'> .\ 
SIXII·:I'NIII CON(il(I':SS mllll' I(FPIJllLlC 
) 
m 1111': l'IIlLli'I'INI~S 
) 
I!irst Regular Session 
) 
'13 \I.e -3 P 2 :31 
SJiNAII\ 
S, No, 
1$D4 
Introduced by Senator Miriam J)clcnsor Santiago 
I,XI'LANATORY NOTE 
Ihe Constilutiol1, Articlc 2. provides: 
Section I g, The State allirms labor as a primary social cconomic Ic)!'cc, It 
shall protcetthe rigilts or workers and promote their welrme, 
i'ursuantto tilc above policy, laws havc been enacted to protect the rights of labor. In the 
case or wait stalT cmployces, service employees, and service bartenders, however, the pertinent 
laws are the I(lilowing: I'residential J)eerce No, 442, as amended, otherwise known as tile Labor 
Code or tilc i'hilippincs in Section 96, and the Omnibus Rules Implementing the Labor Code in 
Ilook III, Rule V I. !\ cursory study 0 I'these laws reveal that they J(leUS merely on the distribution 
01' service charges 
wilat portion goes to the cmployces and to the managcment - without any 
provision to saiCgumd the lips paid 10 Ihe wait slarr cmployees, service employees, amI service 
barlendcrs pcrsonully, Neitiler is there any provision Ibut regulates the intcricrenee of 
nwnugell1ent in tile puyment or such tips, 
In vicw or the deurth or laws to protect the wages and tips 01' wait stall employees, 
service cillployees, and service bartenders, this Ilill secks to extcncllhe State's protection to such 
employees by cnsuring the graluities given to them shall be theirs alonc and not subject to any 
deduction or intericrence by tileir cmployers, 
• This bill \vilS originally lIke! durillg the Thirlccnth Congress) Second Regular Session. 


, . 
SIXILLNIII CON(iI{I':SS 01,' II IF I{I-:I'LJBIIC 
) 
OF TI II-: l'IIiLlPI'INI':S 
) 
I,'irst Regulnr Session 
) 
"13 OEC-3 1l2:31 
SUNATE 
S. No,L994_ 
I ntrodueed by Senator lv1 i rinm Defensor Santiago 
AN ACT 
2 
I'IWYIJ)IN<J l'OI{ Till' I'I(O'I'I':CIION 01' W AGFS AND TIPS RLCEIVEJ) DV CERTAIN 
1 
1':lv1I'LOYEES 
lie il elil/('Ie" hy Ihe Senale (lnd Ihe !louse oj'Representative,I' oj'lhe Philippines in 
('ongress (lss(!lIihle": 
SI':CTI()N I, S'ho}'1 '/'illc, 
This Act shall be known as the "Wages and Tips Protection 
:\ 
Act." 
(, 
SI':CIION 2, Purpose,· . Pursuant to the State's policy of protecting the rights of workers, 
7 
the purpose ol'the Act is to protect the wages and tips of certain employees, particularly wait 
X 
stall employces, service employees, or service bartenders, /i'om unlawful deductions and 
<) 
interl"renee by their el1lployees, 
10 
SI':CTION 1, /)cjinilion of tenus, . For the purposes oCthis Act, the term 
II 
(A) 
'''Wait slalT clllploycc~' means a perSOIl, including a waiter, \vaitress, bus pCl'son~ 
12 
and eounler stan; who: 
( I) 
Serves beverages or prepmccl fooel directly to patrons, or who clears 
1,( 
patrons
l tables; 
15 
(2) 
\VOl'ks ill a restaurant, banquel I~lcility, or other place where prepared food 
16 
or h~vcragcs arc served; and 
17 
(1) 
lias no managerial responsibility, 
J X 
(1\) 
"Service employee" means a person who works in an occupation in which 
19 
elllployees CllslollHirily receive lip" or gratuities, and who provides service directly to customers 


or conSUlllcrs, but wllo works in all occupation olher than in [(Iod or beverage servicc, and who 
2 
has 110 managerial responsibility. 
J 
(C) 
"Selvice bar'lender" means a person who prepares alcoholic or nonalcoholic 
,( 
hcveragl's [()r palrons to he served hy another employee, such as a wait stalTemployee, 
([l) 
"I·:mployer" nleans any person or entity having cmployees in its service, including 
11 
an owncr or o['[jeer 0[' an establishment employing wait stall employees, service employees, or 
7 
serviec barlenders, or allY person whose primary responsibility is the managcment or supervision 
X 
0 [' wail sla [f emp loyees .. service employees, or service bartenders, 
"Pal ron" means any person who is servcd by a wail stalT employce or service 
10 
employce at any place where such clllployees perform work, including, but not limited to, any 
I I 
restaurant, banquel [~Ieility or other place at which prepared food or beverage is serveel, or any 
[2 
person who pays a tip or service charge to any wait slalTemployee, service employee, or service 
I] 
blll'lendcr. 
(I <) 
"Service charge" means a Icc charged by an cn1ployer to a patron in lieu of a tip 
15 
to any wait sta[Tel1lp[oyee, service employee, or service bartender, including any fce designated 
16 
as a service chilrgc, tip, gratlliLy~ or a Icc: thut a patron or other conSllmer would reasonably 
17 
expect 10 be given (0 i.I wait slaC['cmp!oycc, scrvic:c employee, or service bartender in lieu of: or 
Ig 
in addilion 10, a tip. 
I '! 
(CI) 
"Tip" means a SlIlll oj' moncy, including any H1TIoLlni designated by a credit card 
20 
IXltroll, <'1 gin or a gratuity, given W-i an acknowledgment ornny service performed by a wait staiT 
21 
employee, service employee, or service bartender. 
22 
SJ<:( "['ION 4, I'llymeni ,,(Service Charges or Tips by Emp!oyers,- Any service charge or 
23 
tip relnilled by a patron 01' person to an employer shall be paielto the wait staff employee, service 
21 
emp[oyee, or service bartender by thc end ofthc samc business day, and in no case later than the 
25 
time sci [()rlh [')1' limcly payment of wages under Article [OJ of the Presidential Deerec 442, as 
26 
wnended, otherwisc known as Ihe I.abor Code or the Philippines, and Section 4, Rule VI, !look 
27 
III o['lhc Omnibus I(uies Implementing the I,abor Cocle, 
2 


SI·:CTION 5, 11el.l' I'l'Ohihiled 
Any agrccrnenL to tile contrary notwithstanding, the 
2 
1()llowing <lets sh<lll he unlawlcd when eOl11llliltlxl by an cmployer or any other person against a 
J 
wait stalf employee, service employee, or service bartender: 
(A) 
To demand, request or accept l'rcnn any wail stalT employee, service employee, or 
5 
service bucLender (lilY pnywcnt or deduction J'rOlJ1 a tip or service charge given to slIch wait staff 
(, 
employee, service employee, or scrvice bartcnder by a patron, 
7 
(Il) 
To retain or dislribule in a manner inconsistent with this Act any tip or service 
X 
ehmi',e given directly [0 [he employer or person, 
(e) 
'j'o e'IUSC, reljuire or permit any wail stafr employee, sel'vice employee, or service 
[0 
barlemlcr [0 pal"lieipate in :l lip pool throngh which such cmployee remits any wage, tip or 
[[ 
service charge, or any portion thereol~ I'l!' distribution to any person who is not a wait stal'l' 
[2 
employee, scrvice cl\1ployc~, OJ' s~J'vice bartender, except as provided in Seetioll G of lhis Act. 
13 
(D) 
To subll\i[ a bill, invoice or charge Lo a patron or other person that imposes a 
14 
service ehmw; ()I' tip, where [he tOlal proceeds 01' tllat service charge or tip is not remiLted to the 
[5 
wail s[alT employees, service employees, or service bartenders in proportion to the service 
1 (, 
provided by [hose employees, 
[7 
SI~C,},I()N (), II{{/ili '/'il) /'00/,·· The Seerciary of Labor and Hmployment is hereby tasked 
[8 
[0 proll\ulga[e impkmcnting rulcs and regulations Ill!' the creation ami administration of a valid 
19 
tip pool. Such [ip pool Illay be maintaincd by [he cmployer or any person who is also a wait stalT 
20 
employee, service employee, or service bartender 01' the eSlablishment for whieh the tip pool 
2[ 
eon[ribu[ors work, Such employer or person shall keep a record of the amounts received for 
22 
bookkeeping or lax repor[ing purposes, Sueh cmployee shall be required [0 pay tile wail stal'r 
23 
employec, scrvice clllployee, or service bartcnder [heir share in the tip pool in accordance with 
2,1 
Section 4 01' [ilis Act, <lnd ,my rules and guidelines [0 be pl'Oll1ulgatcd by tbe Sccre(my oj' Labor 
25 
and 1':lllploYlllcnl. 
2(i 
SI':C'I'ION 7, !lollse OJ' /ldll1illislrulil'e Fee, 
Nothing in this Act shall prohibit all 
27 
employer li'olll imposing 011 a pulron any hOLlse or administrative Ice in addition to a service 
J 


charge or lip, il' Ihe ctllployc:r provides a designation or written dcscriplion or tilal house or 
2 
adminislralive ICc and inlilt'lllS the patron Ihal the li,e docs not represent a tip or servic,e charge 
:l 
j"r wait stalfeillployces, set'Vice cmployees, or service bartenders. 
4 
SLCTION X. 1';XCII1IJlill17 hy ,)jJccia/ Conlrw;1 or Olher Means. -- No employer or person 
5 
shall by a special contracl with an employee or by any other means exempt itself I'rom the 
6 
provisions ol'this Act. 
7 
SI·:C:TION '). I'ellollies. - /\ny person, corporation, trust, firm, partnership, association or 
X 
entity lillllld violating this Act or the rules and regulations promulgated thereunder shall be 
'! 
Jlunished hyaline not exceeding Twenty-live thollsand pesos (1'25,000) or imprisolllTIent of not 
10 
less than thirty DO) days nor more than six (6) months. 
II 
II' the violation is cOlllmitted by a corporation, trust or linn, partnership, association or 
12 
any other entity, the petwlty or itnprisonll1ent shall be imposed on the entity's responsible 
l:l 
ortieers, including, bul not lilllitcd to, the president, vice-president, chicI' executive ol'lleer, 
14 
gcncntl IllHnagcr, Ill,maging director or partner directly responsible therc1(lL 
15 
SI·:CTION 10. N{)nilimillllli{)ll. 
Nothing in this Act shall be constmed to reduce any 
16 
existing helw/ils oj' (lilY form granted llllder existing laws, decrees, executive orders, or any 
17 
contract, agreeillent, or policy betwl:en employer and employee. 
Ig 
SI·:CTION II. H''fJc(/ling Clu/lse. -
/\]] laws, decrees, executive orders, administrative 
19 
ordcrs, or pmls tiJcreorinconsistent with the provisions of this Act are hereby repealed, amended, 
)0 
or l1lodilicd accordingly. 
21 
SI-:CTION 12. SCI'0ruhiliiy Cluuse. 
II' any provlslOn of this Act is held invalid or 
22 
unconstituliollal, the renwillder or the Act and the provisions not affected Ihereby shall continuc 
23 
to be in I'ull Illree and clTect. 
,( 


SI':(,TION 11. Ij!eclivity Clause. 
I'his Act shall take effect fifteen (15) days /'ollowing 
2 
ils cOlllpletc puhl icaliort in HI Icasl two (2) newspapers of general circulation. 
APPr()vcLi, 
5