Pres. Duterte signs law giving 100% service charge to hotel and resto workers

Pres. Duterte signs law giving 100% service charge to hotel and resto workers

- President Rodrigo Duterte passed into law a measure seeking to give 100 percent of service charge collected to workers

- However, managerial employees are excluded from the law

- Senator Joel Villanueva welcomed the passage of the new measure

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President Rodrigo Duterte has recently signed a law which aims to give the entire service charge collected by hotels and restaurants to their workers.

KAMI learned that President Duterte signed the Republic Act 11360 on Aug. 7.

In a report by the GMA News Online (author Virgil Lopez), the newly-signed law amended the Article 96 of the Labor Code of the Philippines which stated that 85 percent must be given to the workers and the remaining 15 percent is for the management.

However, the new law states that managers or those who “hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees or to effectively recommend such managerial actions” are excluded from getting a share from the collected service charge.

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Senator Joel Villanueva welcomed the passage of the law.

Villanueva mentioned that the workers can now “enjoy the fruits of their labor, the reward for providing good, quality service."

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In a previous report by KAMI, both the Senate and the House of Representatives have approved a bill seeking to give all the service charge collected to the workers.

Senator Villanueva is the author of the new measure. He is also the chairperson of the Senate committee on labor, employment, and human resources development.

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