A waiter inquires about the legality of employers distributing service charges to managerial employees. The Philippine Labor Code clarifies that service charges should be distributed equally among covered workers, excluding managerial employees. The article defines managerial employees based on their authority to make management decisions and outlines the legal implications of the employer's actions.
Dear PAO,I am working as a waiter in a restaurant. The restaurant imposes a 6 percent service charge based on the total bill of the customers. However, we observed that after the service charges were totaled, the employer divided it among the employees, including the managers. Is the employer right in giving the managers part of the collected service charges?JohloDear Johlo,First, we should discuss the concept of service charge.
Covered employees refer to those under the direct employ of the establishment, regardless of their positions, designations, or employment status, and irrespective of the method by which their wages are paid. Implementing Rules of RA 11360)Therefore, the employer does not have the right to include managerial employees in the distribution of service charges. It is clear that managerial employees are not entitled to have a part of the collected service charges.
LABOR LAW SERVICE CHARGES MANAGERIAL EMPLOYEES PHILIPPINE LABOR CODE EMPLOYEE RIGHTS
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