Labour Court recommends 1% lump sum be based on basic pay in Dublin hotels

In 2002, the Labour Court recommended that the one-off 1% lump sum under the revised Programme for Prosperity and Fairness be calculated on basic pay, not on basic pay plus service charge earnings. Dublin Hotels' Branch had applied the payment to basic pay, while Services Industrial Professional Technical Union argued that service charge formed a substantive part of workers' pay. The Branch relied on guidance that the agreement applied to annual basic pay. The Court recommended that where basic pay was below the national minimum rate, that minimum rate should be used for calculating this lump sum. It said the arrangement applied only to the lump sum. The recommendation was signed on 27 November 2002.