Labor Laws and Management in the Tourism Establishments

Important Concepts of Law Affecting Employment

Labor Law

 Includes all the rules of law governing the conditions under which
persons may work under the control of other persons called employers.
 Relevant to this are the concepts of labor standards and labor relations
laws governing hours of work, weekly rest periods, minimum wage rates,
unfair labor practices, strikes and lockouts.

Distinctions between Labor Standards and Labor Relations

Labor Standards prescribe the terms and conditions of employment as

affecting wages or monetary benefits, hours of work, cost of living allowances,
occupational health, safety and welfare of the workers. On the other hand,
Labor Relations is used to denote all matters arising out or employer-employee
relationship involving the concerted action on the part of the workers which is
usually related with collective bargaining and negotiation process. Labor
Relations is comprehensive to include the former for Labor Standards benefits
are proper bargaining issues, that is, within the domain of Labor Relations.

Social Legislations. Germane to Labor Standards and Labor Relations 15 the

Official Legislations Law which is governing the employer-employee relationship
while the employee is "not at work" due to hazards arising from employment. It
is actually designed to uplift and protect the welfare of the worker and his
family, Because of the hazards beyond his control which immobilize him from
working

Classifications of Labor Laws Labor Laws may be classified as follows:

Protective Legislation; Welfare or Social Legislation; Diplomatic Legislation;
Administrative Legislation; Labor Relations Legislation; Labor Standards
Legislation.

1. Protective Legislation is designed to protect the weaker party to the

employment contract (e.g., Anti-sexual Harassment Laws, Child Labor Laws,
Laws protecting Women Against Discrimination)

2. Welfare or Social Legislation is intended to remove or reduce the

insecurity of the workers while the latter is not at work due to hazards arising
from employment (e.g., SSS Law, GSIS Law, Philhealth/R.A.7875, Workmen's
Compensation Act)
3. Diplomatic Legislation is designed to settle labor disputes through pacific
modes (e.g., laws providing for a conciliation, mediation, grievance machinery
or arbitration)

4. Administrative Legislation creates labor bodies or agencies for

administrative purposes (e.g., POEA,DOLE, NLRC or TESDA)

5. Labor Relations Legislations prescribe minimum requirements relating to

wages, hours of work, cost of living allowances, and other monetary and
welfare benefits including occupational, safety and health standards.

6. Labor Standards Legislations prescribe minimum requirements relating to

wages, hours of work, cost of living allowances, and other monetary and
welfare benefits including occupational, safety, and health standards.

The Workers' Rights The 1987Constitution has provided the following

rights of the employees

1. Right to self-organization

2. Right to collective bargainin8

3. Right to security of tenure

4. Right to just and humane conditions of work. This refers to fair wages and
equal remuneration for work of equal value, safe and healthy working
Conditions, equal opportunity to promotion and rest, leisure and reasonable
limitation of working hours, such as:

4.1. The right to regular working hours

4.2. The right to regular working days

4.3. The right to overtime work

4.4. The right to weekly rest period

4.5. The right to additional compensation on scheduled rest day/special

holiday

4.6. The right to compensation for holiday work; and

4.7. The right to hospitalization

5. Right to peaceful concerted activities

6 Right to strike

7. Right to a living wage

8. Right to participate in policy and decision-making processes

9 Right to just share in the fruits of production

Employers Rights

1. Reasonable return on investment

2. Expansion and growth

3. Exercise management prerogative

3.1. to lay down and execute management policies;

3.2. to hire;

3.3. to transfer;

3.4. to discipline;

3.5. to dismiss;

3.6. Retrenchment. It exists during the period of business recession industrial

depression, or seasonal fluctuations;

3.7.To declare redundancy. It exists where the services of an employee a in

excess of what is reasonably demanded by the actual requirement of the
enterprise;

3.8. To cease operations. The management may cease business operation or

undertaking even if it is not suffering from serious business los= or financial
reverses as long as he pays his employees their terminate topay in the amount
corresponding to their length of service;

3.9. To sell the company;

3.10. To abolish positions.

Termination of Employer-Employee Relationship

1. Serious Misconduct or Wilful Disobedience by the employee of the lawful

orders of the employer or representative in connection with his work;
2. Gross 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. Other
5.Causes Analogous to the foregoing

Some Labor Code Provisions Concerning Hours of Work, Rest Periods, Holiday
Pay, Leaves and Service Charges

Article 83. Normal Hours of Work. The normal hours of work of any employee
shall not exceed eight hours a day.

Article 84. Hours Worked. It shall include: (a) at all times during which an
employee is required to be on duty or be at a prescribed workplace, and (6) at
all times during which an employee is suffered or permitted to work. Rest
period of short duration working hours shall be counted as hours worked.

Article 85. It is the duty of every employer to give his employees regardless of
sex, not less than 60 minutes time off for their regular meals. These meal
periods are not, however, compensable hours of work. The regular meals are
breakfast, lunch, and supper. Coffee breaks or rest periods running from five
(5) to twenty (20) minutes are not included; they are considered as
compensable working time.

Article 86. Night Shift Differential. Every employee shall be paid a night shift
differential or not less than ten percent (10%) of his regular wage for each hour
of Work performed between ten o' clock in the evening and Six O'clock in the
morning. All employees are entitled to night shift differential pay except the
following:

a. Government employees including those employed in government-owned or

controlled corporations With orignal charters;

b. Emplovees of retail and service establishment regularly employing not more

than five (5) workers;

c. Domestic helpers;

d. Persons in the personal service of another

e. Managerial employees; .
f. Officers and members of a managerial staft

g. Field personnel and other ployees whose time and pe unsupervised by the
employer; performance is

h. Workers who are engaged on task or contract basis, purely commission

basis, or those who are paid with a fixed amount for performing work
irrespective of the time consumed in the performance thereof (Sec 1, Rule 1,
Book III, Rules Implementing the Labor Code) and,

i. Members of the family of the employer who are dependent upon him for
support (Article 82 of the Family Code).

Article 87. Overtime Work. Work may be performed beyond eight hours a day
provided that the employee is paid for the overtime work, an additional
compensation equivalent to his regular wage plus at least twenty five percent
(25%) thereof. Work performed beyond eight hours on a holiday or rest day
shall be paid an additional compensation equivalent to the rate of the first eight
hours on a holiday or rest day plus at least thirty percent (30%) thereof.

Article 96. Service Charges. All service charges collected by the hotels,
restaurants and similar establishments shall be distributed at the rate of eight-
five (85%) for all covered employees and fifteen percent (15%%) for the
management. The share of employees shall be equally distributed among them.
In case the service charge is abolished, the share of the covered employees
shall be considered integrated in their wages.

Anti-Sexual Harassment Act of 1995

The authors believe that there is really a necessity to include the Anti-Sexual
Harassment Act in the discussion of this book since the hospitality industry
and other work places are prone to different sexual harassment cases. This
book would at least give the future practitioners basic knowledge of the
mentioned law.

Act Declaring Sexual Harassment Unlawful. RA 7877 otherwise known as the

Anti-Sexual Harassment Act of 1995 declares sexual harassment unlawful in
the employment, educator or training environment, and for other purposes.

State Policy Pertaining to Sexual Harassment Cases. Sec 2 of RA 7877

provides that the State shall value the dignity of every individual, enhance the
development of its human resources, guarantee full respect for human rights,
and uphold the dignity of workers, employees, applicants for employment, and
students of those undergoing training, instruction or education. Towards this
end, all formed of sexual harassment in the employment are hereby declared
unlawful.

Requisites of Sexual Harassment in a Work-Related or Employment

Environment

RA 7877 also provides that the following must be present in order for an act in
a Work-related or employment environment be considered as sexual
harassment: 1. The sexual favor is made as a condition in the hiring or in the
employment, re-employment or continued employment of said individual, or in
granting said individual favorable Compensation, terms, conditions,
promotions, or privileges; or the refusal to grant the sexual favor result in
limiting, segregating or classifying the employee which in a way would
discriminate, deprive or diminish employment opportunities or otherwise
adversely affect said employees; 2. The said acts would impair the employees
right or privileges under existing labor laws, or; 3. The said acts w0uld result in
an intimidating, hostile, or offensive environment for the employee.

In an education or training environment, sexual harassment is

committed: against one who is under the care, custody or supervision of the
offender; against one whose education, training, apprenticeship or tutorship is
entrusted to the offender; when the sexual favor is made a condition to the
giving of a passing grade, or the granting of honors and scholarships, or the
paymernt of a stipend, allowance or other benefits, privileges or consideration;
or when the sexual advances result in an

Intimidating, hostile or offensive environment for the student, trainee or

apprentice. It should be noted that any person who directs or induces another
to commit any act of sexual harassment, or who cooperates in the commission
thereof by another, without which it would not have been committed, shall also
be held liable under RA 7877.