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Senate Ratifies Service Charge Bill In Favor of Employees

Hotel and restaurant rank-and-file workers may soon be able to fully receive service charge, after the Senate ratified the bicameral conference committee report on Service Charge Bill last May 28.

As of date, the Labor Code states that collected service charges by restaurants, hotels, and other establishments should be distributed at a rate of 15 percent covered to the management while 85 to employees.

There are several complaints from employees on how the above mentioned split is distributed in reverse, with employees only getting 15 percent, shared Senate Committee on Labor, Employment and Human Resources Development chair Joel Villanueva.

He explained that at present, management gets 15 percent of the service charge proceeds to answer for breakages or losses. However,  if there were no losses or breakages the 15 percent is the management’s prerogative for disposition or distribution among managerial employees.If the bill were signed into law, all service charge will go solely to the employees.

It would be submitted to the President for signing into law, should the House of Representatives ratify the same before the 17th Congress adjourns this coming week.

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