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Manila Bulletin devider Philippines devider National devider Walang budol: DOLE issues order to ensure equal sharing of service charge in hotels, resto

Walang budol: DOLE issues order to ensure equal sharing of service charge in hotels, resto

Published Feb 5, 2024 08:50 am

The Department of Labor and Employment (DOLE) has issued a new guideline that will ensure equal sharing of services charges  among hotel, restaurant, and other institution workers.

DOLE Secretary Bienvenido Laguesma said the Department Order (DO) No. 242  is actually a revision of the Implementing Rules and Regulations of the Republic Act No. 11360 or the Service Charge Law. 

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,” said Laguesma, quoting the order. 

He 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 new IRR, covered employees refer to all employees, except managerial employees as defined herein, regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid.

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 are exempt from the Service Charge Distribution guidelines.

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