President Rodrigo Duterte has just signed a bill that will change the lives of workers in restaurants, hotels, and other establishments in the hospitality industry.
Under Republic Act No. 11360, all rank-and-file and supervisory employees will receive one hundred percent of service charges collected. Managers are excluded from getting a share of the service charge.
The law is an amendment of Article 96 of the Labor Code of the Philippines, which mandated that workers only receive 85 percent of service charges. According to a press release on the Senate's website, the 15 percent used to be withheld by management to "answer for losses and breakages and distribution to managerial employees at the discretion of the management in the latter case."
This 85-15 split has been enforced since December 1975, under Presidential Decree No. 850, spanning a period of more than four decades.
"Sa wakas, natapos na rin po natin ang laban ng ating mga manggagawa sa services sector na matagal nang hinihiling ang buong pagbabahagi ng service charge sa mga nagbibigay ng serbisyo sa mga restaurant, hotel, at mga katulad na establisyimento," said Senator Joel Villanueva, Senate labor committee chair. "The law allows our frontline service workers to enjoy the fruits of their labor, the reward for providing good, quality service."