The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022
November 7, 2022
The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 will take effect on 1 December 2022. The Act give employees working in certain sectors a legal entitlement to receive tips and gratuities and introduces new rules about how employers share tips, gratuities and service charges amongst employees.
Until now there has never been legislation which obliges employers to pass on any tips received by them to their staff and the Act for the first time will regulate the payment of tips and gratuities by electronic means.
What are the Key Provisions of the Act:
- It provides clarity on the meaning of tips, gratuities and service charges
- It places tips and gratuities outside the scope of a person’s contractual wages. Employers cannot use tips and gratuities to “make up” contractual rates of pay and cannot make a deduction from a person’s wage in relation to tips and gratuities.
- Employers must clearly display their policy on how tips, gratuities and service charges are distributed.
- Employers must distribute fairly, equitably and in a transparent manner, tips that are received in electronic form, that is, through debit or credit cards or smart phones
- Employers must ensure any charge called a “service charge” or anything that would lead a customer to believe it is a charge for service, will have to be distributed to staff as if it were a tip or gratuity received by electronic means
- The employer must provide a statement to workers showing the amount of tips obtained in a period and the portion paid to the individual employee for that particular period.
- An employer cannot retain any share of electronic tips. However, there may be circumstances e.g., to pay tax, or bank charges arising from providing electronic modes of tipping, or only where the employer regularly performs to a substantial degree the same work performed by some or all the employees, where such an amount may be deducted that is fair in the circumstances.
- “Platform workers”, who are not direct employees, are included in the legislation.
Handling Cash Tips
While employers will be required to include detail on how cash tips are dealt with when displaying their policy towards tips and gratuities, there will be no other regulation of “cash tips” as it is usual that these tips are paid directly to the worker. However, cash tips are still taxable.
How cash tips are distributed will be required to be included in an employer’s publicly displayed policy on the management of tips and gratuities.
Inspections/Complaints
The electronic record generated by this payment method will support and facilitate inspections by the Workplace Relations Commission (WRC) in the event of a complaint being made.
Complaints may be referred to the WRC; where a complaint is upheld, and employee may be awarded compensation of up to four weeks’ pay.
Notes for Employers;
Employers who operate in sectors that are commonly associated with tips and gratuities (hospitality, tourism, hairdressing, taxi and delivery services, amongst others) will need to ensure to provide a statement to workers showing the amount of tips obtained.
Employers should not use tips and gratuities to “make up” contractual rates of pay and should ensure that minimum wage rates of pay are being complied with in light of this.
Employers should prepare their policy on how tips and gratuities are to be distributed and ensure to post it publicly from the 1st December.
What Employers Need to Know
In this blog, we explore a recent WRC ruling where a school was ordered to pay €85,000 in compensation after a teacher was discriminated against during an interview. The case highlights how even seemingly harmless remarks can have serious legal consequences for employers. What Actually Happened? Employee, Emily Williams, who had been working at the school under fixed-term contract and had two years’ experience there, was on maternity leave when a permanent teaching post arose. She was neither notified nor considered, even though she was eligible. Instead, the school awarded the role to a less-experienced colleague not on leave. During a subsequent interview for a fixed-term position, the principal congratulated Williams on the birth of her baby and added: “You really should enjoy every moment at home with the baby.” Williams felt the comment was unprofessional and likely influenced the outcome against her as she had learned she was unsuccessful the very next day. Why the WRC Ruled It Was Discrimination The WRC adjudicator found that: The principal’s comment, made before scoring was complete, was inappropriate and highlighted Williams’ family status. The school could not justify why a less-experienced teacher was chosen. Their claim that it was based on prior interview scores was unsupported, with no clear process to back it up. One interviewer even adjusted a score for Williams downward without explanation, further undermining the credibility of the decision. Given these failures, the WRC concluded that Williams had established a clear case of discrimination on grounds of family status. She was awarded €85,000 in compensation, with the adjudicator stressing the importance of deterrence in cases like this. Why This Ruling Matters for Employers This case underscores three vital lessons for HR and hiring managers. First, keep personal matters out of formal interviews. Even a well-meaning comment can suggest bias or influence the panel. The interview must remain strictly professional. Second, ensure documentation and process are watertight. Reliable scoring systems, consistent policies, and clear records are essential. Without them, hiring decisions become legally and reputationally vulnerable. Finally, fairness must be more than form, it must be function. Interviews should be blind to protected statuses such as family or maternity, and all decisions must be transparent and defensible. How MSS The HR People Can Help MSS is here to help Irish businesses avoid situations like this: Designing discrimination-safe interview processes, from structuring interview panels to defining scoring metrics Training hiring panels on unconscious bias and employment equality legislation Developing clear recruitment communication policies that avoid risks around maternity or other protected characteristics Providing support and representation if a dispute arises before the WRC Let’s ensure recruitment is fair, transparent, and free of unintended prejudice. Reach out to MSS The HR People, and we’ll help you build safe, compliant hiring practices. MSS The HR People info@mssthehrpeople.ie Ph: 01 8870690
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MSS - The HR People Achieves CPD Accreditation: What It Means for You At MSS - The HR People, we’re proud to announce that we have been officially accredited to deliver CPD (Continuing Professional Development) training. This milestone reflects our unwavering commitment to delivering high-quality, practical, and professionally relevant training to businesses across Ireland. But what exactly does CPD accreditation mean? Why is it significant? And, most importantly, how does it benefit the clients and professionals who choose MSS for their HR training? What Is CPD and Why Does It Matter? Continuing Professional Development (CPD) refers to the process of tracking and documenting the skills, knowledge, and experience gained both formally and informally as professionals work, beyond any initial training. CPD is essential in every sector but especially in fields like HR, where employment law, workplace regulations, and people management practices are constantly evolving. 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It’s more than a badge or certificate - it’s recognition from an external body that our training: Delivers clear learning outcomes Meets the expectations of professional development standards Is structured, well-presented, and aligned with current best practices Is designed with real-world application in mind For our team, this accreditation reinforces the integrity of our training content and confirms that the learning we provide is of the same high standard expected by national and international professional organisations. It also shows that we take our role as HR educators seriously. Whether we’re delivering workshops on employment law compliance, HR policies, or best-practice recruitment and onboarding, we are doing so in a way that stands up to scrutiny, offers measurable learning outcomes, and contributes to the continuous upskilling of our clients. What It Means for Our Clients and Training Participants CPD accreditation matters because it gives our clients confidence - not just in what we teach, but in how we teach it. Whether you're an SME owner trying to stay compliant, a people manager learning how to lead teams effectively, or an HR professional seeking to grow your knowledge base, attending a CPD-accredited session with MSS brings many advantages: 1. Assurance of Quality With CPD accreditation, clients know that our training is rigorously vetted. You’re not just taking our word for it - an independent body has confirmed that the training you’re investing in meets a high standard of professional learning. 2. Tangible Professional Development For individuals building their careers or maintaining professional memberships, CPD points or hours gained through our training can be recorded as part of formal CPD logs. This is especially relevant for HR professionals, business owners, and line managers who must show ongoing learning as part of their industry obligations. 3. Enhanced Employer Credibility Businesses that invest in CPD-accredited training show their teams and stakeholders that they care about learning, improvement, and staying up to date. It’s a positive reflection on company culture and helps improve employee engagement and retention. 4. Peace of Mind Around Compliance From Inclusive Leadership, Dignity at Work and Managing Difficult Behaviours, our accredited training ensures that you and your team are not only aware of your responsibilities but are applying them correctly. That means fewer risks, fewer mistakes, and a more confident leadership approach across your organisation. 5. 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From one-hour sessions and lunch-and-learns to multi-day workshops and tailored in-house programmes, all our CPD-accredited training will continue to be: Grounded in practical, real-world HR expertise Updated regularly to reflect changes in law and best practice Delivered in an accessible, engaging format that suits busy teams Backed by independent quality assurance Let’s Grow Together Whether you’re new to HR responsibilities or managing people across multiple departments, learning is essential. With CPD-accredited training from MSS - The HR People, you’re guaranteed a high-quality learning experience that’s both professionally recognised and immediately useful in your role. Contact us today to find out more about our CPD-accredited training programmes or visit www.mssthehrpeople.ie/hr-training for more details.
