Hotel, resto workers await signing of service charge bill

AWAITING President’s signature is the measure that orders all restaurants, hotels and other similar establishments to give all the service charge collection to their employees.

The House of Representatives ratified the Conference Committee Report harmonizing the provisions of House Bill 8784 and Senate Bill 1299.

The bill seeks to amend Article 96 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines. Article 96 is titled Service Charges.

The measure -- principally authored by Ang Kabuhayan Rep. Dennis Laogan, Pangasinan Rep. Marlyn Primicias Agabs and Bulacan Rep. Lorna Silverio -- states that all service charges collected by hotels, restaurants and other similar establishments shall be distributed in full to all covered employees.

The Senate version was  authored by Senators Joel Villanueva and Cynthia Villar.

The measure provides that all service charges collected by hotels, restaurants and similar establishments shall be distributed completely and equally among the covered workers except managerial employees.

In the event that the minimum wage is increased by law or wage order, the measure provides that service charges paid to the covered employees shall not be considered in determining the employer’s compliance with the increased minimum wage.

Co-authors of the bill are Cibac Rep. Sherwin Tugna and Akbayan Rep. Tom Villarin.