Service ChargesPooled Tips

29 October 2016

Sharing“All rank-and-file employees of employers collecting service charges are entitled to an equal share in the eighty-five percent (85%) of the total of such charges. The remaining fifteen percent (15%) of the charges may be retained by management to answer for losses and breakages and for distribution to managerial employees, at the discretion of the management in the latter case. Service charges are collected by most hotels and some restaurants, nightclubs, cocktail lounges, among others.”

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC

Payments“The shares of the employees in the service charges shall be distributed to them once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.

“Where the company stopped collecting service charges, the average share previously enjoyed by the employees for the past twelve (12) months immediately preceding such stoppage shall be integrated into their basic wages.”

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC

Pooled Tips“Where a restaurant or similar establishment does not collect service charges but has a practice or policy of monitoring and pooling tips given voluntarily by its customers to its employees, the pooled tips should be monitored, accounted, and distributed in the same manner as the service charges.”

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC

For more information:

Labor Law ComplianceBest Practices for Human Resource

www.laborlaw.ph

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