Legal Issues in Hotel Industry – Labor Laws sectors, to form unions, associations, or

societies for purposes not contrary to law

Legal Basis
shall not be abridged.
1. 1987 Constitution iii. Sec. 10. No law impairing the obligation of
a. Article II (Declaration of State Principles and contracts shall be passed.
Policies) iv. Sec. 18 (2). No involuntary servitude in any
i. Sec. 9. The State shall promote a just and form shall exist except as a punishment for a
dynamic social order that will ensure the crime whereof the party shall have been
prosperity and independence of the nation duly convicted.
and free the people from poverty through c. Article XIII (Labor)
policies that provide adequate social i. Sec. 3. The State shall afford full protection
services, promote full employment, a rising to labor, local and overseas, organized and
standard of living, and an improved quality unorganized, and promote full employment
of life for all. and equality of employment opportunities
ii. Sec. 10 The State shall promote social for all. It shall guarantee the rights of all
justice in all phases of national workers to self-organization, collective
development. bargaining and negotiations, and peaceful
iii. Sec. 18 The State affirms labor as a primary concerted activities, including the right to
social economic force. It shall protect the strike in accordance with law. They shall be
rights of workers and promote their welfare. entitled to security of tenure, humane
iv. Sec. 20. The State recognizes the conditions of work, and a living wage. They
indispensable role of the private sector, shall also participate in policy and decision-
encourages private enterprise, and provides making processes affecting their rights and
incentives to needed investments. benefits as may be provided by law. The
b. Article III (Bill of Rights) State shall promote the principle of shared
i. Sec. 4. No law shall be passed abridging the responsibility between workers and
freedom of speech, of expression, or of the employers and the preferential use of
press, or the right of the people peaceably voluntary modes in settling disputes,
to assemble and petition the government including conciliation, and shall enforce
for redress of grievances. their mutual compliance therewith to foster
ii. Sec. 8. The right of the people, including industrial peace. The State shall regulate the
those employed in the public and private relations between workers and employers,
 recognizing the right of labor to its just d. Article 1703. No contract which practically amounts
share in the fruits of production and the to involuntary servitude, under any guise
right of enterprises to reasonable returns to whatsoever, shall be valid.
investments, and to expansion and growth. e. Article 1704. In collective bargaining, the labor
ii. Sec. 13. The State shall establish a special union or members of the board or committee
agency for disabled person for their signing the contract shall be liable for non-
rehabilitation, self-development, and self- fulfillment thereof.
reliance, and their integration into the f. Article 1705. The laborer's wages shall be paid in
mainstream of society. legal currency.
iii. Sec. 14. The State shall protect working g. Article 1706. Withholding of the wages, except for a
women by providing safe and healthful debt due, shall not be made by the employer.
working conditions, taking into account h. Article 1707. The laborer's wages shall be a lien on
their maternal functions, and such facilities the goods manufactured or the work done.
and opportunities that will enhance their i. Article 1708. The laborer's wages shall not be
welfare and enable them to realize their full subject to execution or attachment, except for debts
potential in the service of the nation. incurred for food, shelter, clothing and medical
2. Civil Code attendance.
a. Article 1700. The relations between capital and j. Article 1709. The employer shall neither seize nor
labor are not merely contractual. They are so retain any tool or other articles belonging to the
impressed with public interest that labor contracts laborer.
must yield to the common good. Therefore, such k. Article 1710. Dismissal of laborers shall be subject
contracts are subject to the special laws on labor to the supervision of the Government, under special
unions, collective bargaining, strikes and lockouts, laws.
closed shop, wages, working conditions, hours of l. Article 1711. Owners of enterprises and other
labor and similar subjects. employers are obliged to pay compensation for the
b. Article 1701. Neither capital nor labor shall act death of or injuries to their laborers, workmen,
oppressively against the other, or impair the interest mechanics or other employees, even though the
or convenience of the public. event may have been purely accidental or entirely
c. Article 1702. In case of doubt, all labor legislation due to a fortuitous cause, if the death or personal
and all labor contracts shall be construed in favor of injury arose out of and in the course of the
the safety and decent living for the laborer. employment. The employer is also liable for
compensation if the employee contracts any illness
 or disease caused by such employment or as the i. Except Branches, Subdivisions or
result of the nature of the employment. If the instrumentalities and agencies of
mishap was due to the employee's own notorious government and GOCC without original
negligence, or voluntary act, or drunkenness, the chapters
employer shall not be liable for compensation.
State Policy Towards Labor
When the employee's lack of due care contributed
to his death or injury, the compensation shall be 1. Security of Tenor
equitably reduced. a. What is Security of Tenure? It mandates that
m. Article 1712. If the death or injury is due to the workers are entitled to both substantive and
negligence of a fellow worker, the latter and the procedural due process before termination.
employer shall be solidarily liable for compensation. b. It is guaranteed by our constitution. Art. III sec. 3
If a fellow worker's intentional or malicious act is and Art. 294 of the Labo Code
the only cause of the death or injury, the employer c. Otherwise, employee is entitled to damages.
shall not be answerable, unless it should be shown 2. Social Justice
that the latter did not exercise due diligence in the a. Those who have less in life, should have more in law
selection or supervision of the plaintiff's fellow b. It mandates a compassionate attitude towards the
worker. working class in its relation to management.
3. Labor Code (PD 442) 3. Equal Work Opportunities
a. ART. 3. Declaration of Basic Policy. — The State shall a. ART. 3. Declaration of Basic Policy. — The State shall
afford protection to labor, promote full afford protection to labor, promote full
employment, ensure equal work opportunities employment, ensure equal work opportunities
regardless of sex, race or creed, and regulate the regardless of sex, race or creed, and regulate the
relations between workers and employers. The State relations between workers and employers. The State
shall assure the rights of workers to self- shall assure the rights of workers to self-
organization, collective bargaining, security of organization, collective bargaining, security of
tenure and just and humane conditions of work. tenure and just and humane conditions of work.
b. Who are Covered by the LC? b. ART. 133. Discrimination Prohibited. — No employer
i. All workers, whether agricultural or non- shall discriminate against any woman with respect
agricultural, unless otherwise provided by to terms and conditions of employment on account
the labor code. of her sex. Equal remuneration shall be paid to both
c. Government Employees are not covered by the LC. men and women for work of equal value.
4. Right to Self-Organization and Collective Bargaining
 a. Labor Unions nullifying the recognition, enjoyment, or
5. Construction in Favor of Labor exercise by women, irrespective of their
a. ART. 4. Construction in Favor of Labor. — All doubts marital status.
in the implementation and interpretation of the ii. It includes an act or omission, whether by
provisions of this Code, including its implementing law, administrative order, policy, or practice
rules and regulations, shall be resolved in favor of that directly or indirectly excludes or
labor. restricts women in the enjoyment and
promotion of their rights or privileges.
Pre- Employment (Discriminatory Practices)
iii. Failed to provide mechanisms to offset or
1. R.A. 10911 Anti-age discrimination in Employment Act address sex or gender-based disadvantages
a. Employers are prohibited to do the following or limitations of women
i. Print or publish any form of media , b. Stipulation against marriage
including internet, any notice or i. Unlawful for an employer to
advertisement relating to employment 1. Require as a condition of
suggesting preferences, limitations, employment or continuation of
specifications and discrimination based on employment that a woman
age. employee shall not get married; OR
ii. Require applications to declare their age or 2. Stipulate that upon getting married,
date of birth a women shall be deemed resigned
iii. Decline any employment because of age or separated; or
iv. Discriminate in terms of compensation or 3. Dismiss, discriminate or prejudice a
privileges because of age woman employee because by
v. Deny any promotion or opportunity for reason of her marriage
training because of age; ii. Exceptions (BFOQ)
vi. Forcibly lay-off an employee because of Age 1. Qualification is reasonably related
vii. Impose early retirement to the essential operation of the
2. R.A. 7910 Magna Carta for Women (Gender / Marital job; and
Status) 2. There is a factual basis for believing
a. Discrimination Against Women that all persons meeting the
i. Sec. 4 (B). It refers to any gender-based qualification would be unable to
distinction, exclusion, or restriction which properly perform the duties or job.
has an effect or purpose of impairing or iii. Examples
 1. Deny woman employee the benefits ii. Using qualification test that screen out or
provided under the law tends to screen out a disabled person.
2. Discharge employee on account of iii. Providing less compensation and benefits by
her pregnancy reason of his disability compared to a non-
3. Discharge to refuse the admission disabled person with the same work
to work for fear that she might be iv. Favoring a non-disabled member over a
pregnant again qualified disabled employee with respect to
3. R.A. 7277 or the Magna Carta for Disabled Person promotion, training opportunities etc.,
a. No disabled person shall be denied access to solely on account of his disability
opportunities for a suitable employment. A qualified v. Re-assigning/ Transferring a disabled
disabled employee shall be subject to the same employee to a job the cannot perform by
terms and conditions of employment like a qualified reason of his disability;
able person vi. Dismissing or terminating his service
b. Disabled persons are those suffering from restriction vii. Excluding in joining labor unions
or different abilities as a result of a mental, physical 4. R.A. 8972 as amended by RA 11861 Solo Parent’s Welfare
or sensory impairment, to perform an activity in the Act
manner or within the range considered normal for a a. No employer shall discriminate against any solo
human being. parent employee with respect to Terms and
c. Consideration shall be given to the employer’s conditions of employment
judgment as to what functions of a job are essential.
Employment Proper
(i.e. written job description)
d. 5% of casual, contractual employees in government 1. Management Prerogative- Employers enjoy a wide sphere of
agencies are reserved for diabled person authority to regulate its own business, subject to limitations
e. Incentives for employers imposed by labor laws and the equity and substantial
i. 25% from their taxable income justice. It should not be unreasonable, inconvenient,
ii. 50% if they improve or modify their physical prejudicial, or involve a demotion of rank, salaries, benefits
facilities to accommodate disabled persons and other benefits. Limitations are law, CBA, fair play and
f. Discriminatory Acts justice
i. Limiting, segregating or classifying a
disabled applicant that adversely affect his a. Transfer of Employees
work opportunities; i. In pursuit of legitimate interest and there
should be demotion in Rank, salary, enefi
 ii. Not motivated by discrimination, made in i. The 1 hr meal
bad faith, or as a form of punishment. period are NOT
b. Change of Working Hours compensable
i. Yes, whenever exigencies of the service ii. However, breaks
require and exercised in good faith for the running from 5-20
advancement of employer’s interest and not minutes are
for the purpose of defeating the worker’s considered
rights compensable
c. Bonafide Occupational Standards c. Is the employer allowed not
i. It is a rule that a particular sex, religion, or to provide 1 hr meal break?
national origin is an actual qualification for i. Yes. But need to
performing a job. The employer must show provide a minimum
that such is an actual qualification for the of 20 minute meal
job. period and
ii. Employer must prove 1. Work is a
1. Qualification is reasonably related non-manual
to the essential operation of the job work in
involved nature or
2. There is a factual basis for believing does not
that all or substantiall all persons involved
meeting the qualification would be strenuous
unable to properly perform the physical
duties of the job. exertion
2. Labor Standards 2. Establishme
a. Conditions of Employment nt regularly
i. Coverage operates
1. Hours of Work not less
a. Rule: Total no. of working than 16 hrs
hours shall not exceed 8 hrs a day
a day 3. There is an
b. Meal periods actual or
impending
 emergencie not more
s or urgent than 5
work need 3. DH or in
to be personal
performed service
on 4. Managerial
machiniries employees
to avoid 5. Field
serious loss Personnel
4. Work is or those on
necessary commission
to prevent basis
serious loss e. Overtime work
of i. It is the work
perishable performed beyond
goofds the normal 8 hrs of
d. Night Shift Differential work.
i. It is an additional ii. 25%
premium pay of iii. RDOT or HOT – 30%
10% for every hour iv. Can employer
of work done compel employee
between 10pm to to render OT?
6am of the 1. Yes.
following day. providedxxx
ii. Excluded xx
1. Governmen 2. Restday
t employee a. Not less than 24
2. Retail and consecutive hrs after every
service 6 consecutive normal work
establishme days.
nt regularly b. Schedule
employing c. Limitations
3. Service Charge RA 11360 in relation b. Employer has the right to
to Art. 96 know all types of hazard in
a. IT refers to the additional the workplace, access to
payment for services training and education on
collected by hotels, chemical safety etc.
restaurants and similar c. EE has the right to refuse to
establishments which are work due to safety issues
given to covered provided there is an
employees. imminent danger situation
b. Except managerial exists in the workplace and
employees the ER failed to eliminate
c. How distributed? the danger
Completely and equally. 5. Wages
Based on actual hours/ days 6. Coverage
of work. a. Government employee
d. Frequency? Every two b. Managerial Employee
weeks or twice a month at c. Field Personnel
intervals not exceeding 16 d. Family members dependent
days for support
4. Occupational safety and health e. Domestic Workers
standards Law. RA 111058 f. Personal Service
a. Duties of the employer to g. Paid by result
inform the employee of the ii.
hazard associated wit htheir b. Leaves
work, the health risk i. SIL- leaves given to covered employees who
involved or to which they may desire to use them anytime they may
are exposed to, preventive want to take a leave
measures to eliminate ro ii. Maternity Leave RA8282
maximize the risk and steps 1. Expanded Maternity leave, RA
to be taken in case of 11210
emergency. a. 105 + 15
b. Miscarriage 60
 c. Livebirth +30 w/o pay
2. Unli. Before first 4
iii. Paternity Leave
1. 7 days. Married employee
2. 4 deliveries
iv. Solo parent leave RA 8972
v.
vi.
c. Special Group of Employees
d. Sexual Harassment in the Work Environment

Post Employment

1. Employee-Employer Relationship
2. Termination of Employment by Employer
3. Termination of Employment by Employee