IRR for distribution of service charge out soon

MANILA, Philippines — The Department of Labor and Employment (DOLE) is coming out soon with the implementing rules and regulations (IRR) for the distribution of service charge collection to workers.

Labor Secretary Silvestre Bello said DOLE is fast-tracking the crafting of the necessary IRR, as amended in Republic Act 11360, also known as the labor code of the Philippines.

The new law mandates restaurants, hotels and similar establishments to distribute service charges in full to their rank-and-file and supervisory employees.

In a statement, Bello said they have 90 days to craft the IRR but hope they can finish sooner. “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,” he asserted.

Under existing rules, workers only get 85 percent of the service charge collection while the remaining 15 percent are for management.

But the new law mandates that all service charges shall be distributed completely and equally among the covered workers, except managerial employees.

“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.

The new law also mandates the establishment of a grievance mechanism to resolve any dispute between employees and the management on the distribution of the service charge.

Bello said workers can fully receive their equal distribution from the full collected service charges 15 days after the publication of its IRR in a newspaper of general circulation.

Meanwhile, DOLE reported that the drafting of the new version of the Security of Tenure (SOT) bill is now nearing completion.

Labor Undersecretary Ana Dione said they have a semi-final draft which they will present to stakeholders for consultation.

Dione said DOLE is exerting efforts to comply with the President’s order to submit a new version of the SOT by the end of the month.