Have you heard of the changes in the Service Charge Law mandated by DOLE?
On February 1, 2024, the Department of Labor and Employment (DOLE) revised implementing rules and regulations (IRR) of Republic Act (RA) 11360 which now requires establishments to distribute service charges collected among all employees equally. This change sparked a spirited debate among hospitality and restaurant industry employees, as this policy shift directly impacts them. While some backed the change, others advocated higher wages, mainly because some establishments include service charges as part of their employees’ take-home pay. A few businesses opted to forego the service charge collection altogether to promote equality in the workplace, with Bai Hotel being one notable example.
Today, March 15, 2024, Bai Hotel Cebu announced on social media its decision to implement a “No Service Charge Policy” for all its products and services starting March 19, 2024. The hotel’s management stated that this decision reflects its dedication and integrity to providing quality performance and services without depending on additional fees.
Netizens’ reactions to Bai’s latest advisory were divided. Some expressed their concerns about the employees’ well-being. One commented that the establishment should raise the pay for staff welfare, and another voiced that the decision may increase employee turnover, while others applauded Bai for taking the step.
What’s your take on Bai Hotel Cebu’s decision? Did they make the right move, or did the management place themselves in a tough spot?
