RESTAURANT TOLD TO NOTIFY CUSTOMERS ON SERVICE CHARGE

January 14, 2023 Metro BLISTT

BAGUIO CITY

Council has passed a resolution requesting restaurants and other food establishments in the city to post a notice indicating that they are charging a service fee. The resolution stated the notice should be written in bold letters printed on a sign board that is large enough to catch the attention of the diners. The notice should be posted in a conspicuous place within the premises of the establishment.

A service charge is an amount added to a bill for any work or service rendered. It is paid by the customer directly to the company/establishment and not to the crew/staff. Councilor Betty Lourdes
Tabanda, main author of the resolution, said that collecting a service charge and adding it to the bill without prior notice is an “unfair” practice, thus the need to correct it. Tabanda said many diners
in restaurants and other similar establishments serving food are “dismayed” to find out that a service fee has been added to their bill as there was no prior notice given by the management.

“Charging an additional amount for services rendered brings disappointment to the diners especially if the amount is being added [to the bill] without prior notice,” Tabanda stated. In her resolution, Tabanda cited Republic Act No. 7394, otherwise known as the Consumer Act of the
Philippines of 1991. She said this law was enacted to protect the rights and interest of the consumers and to prevent deceptive and unfair acts of unscrupulous business owners.

She also noted that Republic Act No. 11360 (An Act Providing that Service Charges Collected by Hotels, Restaurants and other Similar Establishments be Distributed in Full to All Covered
Employees) mandates all establishments collecting service charge to all employees to distribute all service charges to all employees except those in managerial positions. She claimed that there is no law specifying a minimum or maximum amount of the percentage of service charges.

The resolution has been transmitted to the City Mayor’s Office to be signed by the chief executive.
Copies of the signed resolution shall be widely distributed for the information and appropriate action of all stakeholders concerned.

SP/Jordan G. Habbiling