We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Tips Bill and mandatory service charge

Summary

Deputy O'Reilly referred to the Labour Court case involving workers at the centre of the tips Bill debate and argued mandatory service charges are unfair. The Tánaiste praised the workers, said amendments were being prepared, and outlined options to ban or better regulate mandatory charges.

I refer to the case that Julia Marciniak, Lenka Lermanova and their trade union, Unite, took to the Labour Court. I know the Tánaiste is aware of it. The Labour Court decision and related documentation show how determined the workers were and that they were effectively sacked for joining a trade union and being active therein. Every employer would not mind employees joining a trade union if they never did a thing about it.

The tips Bill in its current format allows for a service charge to be applied. This has been shown by the Labour Court recommendation to be unfair. The Tánaiste has said he will look at this but will he give a commitment that the service charge in its current format will not be in that legislation and that all gratuities intended for workers will go directly to those workers?

I know the Tánaiste has done this but will he join me in the House in congratulating those workers, wishing them well and encouraging people to join their trade union and be active therein? It is the best defence at work and an employee's voice at work.

Comment on this
Leo Varadkar The Tánaiste Fine Gael

I thank the Deputy. I join her in commending and congratulating the workers involved in taking that case. The outcome from the Labour Court is clear. We are working on amendments to the Bill. I engaged with the Attorney General on it yesterday. The difficulty is that a mandatory service charge is not a gratuity or tip. It is compulsory. If you do not pay it, the restaurateur or publican can call the gardaí. That is the fundamental difference between a mandatory service charge and a tip or gratuity. We are looking at two options to amend and improve the Bill. One is to outlaw mandatory service charges altogether; the second is to require that, if there is a mandatory service charge, it is distributed to the workers in the same way as a tip or gratuity would be. We will have a chance in the committee on Committee Stage to engage on that.

Comment on this