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Important Guidelines for Service Charges Collected by Hotels, Restaurants and other Similar Establishments

The Department of Labor and Employment (DOLE) has recently released guidelines for Department Order No. 242, Series of 2024, also known as the Revised Implementing Rules and Regulations (IRR) of Article 96 of the Labor Code of the Philippines.


According to this new act, service charges collected by Hotels, Restaurants, and other similar establishments must be distributed in full to all covered employees. This means that all employees who directly provide service to customers, such as waiters, bellboys, and housekeepers, are entitled to receive their share of the service charges collected by the establishment.




Therefore, all establishments are encourage to comply with these guidelines to ensure that all employees are rightfully compensated for their hard work and service to customers. Failure to comply with this act may result in penalties and sanctions from the DOLE.


We hope that this information has been helpful to you.


Source:

𝗕𝘂𝗿𝗲𝗮𝘂 𝗼𝗳 𝗪𝗼𝗿𝗸𝗶𝗻𝗴 𝗖𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀 (𝗕𝗪𝗖) website: https://bwc.dole.gov.ph/issuances/department-orders

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