DOLE Promises Fast-Tracking of IRR for Service Charge Law
DOLE Promises Fast-Tracking-min

DOLE Promises Fast-Tracking of IRR for Service Charge Law

The Department of Labor and Employment (DOLE) assured the public with the immediate creation of the Implementing Rules and Regulations (IRR) for the Service Charge Law, also known as Republic Act (RA) 11360 or the “Act Providing that Service Charges Collected by Hotels, Restaurants, and Other Similar Establishments be Distributed in Full to All Covered Employees.”

“We have 90 days to craft the IRR but we don’t intend to maximize it, instead we hope to come up with it as soon as possible so our workers in hotels and restaurants can finally receive reasonable incentives from their hard work and quality services,” Bello said.

The recently signed law amends Article 96 of the Labor Code of the Philippines and requires hotels, restaurants, and other similar establishments to distribute the service charges to rank-and-file employees. However, employees classified as managers will no longer receive a portion from the collected fees.

“The law will keep our workers in the hotel and restaurants motivated in providing quality services as well as a chance to give them a simple reward for their hard work,” Bello said.

Labor Group Urges Hotels and Restaurants to Follow Service Charge Law

In a related development, the Western Visayas Alliance of General Employees and Solidarity (WAGES) urge companies in the Hospitality Management Industry to observe the Service Charge Law’s amendments. 

WAGES Spokesperson Ronald Ian Evidente said employers of hotels and restaurants must willingly comply with the latest amendment to the Labor Code of the Philippines by distributing the service charge voluntarily to their employees. According to Evidente, the labor group received complaints from hotel and restaurant workers who do not comply with the 85% service charge share for employees before the signing of RA 11360.

The labor group will host an information dissemination event to discuss the latest amendment and their right to receive the service charge in full. It will also serve as a lobby for employees who would like to file labor standard cases against erring establishments.

However, the Hotel and Restaurant Association in Negros Occidental (HRANO) said the new law would not affect the majority of restaurants and hotels in the province. HRANO President Roberto Magalona said Negrense clients are not used to service charges.

“They (customers) will complain if local restaurants and hotels collect such additional charge,” the spokesperson said.”

“Though only few establishments are collecting service charge, they are required to follow the law and I am sure they will comply,” he added.

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