Revised IRR of the

Service Charge Law

(D.O. 242, series of 2024)
Revised IRR of the Service Charge
Law
• This is the Revised IRR of Article 96 of the
Labor Code.

• Signed on 01 February 2024 by the

Secretary of DOLE.

• Supersedes D.O. 206, series of 2019.

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Revised IRR of the Service Charge
Law
Legislative Intent:
Full and equal payment of service
charges to all covered employees of service
charge- collecting establishments.

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Revised IRR of the Service Charge
Law
Coverage:
All establishment collecting service
charges such as hotels, restaurants, and
other similar establishments including
those entities operating primarily as
private subsidiaries of the Government.

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Revised IRR of the Service Charge
Law

Deleted the phrase “…under the direct

employ of covered establishments” in
Section 2(a) of the old rules.

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Revised IRR of the Service Charge
Law
Covered Employees:
Now refer to all employees, except
managerial employees, regardless of
their position, designations, or
employment status, and irrespective of
the method by which their wages are
paid.

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Revised IRR of the Service Charge
Law
Under the new rules, the distribution of
service charges now cover employees not
directly hired by the principal employers,
such as contractual, non-regular, or
agency workers.

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Revised IRR of the Service Charge
Law
Updated Dispute Resolution:
Dispute referral system expanded to the
regional, provincial, field, or satellite office
level having jurisdiction over the workplace.

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Revised IRR of the Service Charge
Law
Monitoring of Compliance:
DOLE regional, provincial, field, and
satellite offices are ordered to monitor
private establishments’ compliance.

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Thank you!