Employees will have a legal entitlement to tips under a new law that is being introduced by the government in December.

This will mean that any tips and gratuities made in cash or electronically must be distributed to workers "in a manner that is fair in the circumstances".

The new law also provides for service charges, "or anything that would lead a customer to believe it is a charge for service", which is to be paid to staff as well.

There will be four-week period between now and December 1st to provide employers with a "lead-in time" to prepare for the changes.

The government said: "A fair distribution of tips will be context-specific, taking into account such matters as the seniority or experience of an employee, the value of sales generated by them, the number of hours worked, and so on."

Transparency

Employers will be required to display a tips and gratuities notice explaining how tips or gratuities and mandatory charges are shared or distributed to employees.

After one year, the legislation will be reviewed by the Minister for Enterprise, Trade and Employment.

Tánaiste Leo Varadkar described the new law as a "positive step" towards protecting lower-paid workers and providing customers with transparency.

"Tips can form a significant percentage of a worker’s take-home pay and these changes go a long way to ensuring those tips are distributed to the people who have earned them", he said.

"While most employers treat their staff fairly, this will help to stamp out bad practices where they exist and give customers the confidence that gratuities are paid to staff.”

Main image shows someone using a payment terminal at a coffee shop. Picture by: Jacob Lund/Alamy