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.
New paragraph
When “Better Than Statutory” Really Matters
What Irish Employers Need to Know About the Employment (Contractual Retirement Ages) Bill 2025. The Irish government has taken a significant step forward in reshaping retirement policy in the workplace with the publication of the Employment (Contractual Retirement Ages) Bill 2025. Once enacted, this legislation will introduce a new employment right, allowing, but not obliging, employees to remain in work until they reach the State Pension age.
A Practical Guide for Employers. In today's dynamic workforce, fixed-term and specified purpose contracts have become a common feature across various sectors in Ireland. Whether it's covering maternity leave, managing seasonal workloads, or executing specific projects, these contracts offer flexibility to employers and opportunities to employees. However, it's crucial to understand the legal framework governing these contracts to ensure compliance and protect the rights of all parties involved.
The Workplace Relations Commission (WRC) has issued its first award under the Work Life Balance and Miscellaneous Provisions Act 2023, and it's a timely reminder for employers across Ireland.
Although multiple claims had previously been submitted to the WRC under this legislation, all were unsuccessful prior to this case.
Annual leave entitlements are a fundamental part of every employee’s contract. But when it comes to calculating statutory annual leave, particularly for employees with variable hours, many employers are unsure of the rules
What does this mean for Irish and UK Employers
What Employers Need to Know
A Temporary Relief for SMEs or Just Delayed Pressure?
Auto-Enrolment Delayed. Why is there delays? when?
At MSS The HR People, we often get asked, “What exactly is HR advice?” It’s a great question — and one that cuts right to the heart of what we do every day for our clients. What Is HR Advice? HR advice is professional guidance provided to employers and managers on how to manage people in the workplace. Whether you run a small business with a handful of employees or are a scaling SME with growing staffing needs, the right HR support can help you stay compliant, avoid costly mistakes, and build a high-performing team. In this blog, we’ll break down what HR employer advice actually is, how to know when you need it, and what your options are for getting the right professional HR support - without hiring a full-time HR manager. It spans everything from recruitment and onboarding to performance management, employee relations, and employment law compliance. Good HR advice helps businesses stay compliant, make informed decisions, and avoid costly pitfalls. But more than that — great HR advice is practical, proactive, and tailored to your business needs. Types of HR Advice We Offer At MSS The HR People, we support clients with a broad range of HR issues. These include: Employee Relations – Managing grievances, disciplinaries, investigations, or conflict resolution. Performance & Conduct – Supporting managers with underperformance, absenteeism, or behavioural issues. Contracts & Policies – Drafting or reviewing contracts, handbooks, and HR policies to ensure legal compliance. HR Compliance – Advising on employment law updates and how to implement them in your business. Probation & Onboarding – Helping clients manage probation periods effectively and set new hires up for success. Redundancy & Restructuring – Providing guidance through challenging workforce changes. Everyday Queries – Whether it’s questions on annual leave entitlements, sick pay, or flexible working, no query is too small. What Do Clients Typically Contact Us For? Clients contact us when they: Need a second opinion or a clear interpretation of employment legislation. Are unsure how to approach a difficult conversation or situation. Want to ensure their HR practices are fair, consistent, and legally compliant. Are looking to reduce HR risk while improving employee engagement and culture. Have already worked out an approach and just want quick validation or a sounding board before taking action. Simply want quick, professional HR advice on tap. Why Is HR Advice Important? Irish employment legislation is constantly evolving - with updates to minimum wage, statutory sick pay entitlements, and gender pay gap reporting introduced so far this year – and it’s only April! Business owners are expected to keep up with these changes, ensure compliance, and handle any workplace issues appropriately. Getting it wrong can be costly. A poorly handled disciplinary, a missing contract, or a misstep during a redundancy process can result in: WRC (Workplace Relations Commission) complaints Penalties or fines Damaged reputation Low staff morale or high turnover HR advice ensures you don’t fall into these traps. Instead, it gives you the confidence to act decisively and fairly - whether you’re growing your team or managing a tough issue. How Do I Know If I Need HR Advice? Here are some of the most common signs that your business needs HR support: 1. You're Hiring or Growing Your Team Bringing on employees is a big step for any business. It’s important to have compliant employment contracts, solid onboarding processes, and clear expectations. If you're unsure where to start or want to do things right from the get-go, expert HR advice can set you up for success. 2. You Don’t Have Written HR Policies All employers should have clear policies in place such as an employee handbook, disciplinary procedure, grievance policy, absence management, and remote working guidelines. If you don’t have these in writing (or haven’t updated them in years), it’s time to get professional help. 3. You're Dealing with a Staff Issue If you're facing challenges like persistent absenteeism, underperformance, or conflict between employees, it can be difficult to know how to handle it correctly. HR consultants can guide you through fair processes, help you document everything, and reduce your legal risk. 4. You Want to Avoid a WRC Complaint If you’ve had a close call - or just want to make sure you're doing everything by the book - getting HR advice is a proactive way to protect your business and reduce the chance of ending up in front of the WRC. Not all HR support is created equal however, so it’s important to work with a provider who delivers straightforward, practical advice tailored to your business size and sector. The best HR Advice providers take a proactive (not just reactive) approach, providing practical tools like compliant templates, letters, and policies, along with training or coaching for managers when needed. Depending on your needs and budget, there are several ways to access HR support. One-off HR advice is ideal if you're dealing with a specific issue, such as a staff dispute or restructure, and need expert guidance. An HR health check or audit is a smart starting point if you're unsure about compliance, offering a full review of your contracts, policies, and procedures with a clear action plan. For ongoing peace of mind, many businesses opt for outsourced HR support, giving them access to expert advice without the cost of hiring in-house. Retained HR consultancy offers regular, tailored support for businesses that are growing or managing complex employee relations on an ongoing basis. How to Get Started Start by assessing your current situation. Do you need help with a one-off issue, like a disciplinary meeting? Or are you looking for ongoing HR support for your business? Make a list of your concerns: lack of policies, recruitment headaches, managing performance, or dealing with absence or sick leave. The more clarity you have, the more focused your consultant’s advice can be. Ready to Take the Headache Out of HR? As we have identified, getting HR advice isn’t just about avoiding fines - it’s about creating a better place to work, retaining great talent, and freeing you up to focus on growing your business. At MSS – The HR People, we offer expert HR support for employers that’s clear, compliant, and commercial. From one-off consultations to fully outsourced solutions, we’re here to help you get HR right. Ready to get started or just want to have a quick chat about your HR challenges? Contact us today to arrange a free discovery call. Whether you’re an SME owner, a manager navigating a tricky staff issue, or an organisation looking to strengthen your HR framework, MSS The HR People is here to help.
