Seanad debates

Wednesday, 29 June 2022

Payment of Wages (Amendment) (Tips and Gratuities) Bill 2022: Committee and Remaining Stages

 

10:00 am

Photo of Paul GavanPaul Gavan (Sinn Fein) | Oireachtas source

I thank the Minister of State for going through that. There was quite a lot to go through. With regard to mandatory services charges, as I have said I am very happy to accept the Government's amendments. I do not mind and I am not precious about which amendments get the job done. I acknowledge the fact there has been engagement on this. We have what I regard as a good result on the mandatory service charge issue.

I want to take issue with several other amendments that fall into this broad category. This is where the Minister of State and I will disagree. We should have included cash tips. They were included in my original Bill. Amendments Nos. 19 and 22 do speak to this. We should do this because we know abuse has been carried out. Our research showed that one in three tips were being withheld. I acknowledge the fact that more and more we are moving towards electronic payments and certainly Covid has hastened this. Where cash payments are involved we should be able to include them. This is why we are pushing the amendments. It is important for the staff concerned.

I could cite several examples but I will not delay matters. I will cite the example of people working in a hostelry in Connemara where the first drink was free when the tourists came in. Of course the tourists were delighted and tipped on this basis. The employer pocketed all of the tips because in effect that is how the drinks were being paid for. The staff who served those drinks were not getting a cent. This is one of several examples I could spend the rest of the evening going through. I acknowledge what Senator Casey said and there are many good employers. However, there are some awful abuses relating to cash payments in particular. This is why it is important that the Bill could and should look at including them.

Amendment No. 48 is on a curious point that Senators Higgins and Black have also spotted. The amendment wants to delete a part of the Bill that allows an employer to deduct money from an employee to meet costs directly arising from paying tips or gratuities by means of electronic modes of payment. I find this strange. The Minister of State knows that most packages for electronic card and contactless machines are already paid for by the employer. They are paid for so that customers can pay for goods and services. I am sure covering the cost of these machines is factored into the cost of the goods and services sold by the employer. To allow an employer deduct moneys from an employee to pay for these machines is unfair. It is a strange and convoluted situation. If we have the opportunity to fix this we should do so. There is no justification for allowing employers to make this charge. I am somewhat concerned that it could be open to abuse.

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