Dalata Hotel Group

Payment of Tips, Gratuities & Services Charges

Payment of Tips, Gratuities & Services Charges
Revision History Table:

Revision Issue date Requested By Completed By

01 1st December 2022 Group HR Shane O’Connor

1.0 INTRODUCTION

Dalata Hotel Group PLC is committed to encouraging an environment of fairness, we aim to

conduct our business with honesty and integrity. The Payment of Tips, Gratuities & Service Charge policy

sets out how the Company manage and distribute (voluntary and/or mandatory) tips, gratuities and

service charges received by the company to employees in line with the Payment of Wages (Amendment)

(Tips and Gratuities) Act 2022 and alongside our company values.

2.0 PURPOSE

This policy sets out the control and fair distribution of (voluntary and/or mandatory) tips, gratuities and

service charges received by the company, along with the accepted payment procedures and policy notice

display methods, to ensure all electronic tips, gratuities and service charges received are transparent and

fairly distributed in accordance with the relevant legislation, namely; The Payment of Wages (Amendment)

(Tips and Gratuities) Act of 2022.

3.0 SCOPE

The Payment of Tips, Gratuities & Service Charge policy is applicable to all employees who are employed

with Dalata Hotel Group in the Republic of Ireland. It refers to tips, gratuities and service charges made to

the company via electronic payment methods.

4.0 POLICY

Any payment made electronically or otherwise that is referred to as a "service charge" or that would give

the impression that a customer is being charged for services must be given to the employees in the same

manner as a tip or gratuity.

In line with the Payment of Wages (Tips and Gratuities) (Amendment) Act 2022, the full amount (100%) of

all electronic tips, gratuities and service charges received are distributed to staff.
During periods of leave (including annual leave, sick and all other forms of paid leave) you will be paid your

basic wage.

Tips, gratuities and service charges include but may not be limited to the following;

- a mandatory service charge added to a product or service

- a voluntary payment made by a customer or guest to an employee or group of employees

- a voluntary payment made by a customer or guest to the hotel

4.1 Electronic Tips & Gratuities

Where tips & gratuities are collected by electronic means, they are distributed among all applicable staff

equally based on number of hours worked and service delivery.

4.2 Cash Tips

All non-digital tips are distributed amongst the team fairly. The amount available for staff in the hotel is

shared out through a system controlled by a staff representative.

Direct cash tips are not under the control of the company, and it is the responsibility of the employee to

declare this income with Revenue.

Further Information is provided on the Revenue website for employees, please see below link;

https://www.revenue.ie/en/additional-incomes/is-your-extra-income-taxable/index.aspx

5.0 “MANDATORY” SERVICE CHARGE

A Mandatory Service Charge is an imposed fee paid by the customer or guest on top of the cost of the

product or service. From December 1st 2022 under the legislation all “Mandatory Service Charges” are

prohibited unless treated as a ‘tip’ or ‘gratuity’. All mandatory service charges, where applied, will be paid

directly to the employees during that particular period.

Dalata Hotel Group do not impose mandatory service charges on our customers and guests
6.0 EMPLOYEE CONSULTATION

The company will endeavour to consult with employees about any changes to this policy or procedures

relating to the distribution and processing of tips and gratuities. The consultation process is provided to

take into consideration the employee’s opinions on how tips, gratuities and service charges are managed.

The consultation can take place during an Employee Representative Committee meeting, Town Hall

Meetings and Departmental Meetings.

While the hotel will consult with the employees pertaining to the distribution of tips, gratuities and service

charges, the employer reserves the right to make a final decision on the selection criteria.

7.0 DISTRIBUTION OF TIPS & GRATUITIES

The company pays 100% of electronic tips and gratuities received to employees on a monthly basis.

The hotel will track and distribute electronic tips and gratuities based on one of the following criteria;

• A percentage that is proportionate to the number of hours worked

or

• Service delivery

Please speak to your HR Manager for more information about the method of distribution used in the hotel.

8.0 PROCESSING TIPS PAYMENTS

All electronic and cash tips, gratuities and service charges made to the hotel will be processed with wages

via payroll on a monthly basis.

Employees who receive a tip or gratuity: the value will be reflected in the payslip for that period. Please

note that tips and gratuities processed via payroll are subject to the same deductions as pay (PAYE, PRSI

and USC).
9.0 EMPLOYEE NOTICE

Within 10 days of processing the tips, gratuities and service charges the hotel will provide each employee

in receipt with a written statement. The statement will show;

• The amount of tips & gratuities received during that period

• The amount of tips & gratuities that were paid out

• The portion of the tips & gratuities that individual employee received

10. CUSTOMER / GUEST NOTICE

The tips & gratuities policy is displayed for customers and guests to read, and is visible in the public areas.

Please speak to your HR Manager about the exact location of this notice.

Signed Employee: __________________ Date: _______________

Signed Manager: ___________________ Date:_______________