. I can honestly say that is the case in Galway city. The Restaurants Association of Ireland has made public its support for the Bill and its eagerness to see the legislation implemented as quickly as possible.In recent years cash has become a less common method of paying and Covid-19 has further sped up that trend. The payment of tips and gratuities by electronic means, in contrast with cash tips that are paid directly to the worker, means that the employer is in control of how tips and gratuities are distributed. The electronic record generated by this payment method will support and facilitate inspections by the WRC in the event of a complaint being made. That is significant and important because it means that should any establishment not follow the guidelines set out in this Bill, workers will have the ability to raise it with the WRC, which will then have the capacity to carry out an investigation. Certainly, the WRC might need further support and an increase in numbers.

I believe this legislation will ensure a very high compliance rate across businesses in general. The transparency that businesses will be required to show their employees, under this Bill, is also significant in my opinion. To add transparency to the distribution of tips, the Bill provides that an employer must distribute the tips no later than ten days - I believe it should be within a week - from the date on which the tips and gratuities are paid. From my own experience in Galway, the normal procedure is that tips are distributed at the end of the night and on a nightly basis. I believe it should be done on a nightly basis or at the very least when wages are paid on a Thursday or Friday night in normal bars, restaurants and hotels. To aid transparency, the Bill also provides that an employee will receive a statement in writing that specifies the total amount of tips and gratuities distributed by the employer for the period to which the statement relates, and the amount of tips and gratuities distributed to the employee to whom the statement is provided.

Again, it is better for the longevity of a business and better for the people who work in that business that there is good trust between the employee and employer, which will naturally happen if there is fairness and equity. I can honestly say that vast majority of businesses in Galway appear to give tips to staff. It is correct to say that a better quality of staff leads to a better run business. When one has a quality chef, quality front-of-house manager and quality waiting staff, one's business is on the right road. As a business operator I know that if one respects people and builds trust with them, one will get there.

In the last 18 months the hospitality sector has suffered more than any sector. During that time I have noticed the kindness and generosity shown by customers when there was table service only. Possibly in bars and some restaurants at lunchtime people might not leave a tip but they certainly had more respect for staff, and appreciated the conditions under which they had to work. This Bill clarifies that there is an onus and responsibility on the employer, which is welcome.

To finish, the Bill will vastly enhance transparency for both workers and customers in the hospitality sector. It greatly enhances the legal rights of workers with regard to tips. It will make no impact on the vast majority of businesses, to which the Tánaiste alluded. As I know at first hand, there is no extra cost for business owners who already distribute tips in a fair and balanced manner. The Bill is a significant improvement to the status quoand I greatly welcome it. I hope it can be implemented with as much speed as possible, and certainly before the summer period, which as all Members of the House are aware is the peak of the year in terms of hospitality.