Seanad debates

Tuesday, 1 February 2022

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

 

2:30 pm

Photo of Mary Seery KearneyMary Seery Kearney (Fine Gael) | Oireachtas source

I thank the Tánaiste for bringing this Bill forward. When I saw it I was delighted. I am married to someone who was a representative in the hotel branch of the ITGWU some years ago. When we were dating, there were establishments he would not go to because they used tips to pay wages. The reputational damage that is attached to some establishments in this city is well warranted, and long may they endure that until they prove otherwise and show transparency with regard to their staff.

Tips should never be used to supplement wages. Staff should receive them for exceptional service. While it is not compulsory to pay tips in Ireland, it is a mark of the sheer hard work, special occasion and attendance given by an individual which is warranted. It is a human kindness that is worth more than its monetary value in terms of the value to an individual.

Given the staff shortages in the hospitality sector, this Bill is urgent.We should consider including in the guidelines the requirement to advertise the tips and gratuities policy. There should be a clear definition of "service charge" within that policy as to how a service charge is distributed, if it is distributed. There was an agreement back in the 1950s to increase staff wages using service charges; that was its origins. However, it may have moved on from that and many employers do not use it accordingly. I am glad to see a criminal sanction element. Depending on the type of employer, it will be more or less effective. I am thinking of sole traders. That would be one thing on which we need a little bit of consideration. The fact it is a mandatory policy will lead to conversations with smaller employers and will bring out into the open how tips are dealt with, which is also a good thing.

There is an element in the legislation providing for how we deal with contractors. That is fine. We have a trend coming into hospitality where staff can be provided from a platform working environment. I have come across that. Many employees in hospitality are also temporary agency workers. Some of them are beyond retirement age and therefore do not have the protections of the Unfair Dismissals Act. They rely on the Protection of Employees (Temporary Agency Work) Act, and within that they have a right to claim commensurate benefits. The definition within that Act is "basic pay and conditions". Certain bonuses have not been included in that while others have. For the purposes of Workplace Relations Commission, WRC, referrals we need to give clear guidance on whether this Bill comes into that definition of basic pay and conditions for temporary agency workers. I believe it should. That is a little tweak that perhaps we should consider at some point. It will work its way out anyway, to be fair, as the WRC engages with the Bill and its outworking.

There was a genuine fear of taxation so I am glad that is clearly defined. There are workers in the industry who talk about going into work with nothing in their pocket and having their few bob going home, so that is welcome. Overall I support the Bill. The temporary agency worker element is important to look at. Otherwise it is very fine legislation.

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