DOLE releases IRR on law which mandates 100% service charge for workers

The Department of Labor and Employment (DOLE) has released the implementing rules and regulations (IRR) of the law which mandates that employees should receive 100% of the service charge implemented by an establishment.

According to a Friday report by Dano Tingcungco on GMA News TV's State of the Nation Address with Jessica Soho, the IRR of Republic Act 11360 mandates that service charge collected by the establishments should be equally distributed among all employees aside from the managers.

However, DOLE Undersecretary Ana Dione clarified that the amount to be given will depend on the hours of service rendered by each worker.

"Equal ang distribution mo but technically hindi pare-pareho. Dahil kung may nag-absent doon or kulang 'yung hours niya, siyempre kokonti din 'yung makuha niyan," Dione said.

"The very essence kasi nito is service. Service meaning in terms of hours that you serve or in terms of number of hours that you serve. So if you're absent, then definitely, you did not serve," she added.

Service charges should also be given every two weeks, according to the law.

It further stated that should the minimum be increased by law or wage order, "service charges paid to the covered employees shall not be considered in determining the covered establishment's compliance with the increased minimum wage."

However, it was up to the company to decide if this includes tips outside the receipt and the process of distribution.

Employees previously only received 85% of their service charge as 15% were taken by the company for fees such as broken equipment.

"Dito sa ating guidelines, kapag ka may breakage o may loss, kung sino 'yung may kasalanan doon, babayaran niya at 'yun ay ide-deduct sa suweldo niya at hindi dito sa service charge," Dione said.

This news was received well by servers Fred Grio and Cha Camiguing.

"Mas malaking tulong, sir. Kung tutuusin, sir," Grio said.

"'Pag nasho-short ka po, like for example kasi 'yung sahod po kasi 15, so pag na-short ka kumbaga, ayun po 'yung nagiging panalo po," Camiguing added.

Should there be a disagreement, the grievance mechanism will make its move if there is a union and a collective bargaining agreement between the company and employees.

If there is no union, complainants may head to any DOLE Regional Office.

According to DOLE, they have not formally published the IRR. However, once published, it will take effect 15 days after. — Joahna Lei Casilao/BAP/KG, GMA News