New legislation will ban bars and restaurants from using the term 'service charge' unless the money is going directly to employees.
As part of legislation to make tips more transparent, any mandatory service charge will have to go to staff.
It must be stated clearly where any extra charges are going if the money isn't being treated as a tip.
Enterprise Minister Leo Varadkar has said it's not acceptable people are being asked to pay with no idea where the money is going.
It comes ahead of an Oireachtas Committee today, which will be discussing staff shortages in the hospitality sector.
The Irish Congress of Trade Unions will tell TDs and Senators one third of workers in the industry aren't being paid tips.
