New on the spot fines for businesses found breaching rules surrounding tips are to be introduced as outlined in the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022.
Employers who do not provide employees with their terms of employment or provide false information will receive a fine of €1,500, while employers who do not provide workers with a written statement on the distribution of tips and gratuities, or fails to treat a service charge as a tip, will be subject to a fine of €750.
If employers do not display a "tips and gratuities notice" or a "contract Workers Tips and Gratuities Notice", they will also be fined €500.
Inspectors from the Workplace Relations Commission will visit premises around the country to see if they are in line with the legislation on tips, and if they find a breach, they can issue a fine.
To encourage employers to work with the legislation, if the fine is paid, no further action will be taken.
But if the fine is not paid, the business will be referred to the WRC's internal legal affairs committee who will then decide whether to proceed with prosecution.
The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 came into effect on December 1, 2022 and requires a review of the legislation after it has been in effect for one year.
Minister of State for Business, Employment and Retail Neale Richmond said that tips are an important aspect of the hospitality industry.
"Protections of tips introduced last year ensure that those who earn the tips are the ones to benefit from them," Mr Richmond said.
He said that while the majority of employers are in compliance with rules and regulations surrounding the treatment of tips, the introduction of these fines provides another layer of protection for hospitality workers and will help to stamp out bad practices where they exist.
"We believe in putting money back into people’s pockets, this includes allowing workers to keep their hard-earned tips. Not only do the workers deserve to keep the tips they earn, but customers who are paying these tips deserve to know where their money is going," he added.
