Seanad debates

Wednesday, 29 June 2022

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

 

10:00 am

Photo of Marie SherlockMarie Sherlock (Labour) | Oireachtas source

I pay tribute to Senator Gavin on his Bill and to the Government for running with this Bill. The service charges issue is a rare example of the Government taking on board a point raised on Second Stage and introducing an amendment. I welcome this. I am delighted Joe Cunningham, Fiona Dunne and Clem Shevlin are present. It is through their campaigning that we have the Bill.

Senator Casey made some very important points on the sector. The Bill has to be the start and not the end of the conversation on what happens in the sector with regard to pay, training and careers. The Government, employers and workplace representatives must have this conversation. There are significant benefits from the much-needed VAT reductions for hospitality employers in many parts of the country. We need a conversation about how we get better sustainable pay and conditions in the sector.

I want to speak on amendments Nos. 44, 46 and 48. Amendments Nos. 44 and 46 aim to tighten up the ban on the deduction of employees' wages in respect of tips and ensure the Bill also covers cash tips. I heard what the Minister of State had to say on the Workplace Relations Commission and enforceability. Setting out in legislation very clearly that the ban must also include cash tips is very important. There is a gap in section 4C that bans tips and gratuities being used as justification to deduct from wages as it does not specifically mention or clarify that service charges are part of this. The Bill is about sending out a message and clarity with regard to service charges. As the Minister of State said, most people would be horrified to realise their service charge does not necessarily go into the pockets of those serving them. These are important amendments.

Senator Gavin has spoken on amendment No. 48. An employer does not charge an employee for the paper or ink used to produce the wage slip or the method an employee is paid. It is unacceptable that the burden of transaction fees with regard to the transfer of tips to workers would be placed on the workers themselves. It is unfair to ask low-wage workers in particular, and we are speaking about low-wage workers, to bear this cost. Will the Minister of State consider amendment No. 48?

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