TUCP lauds signing of law requiring establishments to distribute 100 percent of service charges to employees

Published August 15, 2019, 8:54 PM

by CJ Juntereal

By Leslie Aquino

Labor group Trade Union Congress of the Philippines lauded the signing into law of a measure requiring hotels, restaurants and other service businesses to fully distribute service charge fees equally among employees as this would mean additional take home pay for workers.

TUCP President Raymond Mendoza (TUCP Party-List / MANILA BULLETIN)
TUCP President Raymond Mendoza

TUCP President Raymond Mendoza said the law will improve the take home pay of workers especially during these times when they badly needed cash money to cope daily with the rising cost of living.

“This measure will also boost employees’ morale to be loyal and improve productivity to the company. This will also improve the quality service employees render to customers, ” he said in a statement.

“We earnestly hope that all business owners and employers will fully comply for the benefit of their employees and for improving the reputation of their business,”  Mendoza added.

However, the National Union of Workers in Hotel Restaurant and Allied Industries (NUWHRAIN) said while the new law will raise the take-home pay of workers of hotels, restaurants and similar establishments (HRSEs), it will unfortunately not benefit those employed in establishments that do not collect service charges.

Since the law does not benefit contractual workers, NUWHRAIN said there is the need to pass a stronger law that would finally end the practice of ENDO.

The group had supported the filing of a new Security of Tenure (SOT) Bill by Senator Risa Hontiveros on Tuesday.

The new bill contains the prohibition on fixed term employment to prevent labor-only-contracting which was removed in the version of the watered-down SOT bill vetoed by President Duterte.