Tell It to SunStar: On revised service charge law

By Gerard Seno, ALU-TUCP national executive vice president

THE repeal of some restaurants, hotels and service-oriented business enterprise of the service charge benefit is not the intention of the revised service charge law. The revised Service Charge Law of 2019, which was approved by President Duterte last month, turns over 100 percent of the service fees to all rank-and-file employees. It does not mandate or obligate employers and business-owners or discourage them from adopting the scheme or to rescind the practice altogether.

This is not the intention of the law. Rather, the intention of the law is to improve the quality of service of businesses by incentivizing and empowering the best efforts of the employees and improve working conditions.