CASE STUDY

Group 2
RATIONALE/ BACKGROUND

 Jollibee Food Corporation is a Filipino multinational chain of fast

food restaurants owned by Jollibee Foods Corporation. As of April
2018, JFC had a total of about 1,200 Jollibee outlets worldwide;
with presence in Southeast Asia, the Middle East, East Asia, North
America, and Europe.
 According to the coalition, a Department of Labor and Employment
assessment report in July found that Jollibee violated the security
of tenure of its employees by contracting out to service
contractors its personal requirements for tasks and responsibilities
that are vital and directly related to its business operation.
RATIONALE/ BACKGROUND

 The DOLE also said that the exaction's on the employee's wages
were unauthorized and in violation of the Labor Code provision
and other assurances protecting the integrity of the employees
wages. Through these findings, DOLE has ordered Jollibee and its
service contractors to refund their exaction's on employees wages
amounting to P15.4 million for Jollibee, and for its service
contractors P4.1 million. The DOLE also ordered Jollibee to
regularize a total of 6,482 workers under service contractors:
Generation One and Staff Search Asia.
ISSUES AND CONCERNS

 Security of Tenure. Jollibee has been hiring service crews,

particularly working students, which is an important role in the
food chain business but on a contractual basis.
 Exaction's on the employee's wages. Jollibee has been exacting
certain amount from their employees’ salaries that was
unauthorized and unethical.
POINT OF VIEW

STATEMENT OF THE PROBLEM

• The company has been hiring contractual employees’ despite the
vital role of a Service Crew in a food chain. Further, there was an
unauthorized exaction of amount from their employees’ salaries.
OBJECTIVES

 To regularize employees based on Labor Code.

 To create a policy of granting promotion for top
performing Service Crews.
 To set a transparency policy in terms of salary
deductions to employees’ and give them the required
benefits.
AREAS OF CONSIDERATION

STRENGTH:
 Jollibee Food Corporation has been a great help especially for
those working students to be able to support their school
finances.
 The company have several distinct advantages in training their
Service Crews in serving Quality Food, promoting Customer
Satisfaction and Customer Complaints handling.
AREAS OF CONSIDERATION

WEAKNESSES:
 Since their employees are on contractual basis, they were not
given benefits of such a permanent employee.
 There is no security of tenure for their employees, they will work
until the end of their contract without any benefits.
ALTERNATIVE COURSES OF ACTION
1. Create an essential policies for employment status with
corresponding benefits
Advantages: Disadvantages:
 Jollibee should have formal written  Reduced benefits and vacation
policies to demonstrate compliance assurance
with certain laws as well as  Given a workload beyond what
communicate rules, procedures,
they can accomplish with their
and guidelines to employees
employment status
 Job variety  Rights based on the specific
 Flexibility of work hours contract
 Less competition  Job security
ALTERNATIVE COURSES OF ACTION
2. Changing terms and conditions of employment
Advantages:
 Improved productivity
 More efficient administration
 Improved recruitment and
retention of employees
 Better relationships between
different grades of staff
Disadvantages:
 Increased wages bill and pension
scheme contributions
 Manager and employee resistance to
changes to their status or working
conditions, especially if they feel
they won't personally benefit
 Employee management problems if
traditional controls are removed,
such as clocking on and off
ALTERNATIVE COURSES OF ACTION
2. Create a salary scheme based on the employee
performance evaluation results

Advantages:
 Adherence to company policies
 Career Development
 Employees recognition and
motivation
 Promotion
 Security of Tenure
 Merit Performance
Disadvantages:
 Creates trusts issues
 Stressful atmosphere
 Evaluators bias
 Demotion
RECOMMENDATION

 Alternative Course of Action 1 - Create an essential policies for employment

status with corresponding benefits
PLAN OF ACTION
 Employees should be clear as to what they are looking for and how much are
they willing to compromise.
 The company should implement and monitor the employee performance of
their employees, to know if they are performing well to their job duties and
responsibilities.
 Employees should be rated by the evaluators of the company based on their
skills and performance. The results of the evaluations should be given to
employees.
PLAN OF ACTION
 If the evaluation results is poor then the company will call the attention of
the employee and set up a meeting with him/her with Human Resource
Department Head. And if it is high, then he/she can continue to work in the
company.
 Monitoring and evaluation are integral part of any organization as it leads to
employee development, growth of the organization and well documented ways
of things. It is thus always advised to choose it fairly and keep it transparent
to ensure success.
 Jollibee foods corporation now decides if their employees are recommended
to be a permanent employee of the company.
THANK YOU