Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442
Republic Act No. 11360, enacted on August 7, 2019, mandates that all service charges collected by hotels, restaurants, and similar establishments be fully distributed among non-managerial employees. This amendment to Article 96 of the Labor Code specifies that service charges will not be considered in compliance with minimum wage increases. A grievance mechanism must be established to resolve disputes regarding service charge distribution, with unresolved issues referred to the Department of Labor and Employment. The Act also ensures that it does not diminish existing employee benefits under current laws or agreements, and it requires the Secretary of Labor to issue implementing rules within sixty days. The Act takes effect fifteen days after publication.
Quick Answers
- What is Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442 about?
- Republic Act No. 11360, enacted on August 7, 2019, mandates that all service charges collected by hotels, restaurants, and similar establishments be fully distributed among non-managerial employees. This amendment to Article 96 of the Labor Code specifies that service charges will not be considered in compliance with minimum wage increases. A grievance mechanism must be established to resolve disputes regarding service charge distribution, with unresolved issues referred to the Department of Labor and Employment. The Act also ensures that it does not diminish existing employee benefits under current laws or agreements, and it requires the Secretary of Labor to issue implementing rules within sixty days. The Act takes effect fifteen days after publication.
- What type of law is Republic Act No. 11360?
- Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442 (Republic Act No. 11360) is a Philippine Statutes enacted by the Congress of the Philippines.
- When was Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442 enacted?
- Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442 (Republic Act No. 11360) was enacted on Aug 7, 2019.
- What is the citation for Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442?
- Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442, Republic Act No. 11360, Aug 7, 2019 (Philippines)
Law Information
- Reference Number
- Republic Act No. 11360
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
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. 442, 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 office 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 fifteen (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.
Published in the Official Gazette, Vol. 115, No. 37, p. 10249 on September 16, 2019.
Cite This Law
Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442, Republic Act No. 11360, Aug 7, 2019 (Philippines)
Requiring Hotels, Restaurants and Other Similar Establishments to Distribute in Full, Service Charges to All Covered Employees, Amending for the Purpose P.D. No. 442, Republic Act No. 11360 (Phil. 2019)
Related Laws
- Amendment to P.D. No. 442 (Labor Code) Re: NLRC Composition and FunctionsRepublic Act No. 9347 • Jul 27, 2006 • Statutes
- Amending Further the Guidelines on the Operations of Hotels and Other Accommodation Establishments under a Community QuarantineDOT Administrative Order No. 002-B-20 • Aug 10, 2020 • Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID) Issuances
- Amended Guidelines on the Operations of Hotels and Other Accommodation Establishments under a Community QuarantineDOT Administrative Order No. 002-A-20 • Jun 6, 2020 • Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID) Issuances
- Implementing Rules and Regulations of Chapter XIV (Hotels, Motels, and Apartments, etc.) of P.D. No. 856IRR of PD 856 (Chapter XIV) • Apr 15, 1997 • Implementing Rules and Regulations
- Amended Implementing Rules and Regulations Governing the Operation of Hotels and Other Accommodation Establishments during the Period of Enhanced Community QuarantineDOT Administrative Order No. 001-B-20 • Mar 25, 2020 • Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID) Issuances
- Amending Title II, Book IV of the Labor Code (P.D. No. 442, As Amended)Presidential Decree No. 1641 • Sep 21, 1979 • Presidential Issuances
Browse More Statutes
Explore other laws in the Statutes category.
View All StatutesNeed Help Understanding This Law?
Ask our AI assistant to explain provisions, implications, or related laws.
Ask AI About This Law