CONTRACTUAL workers from qualified establishments could also benefit from the implementation of Republic Act 11360 or the Service Charge Law (SCL), according to the Department of Labor and Employment (DOLE).
Last Thursday, Labor Secretary Silvestre H. Bello III issued Labor Advisory 14, Series of 2019, stating all employees, including contractor’s employees, who are already receiving service charge prior to or at the time of the effectivity of implementing rules and regulation (IRR) of SCL, “should continue to be entitled to the distribution of collected service charge.”
The IRR of the SCL took effect on December 11, or 15 days after it was published.
Bello issued the clarification amid reports from labor groups that some hotels and restaurants which are covered by the SCL have removed their service charges since it no longer benefited them.
“Republic Act 11360 and its implementing rules and regulations shall not be construed to diminish existing benefits under existing laws, company policies and collective bargaining agreement,” Bello said.
Prior to the passage of the SCL, firms with service charge used to set aside 15 percent of their service charges for possible breakage of company property by their employees. Only 85 percent were left for distribution to their workers.
The provisions of the SCL made it mandatory for all hotels, restaurants and other similar establishments to distribute 100 percent of their collected service fees to their workers, except for those with managerial positions.
Bello reiterated that companies which removed their service charges in an attempt to circumvent the provisions of RA 11360 may be considered to have practices a diminution of benefits.
“Regional directors and labor arbiters shall ensure the proper distribution of collected service charges to employees,” Bello said. Companies which will be reported to have violated the non-diminution rule, will be made to pay the necessary compensation to workers through a compliance order, the DOLE chief said.
Image credits: Roy Domingo