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Philippine Bar review · Question

Practice question: Service Charge (RA 11360; DO 242, s. 2024)

Multiple Choice Hard

Practice question

A restaurant collects service charges and proposes to retain fifteen percent for management, distribute the balance only to permanent front-desk staff, and count each recipient’s share against a new minimum-wage increase. It relies on an old printed Article 96. Which correction is best?
  1. The old printed allocation overrides the later law
  2. Management can exclude all kitchen workers solely because customers do not see them
  3. Apply full distribution to covered nonmanagerial employees under the current rule and do not count the shares toward the increased minimum wage
  4. Every managerial employee must receive a statutory fifteen-percent reserve
  5. No current legal rule governs service charges

Legal references

  • RA11360, Section 1; DO242-2024, Sections 2–5: https://lawphil.net/statutes/repacts/ra2019/ra_11360_2019.html
  • DOLE DO242-2024, Sections 2–5: https://naro.law.upd.edu.ph/storage/01JWABFNVSG2YDB7B30BCY9PQB.pdf

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