Restaurants claim giving staff legal requirement to tips will hit wages

The new Payment of Wages Act comes into force today

Adrian Cummins, chief executive of the Restaurants Association of Ireland: said new tipping laws could actually result in lower take home pay for staff. Picture: Fergal Phillips

A restaurant group has claimed a new law giving hospitality workers a legal entitlement to their tips will result in lower pay for many staff.

The Payment of Wages Act comes into force today, a measure which means any charge called a “service charge”, or similar, will have to be distributed to staff.

Employers will be required to have information accounting for how tips are collected and shared among staff.

Leo Varadkar, the Tánasite, previously ...