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Labor Best Practices in Hospitality Cases

The document discusses the case of Melva Nath versus Shangri-La Manila Hotel. [1] It was found that Nath was dismissed without due process as required by law. [2] The court agreed with this decision as there was evidence she was still on probation. [3] Tourism businesses are more prone to labor cases due to the 24/7 nature of the industry and intensity of work required.

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Mark Villa
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0% found this document useful (0 votes)
347 views3 pages

Labor Best Practices in Hospitality Cases

The document discusses the case of Melva Nath versus Shangri-La Manila Hotel. [1] It was found that Nath was dismissed without due process as required by law. [2] The court agreed with this decision as there was evidence she was still on probation. [3] Tourism businesses are more prone to labor cases due to the 24/7 nature of the industry and intensity of work required.

Uploaded by

Mark Villa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Task Performance 1
  • Best Labor Practices in Tourism
  • References

08 Task Performance 1

Research and look on the case of Melva Nath versus Shangri-La Manila Hotel and respond to the
following questions:

o Did the company observe due process in the case?


- The Shangri-La Hotel disregarded the rule of law. In this case, respondent NLRC committed
grave abuse of discretion in upholding the legality of petitioner's dismissal despite the fact
that: a. there was no due process and petitioner's alleged substandard work performance
was never cited as a ground for termination nor raised as an issue; and b. there was no clear,
independent, and satisfactory evidence to prove that petitioner's work performance was
substandard.

Undoubtedly, petitioner was dismissed without due process of Law. In this regard, the rules
implementing Batas Pambansa Blg. 130 provided:
Sec. 2. Notice of Dismissal. — Any employer who seeks to dismiss a worker shall furnish him
a written notice stating the particular acts or omission constituting the grounds for his
dismissal. In cases of abandonment of work, the notice shall be served to the worker's last
known address.
Sec. 6. Decision to dismiss. — The employer shall immediately notify a worker in writing of a
decision to dismiss him stating clearly the reasons, therefore.

o Do you agree with the decision of the court? Why or not?


- Yes, I agree with the court's ruling. I think the court's ruling that Nath was dismissed for an
authorized reason and without due process and that she is not entitled to reinstatement,
back pay, damages, or legal fees is valid because there is proof that she was still on probation
at the time of her dismissal.

o Why do you think tourism-related establishments are more prone to labor cases than other
industries?
- - Compared to businesses in other industries, tourism-related businesses are more prone to
becoming involved in labor cases due to the versatility and intensity of the work. As an
example, the tourism business cannot be contained within the workday or workhour period
specified by law since visitors or tourists must be entertained in a 24-hour period, mandating
the reporting of employees for the specified period.

o Research/Develop labor best practices for tourism and hospitality entities to prevent, like the
case mentioned above, from happening.
The following are the best labor practices that are now implemented in various tourism
establishments:
(1) A comprehensive background check is usually undertaken by an employer before admitting
newly hired employees.
(2) A two-week orientation training is given to the newly hired employees before they start their
actual duty. An immersion of the operations will be observed plus a thorough study of the
company’s background by the new employee will be undertaken. A written examination on what
was learned during the orientation training will have to be taken by the newly hired employees
before he starts to work.
(3) 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.
(4) A performance evaluation on a monthly or quarterly basis is being undertaken among
employees. In this regard, proactive counseling is being done to improve the performance and
productivity level of employees. By way of practice, a written performance evaluation is
furnished to the employee concerned.
(5) Meritocracy is observed in such a 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, 14th up to 16th 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.
(6) Adherence to due process in termination disputes is strictly followed by the employer (i.e., 2-
notice rule, hearing or opportunity to be heard, etc.).
(7) Newly hired employees are oriented on and being furnished copies of the company’s Code of
Ethics before they start working. All other day-to-day activities of the company policies are
published in memos, copy furnished to the employees and posted on strategic bulletin boards.
(8) Employees are furnished with copies of their job description, company policies, house rules
and the instruments on how they will be evaluated.
(9) Companies invest highly in training and development of employees and managers.
(10) To minimize labor cost, some of the tourism establishments apply franchising as a business
model. Contractual employment in emergency cases is also being undertaken.
(11) For tourist sites which are being administered by the government, strict adherence to civil
service laws, rules and regulations is imperative.
References:

G.R. No. 122866. (n.d.). [Link]

Carpio-Aldeguer, C. (n.d.). Best Labor Practices in the Hospitality Industry.


[Link]

Common questions

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Opting for regular communication structures over unions can impact labor relations by allowing for more direct and immediate resolution of employee concerns through structures like weekly or monthly dialogues with management. While it may increase flexibility and responsiveness, it could also place greater reliance on the management's willingness to adequately address employee issues without a formal union presence .

Tourism-related establishments might be more prone to labor cases due to the versatility and intensity of the work involved. The nature of tourism often requires 24-hour service to accommodate visitors and tourists, which may lead to more complex labor demands and issues that can result in disputes if not managed proactively .

Monthly or quarterly performance evaluations enforce accountability by regularly assessing employee performance against set objectives, providing timely feedback, and identifying areas for improvement. This process encourages a culture of accountability, continuous development, and recognition of achievements, directly contributing to enhanced productivity within organizations .

The key issue identified in the dismissal of Melva Nath was the lack of due process observed by Shangri-La Manila Hotel. The hotel disregarded the rule of law by not providing a written notice stating the specific acts or omissions that constituted grounds for dismissal. Additionally, no clear, independent, and satisfactory evidence was presented to prove that Nath's work performance was substandard .

Adhering to the two-notice rule in employment termination involves providing a written notice for grounds of dismissal, and offering an opportunity for the employee to be heard. This practice contributes to best labor practices by ensuring transparency, fairness, and legal compliance, thus minimizing potential disputes and fostering trust and respect in the workplace .

Employee orientation and ongoing dialogue play crucial roles in preventing labor disputes by providing clear communication of company policies and expectations from the outset. Regular dialogue facilitates problem solving, ensures employees feel heard, and can address issues before they escalate, which strengthens the employer-employee relationship and reduces misunderstandings .

Non-adherence to civil service laws in government-administered tourist sites can lead to legal consequences, including litigation and penalties. It may also result in inefficiencies, mismanagement, and reduced employee morale. Furthermore, it can harm public trust and confidence in government operations, impacting the site's reputation and potentially affecting tourism revenue .

Performance-based meritocracy helps in enhancing employee motivation by linking rewards, such as pay increases and incentives, directly to performance outcomes. This approach acknowledges and financially incentivizes high achievers, promoting a culture of excellence and continuous improvement within the hospitality industry .

Extensive background checks ensure that candidates are well-suited for positions, reducing the likelihood of turnover due to mismatched expectations or abilities. Comprehensive orientation further enhances retention by thoroughly preparing employees for their roles, fostering engagement, and reinforcing cultural alignment from the start, leading to higher job satisfaction and commitment .

While franchising can minimize labor costs by reducing direct employment and associated expenses, potential drawbacks include less control over franchisee operations, leading to inconsistent service standards and customer experiences. Additionally, franchisees might feel pressured to cut corners on labor practices to maintain profit margins, potentially damaging the brand's reputation if not managed carefully .

08 Task Performance 1
Research and look on the case of Melva Nath versus Shangri-La Manila Hotel and respond to the 
followin
The following are the best labor practices that are now implemented in various tourism 
establishments:
(1) A comprehensive b
References:
G.R. No. 122866. (n.d.). https://lawphil.net/judjuris/juri1997/jun1997/gr_122866_1997.html
Carpio-Aldeguer, C. (n

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