The House of Representatives has ratified Conference Committee Report which harmonizes the provisions of House Bill 8784 and Senate Bill 1299, and provides that service charges collected by hotels, restaurants and other similar establishments shall be distributed in full to all covered employees.
House Bill 9784 is principally authored by Reps. Dennis Laogan (Party-list, ANG KABUHAYAN), Marlyn Primicias Agabas (6th District, Pangasinan) and Lorna Silverio (3rd District, Bulacan) while Senate Bill 1299 is authored by Senators Joel Villanueva and Cynthia Villar.
Senate Bill 1299 is authored by Senators Joel Villanueva and Cynthia Villar.
To implement the proposal, the reconciled version of the bills 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.
The measure provides that all service charges collected by hotels, restaurants and similar establishments shall be distributed completely and equally among the covered workers except managerial employees.
Service charges collected 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.
To facilitate resolution of any dispute between the management and the employees on the distribution of service charges, a grievance mechanism shall be established. 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.
Managerial employees refer to any persons vested with powers or prerogatives to lay down and execute management policies or hire, transfer, suspend, lay off, recall, discharge, assign or discipline employees or to effectively recommend such managerial actions.
Other authors of HB 8784 are Reps. Sherwin Tugna (Party-list, CIBAC), Luis Raymund Villafuerte, Jr. (2nd District, Camarines Sur), and Tom Villarin (Party-list, AKBAYAN), among others.
The bicam conferees of the House of Representatives were Committee on Labor and Employment Chairperson Rep. Luisa Lloren Cuaresma (Lone District, Nueva Vizcaya), Deputy Speaker Randolph Ting, Laogan, Silverio, Tugna, Villafuerte, Villarin and Rep. Aniceto “John” Bertiz III (Party-list, ACTS OFW).
The Senate conferees were Committee on Labor, Employment and Human Resources Development Chairperson Senator Joel Villanueva, Senators Joseph Victor Ejercito, Sonny Angara, Maria Lourdes Nancy Binay and Risa Hontiveros.