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Senate passes bill on 100% hotel, resto workers’ tips on second reading

By: - Reporter / @MAgerINQ
/ 06:59 PM December 05, 2017

A bill that would allow all “covered” employees in hotels and other establishments to share among themselves the 100 percent service charge collected has finally hurdled the second reading at the Senate.


Senator Joel Villanueva, chair of the Senate committee on labor, employment and human resources development, said Senate Bill No. 1299 was approved on second reading on Tuesday. The Senate will vote next on third and final reading before it is considered approved by the chamber.

“We are elated that the Senate passed on second reading our proposed measure after hurdling and finishing both the period of interpellation and amendments this afternoon. We hope to pass this bill before we end our session on December 13,” Villanueva said in statement.


“The enactment of this measure will be the perfect Christmas gift to our hotel and restaurant workers,” he added.

Villanueva, principal author and sponsor of the bill, explained that under the measure, all workers whether regular, contractual, or agency-hired would be entitled to 100% service charge as long as they are the ones who directly deliver the service to their customers.

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

“This proposed measure seeks to address the injustice brought upon our hardworking workers in the service industry who provide the actual service, but rarely get their proper share in collection,” he said.

Villanueva cited a data from the Department of Labor and Employment (DOLE), which showed that from 2014-2017, 621 out of 212,641 inspected establishments nationwide violated labor provisions on service charge after failing to show proof that they distributed their collected service charge to their employees.

Under the existing law, the collection of service charges should be divided between the employees and the management at 85 percent and 15 percent, respectively.

If enacted into law, Villanueva said the measure would give hotel and restaurant workers “what is rightfully theirs for providing quality service to their customers, and that the proposal will benefit both the workers and employers.”


He then thanked his colleagues for swiftly acting on the passage of the bill.

“We would like to take this opportunity to thank my esteemed colleagues for all of your insights, opinions and proposals that were given today, as well as during yesterday’s session. Ikinagagalak po natin ang inyong pakikilahok sa pagpapatibay at pagpapaganda ng panukalang batas na ito,” said the senator.

“Nawa’y maisabatas po natin ito sa lalong madaling panahon upang maging mas masaya ang Pasko ng ating mga kababayan, at maging mas masagana ang pagpasok ng kanilang bagong taon,” he added.

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TAGS: hotel workers, Philippine news updates, Senate Bill No. 1299, Senate Joel Villanueva
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