From Thursday, December 1st 2023, the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 becomes law. It requires hotels, restaurants and various other places of business to have and to clearly display a policy on how they distribute tips and gratuities.
What is a “tip or gratuity”
A ‘tip or gratuity’ is a voluntary payment made by a customer to, or left for, an employee or group of employees which they intended or assumed that the payment would be kept by the employee or shared with other employees.
As a policy, the Royal Marine does not charge a mandatory ‘service charge’.
- Cash Tips: The cash tips received directly from customers or that have been left on the table belong to the employee and it is up to the employee to decide with other members of staff if they are retained or pooled. Cash tips are counted as earnings for income tax purposes, and it is everyone’s responsibility to make proper disclosure to Revenue in respect of these earnings.
- Electronic Tips - Food and Beverage: In each food and beverage department, on a monthly basis, the gratuities are divided among the staff based on the proportion or number of hours worked by the employee during the pay period in which the tip or gratuity was made (% per number of hours worked per month).
- Spa Tips: Electronic Spa tips will be paid out monthly and go directly to the therapist who completed the treatment. Cash tips will be retained by the therapist who completed the treatment. Cash tips are counted as earnings for income tax purposes, and it is everyone’s responsibility to make proper disclosure to Revenue in respect of these earnings.
The Royal Marine Hotel does not retain any share whatsoever of cash, electronic, group or other such tips.
For more inforamtion, please contact hr@royalmarine.ie
