The Department of Labor and Employment (DOLE) said it is determining which positions in the hotel and restaurant industry will be covered by the recently signed Republic Act 11360 or the Service Charge law.
Labor Secretary Silvestre H. Bello III said this will be contained in the implementing rules and regulations (IRR) of the law, which was signed by President Rodrigo R. Duterte on Aug. 7, 2019.
“We will determine up to what level [in the plantilla] the law will apply to…Perhaps supervisor and managers, will no longer be covered since they already have a significant pay. I think it [the law] is intended for minimum wage earners and those with low pay,” Bello said in an interview.
RA 11360, which amended the Labor Code, stipulates that service charges from hotels and restaurants should be “completely and equally” distributed among covered workers except “managerial employees.”
The law defined managerial workers as those “vested with power” to set and enforce company policies including hiring, transferring and sanctioning other employees.
Prior to said legislation, only 85 percent of service fees were given to employees while the remaining 15 percent was retained by management.
DOLE was given 60 days from the effectivity of the RA 11360 to issue its IRR.
Bello said they would not likely impose any cap for the service charges since it is not specified in the law.
The legislation, however, stressed that service charges could not be used as basis in determining an increase for minimum wage rates.
The Labor chief also said they may not be able to impose any fines for any violation of the law.
“There is no penalty [provision] there. So we could only issue compliance order asking employers to release [the service charges],” Bello said.
RA 11360 states that a “grievance mechanism” is established to resolve labor disputes related to service charges.
Bello said DOLE’s labor inspectors will check the law’s implementation after they release its IRR.
9 comments
Dear author,
have a blessed day, im a minimum wage earner i been working in a 4 star hotel for two years under an agency, and i have not receive any service charge, is there a law working for it? thank you
I am working in a 5 star hotel for 2 years i am also a agency hired’ and now they give me supervisory position but the role is not clear and precise’ how about us? Who directly giving the exact service but we are not entitled to a service charge.
Nagwwork po ako sa isang 4rth star hotel 3 taon na po ako at hawak po kme ng isang agency at hanggang ngayon di nareregular, ask ko lng po kung my karapatan kme na tumanggap ng service charge kse nga po under kme ng agency, pakisagot po please
I would like to comment about the real scenario of us people working in the hospitality industry. If the case is to exclude the workforce handling the Supervisory or Managerial position, it might result in a point of rank and file having a higher salary than the Managers. The real reason is that the company can dictate lower compensation or basic salary matrix even for a managerial position in exchange for a higher Service Charge. The way is much higher than the basic salary. I could not imagine a Manager having a basic salary of 25k or 30k without SC and rank and file have a basic of 15+25K SC on the Average. Let us not forget how important and crucial their role is and it might demotivate Managers or Supervisors to continue their career in the hospitality industry. Their role is important when it comes to decision making and achieving targets and success of the company.
Yes I agree with this. I am working in a 5star hotel as supervisor which crucial to our part. This law is unfair because it is our performance you made us to get this position. We want also to have a fair service charge.
hi good evening, I am working as a barmaid in a restaurant with service charge. My question was, is it legal or is it rightful if the management exclude an employee his/her service charge pay by not complying with the house rules (ex. by not surrendering a phone)? Is there a basis or is it legal for them not to pay us the service charge at any reason?
Hi yes Im agree with Ann . We only received higher not a thousands of pesos to the rank and file.. most especially we are the one who work hard to achieve the target and to have a high service charge.. we are working so hard and the rank and file is very relaxed and not even doing extra effort. And giving them 100% service charge.. it ia very unfair for the supervisor and Manager
I am an officer, Manager level in a 5 star hotel and golf clubs but I’m not getting a higher salary and they will take a way my service charge without concrete basis and studies? This is crazy!
Kasama b jn Yong under Ng agencies??mas kawawa Yong under agencies