Payment of Wages (Amendment)(Tips and Gratuities) Act 2022

Amendment of section 1 of Principal Act

2. Section 1 of the Principal Act is amended in subsection (1)—

(a) by the insertion of the following definitions:

“ ‘contract worker’ has the meaning assigned to it in section 4F;

‘mandatory charge’ means a contractually-imposed and receipted payment that—

(a) a customer is required to pay in order to receive certain goods or services provided to the customer by or on behalf of an employer, and

(b) is payable by the customer in addition to an amount payable for the cost of such goods or services;

‘tip or gratuity’ means a payment that is—

(a) voluntarily made to, or left for, an employee or group of employees by a customer, in circumstances in which a reasonable person would be likely to infer that the customer intended or assumed that the payment would be kept by the employee or shared with other employees, or

(b) voluntarily made to an employer, or to a person engaging contract workers, by a customer, in circumstances in which a reasonable person would be likely to infer that the customer intended or assumed that the payment would be distributed to an employee, a group of employees or to a contract worker;”,

and

(b) in the definition of “wages”—

(i) in paragraph (v), by the substitution of “in kind,” for “in kind.”, and

(ii) by the addition of the following paragraph after paragraph (v) :

“(vi) any payment by way of tips or gratuities.”.