Labor Laws Regulating

Tourism and Hospitality

Manpower
LATHM Week 8
CONSTITUTIONAL
PROVISIONS ON LABOR
Constitutional Provisions on Labor
• The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality of
employment opportunities for all.

• It shall guarantee the rights of all workers to self-organization, collective

bargaining and negotiations, and peaceful concerted activities, including
the right to strike in accordance with law. They shall be entitled to security
of tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights
and benefits as may be provided by law.
Constitutional Provisions on Labor
• The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster industrial
peace.

• The State shall regulate the relations between workers and

employers, recognizing the right of labor to its just share in the fruits
of production and the right of enterprises to reasonable returns on
investments, and to expansion and growth.
Constitutional Provisions on Labor

• SECTION 14. The State shall protect working women by

providing safe and healthful working conditions, taking into
account their maternal functions, and such facilities and
opportunities that will enhance their welfare and enable them to
realize their full potential in the service of the nation.
CLASSIFICATION OF LABOR
Labor Standards

Labor Standards – Prescribe the terms and conditions of

employment as affecting wages or monetary benefits, hours of
work, cost of living allowances, and occupational health, safety
and welfare of the workers. It provides economic benefits to the
workers who are actually working.
e.g. 13th month pay
Labor Relations

Labor Relations – Defines and regulates the status, rights and

duties, and the institutional mechanisms, that govern the
individual and collective interactions of employers, or their
representatives. It is concerned with the stabilization of relations
of employers and employees and seeks to forestall and adjust the
differences between them by the encouragement of collective
bargaining and the settlement of labor disputes through
conciliation, mediation and arbitration.
e.g. Collective Bargaining Negotiations
CLASSIFICATION OF
EMPLOYEES
Classification of Employees

• There are six (6) types of employees recognized under

Philippine Law, namely:

1. Special workers that include the following:

a. Apprentices;
b. Learners;
c. Handicapped workers; and
d. Children on exceptional circumstances
Classification of Employees

2. Casual and Contractual employees

3. Specific Project and seasonal employees
4. Probationary employees
5. Regular employees
6. Managerial employees
Special Workers
Apprentices
• covered by a written apprenticeship agreement with an individual
employer

Qualifications:

1. Must be at least fifteen (15); provided, that those who are at least
fifteen (15) years of age but less than eighteen (18) years may be
eligible for apprenticeship only in non-hazardous occupation;

2. Must be physically fit for the occupation in which he desires to be

trained;
Special Workers
3. Must possess vocational aptitude and capacity for the particular
occupation as established through appropriate tests; and
4. Must possess the ability to comprehend and follow oral and
written instruments.

Apprentices
• Allowed to work only in apprenticeable trades and occupation
approved by the Secretary of Labor
• Period of apprenticeship cannot exceed six (6) months
Special Workers
Learnership

• hired as trainees in semi-skilled and other industrial occupations, which are

non-apprenticeable

• learned through practical training on the job for a relatively short period of time
not exceeding three (3) months

• May be employed when (i) no experienced workers are available, (ii)

employment of learners is necessary to prevent curtailment of employment
opportunities, and (iii) the employment does not create unfair competition in
terms of labor costs or impair or lower working standards.
Special Workers
Handicapped Workers
• Earning capacity is impaired by age or physical mental deficiency or
injury
• Employed when (i) their employment is necessary to prevent curtailment
of employment opportunities, and (ii) their employment does not create
unfair competition in labor costs or impair or lower working standards.

Note: Magna Carta for Disabled Persons (RA 7277)

Casual Employees
• Casual employees are those engaged to perform activities, which are not
usually necessary or desirable in the usual trade or business of the
employer.

• Provided: such employment is neither Project nor Seasonal (LC, Art. 281).

• Nature of the job – determines regularity or casualness of the employment

Casual Employees
• He performs only an incidental job in relation to the principal activity of the employer.

• But despite the distinction between regular and casual employment, every employee shall
be entitled to the same rights and privileges, and shall be subject to the same duties as may
be granted by law to regular employees during the period of their actual employment.

• An employee is engaged to perform a job, work or service which is merely incidental to

the business of the employer, and such job, work or service is for a definite period made
known to the employee at the time of engagement [IRR, Book Vi, Rule I, Sec. 5 (b)].
Casual Employees
• Casual employee becoming a regular employee If he has rendered at least 1 year
of service, whether such service is continuous or broken, he is considered as
regular employee with respect to the activity in which he is employed and his
employment shall continue while such activity exists. A casual employee is only
casual for 1 year, and it is the passage of time that gives him a regular status
(KASAMMA-CCO v. CA, G.R. No. 159828, April 19, 2006).

• The purpose is to give meaning to the constitutional guarantee of security of

tenure and right to self-organization (Mercado v. NLRC, G.R. No. 79868,
September 5, 1991)
Project or Seasonal Employees
• Specific project or seasonal employees are persons who
are engaged to perform work or services, which are
seasonal in nature or for the duration of the season only.
• In project employment, the employment ends upon the
completion of the project and there is a bonus awarded
upon completion.
Project Employees
• Project employment is employment that has been fixed for a
specific project or undertaking the completion for which has been
determined at the time of engagement of the employee. The period
is not the determining factor, so that even if the period is more than
1 year, the employee does not necessarily become regular.
• Where the employment of a project employee is extended long after
the supposed project has been finished, the employees are removed
from the scope of project employees and considered as regular
employees.
• Repeated hiring on a project-to-project basis is considered necessary
or desirable to the business of the employer. The employee is
regular (Maraguinot v. NLRC, G.R. No. 120969, July 22, 1998).
Seasonal Employees
• Employment where the job, work or service to be performed is
seasonal in nature and the employment is for the duration of the
season [IRR, Book VI, Rule I, Sec.5 (a)].
• An employment arrangement where an employee is engaged to
work during a
• particular season on an activity that is usually necessary or
desirable in the usual business or trade of the employer.
• For Seasonal employees, their employment legally ends upon
completion of the project or the season. The termination of their
employment cannot and should not constitute an illegal dismissal
(Mercado v. NLRC, G.R. No. 79869, September 5, 1991)
Probationary Employment
Employment where the employee, upon his
engagement:
• Is made to undergo a trial period
• During which the employer determines his fitness
to qualify for regular employment
• Based on reasonable standards made known to the
employee at the time of engagement (IRR, Book
VI, Rule I, Sec 6).
Probationary Employment
• Probationary employees are those employed on a
trial basis. A probationary employment does not
exceed six (6) months from the date the employee
started working. The services of an employee who
has been engaged on a probationary basis may be
terminated for a just cause or when he fails to
qualify as a regular employee.
Probationary Employment
Rules on probationary employment
• Employer shall make known to the employee at the
time he is hired, the standards by which he will
qualify as a regular employee;
• An employee allowed to continue work after the
probationary period shall be considered a regular
employee;
• During the probationary period, the employee enjoys
security of tenure; his services can only be terminated
for just or authorized causes.
Period of probationary employment
General Rule : It shall not exceed 6 months.
Exceptions:
• Covered by an Apprenticeship or Learnership agreement stipulating a different
period
• Voluntary agreement of parties (especially when the nature of work requires a
longer period)
• The employer gives the employee a second chance to pass the standards set
• When the same is required by the nature of the work, e.g. the probationary period
set for professors, instructors and teachers is 3 consecutive years of satisfactory
service pursuant to DOLE Manual of Regulations for Private Schools.
• When the same is established by company policy.
Regular Employees
• persons who are engaged to perform activities,
which are usually necessary or desirable in the
usual business or trade of the employer.
• Any employee who has rendered at least one (1)
year of service, whether such service is continuous
or broken, will be considered a regular employee
with respect to the activity in which he is
employed and his employed will continue while
such activity exists.
General rule: Employment is deemed regular
Exceptions: Probationary Project Seasonal Fixed-Term Casual
Exceptions to exceptions:
Probationary employees allowed to work after probn. Period
Casual workers rendering service for at least one year xxx
Fixed-Term employee allowed to work after term has expired/ended
Project employee allowed to work after project without any contract; or project
employee allowed to work for several projects but no termination reports
Seasonal employee allowed to work after season is over
Generally, employee was not informed that his/her employment is not regular
Who is considered a Regular Employee?

Four-fold test of
Employer-Employee
Relationship
Four-fold test: Determinants
MEMORY AID: SOUTH WEST DISASTER CONTROL
1. Selection and Engagement of the employee
2. Payment of wages
3. Power of Dismissal
4. “Control Test”- employer’s power to control the
employee with respect to the means and methods by
which the work is to be accomplished.
Managerial Employees

• Managerial employees are those whose primary duty

consists of the management of the establishment in which
they are employed or of a department if subdivision
thereof.
• They are not entitled to benefits under Article 82 to 96 of
the Labor Code.
SERVICE CHARGES
Service Charges
Art. 96. Service Charges. – All service charges collected by
hotels, restaurants and similar establishments shall be
distributed completely and equally among the covered
workers except managerial employees.

The shares of the employees in the service charges shall be

distributed and paid to them not less than once every two
(2) weeks or twice a month at intervals not exceeding
sixteen (16) days.
Service Charges

If abolished - considered integrated in their wages; basis of

the amount to be integrated shall be the average share of
each employee for the past twelve (12) months immediately
preceding the abolition or withdrawal of such charges.

• The employer and his employees are not prevented from

entering into any agreement with terms favorable to the
employees.
TERMINATION OF
EMPLOYMENT
Just and Authorized Causes under the Labor Code

Termination by Employer
Termination of Employment

• Employment may be terminated either by the

employer or the employee.
Termination by Employer; Just Cause
Employee Misconduct
1. Serious misconduct or willful disobedience

2. Gross and Habitual Neglect by the Employee of his Duties

3. Fraud or Willful Breach

4. Commission of a Crime or Offense

5. Other Causes Analogous

Termination of Employer; Authorized Cause
Economic Reasons

1. Installation of labor-saving devices;

2. Redundancy

3. Retrenchment to prevent losses

4. Closure or cessation of operation of the establishment or undertaking due to

financial losses.
Termination by
Employee
Termination by Employee; Voluntary

Voluntary resignation – act of an employee who finds

himself in a situation where he believes that personal
reasons cannot be sacrificed in favor the exigency of the
service and he has no other choice but to disassociate
himself from his employment. (Habana, 16 November 1998)
Termination by Employee; Involuntary/Just Causes
1. Serious Insult by the Employer or his representative on the honor and person of
the employee;

2. Inhuman and unbearable treatment accorded the employee by the employer or

his representative;

3. Commission of a crime or offense by the employer or his representative against

the person of the employee or any of immediate members of his family; and

4. Other causes analogous to any of the foregoing

Notices of Termination
• Termination by Employer in Just Causes – Two Notice Rule
• Termination by Employer in Authorized Causes – One Notice (30
days)
• Termination by Employee in Just Causes – may be immediate
• Termination by Employee in Voluntary Resignation – Letter of
Resignation (Tender on date depending on the contract of
employment)
EMPLOYMENT OF WOMEN
EMPLOYMENT OF WOMEN

“The State recognizes the role of women in

nation-building and shall ensure the
fundamental equality before law of women
and men.” (Declaration of policy, Republic Act
No. 7192)
EMPLOYMENT OF WOMEN
Prohibited acts:
(1) Payment of a lesser compensation, including wage,
salary or other form of remuneration and fringe
benefits, to a female employees as against a male
employee, for work of equal value;
(2) Favoring a male employee over a female employee with
respect to promotion, training opportunities, study and
scholarship grants solely on account of their sexes;
EMPLOYMENT OF WOMEN
(3) Stipulation against marriage - require as a condition of
employment or continuation of employment that a woman
employee shall not get married, or to stipulate expressly or
tacitly that upon getting married, a woman employee shall be
deemed resigned or separated, or to actually dismiss, discharge,
discriminate or otherwise prejudice a woman employee merely
by reason of her marriage. (Art. 136, Labor Code)
(4) To deny any woman employee the benefits provided for in
this Chapter or to discharge any woman employed by him for
the purpose of preventing her from enjoying any of the benefits
provided under this Code;
EMPLOYMENT OF WOMEN
(5) To discharge such woman on account of her pregnancy, or
while on leave or in confinement due to her pregnancy;
(6) To discharge or refuse the admission of such woman upon
returning to her work for fear that she may again be pregnant.
NEW MATERNITY LEAVE LAW (R.A. No. 11210)

“An Act Increasing the Maternity Leave Period to One

Hundred Five (105) Days for Female Workers with an Option
to Extend for an Additional Thirty (30) Days without pay, and
Granting an Additional Fifteen (15) Days for Solo Mothers,
and Other Purposes”

Short Title: “105-Day Expanded Maternity Leave Law”

NEW MATERNITY LEAVE LAW (R.A. No. 11210)
Section 3. Grant of Maternity Leave.— All covered female workers
in government and the private sector, including those in the
informal economy, regardless of civil status or the legitimacy of
her child, shall be granted one hundred five (105) days maternity
leave with full pay and an option to extend for an additional
thirty (30) days without pay: Provided, That in case the worker
qualifies as a solo parent under Republic Act No. 8972, or the "Solo
Parents’ Welfare Act", the worker shall be granted an additional
fifteen (15) days maternity leave with full pay.
- either before or after the actual period of delivery in a continuous
and uninterrupted manner
 NEW MATERNITY LEAVE LAW (R.A. No. 11210)
Section 3. Grant of Maternity Leave.
- Regardless of frequency
- for cases of miscarriage or emergency termination of
pregnancy, sixty (60) days maternity leave with full pay
shall be granted
 NEW MATERNITY LEAVE LAW (R.A. No. 11210)
An additional maternity leave of thirty (30) days, without pay,
can be availed of, at the option of the female
worker: Provided, That the employer shall be given due notice,
in writing, at least forty-five (45) days before the end of her
maternity leave: Provided, further, That no prior notice shall be
necessary in the event of a medical emergency but subsequent
notice shall be given to the head of the agency.
 NEW MATERNITY LEAVE LAW (R.A. No. 11210)

Section 6. Allocation of Maternity Leave Credits

- at the option of the female worker, allocate up to
seven (7) days of said benefits to the child’s father
(over and above that which is provided under
Republic Act No. 8187, or the "Paternity Leave Act of
1996“) whether or not the same is married to the
female worker
NEW MATERNITY LEAVE LAW (R.A. No. 11210)
Section 6. Allocation of Maternity Leave Credits
- In the death, absence, or incapacity of the child’s father, the
benefit may be allocated to an alternate caregiver who may
be a relative within the fourth degree of consanguinity or
the current partner of the female worker sharing the same
household, upon the election of the mother taking into
account the best interests of the child
- In the event the beneficiary female worker dies or is
permanently incapacitated, the balance of her maternity
leave benefits shall accrue to the father of the child or to a
qualified caregiver
SEXUAL HARASSMENT IN
THE WORKPLACE
RA 7877 or Anti-Sexual Harassment Act

Sexual harassment is committed by an employer, employee,

manager, supervisor, agent of the employee, manager, supervisor,
agent of an employee, or any other person who, having authority,
influence or moral ascendancy over another in a work environment,
demands, requests, or otherwise requires any sexual favors from
others, regardless of whether the demand, request for requirement
for submission is accepted or not.
RA 7877 or Anti-Sexual Harassment Act
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, students
RA 7877 or Anti-Sexual Harassment Act
Sexual harassment is committed in a work-related or employment environment, when:

(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 of conditions, promotions, or
privileges; or the refusal to grant the sexual favor results in limiting, segregating or
classifying the employee which in any way would discriminate, deprive or diminish
employment opportunities or otherwise adversely affect said employee;
RA 7877 or Anti-Sexual Harassment Act
(2) The above acts would impair the employee’s rights or privileges
under existing labor laws; or

(3) The above acts would result in an intimidating, hostile, or offensive

environment for the employee.

MEMAID: SEX + POWER IN A WET PLACE

• It is the asking of sex by a person in power in a Working/Educational/Training
Environment
LABOR STANDARDS
Labor Standards
1. Normal Hours Of Work - 8 hours a day

2. Meal And Rest Periods – 60 minutes non-compensable / 15-20 minutes –

compensable

3. Weekly Rest Periods - 24 hours after 6 work days

4. Holiday Pay (regular)– 100% unworked, 200% worked
– present or on leave with pay on the workday prior to the holiday.

5. Service charge – 100%

EMPLOYEE BENEFITS
Employee Benefits
1. Minimum wage rates as prescribed by law. Under the Wage Order No. NCR-25 issued on 17
July 2024, the prescribed minimum daily wage rate for non-agriculture workers in the
National Capital Region is P645.00. On the other hand, the daily minimum wage for workers
in agriculture (plantation and non-plantation), service/retail establishments employing 15
workers or less, and manufacturing establishments regularly employing less than 10
workers, will be raised to PHP608.00 from the current PHP573.00.

2. Overtime pay for work rendered in excess of 8 hours a day;

3. Night shift differential for employees who work between 10:00 pm and 6:00 am;

4. Rest day pay for work rendered any day within a week that is designated as rest day;
Employee Benefits
5. Service Incentive Leave (in the form of vacation and sick leaves)

6. Maternity/paternity leave benefits equivalent to 100% of average credit for 105

days or 60 days in case of normal and caesarian delivery and miscarriage of
pregnancy and paternity leave benefits of seven (7) days with full pay;

7. Thirteenth-month pay equivalent to one-month basic pay for 12 months of

continuous service, the actual number of months of service counted from the date
of hiring.
Employee Benefits
8. Social Security System/Medicare/Employees’ Compensation

9. Home Development Mutual Fund or Pag-IBIG Fund

10. Philhealth
Summary of Benefits
Are you ready to join
the workforce?
(Questions? Clarifications? Violent Reactions?)