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Republic Act No. 11360: Official Gazette

This document is a summary of Republic Act No. 11360, which amends Article 96 of the Philippine Labor Code regarding service charges collected by hotels, restaurants, and similar establishments. The key points are: 1) All service charges collected must be distributed completely and equally among covered workers except managerial employees. 2) Service charges paid to covered employees cannot be considered when determining an employer's compliance with increased minimum wage. 3) A grievance mechanism must be established to resolve disputes over distribution of service charges, and unresolved disputes will be referred to the Department of Labor and Employment.

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373 views1 page

Republic Act No. 11360: Official Gazette

This document is a summary of Republic Act No. 11360, which amends Article 96 of the Philippine Labor Code regarding service charges collected by hotels, restaurants, and similar establishments. The key points are: 1) All service charges collected must be distributed completely and equally among covered workers except managerial employees. 2) Service charges paid to covered employees cannot be considered when determining an employer's compliance with increased minimum wage. 3) A grievance mechanism must be established to resolve disputes over distribution of service charges, and unresolved disputes will be referred to the Department of Labor and Employment.

Uploaded by

Kirk Bejasa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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August 7, 2019

REPUBLIC ACT NO. 11360

AN ACT PROVIDING THAT SERVICE CHARGES COLLECTED BY HOTELS,


RESTAURANTS AND OTHER SIMILAR ESTABLISHMENTS BE DISTRIBUTED IN FULL
TO ALL COVERED EMPLOYEES, AMENDING FOR THE PURPOSE PRESIDENTIAL
DECREE NO. 4 4 2, AS AMENDED, OTHERWISE KNOWN AS THE "LABOR CODE OF
THE PHILIPPINES"

SECTION 1. Article 96 of the Labor Code is amended to read as follows:


"ART. 96. Service Charges. — All service charges collected by hotels,
restaurants and similar establishments shall be distributed completely and
equally among the covered workers except managerial employees.
"In the event that the minimum wage is increased by law or wage order,
service charges paid to the covered employees shall not be considered in
determining the employer's compliance with the increased minimum wage.
"To facilitate resolution of any dispute between the management and the
employees on the distribution of service charges, a grievance mechanism shall
be established. If no grievance mechanism is established or if inadequate, the
grievance shall be referred to the regional o ce of the Department of Labor and
Employment which has jurisdiction over the workplace for conciliation. HTcADC

"For purposes of this Article, managerial employees refer to any person


vested 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."
SECTION 2. Nothing in this Act shall be construed to diminish existing
benefits under present laws, company policies, and collective bargaining agreements.
SECTION 3. Within sixty (60) days from the effectivity of this Act, the
Secretary of Labor and Employment shall, in consultation with relevant stakeholders,
issue the appropriate implementing rules and regulations of this Act.
SECTION 4. All laws, presidential decrees, proclamations, executive orders,
issuances, rules and regulations or parts thereof inconsistent with the provisions of this
Act are hereby repealed, amended or modified accordingly.
SECTION 5. This Act shall take effect fteen (15) days after its publication in
the Official Gazette or in at least two (2) national newspapers of general circulation. CAIHTE

Approved: August 7, 2019.

CD Technologies Asia, Inc. 2019 cdasiaonline.com

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