Employers in the service industry have been warned that it is illegal to calculate workers' salaries by including customer tips in that figure.
The warning came from Tánaiste Simon Coveney after the tips policy at the Ivy Restaurant, less than 200 metres from the Leinster House gates, was highlighted in the Dáil today.
Independents4Change TD Joan Collins said that she was recently approached by workers in the "new very swanky and expensive Ivy Restaurant where the company are taking the major proportion of tips paid to staff and are using these tips to make up the difference in their wages".
However, the restaurant says that it completely refutes the claims.
In a statement to RTÉ it said: "The Ivy Collection completely refutes the claims made in the Dáil this afternoon, which are untrue. The restaurant fully complies with its regulatory obligations and its commitment to its employees. "
Using Dáil privilege, Ms Collins cited an example of a worker at the restaurant: "One worker signed a contract back in October for €14.90 an hour. They are now being paid €9.80 an hour and the difference is being made up with the tips.
"So this company is robbing the workers of their money and we don't know where the rest of the money is going. It seems to be pocketed by the company."
She continued that staff working in the restaurant sector are reliant on tips to make up a reasonable wage to enable them to get by and afford the "outrageous rents" for accommodation in Dublin.
WATCH: Tánaiste @simoncoveney warns employers in the service industry that it is illegal to calculate workers' salaries by including customer tips in that figure. @JoanCollinsTD raised the tips policy at "new very swanky & expensive" Ivy Restaurant in Dublin pic.twitter.com/U5pjurfUfc
— RTÉ Politics (@rtepolitics) March 7, 2019
Responding to Ms Collins about the tips issue, Mr Coveney said: "Let me be very clear. Any employer that calculates salary and includes tips in that figure is acting illegally. You cannot do it.
"Tips are separate to salary. If there are issues that the Government needs to act on, then we will look at it closely."
The tips policy at the Ivy Restaurant has come under the media spotlight in recent months.
The statement issued tonight said the Ivy Collection strongly encourages the sharing of tips with team members.
It continued: "When a tip is paid by credit card, the tip goes towards a shared gratuity per hour that is shared across all c. 150 staff in the restaurant (excluding management). This is paid in addition to their hourly wage and is guaranteed by the company in that the company will make up any shortfall and is, therefore, regardless of whether any tips are paid by patrons.
"Although strongly encouraged to share cash tips these are dependent upon the individual waiter/waitress."
The statement concluded: "Upon acceptance of a role at the Ivy Collection, employees are offered their terms of employment in an offer letter.
"The offer letter sets out a total per hour compensation and also breaks down the salary as the employee’s base salary (at least minimum wage) and an additional per hour payment guaranteed by the restaurant, which in part comes from credit card tips. The company believes that all gratuities should be for the benefit of the entire team."
