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New Law Mandates 100% of Service Charge Be Fully Given To Workers

President Rodrigo Duterte signed Republic Act No. 11360 last August 7, amending a provision in the labor code in order to create the ‘service charge law’. In doing so he effectively changed the proportion of service charge workers are given.

waiter service worker - New Law Mandates 100% of Service Charge Be Fully Given To Workers

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Establishments like hotels and restaurants will now be required to give a full 100% of service charge collected to its covered employees. This differs from status quo wherein only 85% of service charge collected is given to the covered staff, while the remaining 15% is distributed to the management staff.

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According to the labor code, managerial employees are those “with powers or prerogatives 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.”

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Senator Joel Villanueva, who authored the bill, celebrated: “The law allows our frontline service workers to enjoy the fruits of their labor, the reward for providing good, quality service.”

What do you think of this law?

The post New Law Mandates 100% of Service Charge Be Fully Given To Workers appeared first on When In Manila.

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