Workers will be entitled to their tips by law from 1 December, Tánaiste and Enterprise Minister Leo Varadkar has announced.
The new law gives employees a legal entitlement to receive tips and gratuities paid in electronic form – such as through debit, credit cards or smart phones.
Employers will also be banned from describing mandatory charges as “service charges” unless they are treated in the same way as tips or gratuities.
Between now and December 1st, there will be a four-week window to give employers time to get ready for the adjustments mandated by the new law.
In a statement, Varadkar said: "These measures go a long way to ensuring that those tips are given to the people who have earned them. Tips can make up a sizeable portion of a worker's take-home income.
"This new law is a step in the right direction for enhancing lower-paid workers' rights and benefits as well as bringing clarity to consumers.
While most employers treat their employees properly, this will assist to end unfair practises where they already exist and provide clients the assurance that staff members get gratuities.
A just distribution of tips will depend on the circumstances, taking into account things like an employee's seniority or experience, the amount of sales they produced, and the number of hours worked.
The law stipulates that when the law has been in effect for a year, the Minister for Enterprise, Trade, and Employment must review it.
