Senate approves bill requiring 100% service charge be given to employees
MANILA, Philippines – The Senate approved on 3rd and final reading the bill that seeks to require service charge collected in establishments to be given to all covered employees.
The Senate on Monday, December 11, passed Senate Bill 1299 sponsored by Senator Joel Villanueva.
"The enactment of this measure will be the perfect Christmas gift to our hotel and restaurant workers," said Villanueva, chairman of the Senate committee on labor.
"This proposed measure seeks to address the injustice brought upon our hardworking workers in the service industry who provide the actual service, but rarely get their proper share in collection," he added.
If passed into law, Villanueva said, restaurant and hotel workers, whether regular, contractual, or agency-hired, would be entitled to 100% service charge as long as they directly deliver the service to customers.
But Villanueva clarified that the bill does not require the collection of service charge from customers.
"The bill does not make the collection of service charge mandatory to avoid interference with the right of management to exercise discretion in the operation of their business," he said.
Under the existing law, restaurant and hotel workers are given only 85% of the service charge collected from customers, while management retains the remaining 15%. This distribution, Villanueva said, has not changed since the law was passed in 1975.
A counterpart measure in the House of Representatives is still pending at the committee level.
Villanueva cited data from the Department of Labor and Employment (DOLE) showing that from 2014 to 2017, around 621 establishments out of 212,641 inspected nationwide violated labor provisions on service charge. – Rappler.com