A PROVISION reserving 100% of service charges in the hospitality industry for distribution to workers was adopted by the bicameral conference committee Tuesday, a senior legislator said.
“Ngayon, ‘yung service charge ay 100% na na mapupunta sa ating mga workers (The workers will now get 100% of the service charge); we were able to thresh out the differences between the version of the House and the Senate,” Senator Emmanuel Joel J. Villanueva, who chairs the Senate committee on labor, employment and human resources development, told reporters in a chance interview.
The bicameral session adopted a provision in Senate Bill No. 1299, which proposed to equally distribute the entire service charge collection to rank-and-file and supervisory employees. House Bill 8784 had raised the distributable amount to 90% from the current 85%, leaving 10% to cover breakage and pilferage.
“Ang usual is 85-15 (The usual split is 85-15). Fifteen percent remains with management. Their reasoning is to pay for breakage, pilferage, and sometimes to augment salaries,” Mr. Villanueva said.
He said he believes the measure is likely to be ratified later Tuesday.
He added that the measure will authorize the Department of Labor and Employment (DoLE) to regulate and ensure compliance with the proposed law.
“DoLE will be there to check,” he said.
He said the panel also agreed that establishments currently imposing service charges will be banned from discontinuing the practice after the measure is enacted.
“Ang gusto ko pang i-raise ay ‘yung kapag tinanggal, kasi ‘yung iba sasabihin, tanggalin na lang natin, optional naman, meron tayong provision doon na hindi pwede ‘yung tinatawag na non-dimunition. (Another thing I want to raise is a non-diminution provision that prevents establishments from abandoning the practice of collecting service charges),” he said. — Charmaine A. Tadalan