Senate approves bill requiring entire service charge to go to employees

The Senate on Monday approved on third and final reading a bill mandating that 100 percent of the service charge levied by hotels, restaurants, and similar establishments be distributed equally to all covered employees.

The proposal, authored by Senator Joel Villanueva, amends Article 96 of the Labor Code, which currently provides that employees are entitled to only 85 percent of the service charge, while the management retains the remaining 15 percent.

Villanueva said that all workers, whether regular, contractual, or agency-hired, will be entitled to 100 percent of the service charge as long as the said workers are the ones who directly deliver the service to their customers.

"This proposed measure seeks to address the injustice brought upon our hardworking workers in the service industry who provide the actual service, but rarely get their proper share in collection," Villanueva earlier said.

Villanueva hopes his proposal will be signed into law before Christmas.

"Nawa'y maisabatas po natin ito sa lalong madaling panahon upang maging mas masaya ang Pasko ng ating mga kababayan, at maging mas masagana ang pagpasok ng kanilang bagong taon," he said. — BM, GMA News