NO SERVICE CHARGE SHARE FOR ‘CONTRACTUALS’ ILLEGAL – SOLON
Press Release:: “This agreement excluding contractual employees from the coverage of R.A. 11360 is highly questionable not only for its inconsistencies with the law, but also for being a circumvention of the lawful procedure for its implementation,” said Rep. Lawrence Fortun, a Member of the House Committee on Labor and Employment.
“This alleged agreement entered into by Philippine Hotel Owners Association and Department of Labor and Employment to exclude contractual employees of their rightful share in service charges contradicts the law and its implementing rules and regulations. The law is very clear that only managerial employees are the exception and cannot have a share in the service charge. The IRR threshes this out in even greater detail but remains consistent with the law. What is an expressed exception, excludes all others.” Fortun said.
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