President Rodrigo Duterte signed the “service charge law” on August 7, 2019. RA 11360 allows service charges of hotels and restaurants to be given in full to workers.
Republic Act 11360 amends article 96 of the Labor Code of the Philippines. It states in the article that employees can only get 85% of the service charge in the hotels, restos, and other similar establishments.
Are all workers included?
Under the new law, all service charges collected shall be distributed completely and equally among the covered workers except managerial employees.
Managerial employees refer to any person vested with powers or prerogative to lay down and execute management policies or hire, transfer, suspend, lay off, recall, discharge, assign or discipline employees or to effectively recommend such managerial actions. They are not included to receive the service charges.
“The law allows our frontline service workers to enjoy the fruits of their labor, the reward for providing good, quality service,” Villanueva said.
Senator Joel Villanueva hails signing of the law. He is the principal author and sponsor of the Service Charge Act.
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