Under Republic Act 11360, which Duterte signed on Aug. 7, all service charges shall be distributed completely among rank-and-file and supervisory employees.
The new measure amended Article 96 of the Labor Code which gave restaurant and hotel workers only 85% of service charge paid by customers while the remaining 15% was distributed to managerial employees.
Managerial employees, it says, refers to any person who can “hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees or to effectively recommend such managerial actions.”
Senator Joel Villanueva, the chair of the Senate Committee on Labor, Employment and Human Resources Development, lauded the passage of the law.
“It allows our frontline service workers to enjoy the fruits of their labor, the reward for providing good, quality service,” said Villanueva.