By Leslie Ann Aquino The labor department has released the Implementing Rules and Regulations of Republic Act No. 11360 or the Service Charge Law. (MANILA BULLETIN) In Department Order (DO) No. 206-2019 signed by Labor Secretary Silvestre Bello III on November 19, the labor department reminded hotels, restaurants and other similar establishments regarding the distribution of service charges. Service charge refers to the amount added to the bill for work or service rendered. "All service charges actually collected by covered establishments shall be distributed completely and equally, based on actual hours or days of work or service rendered, among the covered employees, including those already receiving the befit of sharing in the service charges," it read. It added that the shares shall be distributed and paid to the covered employees not less than once every two weeks or twice a month at intervals not exceeding 16 days. "In the event that the minimum is increased by law or wage order, service charges paid to the covered employees shall not be considered in determining the covered establishment's compliance with the increased minimum wage," read the DO. The IRR said covered workers are all employees under direct employ of the establishment, regardless of their positions, designations, or employment status and irrespective of the method by which their wages are paid. Excluded are managerial employees or those vested with powers or prerogatives to lay down and execute management policies or hire, transfer, lay off, recall, or discipline employees. Signed by President Duterte last August, RA 11360 makes it mandatory to have 100 percent equal distribution of service charges collected to rank and file and supervisory employees of hotels, restaurants, and similar establishments (HRSEs).