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The Government has recently launched a public consultation to evaluate the effectiveness of the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022, which came into effect on December 1, 2022. This legislation requires a review after one year to assess its impact on how businesses handle tips. The consultation will gather feedback from both workers who receive tips and business owners to identify possible weaknesses in the current legislation and explore avenues for improvement.

The Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 introduces several key provisions that employers must adhere to:

  • Employers are mandated to display information on how tips are distributed to employees.
  • The displayed information must outline whether tips are distributed among employees and specify the method of distribution.
  • Employers must clarify whether mandatory charges, or any portion of them, are distributed among employees.
  • The legislation requires transparency regarding the method of distribution and the amounts allocated to employees.
  • Employers failing to comply with these requirements may face charges and fines for offenses.

The aim of the public consultation is to identify areas where the current legal framework might be lacking and to explore opportunities for improvement. Interested parties have until 3 pm on Thursday, February 22, to submit their feedback and recommendations for potential improvements to the current legislation.