Service Charges: Pooled Tips. If an establishment collects services charges, the Philippine Labor Code requires that such amounts be distributed to the covered employees and the management. The same rules apply for pooled tips.
2. Sharing
“All rank-and-file employees of employers collecting service charges
are entitled to an equal share in the eighty-five percent (85%) of the
total of such charges. The remaining fifteen percent (15%) of the
charges may be retained by management to answer for losses and
breakages and for distribution to managerial employees, at the dis-
cretion of the management in the latter case. Service charges are
collected by most hotels and some restaurants, nightclubs, cocktail
lounges, among others.”
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC
3. Payments
“The shares of the employees in the service charges shall be distributed to
them once every two (2) weeks or twice a month at intervals not exceeding
sixteen (16) days.
“Where the company stopped collecting service charges, the average share
previously enjoyed by the employees for the past twelve (12) months immedi-
ately preceding such stoppage shall be integrated into their basic wages.”
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC
4. Pooled Tips
“Where a restaurant or similar establishment does not collect service charges
but has a practice or policy of monitoring and pooling tips given voluntarily by
its customers to its employees, the pooled tips should be monitored, account-
ed, and distributed in the same manner as the service charges.”
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC
5. For more information, please visit
www.laborlaw.ph
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