Senate bill proposes 100% of tips to go to hotel, resto employees

One hundred percent of the service charge and tips hotels and restaurants collect should go to the employees, Senator Joel Villanueva said on Friday.

Villanueva has proposed a measure requiring establishments to give in full their collected service charge and tips to their employees.

“Considering that most of these workers are minimum wage earners, we think it is only fair to give them 100 percent of their hard-earned tips,” he said in a statement.

The bill Villanueva filed would amend Article 96 of the Labor Code which only allows employees to receive 85 percent of the service charge paid by customers in hotels, restaurants and similar establishments while 15 percent goes to the management.

Under Senate Bill No. 1299 or “An act providing that 100% of the service charge collected in hotels and other establishments be distributed to all covered employees,” workers are entitled to 100 percent of the service charge paid by customers.

“The tip actually reflects the quality of service of our workers. It serves as incentive to do their best,” the senator said.

Villanueva said the service charge or tip, being a small portion of the total income of an establishment, deserves to be given to the employees who are the ones actually providing service to its customers.

The preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 5,492 establishments were engaged in Accommodation and Food Service Activities sector. Restaurants and mobile food service activities employ the highest number of workers.

In 2015, total employment generated by the food sector reached 268,655. About 267,381 workers (99.5%) of the total workers were paid employees and 1,274 workers (0.5%) were working owners or unpaid workers.

“Giving 100 percent of service charge solely to employees is an additional contribution for the payment of their personal and family expenses including food, rent, electricity and water bills. We think this is just a rightful move on the part of the establishments that hire them for the quality service they give to their customers,” Villanueva added. /idl