Union urges diners to check credit-card tips after ruling

A European Court ruling that restaurants may use credit card tips to pay wages has prompted an angry reaction from a trade union…

A European Court ruling that restaurants may use credit card tips to pay wages has prompted an angry reaction from a trade union representing waiting staff. SIPTU has also called on diners, before paying over any tips, to first check that staff will get them.

The row erupted after the European Court of Human Rights ruled in Strasbourg by a 6/1 majority that a plush London restaurant - Paradiso e Inferno - was right to count credit card tips as part of a waiter's minimum wage.

The court rejected a challenge to that practice by four elderly ex-restaurant staff. The ruling does not apply to cash tips.

Mr Kieron Connolly, secretary of SIPTU's hotels, restaurant and catering branch, said: "We would not accept a situation where restaurants would take credit card tips into account when calculating wages."

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He was not aware of such a practice operating in unionised premises but believed it was "very likely" the policy of retaining credit card tips does occur in non-union establishments here.

Mr Connolly said tips formed a reasonable part of the earnings of waiting staff and, to take account of that, the Revenue Commissioners already deducted a sum from their salaries. If diners wanted to ensure waiting staff did receive credit card tips, they should ask the staff what policy operated at the premises before tipping, he added.

A spokesman for the Irish Hotels' Federation said the organisation was in favour of the distribution of credit card tips to staff. However, the matter was at the discretion of employers, he said.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times