A Study of The Best Labor Practices of Selected Tourism Establishments in The Philippines

International Journal of Research in Management, Economics & Commerce
Website: www.indusedu.org (ISSN 2250-057X, ISO 9001:2008 Certified Journal,

Volume 4, Issue 3, March 2014)

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A STUDY OF THE BEST LABOR PRACTICES OF SELECTED
TOURISM ESTABLISHMENTS IN THE PHILIPPINES
Christine Carpio-Aldeguer
Danny Cabulay
Adulfo Arevalo

ABSTRACT
The study primarily aims to provide information on how selected companies from the
tourism-oriented sector handle labor issues.
Literature are provided to determine what are the best practices that are within
minimum labor standard laws, and those practices which are over and above the
minimum labor standard laws.
By way of recommendation, legislators and government agencies such as the
Department of Tourism and Department of Labor and Employment should play an active
role in providing assistance for tourism establishments in terms of training, information
dissemination and education on labor laws and standards required for excellent service
to customers.There is also a need for tourism-oriented establishments to maintain
standards in order to contribute to its growing industry, hence it is preferable for
administrators of colleges and universities to look into these best labor practices for
reflection, perusal and review in terms of utilizing the information for developing quality
educational programs to prepare its future graduates (especially for graduates of BS
Hotel and Restaurant Management and BS Tourism and Tourism Management) on their
entry level in the tourism industry.
Keywords: tourism, best practices, labor, hotel, hospitality industry


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INTRODUCTION
The philosophy that human resources are a companys most valuable asset holds true in a
service-oriented industry like tourism. This industry that is both labor intensive and
capital intensive creates an interdependent relationship between management and labor.
It is interesting to find out what kind of labor issues arise from these sectors and how
management resolves them.
The study primarily aims to provide information on how selected companies from the
tourism-oriented sector handle labor issues
This study also aims to provide information on the different remedies and preventive
measures which are being undertaken by the selected establishments from the tourism-
oriented sector to minimize labor-related deterrents to good work performance.
Specifically, it seeks to answer the following questions:
1. What are the different causes of labor disputes in the various establishments in the
tourism-oriented sectors?
1.1 hotel
1.2 restaurant
1.3 transport service
1.4 travel trade
1.5 tourist site
2. What are the critical factors that give rise to such labor disputes?
3.1. hotel
3.2. restaurant
3.3. transport service
3.4. travel trade
3.5. tourist site
3. What are the methods/measures employed by management to resolve labor disputes
in their respective companies?
4. What are the schemes of the various tourism-oriented establishments in handling
labor cases?
5. What are the best practices in managing labor disputes in their respective companies?


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6. What is the impact of applying the practices in managing labor disputes in their
respective companies as perceived by the respondents in terms of:
6.1 Productivity
6.2 Cost
6.3 Employee morale
The study will cover human resource managers and other human resources personnel
handling managerial or supervisory positions.
Only companies/agencies in the five sectors namely: hotel, restaurant, transport service,
travel trade and tourist sites are considered in the study.
THEORETICAL/CONCEPTUAL FRAMEWORK
A. Review of Related Laws
A) The 1987 Constitution of the Philippines
The Philippine Constitution (1987) provides an explicit provision for labor.
Labor, whether local or overseas, organized or not organized, shall be given
constitutional protection.
The State shall promote shared responsibility between workers and employers. Thus, the
workers shall also participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law.
The recognition by the State of the right of labor to its just share in the fruits of
production and the right of enterprises to reasonable returns on investments as well as to
expansion and growth may be considered a sequel to the rule that the principle of shared
responsibility between workers and employers must be promoted by the State. The
words just share in the fruits of production should not cover only basic salaries and
other employment benefits but may also cover profit-sharing. (Nolledo, 1990).
The State also protects the rights of the working women by assuring them safe and
healthful conditions of work and opportunities to maximize their full potential in the
service of the nation.
B) Benefits, Privileges, Policies Affecting Employees
Minimum Wage
By virtue of the Wage Rationalization Act of 1989 (Phil.) , the determination of
minimum wage rates are now within the function of the Regional Tripartite and
Productivity Board. Minimum wages underlies the effort of the State to promote


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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 economic
force. [Employers Confederation of the Philippines vs. National Wages and Productivity
Commission et al., (1991)]
Collective Bargaining
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
Collective 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; 7) Duration of
contract. (Azucena, 2001)
Labor Management Council
Under Article 255 of the Labor Code of the Philippines (1974), 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, 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. (Omnibus Rules to Implement the Labor
Code of the Philippines, 1989). An LMC, either as council or committee, can serve as a
forum where management and employees may air their concerns, short of collective
bargaining. 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, not hand-picked by management.
Maternity and Paternity Leaves
Maternity leave benefits are covered under the Social Security Act of 1997 (Phil.).
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 the semester of her


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childbirth or miscarriage shall be paid a daily maternity benefit equivalent to 100% of
her average daily salary credit for 60 days or 78 days in case of caesarian delivery.
On the other hand, the Paternity Leave Act of 1996 (Phil.) 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
spouses with whom he is cohabiting.
The Solo Parents Welfare Act of 2000 (Phil.) governs the granting of leave privileges to
solo parents. In addition to leave privileges under existing laws, 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.
Service Charges
The rule of service charges applies only to establishments collecting service charges such
as hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars,
casinos, gambling houses and similar enterprises, including those entities operating
primarily as private subsidiaries of the Government. [Omnibus Rules Implementing the
Labor Code of the Philippines (1989)]. All service charges collected by hotels,
restaurants, and similar establishments shall be distributed at the rate of 85% percent for
all covered employees and 15% percent for management. (Labor Code of the
Philippines, 1974). The 15% shall be for the disposition by management to answer for
losses and breakages and distribution to managerial employees at the discretion of
management in the latter case [Omnibus Rules Implementing the Labor Code of the
Philippines (1989)].
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 him 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


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terms and provisions are not contrary to law, morals, good customs, public order and
public policy. 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 (Civil Code of the
Philippines, 1949).

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. 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 express, clearly understood and voluntarily agreed by the
parties.
Death Benefits
Under the Social Security Act of 1997 (Phil.), 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. 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 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
Social Security Act of 1997 (Phil.). 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. The Employees
Compensation Commission has increased the funeral benefits to P10,000. (Labor Code
of the Philippines, 1974)
Health Benefits
This includes sickness, medical and hospitalization benefits. Under the Social Security
Act of 1997 (Phil.), a member who has paid at least 3 monthly contributions in the 12-


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month 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 of work-related sickness, the covered employee will be entitled to medical
services, appliances and supplies, (Labor Code of the Philippines, 1974) in addition to
the benefits under the Social Security Act of 1997 (Phil.).
Retirement
Under Article 287 of the Labor Code of the Philippines (1974), as amended by The New
Retirement Pay Law of 1992 (Phil.), 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 month salary for every year
of service, a fraction of at least 6 months being considered as one whole year.
SSS, PhilHealth, Employees Compensation Commission, and Pag-Ibig
Employees in the private sector are covered under the Social Security Act of 1997 (Phil.)
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 hazards 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
(SSS). 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: Inpatient hospital care and Outpatient care. [Republic Act
9241 (2004), Phil.]
An employee may also recover from the Employees Compensation and State Insurance
Fund in case of work-related disabilities.


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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 the benefits under the Pag-IBIG
program are the housing loan, calamity loan, and a provident savings program.
[Implementing Rules and Regulations of Republic Act No. 7742, 1995 (Phil.)]
Termination of Employment
It is the constitutional right of workers to 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 the Labor Code of the Philippines (1974). Due process in
termination disputes is the heart of security of tenure and is personal to the employee.
The following are the standards of due process for termination of employment:
(a) A written notice served on the employee specifying the ground and grounds for
termination, and giving to said employee reasonable opportunity within which to
explain his side;
(b) 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
(c) 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
employees last known address.
For termination of employment based on authorized causes, 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. [DOLE Department Order No. 9, 1997 (Phil.)]


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Under the Labor Code of the Philippines (1974), the following are considered just causes
for termination:
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of
his employer or representative in connection with his work;
(b) Gross or habitual neglect by the employee of his duties;
( c) Fraud or willful breach by the employee of the trust reposed by him by his employer
or duly authorized representative;
(d) Commission of a crime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized representative;
and
(e) Other causes analogous to the foregoing.
B. Synthesis
The laws have a significant relationship with the present study in the sense that the
researcher needs to find a foundation for seeking the best labor practices in the tourism-
oriented sector. These laws are provided to determine what are the best practices that
are within minimum labor standard laws, and those practices which are over and above
the minimum labor standard laws.
C. Conceptual framework
The research paradigm of this study shall be illustrated in the following figure:
Figure 1: Paradigm on how companies manage labor problems

Figure 1 above shows a paradigm on how companies in the tourism-oriented
sector manage different labor problems:
A labor problem starts from the relationship existing between management and
employees/workers. It is given that there always exist gaps between management and
labor. These identified gaps give rise to a lot of labor-related problems. Hence, there is
a need for management to provide creative, proactive and effective intervention
measures to minimize gaps, increase productivity and eventually promote industrial
Relationship
between
management and
labor
(employees/workers)

Management
Intervention
Measures
Identified
gaps
Outcomes
Cost
Morale
Productivity


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peace. These intervention measures may be considered as the best labor practices being
utilized by selected companies within the tourism-oriented sector. Possible outcomes by
reason of these intervention measures may yield to higher productivity, employee
morale, and high savings.
RESEARCH METHODOLOGY
The researcher used descriptive and exploratory research as research design.
Consider the following methods utilized:
a) expert interview -- the researcher conducted expert interviews from the human
resource managers, human resource supervisors and personnel in order to come up with
the best labor practices in managing selected establishments in the tourism-oriented
sector.
The major instrument used in gathering the data is the questionnaire. The questionnaire
was supplemented with unstructured interview with some of the respondents.
c) secondary data sources. Articles from recent newspapers, journals and the internet
was considered in order to be updated on the study.
The researcher concentrated on the selected tourism-oriented establishments located in
Metro Manila.
The respondents shall be composed of human resource managers, and human resource
personnel performing managerial and supervisory functions from selected tourism-
oriented establishments within Metro Manila.
The researcher used purposive sampling as a sampling scheme wherein a desired number
of sample units are selected on purpose. The selection of the sample shall depend on the
personal convenience of the researcher or investigator.
The researcher used Frequency and Percentage (Measures of Central Tendency). This
statistical tool was utilized for determining the impact of the practices being utilized by
the selected establishments in the tourism-oriented sectors as perceived by the
respondents in terms of cost, morale and productivity. This was also utilized in
ascertaining the top corporate attributes being considered by the selected tourism-
oriented establishments in relation to the impact of the practices being utilized by the
selected establishments in the tourism-oriented sectors.
ANALYSIS AND FINDINGS


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Interviews with a total number 46 respondent managers were conducted on the basis of
the following representation:
Table 1: Respondent Representation
Nature of
Establishment
No. of
respondents
Hotel 20
Restaurant 15
Transport service 4
Travel Trade 5
Tourist Site 2

Based on the findings of this study, 90% of the selected respondents agree that it is
imperative to have a proactive and supportive Human Resource Department which will
be instrumental in enhancing the welfare of the employees and helping the company
towards its growth in investments. An open-door policy with the President or General
Manager of the company is most welcome as it has proven to be the most effective
means of removing the barriers of communication and enhancing a shared responsibility
of nationhood between capital and labor.
A) Common problems encountered by various establishments in the tourism-oriented
sector:
The top problems encountered by the selected tourism-oriented establishments are as
follows:
1) Absenteeism / tardiness
2) Illegal dismissal / illegal suspension
3) Pilferage / Theft
4) Dishonesty
B) Critical Factors that give rise to the identified labor problems
The top critical factors that give rise to the labor problems are as follows:
1) Personal / Family / Health problems
2) Poverty / Economic reasons
3) Lack of discipline


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4) Weak Human Resources Department / Lack of support of management with
the Human Resources Department.
C) Schemes employed in handling the above labor problems
The following are the schemes employed by the selected tourism-oriented establishments
in handling labor problems:
a) Labor Management Council
b) Unions
c) Written reports / Incident Report / Committee Investigation
d) Grievance Machinery
e) Counseling / Coaching
d) Dialogues with the Human Resources Department
e) General Assemblies / Departmental Meetings / Meetings with the President or
General Manager.
f) Employee councils to handle cases.
D) Methods and Measures employed in resolving the identified labor problems:

The following are the methods employed by the respondents in handling their respective
labor problems:
a) A labor management council (LMC) is being employed every month to discuss
concerns between management and labor;
b) Regular monthly departmental meetings are conducted to discuss the different
problems encountered by employees. By way of resolution, suggestions are being
discussed to be applied.
c) Extensive counseling programs are undertaken to help erring employees
reflect on mistakes committed.
d) Extensive information dissemination and education to employees are being
conducted to immerse employees of the culture, mission/vision statement and philosophy
of the company. Government agencies like the Department of Labor and Employment
are sometimes invited to provide information to managers and employees on some of the
applicable laws related to management and labor.
e) Emphasis is given for training regarding results-oriented programs.


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f) An open door policy with the General Manager and/or Human Resources
Department is highly undertaken to know directly concerns of the employees down from
the rank and file.
g) An appraisal of performance of employees are undertake every month or
quarter. Employees are given copies of their appraisal and is being counseled on how
these employees will be evaluated.
h) A copy of the code of conduct and job description is given to every employee
before he starts working.
E) Flow of Procedure in investigating employees, supervisors and managerial
employees for violation of company rules and regulations:
It is important that companies have guidelines in investigating employees, supervisors
and managerial employees for violation of company rules and regulations. The
following are the guidelines according to the respondents of the selected tourism-
oriented establishments:
1) A show cause memo is given to the erring employee concerned based on
the incident report given either by the complainant or by the concerned supervisor. If the
erring employee is a manager or supervisor, it is the Director for Human Resources who
furnishes the show cause memo. A show cause memo is a notice given to the
employee showing the unlawful act or crime committed, giving the erring employee an
opportunity to answer or rebut the same within a period from receipt of the memo.
2) A hearing shall be conducted through an investigating committee which
represents the management and labor. In this venue, evidence shall be received and
evaluated objectively by the committee.
3) A report shall be prepared by the investigating committee specifying in detail
its findings and shall provide the corresponding recommendation.
4) A notice of the finding shall be given to the employee under investigation.
F) Labor Cost Saving Devices employed by the selected tourism-oriented establishments
Data reveals the following labor cost saving devices employed by the selected tourism-
oriented establishments:
Hotels
Replacement of contractual employees every five (5) months
Training centers within the company


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Agency employment (for proper monitoring, to maximize productivity)
Hiring of external trainer
Flexible staffing / cross training / multiskilling / job combination
Hiring of concessionaires (for laundry, baking, cafeteria)
Early retirement programs
Proactive training of employees
Paperless requisitions
No overtime (OT) policy
Restaurants
Hiring of student apprentices
Limited or no overtime (OT) policy
Multiskilling / Multitasking / Cross training
Broken time scheduling
Franchising
Implementing a double day-off policy
Replacement of contractual employees every 5 months
Transport Service
Replacement of contractual employees every 5 months
Flexible staffing / Multitasking
Extensive training for proper care for bus equipment
Travel Trade
Job rotation / Cross training / Flexible staffing
Tourist sites
Multiskilling / Flexible staffing
Seeking external linkage for sponsorships of training of employees and managers
G) Best Labor Practices being implemented in various tourism establishments.
In summary, the following are the best labor practices that are now implemented in
various tourism establishments:
(1) In the selection process of employees, a comprehensive medical/physical
examination and/or a psychological/IQ examination is undertaken.
(2) A comprehensive background check is usually undertaken by an employer before
admitting newly hired employees.


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(3) A two-week orientation training is given to the newly hired employees before they
start the actual duty. An immersion of the operations will be observed plus a thorough
study of the companys background by the new employee will be undertaken. A written
examination on what was learned during the orientation training will have to taken by the
newly hired employees before he starts to work.
For the training of drivers, a two-week driving training plus an actual examination is
undertaken before they start working.
(4) Some respondents report that they do not have unions in their workplace. Instead, a
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.
(5) A performance evaluation on a monthly or quarterly basis is being undertaken
among employees. In this regard, proactive counseling is being done to improve
performance and productivity level of employees. By way of practice, a written
performance evaluation is furnished to the employee concerned.
(6) Meritocracy is observed in such as way that increase in pay and other incentives are
always based on performance. Other benefits being given over and above the benefits
prescribed under labor standard laws are: meal allowance, vacation leave, sick leave,
emergency leave, bereavement leave, hospitalization and medical benefits, group
disability insurance, rice subsidy, birthday leaves, profit-sharing, performance based
awards, productivity bonus, education benefits, 14
th
up to 16
th
month pay, quarterly
bonuses, meal allowance, loyalty awards, Christmas groceries and a competitive
retirement program. Sports and recreational activities, Christmas parties and weekly
bible-reading activities are being undertaken to develop the employees physical, social
and spiritual well-being.
(7) 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.)
(8) Newly hired employees are oriented on and being furnished copies of the companys
Code of Ethics before they start working. All other day-to-day activities of the company
policies are published in memos, copy furnished the employees and posted in strategic
bulletin boards.


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(9) Employees are furnished copies of their job description, company policies, house
rules and the instruments on how they will be evaluated.
(10) Companies invest highly on training and development of employees and managers.
For hotels, the average training budget annually would range from P1.8M to P5M. For
restaurants, the average annual training budget ranges from P500,000.00 to
P2,000,000.00 . For airline companies, the annual training budget ranges from P6M to
P7M. For travel trade, the tour operators are given free training by companies from the
airline industry.
(11) 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.
(12) For tourist sites which are being administered by the government, strict adherence
to civil service laws, rules and regulations is imperative.
As perceived by the respondents, the best labor practices by the selected establishments
in the tourism-oriented sector yield to: a) moderate savings; b) average morale among
employees; and c) high productivity.
It is worthy to note that the following are the top corporate attributes that are considered
by the selected establishments in the tourism-oriented sector as perceived by the
respondents:
1) Customer Satisfaction;
2) Business growth;
3) Employee Morale and Financial Stability
It can be deduced that the primary objective of the selected establishments in the
tourism-oriented sector is to make sure that customers are fully satisfied. That is why the
respondents perceive the current labor practices being applied by the selected
establishments yield to high productivity because their primary consideration is customer
satisfaction. Employee morale and financial stability are also being considered by the
selected establishments in the tourism-oriented sector as one of their corporate attributes,
though not its top priority. Hence, respondents perceive the current practices only yield
to moderate savings and average morale.
RECOMMENDATION / CONCLUSION
The following are the recommendations as a result of this study:


35

1. Legislators and government agencies such as the Department of Tourism and
Department of Labor and Employment should play an active role in providing assistance
for tourism establishments in terms of training, information dissemination and education
on labor laws and standards required for excellent service to customers. This
information dissemination and training seminars will provide a strong background to
employers in order for them not to commit the mistakes in handling labor disputes.
2. There is a need for tourism-oriented establishments to maintain standards in order to
contribute to its growing industry, hence it is preferable for administrators of colleges
and universities to look into these best labor practices for reflection, perusal and review
in terms of utilizing the information for developing quality educational programs to
prepare its future graduates (especially for graduates of BS Hotel and Restaurant
Management and BS Tourism and Tourism Management) on their entry level in the
tourism industry.
To conclude, the tourism industry, with its labor intensive nature, is prone to many labor
issues. Hence, labor law plays a vital role in the efficient operation the various business
enterprises related to tourism. The Philippine Constitution has given emphasis to labor
as an important aspect of our socio-economic development. That is why, strict
adherence to labor laws, rules and regulations should be properly observed for the
overall development of our economy.
SCOPE OF FUTURE RESEARCH
As this study is limited to tourism-oriented establishments in Metro Manila, it is highly
recommended that this be replicated for further exploratory research study to cover also
establishments representative of the whole country.
REFERENCES
1. Azucena, C.A. (2001), Everyones Labor Code, Rex Book Store, Inc.

2. Clemente, M. (2005), Handbook on Pleading, Practice and Procedure Before
Labor Arbiters,
3. Nolledo, J. (1990), The New Constitution of the Philippines, Annotated, National
Bookstore.
Central Book Supply.
4. Foz, V. (1983), The Labor Code of the Philippines, Philippine Law Gazette,
Quezon City.


36

5. Employers Confederation of the Philippines vs. National Wages and Productivity
Commission and Regional Tripartite Wages and Productivity Board-NCR et al.,
(1991), Supreme Court of the Philippines, G.R. No. 96169. Retrieved from:
http://www.chanrobles.com/cralaw/1991septemberdecisions.php?id=711
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989%20-%20NWPC%20publication.pdf.
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http://www.chanrobles.com/legal4labor7.htm
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Retrieved from:
http://www.chanrobles.com/implementingrulesofthelaborcode.htm#.UyuvVM6v
Zps
9. Social Security Act of 1997 (Phil.). Retrieved from:
http://www.chanrobles.com/legal4sss.htm#.UyuwCc6vZps
10. Civil Code of the Philippines (1949). Retrieved from:
http://www.chanrobles.com/civilcodeofthephilippines.htm
11. Paternity Leave Act of 1996 (Phil.). Retrieved from:
http://www.bwsc.dole.gov.ph/files/RA%208187%20paternity%20leave%20act.p
df
12. Solo Parents Welfare Act of 2000 (Phil.). Retrieved from:
http://www.lawphil.net/statutes/repacts/ra2000/ra_8972_2000.html
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http://www.chanrobles.com/republicactno7641.htm#.Uyu0rM6vZps
14. Republic Act 9241 (2004), Phil. Retrieved from:
http://www.lawphil.net/statutes/repacts/ra2004/ra_9241_2004.html
15. Implementing Rules and Regulations of Republic Act No. 7742 Amending
Presidential Decree 1752 and Executive Orders 35 and 90, 1995 (Phil.)
Retrieved from:
16. http://www.chanrobles.com/PDF.LAWS/IMPLEMENTING%20RULES%20AN
D%20REGULATIONS%20OF%20REPUBLIC%20ACT%20NO.%207742.pdf


37

17. DOLE Department Order No. 9, 1997 (Phil.). Retrieved from:
http://www.chanrobles.com/doledepartmentorderno9-1997.html#.Uyu56c6vZps

A Study of The Best Labor Practices of Selected Tourism Establishments in The Philippines

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International Journal of Research in Management, Economics & Commerce

Website: www.indusedu.org (ISSN 2250-057X, ISO 9001:2008 Certified Journal,

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