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Hotel, restaurant workers wait for signing of service charge bill

Published Jun 15, 2019 04:42 pm
By Ben Rosario Rank-and-file workers in the country’s hotel, restaurant and other similar establishments are waiting for the signing by President Duterte of a measure that would grant them full share of services fees charged by their employers from customers. Authors of the House of Representatives version of the bill are optimistic Duterte will sign the measure into law as they noted that the chief executive has been very sympathetic to the cause of ordinary workers. Before adjourning early this month, the Lower House ratified the conference committee report harmonizing the provisions of House Bill 8784 and Senate Bill 1299 that provides that service charges collected by hotels, restaurants and other similar establishments be distributed in full to all covered employees. Authored in the Lower House by Reps. Dennis Laogan (Ang Kabuhayan Partylist); Marlyn Primicias Agabas (NPC, Pangasinan); Sherwin Tugna (CIBAC Partylist) and Lorna Silverio (NPC, Bulacan), HB 8784 was unanimously passed on final reading early this year. Laogan noted that at present, service charges imposed by various establishments on their customers are shared between rank-and-file and managerial employees on an 85 percent to 15 percent sharing, respectively. On the other hand, Silverio said enactment of the bill can serve as a “morale booster” to beneficiaries who in turn, will improve service they give customers. “We must take into consideration that these are added benefits that can provide for a workers’ daily fare, meal or any expenses that the service charge can cover,” Silverio explained. The reconciled version of 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. Under its provisions, 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. The bill proposes the creation of a grievance mechanism that would resolve disputes on the service charge application between employers and the workers. Silverio said that if no grievance mechanism is established or if inadequate, the grievance shall be referred to the Regional Office of the Department of Labor and Employment which has jurisdiction over the workplace for conciliation.
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