Government to potentially ban service charges

By Katy Thornton

June 29, 2022 at 1:12pm


Unless it's clear who is receiving the tip.


With this proposed legislation, service charges as we know them could be banned. According to RTÉ News:

"The Government is expected to make changes to new tipping legislation, which will effectively ban so-called 'service charges' on bills unless the money goes straight to staff."

A new bill named the Payment of Wages bill is currently going through the Oireachtas; it will attempt to provide more transparency as to who receives tips. Service charges on bills are vague, and one can't be certain that their server will receive any money. The bill will prohibit businesses from describing a mandatory charge as a service charge unless it's clear where the money ends up.

RTÉ news reported that Tanáiste Leo Varadkar said this of the current system:


"Voluntary service charges are clearly the same as a tip or a gratuity but by definition, mandatory service charges are not. As things stand, you’re expected to pay, without any information on where the money goes."

The new bill would make it so restaurant service charges are banned unless that money is going to their staff.

Header image via Shutterstock 

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