Hospitality staff will see their tips and gratuities distributed fairly under a new law passed by the Oireachtas.

Employers will be prohibited from describing mandatory charges as service charges unless they are treated in the same way as tips or gratuities under the new law.

The law also ensures that tips received cannot be used as basic pay for hospitality employees.

Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar said that this law will help “stamp out bad practices” when it comes to hospitality tips.

The Payment of Wages Amendment Bill was passed in both Houses of the Oireachtas yesterday. The Bill will be reviewed by Mr Varadkar in one year.

“We’re all familiar with tips and service charges, but it’s not always clear how they are allocated to staff, especially if paying by phone or debit card. The Payment of Wages Act will ensure that the tipping and gratuities policy is displayed clearly in any establishment,” said Mr Varadkar.