Chapter 4- Hospitality at Work

Hospitality and Tourism Laws

DEFINITION OF TERMS:
LABOR LAW- includes all the rules of law governing the conditions under
which persons may work under the control of other persons called employers.
LABOR STANDARDS
- Prescribe the terms and
conditions of employment as
affecting wages or monetary
benefits, occupational health,
safety and welfare of the
workers.

LABOR RELATIONS
- Used to denote all matters
arising out of employeremployee relationship
involving the concerted action on
the part of the workers which is
usually related with collective
bargaining and negotiation
process.

SOCIAL LEGISLATION LAW- is a law governing the employee- employer

relationship while the employee is not at work due to hazards arising from
employment. It is actually design to uplift and protect the of the worker and
his family. Because of the hazards beyond his control which immobilize him
from working.

I.
CLASSIFICATION OF LABOR LAWS
1. PROTECTIVE LEGISLATION- it is designed to protect the weaker party to
the employment contract ex. Anti- Sexual Harassment Laws, Gild Labor
Laws etc.
2. WELFARE OR SOCIAL LEGISLATION- intended to remove or reduce the
insecurity of the workers while latter are not at work due to hazards
arising from employment ex. SSS, PAG-IBIG, Workmens Compensation
3. DIPLOMATIC LEGISLATIONS- designed to settle labor disputes through
pacific modes Ex. Laws providing for conciliation, mediation, grievance
machinery or arbitration
4. ADMINISTRATIVE LEGISLATIONS- laws creating labor bodies or
agencies for administrative purposes ex. POEA, DOLE, NLRC or TESDA
5. LABOR RELATIONS LEGISLATIONS- passed concerning employee
organization, concerted activities. Included are those that pertain to fair
and unfair practices in labor relations.
6. LABOR STANDARDS LEGISLATIONS- passed prescribing minimum
requirements relating to wages, hours of work, cost of living allowances and
other monetary and welfare benefits including occupational safety
and health standards.
II.
SIGNIFICANCE OF FULL EMPLOYMENT IN THE HOSPITALITY
INDUSTRY
1. It ushers economic gains
2. It promotes social and economic security

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Hospitality and Tourism Laws
3. It promotes human dignity
4. It is an antidote against revolutionary ideologies
5. It regulates employers discriminatory practices

III.

FOUR- FOLD TEST TO DETERMINE THE EMPLOYEE- EMPLOYER

RELATIONSHIP

To determine the existence of the employee- employer relationship,

the following should be considered:
1.
2.
3.
4.

The manner of selection and engagement of the putative employee

The mode of payment of wages
The presence of or absence of the power of dismissal
The presence or absence of a power to control the putative
employees conduct

IV.
CLASSIFICATION OF THE EMPLOYEES
1. SPECIAL WORKERS
1.1
APPRENTICES- a worker who is covered by a written
apprenticeship agreement with an individual employer or any of
the entities recognized under law.
To qualify as an apprentice, a person should be:
a. At least fourteen (14) years of age
b. Possesses vocational aptitude and capacity for appropriate test
c. Possesses the ability to comprehend and follow oral and written instructions
1.2
LEARNERS- hired as trainee in semi-skilled and other industrial
occupations and may be learned through on-the-job trainings in
relatively short period of time that shall not exceed 3 moths
1.3
HANDICCAPED WORKERS- whose earning capacity is impaired
either by age, physical or mental deficiency or injury
2. CASUAL EMPLOYEES- those who perform activities which are not usually
necessary or desirable in the usual trade or business of the
employer.
3. SPECIFIC PROJECTS AND SEASONAL EMPLOYEES- are persons who
perform work or services which are seasonal in nature
4. PROBATIONARY EMPLOYEES- those who are employed on a trial basis,
does not exceed six (6) months from the date the employee started
working
5. REGULAR EMPLOYEES- persons who perform activities, which are usually
necessary or desirable in the usual business or trade of the
employer. Rendered at least one (1) year of service, whether such
service is continuous or broken
6. MANEGERIAL EMPLOYEES- those who meet the following condition

Chapter 4- Hospitality at Work

Hospitality and Tourism Laws
a. Primary duty consists of the management of the establishment in which
they are employed or of a department or subdivision
b. Customarily and regularly direct the work of two or more employees
therein
c. They have the authority to hire or fire other employees of lower rank
d. Their suggestions and recommendations as to the hiring and firing and
promotion or change of status of other employees are given particular
weigh
7. DOMESTIC SERVANTS OR PERSONS- personal service of another are
those who perform services in the employers home
8. FIELD PERSONNEL- refers to non- agricultural employees who
regularly perform their duties away from principal place of business
or branch office of the employer and whose actual hours of work in the
field cannot be determine with reasonable certainty EX. TOUR GUIDE
V.

CONSTITUTIONAL RIGHTS WORKERS AND EMPLOYERS RIGHTS

1.
2.
3.
4.

5.
6.
7.
8.
9.

RIGHTS OF WORKERS
Right to self-organization
Right to collective bargaining
Right to security of tenure
Right to just and humane
conditions of work examples:
4.1regular working hours
4.2regular working days
4.3overtime work
4.4weekly rest period
4.5additional compensation on
schedule rest day/ special
holiday
4.6compensation for holiday
workers
4.7hospitalization
RT collective negotiations
RT peaceful concerted activities
RT strike
RT Living wage
RT participate in policy and
decision making processes
RT just share in the fruits of
production

EMPLOYERS RIGHTS
1. Reasonable return on investment
2. Expansion and growth
3. Exercise management
prerogative
3.1To lay down and execute
management policies
3.2To hire
3.3To transfer
3.4To discipline
3.5To dismiss
3.6Retrenchment
3.7To declare redundancy exists
3.8To cease operations
3.9To sell the company
3.10 To abolish the positions

Chapter 4- Hospitality at Work

Hospitality and Tourism Laws

VI.

TERMINATION OF EMPLOYER- EMPLOYEE RELATIONSHIP

An employer caught terminate the services of an employee except

for JUST CAUSES or AUTHORIZED CAUSES.
On the other hand, the employee may terminate without just cause,
employment relationship by serving a written notice on the employer at
least one (1) month in advance.
-

JUST CAUSES
These are modes of termination
of employment contract
imputable to the employees
own acts or omission

1. Serious Misconduct or willful

disobedience by the employee
of the lawful orders of the
employer or representative in
connection with his work
2. Gross and habitual neglect by
the employee of his duties
3. Fraud or willful breach by the
employee of the trust reposed in
him by his employer or duly
authorized representative
4. Commission of a crime or
offense against the person of
his employer or any immediate
member of his family and his
duly authorized representative
5. Other causes analogous to the
foregoing
VII.

1.

2.

3.
4.

5.

AUTHORIZED CAUSES
The causes for the
termination of employment
contract should not be
imputed in neither of the
employees and employers.
Redundancy exists when the
services of an employee are in
excess of what is reasonably
demanded by the actual
requirements of enterprise
Retrenchment reductions in the
workplace to forestall business
losses or stop the hemorrhaging
of capital
Installation of labor saving
device
Closure or cessation of
operation of the
establishment or undertaking
due to financial losses
Disease as a ground of
termination

SOME LABOR CODE PROVISIONS CONCERNING HOURS OF WORK,

REST PERIODS, HOLIDAY PAY, LEAVES AND SERVICE CHARGES

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Hospitality and Tourism Laws
ART 83 NORMAL HOURS IF WORK - The normal hours of work of any
employee shall not exceed eight (8) hours a day.
ART 84 HOURS WORKED- hours worked shall include:
a. At all times during which an employee is required
b. At all times during which an employee is suffered or permitted to work
ART 85 OF THE LABOR CODE- it is a duty of every employer to give his
employees regardless of sex, not less than sixty (60) minutes time off for
their regular meals.
ART 86 NIGHT SHIFT DIFERENTIAL- Every employee shall be paid a night
shift differential or not less than 10% of his regular wage for each hour
work performed between 10 in the evening and 6am in the morning
EXCEPT THE FOLLOWING:
a. Government employees
b. Employees of retail and service establishment regular employing not more
than 5 workers
c. Domestic helpers
d. Persons in the personal service of another
e. Managerial employees
f. Officers and members of managerial staff
g. Field personnel and other employees whose time and performance is
supervised by the employer
h. Workers who are engaged on task or contract basis
i. Members of the family of the employer who are depended upon him for
support
ART 87 OVERTIME WORK- work may be performed beyond eight (8) hours day
provided that the employee is paid an overtime work an additional
compensation equivalent to his regular wage at least 25%. Work
performed beyond 8 hours a day during holiday or rest day shall be paid an
additional compensation equivalent to the rate of the first eight hours in a
holiday or rest day plus at least 30%
ART 96 SERVICE CHARGES- all service charges collected by hotels,
restaurants and similar establishments shall be distributed at the rate of 85%
for all covered employees and 15% for the management. The share of
the employees shall be equally distributed among them.
VIII.

COMPUTATION OF WAGES