Payment of Wages (Amendment) (Tips and Gratuities) Act 2022
Irish legislation that introduced specific rules on how employers must handle tips, gratuities and certain service charges.
This law directly affects restaurants, bars, hotels, cafes and other businesses where tips, gratuities or service charges are collected. If tips are handled informally, used to make up wages, or not explained clearly to staff, the business may face pay disputes, WRC complaints and reputational damage.
Frequently Asked Questions
Yes. Employers must be transparent about how tips, gratuities and mandatory charges are treated. In many hospitality settings, this should be reflected in written policies and employment terms.
No. Tips and gratuities cannot be used to make up an employee's contractual rate of pay or the national minimum wage. They must be treated separately from basic pay.
It means restaurants and other hospitality employers must handle tips and gratuities in line with Irish law, including fair distribution of electronic tips and clear information for workers on how tips, gratuities and service charges are treated.