LEGAL ASPECTS IN

TOURISM AND HOSPITALITY

Danny Cabulay and Christine Carpio-Aldeguer

Laws Regulating the Labor Sector and
Tourism Sector
Chapter 9
Week No. 11-12
 A motivated worker will be a
productive worker.
(Abraham Maslow)
 Case of the Hotel Mafia

● How would you characterize

the approach of Mr. Hizon?

● Would such case prosper in

our local courts?
 Constitutional Provisions on Labor

Section 3. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment and
equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted activities,
including the rights to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions of work,
and a living wage. They shall also participate in policy and decision-making
process affecting their rights and benefits as may be provided by law.
 Constitutional Provisions on Labor

The State shall promote the principle of shared responsibility between

workers and employers and the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their mutual compliance
therewith to foster industrial peace.
The State shall regulate the relations between workers and employers,
recognizing the right of labor to its share in the fruits of production and the
right of enterprises to reasonable returns of investments, and to expansion and
growth.
 Constitutional Provisions on Labor

Section 14. The State shall protect working women by providing safe
healthful working conditions, taking into account their maternal functions, and
such facilities and opportunities that will enhance their welfare and enable them
to realize their full potential in the service of the nation.
Section 15. The State shall respect the role of independent people’s
organizations to enable the people to pursue and protect, within the democratic
framework, their legitimate and collective interests and aspirations through
peaceful and lawful means.
 Constitutional Provisions on Labor

Section 16. The right of the people and their organizations to effectively
and reasonably participate at all levels of social, political, and economic
decision-making shall not be abridged. The State shall, by law, facilitate the
establishment of adequate consultation mechanism
 Classification of Employees

✔ Regular Employees
✔ Casual Employees
✔ Seasonal Employees
✔ Project Employees
✔ Probationary Employees
✔ Employees for the fixed term
✔ Overseas Filipino Workers
✔ Special Workers
o Apprentices
o Learners
o Handicapped workers
 Regular Employees

• Those who have been engaged to perform activities which are usually
necessary or desirable in the usual trade or business of the employer;
• Those casual employees who have rendered at least one (1) year of service,
whether such service is continuous or broken, with respect to the activity in
which they are employed;
• An employee who is allowed to work after a probationary period; and
• Workers supplied by a “labor-only contractor” to the principal shall be
considered regular employees of the latter.
 Concept of Independent Contractor

An Independent Contractor is one who engages to perform a certain

service for another, according to his own manner and method, free from the
control and direction of his employer in all matters connected with the
performance of the service, except as to the result of the work.
Tests of management prerogative to outsource labor as an independent
contractor:
⮚ Test of substantial capital – the contractor has sufficient capital in the form
of tools, equipment, materials, and other resources in order to complete the
work.
 Concept of Independent Contractor

⮚ An agreement between the principal (employer) and the independent

contractor that the contractor shall provide for its own labor standard
benefits or the contractor assures his contractual employees’ entitlement to
all labor and occupational safety and health standards, free exercise of the
right to self-organization, security of tenure, and social and welfare benefits.
⮚ Right to control – where the principal can only control the output of the
work and not the means and methods which must be done by the independent
contractor.
⮚ The work is not part of the employer’s general business or main line of
business.
 Casual Employees

• Casual employees are those whose employment is neither regular, project,

nor seasonal as defined under Article 280 of the Labor Code.
• There is casual employment where an employee is engaged to perform a job,
work, or service which is merely incidental to the business of the employer
and such job, work or service is for a definite period made known to the
employee at the time of engagement; provided, that may employee who has
rendered at least one (1) year of service, whether such service is continuous
or not, shall be considered as regular employee with respect to the activity in
which he is employed and his employment shall continue while such activity
exists.
 Seasonal Employees
• Seasonal employees are those whose work or services is seasonal in nature,
and the employment is for the duration of the season. Regular seasonal
employees are those called to work from time to time. The nature of their
relationship with the employer is such that during off season, they are
temporarily laid off but during summer season, they are reemployed, or when
their services may be needed.
• They are not, strictly speaking, separated from the service but are merely
considered as on leave of absence without pay until they are reemployed.
Their employment relationship is never served but only suspended. As much,
those employees can be considered as in the regular employment of the
employer. In effect, these seasonal regular employees enjoy security of tenure
and cannot be dismissed without just cause.
 Project Employees
• A project employee is one whose “employment has been fixed for a specific
project or undertaking the completion or terminal of which has been
determined at the time of the engagement of the employee, or where the work
or services to be performed is seasonal in nature and the employment is for
the duration of the season.”
• The principal test for determining whether an employee is a project
employee or a regular employee is whether the project employee was
assigned to carry out a specific project or undertaking, the duration and
scope of which were specified at the time the employee was engaged for that
project. Failure of the employer to file termination reports after every project
completion with the nearest public employment office is an indication that an
employee was not and is not a project employee.
 Probationary Employees

• A probationary employee is one who is on trial an employer during which

the employer determines whether or not he is qualified for permanent
employment. Probationary employment shall not exceed six months from the
date the employees started working.
• In all cases of probationary employment, the employer shall make known to
the employee the standards under which he will qualify as a regular
employee at the time of his engagement. Where no standards are made
known to the employee at the time, he shall be deemed a regular employee.
 Employees for a Fixed Term

There are employees covered in employment contracts providing for

“term employment” of fixed period employment.” Stipulations providing for a
fixed period employment are valid when the period agreed upon has been
knowingly and voluntarily agreed by the parties without force, duress, or
improper pressure exerted on the employee, and when such stipulations were
not designed to circumvent the laws on security of tenure.
The following are the guidelines which must be observed in order for
fixed contracts of employment may not circumvent security of tenure:
 Employees for a Fixed Term

⮚ The fixed period employment was knowingly and voluntarily agreed upon by
the parties, without any force, duress, or improper pressure being brought to
bear upon the employee and absent any other circumstances vitiating his
consent: or
⮚ It satisfactorily appears that the employer and employee dealt with each
other on more or less equal terms with no moral dominance whatever being
exercised by the former on the latter.
 Overseas Filipino Workers

• Also referred as “migrant worker,” Overseas Filipino Worker refers to a

person who is to be engaged, is engaged, or has been engaged on a
remunerated activity in a state of which he or she is not legal resident. A
person to be engaged in a “remunerated activity” refers to an applicant
worker who has been promised or assured employment overseas and acting
on such promise or assurance sustains damage and/or injury. The law which
governs overseas employment is Republic Act 8042 or the “Migrant Workers
and Overseas Filipinos Act of 1995.”
 Apprentices

• An “apprentice” is a worker who is covered by a written apprenticeship

agreement with an individual employer or any of the recognized entities.
This is a person undergoing training for an approved apprenticeable
occupation during an established period assured by an apprenticeship
agreement.
• An “apprenticeship agreement” is an employment contract wherein the
employer binds himself to train the apprentice and in turn, accepts the terms
of training. An “apprenticeable occupation” means any trade, form of
employment, or occupation which requires more than three (3) months of
practical training on the job supplemented by related theoretical instruction.
The period of apprenticeship shall not exceed six (6) months.
 Learners

• Learners are persons hired as trainees in semi-skilled and other industrial

occupations which are non-apprenticeable and which may be learned
through practical training on the job in a relatively short period of time,
which shall not exceed three (3) months.

• Learners may be employed when no experienced workers are available, the

employment of learners is necessary to prevent curtailment of employment
opportunities, and the employment does not create unfair competition in
terms of labor costs or impair or lower working standards.
 Handicapped Workers

• Handicapped workers are those whose earning capacity is impaired by age

or physical or mental deficiency or injury. Under Section 4(a) of R.A. 7277,
also known as “Magna Carta for Disabled Persons,”“disabled persons” are
those suffering from restriction or lack or different abilities, as a result of a
mental, physical, or sensory impairment, to perform an activity in the
manner or within the range considered normal for a human being.
• A qualified disabled employee shall be subject to the same terms and
conditions of employment and the same compensation, privileges, benefits,
fringe benefits, incentives, or allowances as a qualified able-bodied person.
 Minimum Wage

• By virtue of Republic Act. No. 6727 (Wage Rationalization Act), the

determination of minimum wage rates are now within the function of the
Regional Tripartite and Productivity Board.

• The concept of “minimum wage” means more than setting a floor wage to
upgrade existing wages.

• “Minimum wage” underlies the effort of the State to promote productivity

improvement and gain-sharing measures to ensure a decent standard of
living for the workers and their families to affirm labor as a primary social
force.
 Collective Bargaining Agreement
• This means conferring promptly and in good faith for negotiating agreements
with respect to wages, hours of work, etc. and entering into written contracts,
(called Collecting Bargaining Agreement or CBA) adjustment of grievances,
etc. The provisions commonly found in collective bargaining agreements are:
1) Enumeration or reservation of management rights;
2) Union recognition and security;
3) Wage and fringe benefits and their administration;
4) Physical working conditions;
5) Selected personnel management and plant operation practices;
6) Grievance and arbitration; and
7) Duration of contract.
 Collective Bargaining Agreement
• The parties to collective bargaining are the employer and the employees
represented by their labor union. While it is a mutual obligation of the
parties to bargain, the employer is not under any legal duty to initiate
contract negotiation. The mechanics of collective bargaining are set in
motion only when the following conditions are present, namely:
✔ (1) possession of the status of majority representation of the employees’
representative in accordance with any of the means of selection or
designation provided for by the Labor Code;
✔ (2) proof of majority representation; and
✔ (3) a demand to bargain under Art. 250 [a] of the Labor Code. If the
jurisdictional preconditions are present, the collective bargaining
should begin within 12 months following the determination and
certification of the employees’ exclusive bargaining representative.
 Collective Bargaining Agreement
• Failure or refusal to meet and convene, evading the purposes of bargaining
and not observing good faith, and grossly violating the economic provisions
of the CBA constitutes unfair labor practice which is a violation under the
Labor Code.

• In this regard, a strike or lockout may occur when the bargaining is caught
in a deadlock.
 Collective Bargaining Agreement
• The CBA negotiated by the employees’ bargaining agent should be ratified
or approved by the majority of all the workers in the bargaining unit, not just
the members of the bargaining union.

• The ratification is mandatory. The CBA, after ratification, should be

registered within thirty (30) calendar days from the execution of the
agreement with the Bureau of Labor Relations of the DOLE Regional Office
that has the jurisdiction over the establishment.

• All provisions of the CBA shall have a term of the three (3) years after its
execution. Insofar as the representation aspect in concern, the term is five (5)
years.
 Labor Management Council
• Under Article 255 of the Labor Code, it reserves the right of an individual
employee or group of employees (unionized or non-unionized) to present
grievances to their employer at any time, with or without collective
bargaining, or with or without exclusive bargaining representatives.
• The Department of Labor and Employment promotes the formation of Labor
Management Councils (LMC) in organized and unorganized
establishments.
• An LMC, either as council or committee, can serve as forum where
management and employees may air their concerns, short of collective
bargaining.
 Labor Management Council
• It is largely a communication mechanism which includes prevention or
resolution of disputes.
• Harnessed to the fullest and given the sincerity, confidence, and maturity of
both sides, LMC can effectively secure industrial peace, provided it
maintains its integrity. In fact, an LMC can be so effective it can make a
labor union unnecessary.
• Labor Management Councils require that employee representatives should
be elected by the employees and not handpicked by management.
 Maternity Leaves

• Maternity leave benefits are covered under Republic Act No. 8282 (May 1,
1997), also known as the Social Security Act of 1997.
• Under said law, a female member (need not be married) who has paid at
least three (3) monthly contributions in the 12-month period immediately
preceding of her childbirth or miscarriage shall be paid a daily maternity
benefit equivalent to 100% of her average daily salary credit for 60 days in
case of caesarian delivery, subject to the following conditions.
• This has been amended by the Expanded Maternity Leave Act granting
additional leave benefits for working mothers from 60-78 days to 105 days.
 Maternity Leaves

• Under the measure, all working mothers in the government and private
sector are guaranteed with 105 days of paid maternity leave credits, with 7
days of the leave transferable to fathers.
• Fifteen (15) more days of the leave will be granted to single mothers.
 Paternity Leave

• On the hand, Republic Act No. 8187, also known as the Paternity Leave Act
of 1996 governs the granting of paternity leave benefits to every married
male employee.
• Under the said law, every married male employee in the private and public
sector shall be entitled to a paternity leave of seven (7) days with full pay for
the first four (4) deliveries of the legitimate spouse with whom he is
cohabiting.
 Paternity Leave

• The following conditions must be in order to avail paternity leave benefits:

• He is an employee at the time of delivery of his child;
• He is cohabiting with his legitimate spouse at the time she gives birth or
suffers a miscarriage;
• He has applied for paternity leave in accordance with the implementing
Rules; and
• His wife has given birth or suffered a miscarriage.
 Solo Parents’ Welfare Act

• Republic Act. No. 8972, otherwise known as the Solo Parents’ Welfare Act
of 2000 governs the granting of leave privileges to solo parents.
• In addition, to leave privileges under existing law, parental leave of not more
than seven (7) days every year shall be granted to any solo parent employee
who has rendered service for at least one (1) year.
 Union Rights, Strikes, and Lockouts

• A legitimate labor organization (LLO) has the requisite personality to use on

behalf of its members for their individual money claims.
• For the purpose of collective bargaining, a legitimate labor union must be
certified as an exclusive bargaining agent who won in a certification
election.
• “Strike” means temporary stoppage of work by the connected action of
employees as a result of a labor or industrial dispute.
• “Lockout” means temporary refusal of an employer to furnish work as a
result of an individual or labor dispute.
 Union Rights, Strikes, and Lockouts

• Government employees are not allowed to strike under civil service laws,
rules, and regulations.
• On the other hand, the Labor Code explicitly provides that managerial
employees are ineligible to join or form any labor organization.
• Supervisors are not prohibited from forming their own union. What the law
prohibits is their membership in a labor organization of rank-and-file
employees (or joining a national federation of the rank-and-file employees
that includes the every local union which they are not allowed to directly
join).
 Union Rights, Strikes, and Lockouts

• By way of definition, a managerial employee is one who is vested with the

powers to lay down and execute management policies and/or hire, transfer,
suspend, lay-off, recall, discharge, assign, or discipline employees.
• Supervisory employees are those who, in the interest of the employer, merely
recommend such managerial actions if the exercise of such authority is not
merely routinary or clerical in nature, but requires of the use of independent
judgement.
• The grounds for a strike and lockout are limited to the following: (a)
Collective bargaining deadlock; and (b) Unfair Labor Practice (ULP). In
other words, a valid strike or lockout needs a labor dispute.
 Union Rights, Strikes, and Lockouts

• A strike, to enjoy protection of the law, must comply with the following
requirements:
✔ A notice of strike or lockout filed with the Department of Labor and
Employment through the National Conciliation and Mediation Board
(NCMB) to be filed by the bargaining agent;
✔ A cooling-off period must be observed. The cooling-off period is 30 days
in case of bargaining deadlock and 15 days in case of ULP.
✔ During the cooling-off period, the NCMB mediates and conciliates the
parties;
 Union Rights, Strikes, and Lockouts

✔ A strike vote should be taken by secret balloting to be approved by a

majority of the total union membership or majority of the directors or
partners of the employer. A strike vote must be done before a strike may
start and with 24-day prior notice to the NCMB;
✔ Result of the strike vote must be reported to the NCMB at least 7 days
before the intended strike or lockout; and
✔ No strike or lockout shall be declared assumption of jurisdiction by the
Secretary of Labor and Employment or by the President of the
Philippines, as the case may be.
 Service Charges

• The rule of service charges applies only to establishments collecting service

charges such as hotels, restaurants, lodging houses, nightclubs, cocktail
lounge, massage clinics, bars, casinos, gambling houses, and similar
enterprises, including those entities operating primarily as private
subsidiaries of the Government.
• Republic Act No. 11360, also known as the Service Charge Law was signed
on August 7, 2019. The Implementing Rules and Regulations of Republic Act
No. 11360 was signed on November 19, 2019. Under the said law, all
service charges actually collected by covered establishments shall be
distributed completely and equally among covered employees based on
actual hours or days of work or service rendered.
 Employment Contracts

• An employment contract is that by virtue of which one person (employee)

binds himself with respect to another (employer) to place at the service of the
latter his own efforts in work, and the latter in turn agrees to pay a
compensation proportional to the time or to the quantity of work done.
• The concept of “employment contract” is regulated under the provisions of
the Labor Code of the Philippines, Civil Code of the Philippines, and other
special laws.
• Execution of employment contracts are in line with the characteristics of
autonomy of contracts wherein parties are free to stipulate terms and
provisions in a contract as long as these terms and provisions are not
contrary to law, morals, good customs, public order, and public policy.
 Employment Contracts

• An employment contract is impressed with public interest. Hence, other

considerations of moral and social character have to be reckoned with to
promote industrial peace and in keeping with social justice.
• Whenever there is doubt in the interpretation of any labor or employment
contracts, the same shall be construed in favor of the safety and decent living
for the laborer.
• Legally speaking, a contract of employment is consensual in nature which
does not require additional formalities for its validity. However, the current
practice in labor-intensive industries like the tourism industry is to utilize
express written employment contracts, clearly understood, and voluntarily
agreed by the parties to protect the interest of both capital and labor.
 Employment Contracts

• This is true especially for employees under a probationary, project, casual

and fixed-term employment wherein the standards, scope, and duration of the
employment must be expressed, clearly understood, and voluntarily agreed
by the parties.
• It is a fair assumption to say that normal employees would comply with
norms if they are properly and sufficiently informed.
• This communication process increases the extent of knowledge of each
employee, expands the span of understanding of each employee, and
enhances the level of acceptance by each employee.
 Employment Contracts

• By way of practice, the following are usually incorporated in a written and

express contract of employment to emphasize the need for employees to
comply with lawful and reasonable orders by superiors in relation to their
jobs:
• Company rules and regulations;
• Code of Discipline;
• Mission orders;
• Policy manual on security, safety, accounting, and auditing;
• Day-to-day instruction;
• Standard operating procedures; and
• Memoranda given by superiors to their subordinates.
 Death Benefits

• Under the Social Security Law, upon the death of a member who has paid at
least 36 monthly contributions prior to the semester of death, his primary
beneficiaries shall be entitled to the monthly pension; provided, that if he has
no primary beneficiaries, his secondary beneficiaries shall be entitled to a
lump sum benefit equivalent to 36 times the monthly pension.
• If he has not paid the required 36 monthly contributions, his primary and
secondary beneficiaries shall be entitled to a lump sum benefit equivalent to
the monthly pension times the number of monthly contributions paid to the
SSS or 12 times the monthly pension, whichever is higher.
 Death Benefits

• A funeral grant equivalent to P12,000 shall be paid, in cash, or in kind, to

help defray the cost of funeral expenses upon the death of a member,
including, or in kind, to help defray the cost of funeral expenses upon the
death of a member, including permanently totally disabled member or
retiree.
• In case of work-related deaths, beneficiaries will receive death benefits
under the Employees Compensation and State Insurance Fund, in addition to
the benefits under the SSS Law.
• Accordingly, the amount under the Employees Compensation Fund shall be
the amount equivalent to his monthly benefit, plus ten percent thereof for
each dependent child, but not exceeding five.
 Death Benefits

• The Employees Compensation Commission has increased the funeral benefits

exceeding five. The Employees Compensation has increased the funeral
benefits to P10,000.
 Health Benefits

• This includes sickness, medical, and hospitalization benefits.

• Under the Social Security Law, a member who has paid at least 3 monthly
contributions in the 12-months period immediately preceding the semester of
sickness or injury, and is confined more than three (3) days in a hospital or
elsewhere with the approval of the SSS, shall be paid a daily sickness benefit
equivalent to 90% of his average daily salary credit.
• In case work-related sickness, the covered employee will be entitled to
medical services, appliances, and supplies in addition to the benefits under
the SSS Law.
 Drug Testing

• Under Republic Act. No. 9165 (June 7, 2002), also known as the
Comprehensive Dangerous Drugs Act of 2002, drug testing shall be done by
any government forensic laboratories, by any of the drug testing
laboratories, or by any of the drug testing laboratories accredited and
monitored by the Department of Health (DOH) to safeguard the quality of
test results.
• Drug test certificates issued by accredited drug testing centers shall be valid
for a one-year period from the date of issue which may be used for other
purpose.
 Drug Testing

• In this regard, employers are mandated to provide company work rules and
regulations on random drug testing for purposes of reducing the risk in
workplace.
• Accordingly, officers and employees shall be subjected to undergo random
drug testing.
• Any officer or employee found positive for use of dangerous drugs shall be
dealt with administratively, which shall be a ground for suspension or
termination, subject to the provisions of Article 282 of the Labor Code.
 Retirement

• Under Article 287 of the Labor Code, as amended by Republic Act. No.
7641, also known as The New Retirement Law, any employee may be retired
upon reaching the retirement age established in the collective bargaining
agreement or other applicable employment contract.
• In the absence of a retirement plan or agreement providing for retirement
benefits of employees in establishments, an employee upon reaching the age
of 60 years or more, but not beyond 65 years which is hereby declared the
compulsory retirement age, who has served at least 5 years in the said
establishment, may retire and shall be entitled to a retirement pay equivalent
to at least ½ month salary for every year of service, a fraction of at least 6
months being considered as one whole year.
 Uniform Policies

• Some tourism establishments, which include but not limited to restaurants,

department stores, rest areas in gasoline stations, five-star and four-star
hotels, tourist inns, special interest resorts, apartels, motels, and those
engaged in water transport services, require their employees and staff to be
well-groomed and should wear clean and smart uniforms.
• Uniform policies in these establishments are prerequisite requirements in
order to be accredited by the Department of Tourism.
 SSS, PhilHealth, Employees’ Compensation
Commission, and PAG-IBIG
• Employees in the private sector are covered under the SSS Law wherein the
mission is to promote and perfect a sound and viable tax exempt social
security system suitable to the needs of the people which shall provide
meaningful protection to members and their beneficiaries against hazard of
disability, sickness, maternity, old age, death, and other contingencies
resulting in loss of income or financial burden.
• PhilHealth assumed the responsibility of administering the former Medicare
program for private sector employees, with its landmark transfer from the
Social Security System (April 1998).
 SSS, PhilHealth, Employees’ Compensation
Commission, and PAG-IBIG
• With this transfer came the turnover of the health insurance funds, initially
totaling P14 billion from the SSS.
• The amount covers employee and employers’ shares in the medical care
program. The benefit package includes the following categories of personal
health services:
o Inpatient hospital care:
✔ Room and board
✔ Services of health care professionals
✔ Diagnostic, laboratory, and other medical examination services
✔ Use of surgical or medical equipment and facilities
SSS, PhilHealth, Employees’ Compensation
Commission, and PAG-IBIG
✔ Prescription drugs and biologicals, subject to the limitations stated
in Section 37 of RA 7875
✔ In-patient education packages
o Outpatient care:
✔ Services of health care professionals
✔ Diagnostics, laboratory, and other medical examination services
✔ Personal preventive services
✔ Prescription drugs and biologicals, subject to limitations described
in Section 37 of RA 7875
✔ Emergency and transfer services
 SSS, PhilHealth, Employees’ Compensation
Commission, and PAG-IBIG
• An employee may also recover from the Employees Compensation and State
Insurance Fund in case of work-related disabilities.
• According to Republic Act 7742, which was fully implemented on January 1,
1995, membership to the PAG-IBIG Fund shall be mandatory for all
employees covered by the Social Security System (SSS). This mandatory
coverage extends to expatriates whose age is up to 60 years old and who are
compulsorily covered by the SSS.
• In the absence of an explicit exemption from SSS coverage, the said
expatriate, upon assumption of office, shall be compulsorily covered by the
Fund. Some of benefits under the PAG-IBIG program are the housing loan,
calamity loan, and a provident savings program.
 Termination of Employment
• It is the constitutional right of workers to have a security of tenure and their
right to be protected against dismissal except for just and authorized cause
and without prejudice to the requirement of notice under Article 283 of the
Labor Code.
• Due process in termination disputes is the heart of security of tenure and is
personal to the employee.
• The following are the standards of the process for termination of employment
under Article 282 of the Labor Code.
• A written notice served on the employee, specifying the ground and grounds
for termination, and giving the said employee a reasonable opportunity
within which he can explain his side.
 Termination of Employment
• A hearing or conference during which the employee concerned, with the
assistance of counsel if the employee so desires, is given the opportunity to
respond to the charges, present his evidence, or rebut the evidence presented
against him; and
• A written notice of termination served on the employee indicating that upon
due consideration of all the circumstances, grounds have been established to
justify the termination. In case of termination, the foregoing notices shall be
served on the employee’s last known address.
 Termination of Employment
• For termination of employment as based on authorized causes under Article
283 of the Labor Code, the requirements of due process shall be deemed
complied with upon service of a written notice to the employee and the
appropriate Regional Office of the Department of Labor at least 30 days
before the effectivity of the termination specifying the grounds for
termination.
• If the termination is brought about by the completion of the contract or phase
thereof, no prior notice is required. If the termination is brought about by
the failure of an employee to meet the standards of the employer in the case
of probationary employment, it shall be sufficient that a written notice is
served the employee within a reasonable time from the effective date of
termination.
 Termination of Employment
• Under Article 282 of the Labor Code, the following are considered just
causes for termination:
o Serious misconduct or willful disobedience by the employee of the lawful
orders of his employer or representative in connection with his work;
o Gross or habitual neglect by the employee of his duties;
o Fraud or willful breach by the employee of the trust reposed by him by
his employer or duly authorized representative;
o Commission of a crime or offense by the employee against the person of
his employee or any immediate member of his family or his duly
authorized representative; and
o Other causes analogous to the foregoing.
 Laws Against Discrimination

Art. 3. Declaration of Basic Policy. The State shall afford protection to

labor, promote full employment, ensure equal work opportunities regardless of
sex, race, or creed, and regulate the relations between workers and employers.
 Magna Carta for Disabled Persons
Republic Act. No. 7277, also known as the Magna Carta for Disabled Persons.
The following constitutes acts of discrimination of handicapped workers:
• Limiting, segregating. or classifying a disabled job applicant in such a manner that
adversely affects work opportunities;
• Using qualification standards, employment tests, or other selection criteria that
screens out or tends to screen out a disabled person unless such standards, tests, or
other selection criteria are shown to be job-related for the position in question and
are consistent with business necessity;
• Utilizing standards, criteria, or methods of administration that have the effect of
discrimination on the basis of disability or perpetuate the discrimination of others
who are subject to common administrative control;
 Magna Carta for Disabled Persons
• Providing less compensation, such as salary, wage, or other forms of
remuneration and fringe benefits, to a qualified disabled employee, by
reason of his disability, than the amount to which a nondisabled person
performing the same work is entitled;
• Favoring a nondisabled employee over a qualified disabled employee with
respect to promotion, training opportunities, study, and scholarship grants,
solely on account of the latter’s disability;
• Reassigning or transferring a disabled employee to a job or position he
cannot perform by reason of his disability;
 Magna Carta for Disabled Persons
• Dismissing or terminating the services of a disabled employee by reason of
his disability unless the employer can prove that the impairs affect the
satisfactory performance of the work involved to the prejudice of the business
entity: Provided, however, That the employer first sought to provide
reasonable accommodation for disabled persons;
• Failing to select or administer in the most effective manner employment test
to which accurately reflects the skills, aptitude, or other factor of the
disabled applicant or employee that such test purports to measure, rather
than the impaired sensory, manua,l or speaking skills of such applicant or
employee, if any; and
• Excluding disabled persons from membership in labor unions or similar
organizations.
 Discrimination Against Women

Republic Act 6725 - Strengthening the Prohibition on Discrimination

Against Women with Respect to Terms and Condition of Employment. The
following are acts of discrimination:
• Payment of a lesser compensation, including wage, salary, or other form of
remuneration and fringe benefits to a female employee as against a male
employee, for work of equal value; and
• Favoring a male employee over a female employee with respect to
promotion, training opportunities, study, and scholarship grants solely on
account of their sexes.
 Discrimination Against Women

Presidential Decree 966 (July 20, 1976), Declaring Violations of the

International Convention on the Elimination of All Forms of Racial
Discrimination to be Criminal Offenses and Providing Penalties Therefor.
• Any form of discrimination as mentioned above shall constitute criminal
liability.
 Anti-Age Discrimination of Employees
• Republic Act 10911 or “An act prohibiting discrimination against any
individual in employment on account of age and providing penalties
therefore” prohibits employers from withholding promotion or deny training
opportunities, compensation, and privileges from employees on the basis of
age.
• Recruitment and employment agencies are also prohibited from refusing to
help individuals regardless of age from seeking employment and labor
organizations are prohibited to refuse employees of membership because of
their age.
• Violators will be fined at least P50,00 but not more than P500,000 and/or be
imprisoned between three months to two years.
 Employment of Women
It is the policy of the State to protect the working women by providing
safe and healthful working conditions, taking into account their maternal
functions, and such facilities and opportunities that will enhance their welfare
and enable them to realize their full potential in the service of the nation.
The Labor Code of the Philippines provides protection for the working
women. Consequently:
• No woman, regardless of age shall be employed or permitted to work in any
commercial undertaking between midnight and 6 o’clock in the morning the
following day, except in case where the woman employee has been engaged
to provide health and welfare services or when the nature of the work
requires the dexterity of women.
 Employment of Women
• An employer is required to provide facilities such as seats, separate toilet
rooms and lavatories, a dressing room, and nursery in the workplace for
their women employees.
• It shall be unlawful for an employer to require, as a condition of employment
or continuation of employment, that a woman employee shall not get
married, or to stipulate expressly or tacitly the upon getting married, she
shall be deemed resigned, separated, or discharged from employment by
reason of her marriage.
• It shall be unlawful for an employer to discharge a woman employee on
account of her pregnancy or while on leave or in confinement due to her
pregnancy.
 Employment of Women
• It shall be unlawful to discharge or refuse admission of such woman upon
returning to her work on account that she may again be pregnant.
• Any woman who is permitted or suffered to work with or without
compensation, in any nightclub, cocktail lounge, beer house, massage clinic,
bar, or similar establishments, under the effective control or supervision of
the employer for a substantial period of time shall be considered an
employee of such establishment.
 Sexual Harassment in the Workplace

Under Republic Act No. 7877, also known as the Sexual Harassment
Act of 1995, sexual harassment is committed by an employer, employee,
manager, supervisor, agent of the employee, manager, supervisor, agent of an
employee, or any other person who, having authority, influence, or moral
ascendancy over another in a work environment, demands, requests., or
otherwise requires any sexual favor from others, regardless of whether the
demand or request for requirement for submission is accepted or not.
Best Labor Practices in Tourism Establishments
• A comprehensive background check is usually undertaken by an employer before
admitting newly hired employees.
• A two-week orientation training is given to the newly hired employees before they
start the actual duty.
• Weekly or monthly dialogue with the General Manager or President, or weekly
meetings with Labor Management Councils are being established to thresh out every
problem being encountered by employees.
• A performance evaluation on a monthly or quarterly basis is being undertaken among
employees with proactive counseling is being done to improve performance and
productivity level of employees.
• Meritocracy is observed in such a way like increase in pay and other incentives are
always based on performance.
Best Labor Practices in Tourism Establishments
• Adherence to due process in termination disputes are strictly followed by the
employer (i.e., 2-notice rule, hearing or opportunity to be heard, etc.).
• Newly hired employees are oriented on furnished copies of the company’s
Code of Ethics before they start working.
• Employees are to be given furnished copies of their job description, company
policies, house rules, and the instruments on how they will be evaluated.
• Companies invest highly on training and development of employees.
• To minimize labor cost, some of the tourism establishments apply the
franchising as a business model. Contractual employment on emergency
cases is also being undertaken.
• For tourist sites which are being administered by the government, strict
adherence to civil service laws, rules, and regulations is imperative.
 Filipino workers are sought after in the global tourism industry. In
order to increase the demand for Filipino tourism workers, competency in
tourism and hospitality management education should be reinforced.

(Atty. Antonio Fontanilla, former Human

Resources Director, Century Park Hotel)
Tourism and Hospitality Management Education
The curriculum of the B.S. Tourism and B.S. Hotel and Restaurant Management
programs of the different colleges and universities around the country should be
compliant with CHED Memorandum Order No. 62 Series of 2017.
⮚ Curriculum
⮚ School Laboratories and other CHED Requirements
⮚ Student Practicum or Apprenticeship
⮚ Accreditation and Deregulation of Schools
⮚ Tuition Fees
⮚ Sexual Harassment in the Academe
⮚ Random Drug Testing for Tertiary Level Students
⮚ Tertiary Education Equivalency
⮚ Foreign Students
 Assignment

• Activities
o Film Critique
o Employee Satisfaction Survey
o Morning Hug

• Internet Research
o Illegal Dismissal
 Film Critique

• Watch the film “Disclosure” (starring Michael Douglas and Demi Moore)
either in class or at home.
• Discuss in class or online through a chatgroup the following issues:
• Can a woman sexually harass a man at work?
• What constitutes sexual harassment in the workplace?
• How can it be prevented in the workplace?
• You may alternatively submit a 150-word write up on your responses
and insights.
 Employee Satisfaction Survey

• Group the class into three groups. Each group will undertake a survey,
gauging the satisfaction on employees in the tourism industry.
• The recommended minimum number of respondents is 50.
• Ask the following questions:
o Are you satisfied with your job? (Use scale of 1-5 with 5 as very
satisfied)
o What aspects of your job do you like most?
o What aspects of your job do you like least?
o Collate responses and share your findings in class.
 Morning Hug
• Berni Rodriguez is a senior Tourism student having apprenticeship at a
prestigious international airline.
• His adviser’s attention was called by Mr. Andy Lopez, HR manager of the
airline, for the numerous counts of tardiness of Berni.
• After verifying with Berni, the adviser found out that Mr. Lopez has a ritual
every morning where he gets to hug all the apprentices before starting work
at 9:00 a.m.
• This is what Berni has been avoiding, hence his frequent tardiness.
• Can Berni file a sexual harassment case against Mr. Lopez?
• Write a 150-word essay to detail your answer.
 Illegal Dismissal
• Surf the Internet and look up the case of Melva Nath versus Shangri-La
Manila Hotel, a deluxe hotel in Makati City.
• Melba Nath was the former director of rooms of the hotel for only about two
and a half months, and was illegally dismissed by the hotel in September
1992.
• What are the lessons learned in this case?
• Did the company observe due process in the case?
• How can companies prevent cases like this to happen in the future?
• Do you agree with the decision of the court? Why do you agree? Why do you
not agree?
• Why do you think tourism-related establishments are more prone to labor
cases than other industries?