DEFINITION

Staff service charges refer to additional charges levied on customers’ bills, which are distributed among the staff as a form of gratuity.

PURPOSE

• The purpose of the service charge policy is to establish guidelines and procedures for the collection and distribution of staff service charges in our organization. The staff service charge is intended to recognize and reward exceptional service provided by our staff members.
• To distribute the service charge equally and in a timely manner to the eligible permanent employees.

POLICY

[x] % of the service charge collected from servicing guests will be distributed equally to all eligible permanent employees on a monthly and prorated basis.

PROCEDURE

•  Service charge to be distributed will be calculated from the 25^th of each month until the 24^th day of the following month when the payroll attendance is cut off.
• Newly hired employees and employees who resigned during the month will receive the prorated actual service charge based on actual work days and the estimated service charge till the end of the month. Service charge payment will be made with the salary cycle.
• In case the service charge is paid by cash/cheque, the separated employee will collect their payment from the human resource department or the Finance Paymaster. Such payment will not be provided to a representative of the associate without written employee’s authorization and the GM’s approval. If the employee or representative is no show for collection after three years from the last payroll date, the forfeited service charge will be rolled into the service charge payable.
• The employee who is on paid leave is entitled to a service charge.
• The employee who is on maternity and hospitalization leave ( 1^st to 3^rd month only) will be entitled to a full service charge.
• The employee who is on unpaid leave is not entitled to service charge during the period they are away.
• The hotel will place a notice on the associate notice board every month declaring the hotel service charge of each associate received.

FORM/SUPPLY

Service Charge Distribution Sheet

[NOTE]

Please note that this policy and procedure is a general guideline and may need to be customized to fit the specific needs and regulations of your organization. It is recommended to consult with legal and human resources professionals when implementing or modifying such policies.

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