Lath Finals Reviewer - Transportation Laws (PDF)

WEEK 13 Other aspects of the carrier/shipper Laws Regulating Tourist Transportation relationship are made a part of the contract Business between the two parties....

WEEK 13 Other aspects of the carrier/shipper Laws Regulating Tourist Transportation relationship are made a part of the contract Business between the two parties. Rates usually lower than common or What is transportation? regulated carriers. Transport or transportation is the movement 4. Private Carriers of people and goods from one location to Private carriage is the firm’s own another transportation. Transportation is the movement of products Not for-hire and not subject to Federal from one mode in the distribution channel to regulations. another. May not be the firm’s primary business but can charge an intracompany fee for What are the different modes of transportation? transportation services. Land Transport – Rail and Road transport Almost exclusively motor, but some rail, air Water Transport – ship, boat and water also exist Air Transport – plane, helicopter Firms gain ultimate control over shipments Intermodal Transportation – combination of 2 and achieve maximum flexibility in moving or more kinds of transport goods. Backhauls are usually empty or return What are the roles of Transportation in materials to the firm’s plants and/or Logistics? warehouses. Transportation is the physical link connecting Requires a large capital investment. the firm to its suppliers and customers. Requires management time and expertise In a nodes and links scenario, transportation is the link between fixed facilities (nodes). Laws on Common Carrier Transportation also adds value to the product What is a common carrier? by providing time and place utility for the firm’s Operators of public utility vehicles are goods. considered as common carriers. A common carrier is defined under the Philippine Civil Legal Classification of Carriers Code as “persons, corporations, firms or 1. Common Carrier associations engaged in the business of carrying For-hire carrier that serves the general public or transporting passengers or goods or both, by at reasonable rates and without discrimination. land, water, or air, for compensation, offering Carrier is liable for damages to products their services to the public”. carried. Exceptions to liability include acts of God, acts What are the Elements of a Common Carrier? of the public enemy, acts of the shipper and 1. Business of transportation. defects inherent in the goods. 2. For compensation. Backbone of the transportation industry. 3. For public use – the holding out of the service 2. Regulated Carrier is made to all persons Regulated carriers are found in motor and in general without going through any selection water carriage. process Regulations including entry controls, reasonable rates, and nondiscrimination provisions. Must provide safe and adequate service 3. Contract Carriers For-hire carrier that does not have to serve the general public. May serve one or a few shippers exclusively. May offer specialized equipment. Difference of a Common Carrier from a Private common carrier engaged in the carrying of Carrier passengers, from the nature of its business and for reasons of public policy, is bound to observe Common Carrier extraordinary diligence to ensure the safety of 1. Holds himself out in common that is to all the passengers transported by them. The law persons who choose to employ him as ready to further provides that a common carrier is carry for hire. bound to carry the passengers safely as far as 2. Bound to carry for all who offer such goods human care and foresight can provide, using as it is accustomed to carry and tender the utmost diligence of very cautious persons, reasonable. with a due regard for all the circumstances. 3. It is for public service and subject to Ordinary diligence is not good enough. It has to regulation. be extraordinary diligence. 4. Required to exercise extraordinary diligence. Nature of Responsibility of Common Carriers Private Carrier 1.The public must of necessity rely on the care 1. Agrees in some special cases with some and skill of common carriers in the vigilance private individual to carry for hire. over the goods and safety of the passengers. 2. It is not bound to carry for any reasons, 2.Extraordinary diligence in the vigilance over unless it enters a special agreement to do so. the goods and for the safety of the passengers 3. Not for public and not subject to regulation. transported by them, according to all 4. Not required to render extraordinary circumstances of each case. diligence. 3. In case of death of, or injuries to, passengers, common carriers are What are the 4 Characteristics of Common presumed to have been at fault or to have Carrier? acted negligently, unless they prove that they 1. The common carrier is regarded to some observed extraordinary diligence. extent as a public service since he holds himself 4.The obligation of a common carrier arises out as ready to engage in the transportation of from contract known as “contract of carriage”. goods for hire as a public employment and not 5.Common carriers are likewise responsible for as a casual occupation. He is bound to serve all injuries suffered by passenger on account of who apply and is liable for refusal, without the willful acts or negligence of other sufficient reason to do so. passengers or strangers, if the common carriers’ 2. The common carrier cannot lawfully decline employees could have prevented or stop the to accept a particular class of goods for carriage act or omission. to the prejudice of the traffic in those goods. However, the common carrier can do so where This duty of common carriers to exercise the for some sufficient reasons, the discrimination highest degree of diligence commences from in such goods is reasonable and necessary the moment the person who purchases the under all the circumstances of the case. ticket from the carrier presents himself at the 3. No monopoly is favored. The Public Service proper place and in a proper manner to be Commission has the power to say the transported. Once created, the relation of reasonable rules for the convenience of the carrier and passenger will not ordinarily traveling public and to enforce them. terminate until the passenger has, after 4. It is also for public convenience. reaching his destination, safely alighted from the carrier’s conveyance or had a reasonable What is a Charter? opportunity to leave the carrier’s premises. It means that there is a contract between the passenger and the carrier wherein the latter Case Scenario: In relation to this, in the undertakes to transport the former to his landmark case of Dangwa Transportation Co. v. destination safely. Is charter a common or Court of Appeals (G.R. No. 95582, 07 October private carrier? Under transportation laws, a 1991) A passenger attempted to ride the bus and was able to step on its platform but was near the bus, was sideswiped and killed. run over by the rear right tires of the vehicle Is the bus liable even though the passengers and eventually died because the driver’s already alighted from the bus? sudden acceleration of the bus. Are the bus company and the driver liable for the death of Common Carriers are Absolved from Liability the passenger even though no ticket was issued when: yet? 1. Flood, storm, earthquake, lightning, or other natural disaster or calamity; Period Wherein the Degree of Extraordinary 2. Act of the public enemy in war, whether Diligence Should End: international or civil; 1. The extraordinary responsibility of the 3. Act or omission of the shipper or owner of common carrier lasts from the time the goods the goods; are unconditionally placed in the possession of, 4. The character of the goods or defects in the and received by the carrier for transportation packing or in the containers; until the same are delivered, actually or 5. Order or act of competent public authority. constructively, by the carrier to the consignee, or to the person who has a right to receive What is a Contract of Carriage? them, without prejudice. A contract of carriage is a contract between a 2. The common carrier’s duty to observe carrier of goods or passengers and the extraordinary diligence over the goods remains consignor, consignee or passenger. Contracts of in full force and effect even when they are carriage typically define the rights, duties and temporarily unloaded or stored in transit, liabilities of parties to the contract, addressing unless the shipper or owner has made use of topics such as acts of God and including clauses the right of stoppage in transit. such as force majeure. Among common carriers, 3. The extraordinary liability of the common they are usually evidenced by standard terms carrier continues to be operative even during and conditions printed on the reverse of a the time the goods are stored in a warehouse ticket or carriage document. of the carrier at the place of destination, until the consignee has been advised of the arrival of Air waybill (AWB) - is a non-negotiable the goods and has had reasonable opportunity document issued by a carrier when goods are thereafter to remove them or otherwise transported by air. An air waybill acts as dispose of them. delivery instructions, a contract of carriage, and a cargo receipt for air freight. Case Scenario: (La Mallorca v. Court of Appeals, et al., G.R. No. L-20761, 27 July 1966). Bill of lading (BOL or B/L) - is issued to a shipper detailing the method and path of a shipment. It Another case held by the Supreme Court is is a contract for the movement of the goods, instructive on when the said duty of common and serves as a receipt for the cargo and can carrier ends. In that case, a family rode the bus act as proof of ownership of the goods being and alighted therefrom. The father led his transported. Ocean shipments use bill of lading. family to a shaded spot on the left pedestrian side of the road about four or five meters away What are the liabilities of International Air from the vehicle and returned to the bus to get Carriers according to Warsaw Convention? one of his baggage which was not unloaded. Unknown to him, his four-year old daughter Enforcing Warsaw Convention followed him. However, although the father Suits can only be brought in countries that are was still on the running board of the bus signatories o Where ticket was purchased, final waiting for the conductor to hand him the bag, destination or where carrier has principal place the bus started to run, so that even the father of business had to jump down from the moving vehicle. It Suits for death or injury in passenger’s was at this instance that the child, who must be principal residence If carrier operates there (Montreal Convention) compensatory, moral, temperate or liquidated Time Limits damages. Ex. Recklessness - the court will o Must file notice for cargo or baggage damage decide whether or not they should be granted. – notify within 7 days of receipt of checked luggage; 14 days for receipt of cargo Regulations of Air Transportation Business o Delay of baggage or cargo – notify in writing The airline industry is primarily regulated by no later than 21 days from date of actual the Civil Aeronautics Board (CAB) and Air delivery Transportation Office (ATO), now the Civil o Must file suits against air carrier within two Aviation Authority of the Philippines (CAAP). years The governing law is R.A. No. 776 a.k.a. Civil Aeronautics Act of the Philippines. What is Carriage of Goods by Sea (COGSA)? What are the liabilities under COGSA? Week 15 – Laws Regulating Travel and Tour Services Ways of Enforcing the Liability of Common Carriers When a common carrier fails to comply National Accreditation Standards with the standard of care required of it by law, REVISED RULES AND REGULATION OF TRAVEL it may be sued on the ground of either: AND TOUR AGENCIES 1. Breach of contract 2. Tort or quasi-delict Definition of Terms **A person suing a common carrier cannot Tour Operator maintain an action under both grounds. Any person or entity engaged in the business of: Inbound and/or Local Tour Operation such as Damages Recoverable from Common Carriers organizing and /or conducting tours as well as 1. Actual or Compensatory damages – are making online reservations, arranging and adequate compensation for pecuniary loss booking for transportation and accommodation suffered by a person as he has proven (e.g. – for a fee, commission, or any form of medicine, hospitalization expenses). remuneration. 2.Moral damages – include physical suffering, Travel Agency mental anguish, fright, serious anxiety, Any person or entity engaged in the business of: besmirched reputation, wounded feelings, Providing travel-related services such as moral shock, social humiliation, and similar transportation or accommodation injury. reservations/bookings, documentation of travel 3. Nominal damages – are adjudicated in order papers, sale and/or issuance of tickets and that a right of a person, which has been selling of outbound tours for a fee, commission, violated or invaded by the CC, may be or any form of remuneration. vindicated or recognized, and not for the Travel and Tour Agency purpose of indemnifying such person for any A primary tourism enterprise regularly engaged loss suffered by him. in both Tour Operator and Travel Agency 4. Temperate or Moderate damages – which services. are more than nominal but less than Online Travel and Tour Agency compensatory damages, may be recovered Any person or entity whose operations are when the court finds that some pecuniary loss solely conducted through websites and other has been suffered but its amount cannot from online platform dedicated to travel and tour the nature of the case, be proven with certainty. operations. 5. Liquidated damages – are those agreed upon Inbound Tour by the parties to a contract, to be paid in case A tour of groups/individuals to the Philippines of breach thereof. or any place within the country and any part 6. Exemplary or Corrective damages – are thereof imposed, by way of example or correction for the public good, in addition to actual or Local Tour equivalent A tour of residents of the Philippines within the d) Notarized List of Names of all Officials and country Employees (with office designation and Outbound Tour Nationality) Tour of individuals/groups outside the Philippines For Renewal: Branch Office a) Valid Mayor’s/Business Permit An office or outlet/tour desk which is located b) Audited Financial Statements reflecting a other than the travel and tour agency main minimum of ₱500,000.00 working capital. office location that sells, offers or conducts tours Additional Documentary Requirements for Commercial Building Renewal and New Application A building other than a residential building, a) Affidavit executed by the General Manager developed for commercial use declaring/acknowledging the existence of their Dormant Application branch offices. An application that has not been acted upon by b) For foreign nationals, valid working permit the applicant for forty five (45) days (Alien Employment Permit) from the Department of Labor and Employment and Requirements for Application valid visa from Bureau of Immigration and Who May Apply? Deportation. a) Resident Filipino citizen registered as – Single c) For Airport Representatives, valid NBI or Sole Proprietorship Clearance and Certificate of Regular b) Partnership organized under Philippine Laws Employment. o At least 60% of its capital is owned by a Filipino citizen Minimum Office Requirements c) Corporations organized under Philippine o Commercial Area and/or building Laws o Easily identifiable and shall be used o At least 60% of the subscribed common or exclusively for the travel and tour operation voting shares of stock of which is owned by business Filipino citizens and the composition of its o Furnished with basic furniture and equipment Board of Directors being at least 60% o Minimum office floor area = 18 square Filipinos. – In case of more than 40% foreign- meters (except for Branch Office – Chapter 1, owned Corporations, they shall have at Section 1) least US $200,000.00 paid-in capital. Minimum of three (3) employees = General d) Cooperative duly organized under Philippine Manager Reservation Officer Laws. Tour/Product Development Officer o Maintain a temperature between 20-25 Mandatory Documentary Requirements degree year round except in areas where For New Application: elevation is 2000 ft. above sea level a) Valid Mayor’s/Business Permit b) Proof of working capital of ₱500,000.00 Accreditation Fees and Other Charges o For Corporation/Partnership ₱500,000.00 Paid-up/partners capital o For Single Proprietorship Original copy of bank certification with cheque writer. *Under the name of the Company c) For General Manager o Documents to prove a minimum of three (3) years managerial experience in travel and tour agency operations or proof of passing a Travel and Tour Agency Management Course or its Surcharge Inspection of Establishment o Additional amount equivalent to 50% of the Periodic Inspection accreditation fee for renewals made after June 30 o Done annually or when Public Interest dictates and another 100% shall be collected for every o The DOT may send an inspection team to the succeeding year thereafter. establishment for the purpose of determining o Renewal Period is from April 1 to June 30 whether they are being kept and/or managed in a manner conformable to the standards set by DOT. Supervision of Travel and Tour Agencies o Conducted at a reasonable time of the day with o Main Office Accreditation Should be accredited due regard and respect to the right of privacy of prior to the accreditation of the branch office. parties concerned. o Validity Of Accreditation Certificate of Accreditation VALID FOR 2 YEARS Provided Inspection Team that the required Mayor’s/Business permit and o Shall accomplish a set of Inspection Checklist (IC) other pertinent documents shall be renewed upon o All deficiencies found, as well as the requirements expiration and shall be submitted to the Department. complied with shall be noted on the checklist. o Surrender Of DOT Sticker Upon renewal of accreditation Inspection Report o Access of Department Representatives to Agency’s o Rendered within five (5) days from date of Office and Records The DOT shall have access to inspection. an enterprise’s office and records during business hours for verification of compliance with the Defects and Deficiencies Found During Inspection standards and requirements. o DOT shall issue a Notice of Deficiency addressed to o Surrender of DOT ID – the enterprise shall notify the concerned Travel and Tour Agency informing the the Department of Its officers and employees who same of the violation or non-compliance of have ceased to be employed from their company accreditation requirements and reasonable period and shall surrender the officers’ / employees’ ID within which to rectify such violation as found cards within 7 days upon termination of during the inspection. employment o If failed to remedy the defects or deficiencies o Display of Accreditation Seal - the DOT within the agreed period of time, the Department Accreditation Sticker shall at all times be displayed shall deny the application or revoke the Certificate in a conspicuous place of the establishment. of Accreditation issued to the Establishment. Same shall be surrendered to DOT once the validity of accreditation expires. Use of Tour Coordinators and Tour Escorts o Online Travel and Tour Agency All online Travel o Tour Coordinators and Foreign Tour Escorts duly and Tour Agencies applying for accreditation shall recognized by the DOT whose function is to comply with all the basic requirements of a regular accompany tourists shall not act as Tour Guides. travel and tour agency as provided in Chapter II of o Presence of Tour Coordinators and Foreign Tour this Rules. Escorts may be allowed provided there is an o Website Information - all Tour Operators, Travel accompanying DOT-accredited tour guide. Agencies and Travel and Tour Agencies with website shall comply with the following requirements. a) Schedule of Fines and Penalties Shall display the DOT Tourism Quality Seal and In accordance with Section 39 of R.A. 9593 Denial of Accreditation Number with validity date on their Accreditation website and in all of its advertisements, brochures 1. Making any false declaration or statement or and promotional materials; b) Shall highlight or making use of any such declaration or statement or include Philippine tour destination in their website; c) any document containing the same or committing Shall display the correct and full contact information fraud or any act of misinterpretation for the purpose of the company on the “Contact Us” page or section; of obtaining the grant of accreditation. and d) All websites offering online payment schemes 2. Failure to comply with the standards and shall be Payment Card Industry Data Security requirements for accreditation. Standard (PCI-DSS) Compliant and Encrypted with 3. Has pending/unresolved complaints filed to the Valid Security Sockets Layer (SSL) Certificate or use Department or other concerned agencies Online Banking Websites 4. Any other act or omission that works against the o Dormancy - Withdrawn after appropriate warnings interest of the tourism industry. / notifications 30th and 45th day prior to dormancy Suspension, Revocation, Cancellation of ▪ Location of the entity; Accreditation or Closure of Business ▪ Its registered owner or proprietor and the business 1. Unauthorized transfer and/or reproduction of address; Accreditation certificate, stickers, IDs or any ▪ The specific term or terms of accreditation violated; document issued by the Department of Tourism. and 2. Gross and evident bad faith in dealing with ▪ The statement that the advisory shall only be lifted clients/fraudulent solicitation of business. upon continued compliance of the enterprise with 3. Tolerance of gross misconduct, discourtesy, the terms of accreditation. dishonesty or misrepresentation committed by any of the operator’s officers or employees against its Issuance of Additional Circulars / Orders clients to the deterrent of the tourism industry. The DOT shall, whenever necessary, issue additional 4. Employment or hiring of non-DOT accredited Circulars/Orders for a more effective tourism frontliners or engaging the services of non- implementation of their rules and regulations. DOT accredited tourism establishments/vehicles except in areas where there are no DOT accredited The Tourism Quality Seal frontliners/trainers/vehicles/establishments available. 5. Failure to specify and include in any form of advertisement the DOT Tourism Quality Seal and Accreditation Number with Expiry date/validity. 6. False, deceptive or misleading advertisement by Philippine mail or in commerce by print, radio, television or other medium of advertisement to the public. 7. Promoting, facilitating or conducting activities involving drug-related transactions and any form of exploitation of women and children. 8. Non-settlement of the complaint filed against the establishment with the Department. DOT Accreditation Sample 9. Any other case/complaint filed against the establishment outside the Department. Fines and Penalties o First Offense - Six (6) months suspension and/or fine not less than Fifty Thousand Pesos (₱50,000.00), as the case maybe o Second Offense - One (1) year suspension and be subject to a fine not less than Seventy Five Thousand Pesos (₱75,000.00) o Third Offense - Revocation/Closure of Business and subject to a fine of at least or not less than One Hundred Thousand Pesos (₱100,000.00) o The DOT, at its own instance, shall revoke/cancel the accreditation of an accredited travel and tour agency which violates any of the provisions of these Rules and Regulations without prejudice to the imposition of other applicable penalties under SUMMARY OF THE RIGHTS OF AIR PASSENGERS Philippine laws. O The DOT shall likewise issue a Notice of Violation UPON PURCHASE OF TICKET AND UPON ARRIVAL AT to the concerned LGU for appropriate sanction such THE AIRPORT as but not limited to revocation/cancellation of Based on Joint DOTC-DTI Admin. Order No. 01 or the issued licenses/permit or closure of the Air Passenger Bill of Rights establishment found to have violated the terms of their accreditation. Major Rights of an Air Passenger O Tourism Advisories 1. Right to be provided with accurate information ▪ Complete identification of the pertinent tourism before purchase enterprise; 2. Right to receive the full value of the service purchased RIGHT TO COMPENSATION 3. Right to compensation Right to Compensation and Amenities in Case of RIGHT TO RECEIVE THE FULL VALUE OF THE SERVICE Cancellation of Flight PURCHASED Cancellation at least 24 hours before the ETD, Right to be Processed for Check-In - A passenger attributable to the air carrier shall not be considered late or a no-show, and shall 1. To be notified beforehand of the fact of not be denied check-in if he or she is within the air cancellation carrier’s cordoned or other designated check-in area 2. Rebook or reimburse the passenger, at the option at least one (1) hour before the published Estimated of the latter. Time of Departure (ETD), or within the prescribed time set by the air carrier. Cancellation less than 24 hours before the ETD, attributable to the air carrier Right to Sufficient Processing Time 1. To be notified beforehand of the fact of cancellation 2. To amenities* 3. To be reimbursed of the value of the fare, taxes and surcharges, and other optional fees 4. To be endorsed to another air carrier without Check-in counters in international airports and in paying any fare difference other airports designated by the DOTC must be open 5. To rebook the ticket without additional charge at least two (2) hours before the (ETD). Cancellation due to other causes (i.e. force majeure, A separate dedicated counter must be opened for a safety and/or security reasons) flight nearing check-in deadline to facilitate the 1. To be reimbursed of the full value of the fare checking in of passengers at least one (1) hour before the published ETD. *AMENITIES may include food and drinks, hotel accommodations, etc. There must be at least one (1) check-in counter which will prioritize PWDs, senior citizens, and Right to Compensation and Amenities in Case of persons requiring special assistance or handling, if Flight Delay and Exceptions Thereto. practicable. Terminal delay of at least three (3) hours after the FOR ALL OTHER AIRPORTS, check-in counters must ETD, whether or not such is attributable to the be open at least one (1) hour before the ETD. carrier. 1. To avail of refreshments or meals Right to Board Aircraft for the Purpose of Flight 2. To free phone calls, text or e-mails, and first aid, if GENERAL RULE: A passenger cannot be denied the necessary right to board the aircraft without his consent. 3. To rebook or refund his/her ticket 4. To be endorsed to another carrier IN CASE OF OVERBOOKING: 1. The airline/air carrier must look for volunteers Terminal Delay of at least six (6) hours after the ETD willing to give up their seats. for causes attributable to the carrier 2. If the number of volunteers is not enough, the air 1. To consider the flight cancelled for the purpose of carrier shall increase the compensation package availing the rights and amenities provided for in case until the required number of volunteers is met. of actual cancellation 2. Additional compensation equivalent to at least This is known as the “auction system.” the value of the sector delayed 3. To board the flight if it takes place more than six (6) hours after the ETD and the affected passenger has not opted to rebook and/or refund. Tarmac Delay of at least two (2) hours after the ETD 1. To sufficient food and beverage Right to Compensation for Delayed, Lost, and SESSION 8 - LEGAL ASPECTS IN TOURISM AND Damaged Baggage HOSPITALITY THE PASSENGER HAS THE RIGHT TO: 1. Be informed of the fact of off-loading LAWS ESTABLISHING ACCOMMODATIONS IN THE 2. Php2,000 compensation to the passenger for PHILIPPINES every twenty-four (24) hours of delay REPUBLIC OF THE PHILIPPINES DEPARTMENT OF 3. Refund of checked baggage fees if the baggage TOURISM MANILA was not delivered within twenty-four (24) hours from the arrival of flight RULES AND REGULATIONS TO GOVERN THE 4. If the baggage is lost or if it suffered any damage: ACCREDITATION OF HOTELS, TOURISTS INNS, FOR INTERNATIONAL FLIGHTS: The relevant MOTELS, APARTELS, RESORTS, PENSION HOUSES convention shall apply. AND OTHER ACCOMMODATION ESTABLISHMENTS FOR DOMESTIC FLIGHTS: The passenger has the right PURSUANT TO THE AUTHORITY VESTED IN THE to a maximum amount equivalent to half of the DEPARTMENT OF TOURISM(DOT) By REPUBLIC ACT amount in the relevant convention (for international NO. 9593 OTHERWISE KNOWN AS THE TOURISM flights) in its Peso equivalent. ACT OF 2009 DATED MAY 12, 2009, ON THE 5. PRESUMPTION OF LOSS: If after a period of seven MANDATORY ACCREDITATION OF PRIMARY (7) days from when the passenger or consignee TOURISM ENTERPRISES, THE NATIONAL TOURISM should have received the baggage and it is not STANDARDS FOR THE ACCOMMODATION SECTOR – delivered, it is presumed lost. HOTELS, RESORTS AND APARTMENT HOTELS ARE HEREBY PROMULGATED TO IMPLEMENTTHE INTENT Right to Compensation in Case of Death or Bodily AND PURPOSE OF THE SAID REPUBLIC ACT Injury of a Passenger 1. FOR INTERNATIONAL FLIGHTS: The relevant DEFINITION OF TERMS convention and inter-carrier agreements apply a. Accreditation shall refer to a certification issued 2. FOR DOMESTIC FLIGHTS: Compensation will be by the Department to tourism enterprise that based on the stipulated amount in the relevant officially recognizes it as having complied with the convention which governs international flights minimum standards for the operation of tourism facilities and services. Right to Immediate Payment of Compensation b. Act shall refer to Republic Act No. 9593, otherwise PAYMENT MUST BE AVAILABLE TO THE AFFECTED known as the “Tourism Act of 2009”. PASSENGER: c. Apartment Hotel shall refer to serviced 1. at the air carrier’s counters at the airport on the apartments offering self-contained units that date when the incident occurred, or contain access to kitchen and laundry facilities. A 2. at the main office or any branch of the air carrier, number of bedrooms may share one bathroom in at the discretion of the passenger. the unit. d. Department or DOT shall refer to the Department MODE: of Tourism created pursuant to Presidential Decree 1. By tendering a check, or No. 189 (1973), as amended. 2. Cash, or e. Hotel shall refer to full service accommodation 3. The document necessary to claim the with reception and guestrooms generally offering compensation or benefits. The document shall be private facilities with an onsite restaurant, room and convertible to cash within fifteen (15) days from the bar services available. Additional facilities such as date when the occasion occurred. business centres and conference rooms are expected. f. OTSR shall refer to the Office of Tourism Standards and Regulation of the Department. g. Primary Tourism Enterprises refers to travel and tour services; land, sea and air transport services exclusively for tourist use; accommodation establishments; convention and exhibition organizers; tourism estate management services; and such other enterprises as may be identified by the Secretary, after due consultation with concerned sectors. h. Quality Gradings shall refer to such terms as unacceptable, adequate, good, very good, excellent and outstanding are used to signify the ascending These enterprises appeal to the tourists seeking levels of quality. more than basic accommodation. They offer i. Resort shall refer to full service accommodation expanded facilities and higher level of comfort. located in a more natural, relaxed environment, with reception and guest rooms generally offering 3 STARS - 551–700 points private facilities with an onsite restaurant, room and These enterprises offer a very good level of bar service available. Additional recreation facilities accommodation. There are more spacious public and tour services are expected. areas, higher quality facilities and a greater range of j. Standards shall refer to a set of written functional, services. aesthetic and technical requirements in the form of specifications or guidelines to ensure that a product 4 STARS - 701–850 points These properties are and service complies with the Rules and Regulations upscale in all areas. Accommodation is refined and set forth by the Department. stylish. Service is responsive, often including an k. Tourism Enterprises” refers to facilities, services extensive array of facilities. and attractions involved in tourism, such as, but not limited to: travel and tour services; tourist transport 5 STARS - 851–1000 points These properties reflect services, whether for land, sea or air transportation; the characteristics of luxury and sophistication. The tour guides; adventure sports services involving such facilities are world class in every manner and the sports as mountaineering, spelunking, scuba diving, meticulous service exceeds all guest expectations and other sports activities of signi cant tourism potential; convention organizers; accommodation The criteria are divided into seven (7) dimensions establishments, including, but not limited to, hotels, that are common to the above-mentioned resorts, apartelles, tourist inns, motels, pension categories except for the lounge area and the houses, and homestay operators; tourism estate kitchen area which are applicable only to apartment management services, restaurants, shops and hotels. The percentage that these dimensions department stores, sports and recreational centers, contribute to the total score is shown in the table spas, museums and galleries, theme parks, below: convention centers and zoos. Before hotels are classified into: De Luxe Class, First Class, Standard Class, Economy Class But now, we have a new way to classify hotels according to the National Accommodation Standards. How do we classify hotels now? THE FIVE STAR GRADING SYSTEM FOR ACCOMMODATION ENTERPRISES There are five levels of accommodation standards Each dimension consists of a number of indicators ranging from one to five-stars applicable to hotels, which describe either the existence or availability, resorts and apartment hotels. To obtain higher stars, quality and condition of the facility as well as the progressively higher service and facility quality, service. Every indicator is allotted points. A facility condition and improved business practices maximum of 177 indicators are evaluated. Quality like environmental management, which are judgment is used to determine whether a facility or determined by a point system should be provided service is either - Unacceptable, Acceptable, Good, across all areas. A total of 1000 points have been set Very Good, Excellent or Outstanding. Mandatory as the maximum number of points that can be and minimum requirements have also been achieved by Hotels, Resorts, and Apartment Hotels. established both for entry into the grading scheme and at the different star levels. Mandatory 1 STAR - 251–400 points requirements, marked M shall refer to those These enterprises appeal to budget minded requirements that are prescribed by existing laws, travellers. There is a limited range of facilities and without which, no accreditation shall be issued to services the enterprise until such time that it rectifies said deficiencies. On the other hand, minimum 2 STARS - 401–550 points requirements, marked m shall refer to those requirements which are minimum to a certain classification, without which the establishment will b. Failure to comply with or contravene any of the not be awarded such classification but instead be conditions set forth in the certificate of accreditation; downgraded to a lower classification, regardless of c. Failure to meet the standards and requirements the total points accumulated. for the operation of the establishment as prescribed in these Rules and Regulations; d. Allowing or permitting the establishment or its facilities to be used for prostitution particularly those involving children or any illegal, immoral or illicit activities; and e. Violation of or non-compliance with any of the provisions of these Rules, promulgated orders, decisions and circulars issued by the Department and other concerned government agencies. 2. Procedure for Cancellation and/or Downgrading of Accreditation. Assessors shall submit a report with recommendations based on the inspection findings to the Office of Tourism Standards and Regulation (OTSR). The OTSR shall then send a letter to the concerned enterprise regarding its deficiencies, specifying a grace period of a minimum APPLICATION FOR ACCREDITATION of 3 months within which to rectify such findings. Accreditation Process Non-compliance within the allotted grace period 1. Filing of Application. Any person, partnership, may result in the cancellation and/or downgrading corporation or other entity desiring to operate a of accreditation of the concerned enterprise. The primary tourism enterprise as defined herein shall Department shall likewise inform the concerned secure an accreditation from the Department. local government unit regarding the accreditation Application for accreditation shall be accomplished status of the enterprise online. 2. Documentary Requirements. The Department Supervision of Accredited Establishments shall issue a List of Documentary Requirements to 1. Display of DOT Accreditation Seal. The valid DOT be complied with by applicants as part of the accreditation seal shall be displayed in a accreditation process. conspicuous place of the establishment. 3. Inspection. An Inspection team shall conduct an 2. Non-Transferability of DOT Accreditation Seal. The audit of the establishment to determine its rights and privileges over the accreditation shall be classification. An oversight committee from the non-transferable. Department shall conduct periodic inspection of the 3. Periodic Inspection. The Department may send an classified establishment. inspection team to the establishment for the 4. Validity of Accreditation. The Certificate of purpose of finding out whether it is being kept Accreditation shall be valid for a period of two (2) and/or managed in a manner conformable to the years, unless sooner revoked by the Department. standards set by the Department. The inspection 5. Schedule of Fees. The Department shall issue a shall be conducted at a reasonable time of the day schedule of accreditation fees to be implemented by with due regard and respect accorded to the right to these Rules. Visit privacy of parties concerned. http://www.tourism.gov.ph/downloadable%20files/ 4. Defects and Deficiencies Found During the AccreditationFees2017.pdf Inspection. Where certain defects and deficiencies have been found in the course of inspection, the Cancellation and Downgrading of Accreditation Department shall give direction to the keeper, 1. Grounds for Cancellation. Any of the following manager or operator to rectify the defects or acts, omissions shall be sufficient grounds for the deficiencies within a reasonable period of time. cancellation of accreditation: 5. Penalty for Failure to Remedy the Defects, etc. If a. Making any false declaration or statement or the management fails to remedy the defects or making use of any such declaration or statement or deficiencies, the Department may withdraw the any document containing the same or committing certificate of accreditation of the establishment. fraud or any act of misrepresentation for the 6. Advertisements. All DOT accredited hotels, resorts purpose of obtaining the issuance of accreditation; and apartment hotels which shall advertise its business or services through print media must specify in the advertisement item itself the DOT made by their guests. They are also liable for any accreditation number. animal, vehicle, or material that are lost or damaged in the annexes of hotels. This only applies, however, THE RIGHTS OF A HOTEL GUEST if the loss or damage was caused by the hotel As a hotel guest, you can bring it up with the hotel personnel or employee. One important information management and demand the services they you should know is that “the hotel-keeper cannot promised you and which you paid. Although there is free himself from responsibility by posting notices to no actual bill of rights for hotel guests, you can use the effect that he is not liable for the articles these laws to support and protect yourself when brought by the guest…” (art. 2003). faced with unfair hotel practices and unreasonable RIGHTS OF DISABLED PEOPLE hotel management. To avoid prejudice and promote equality among all, PRIVACY the Republic Act 9442 focuses on the rights of o Right to Privacy is a basic right under the disabled or handicapped people. Under the law, Philippine constitution. When hotels collect and disabled people are given at least twenty percent process your personal information, they are (20%) discount from all establishments relative to immediately obliged to keep all data confidential the utilization of all services in hotels and similar and secure. They should be able to implement lodging establishments for their exclusive use or regulations on how to protect your personal enjoyment. The Accessibility law of the Philippines information against unlawful or unauthorized access. also enhances the mobility of disabled persons by Hotels should also protect your privacy in hotel requiring certain establishments to install facilities rooms by not allowing spy or any recording and other devices such as sidewalks, ramps, railings, equipment. However, if you are caught in the course and the like. of illegal actions then hotel management has the Now you know which laws you can use as grounds right to take the necessary disciplinary measures. for complaint. Keep in mind, however, that some FALSE ADVERTISING hotel accommodations may have certain The consumer act of the Philippines or Republic Act prohibitions or modifications regarding these laws. No. 7394 protects your interest as a consumer. It is These may have been stated on the contract or the law’s objective to protect you against deceptive booking form you have signed. As general rule, or unfair sales acts and practices such as false thoroughly read your contracts before signing them. advertising. You have the right to file a complaint if the hotel embellished their advertisements with LAWS ON CASINO AND GAMBLING IN THE services and facilities that are actually unavailable. PHILIPPINES CONCERN FOR YOUR HEALTH There are many land based casinos in the In order for hotels to be accredited in the Philippines, Philippines. The primary district is the government- they must abide by the rules and regulations related run region. The gambling industry in this region is to Republic Act No. 7160 that govern the operations regulated and controlled by the Philippine of tourist establishments. This act requires hotels to Amusement and Gaming Corporation (PAGCOR). ensure the safety, comfort and convenience of their PAGCOR is a state owned entity, and is responsible guests by providing specific facilities, amenities, and for licensing and operations of all the land based services. One of the specific requirements is for casinos and/or betting outlets. There are hotels to provide housekeeping of the highest approximately 42 land based casinos that are possible standard. They should be able to keep hotel regulated by PAGCOR. Both Filipinos and premises clean and tidy, as well as change linens, international players may visit and enjoy the blankets, towels, and daily. This is to ensure that you gambling options at the casinos and betting outlets are protected against infectious diseases. Another that are run by PAGCOR. requirement for hotels is to provide medical service The second gambling district is known as the by having a medical clinic or a registered nurse 24/7 Cagayan Special Economic Zone and Freeport. The and an on-call doctor for emergencies. Even clean independent casinos operating in the Cagayan and proper food-handling practices are required as a Freeport district are licensed and regulated through concern for your health. Therefore, the next time the First Cagayan Leisure and Resort Corp (FCLRC). you see a cockroach on your plate, you can The casinos operating under the watchful eye of immediately call the manager for a discussion. FCLRC gaming commission were initially only LIABILITY allowed to accept tourists as customers. However, Articles 1998 to 2004 of the Civil Code of the this was changed in 2011, and Filipinos who stay at Philippines tackle the hotel’s responsibility to the one of the casino resorts in the Freeport Zone are personal effects of their guests. The provisions state now categorized as tourists, and can legally enjoy that hotels are responsible for any depositories the gambling options offered here. So to answer the original question, yes, gambling is legal in the Week 15 – Laws Regulating Restaurants and Other Philippines. Tourism-Related Establishments What is the Legal Gambling Age in the Philippines? Legal Aspects in Tourism and Hospitality The minimum legal gambling age in the Philippines is R.A. 9593, Section 3 21 years of age. Underage gambling is taken very seriously by Filipino law enforcement, with strict Secondary Tourism Enterprises – facilities and penalties administered to anyone who knowingly services that may be related to tourism such as, but accepts bets or wagers from an underage player. not limited to, restaurants; specialty shops and This is the law of the land, and also applies to department stores; sports facilities and recreational offshore online gambling. centers such as, museums and galleries, theme parks, zoos; health and wellness facilities such as, Government officials are not allowed to enter casino but not limited to, spas, tertiary hospitals, area. Why? ambulatory clinics and medical concierge; rest areas in gas stations; agritourism farms and facilities; Are Online Casinos Legal in the Philippines? tourism training centers or institutes, including PAGCOR does license and regulate online gambling tourism trainers; outbound travel agencies; and such businesses; however these businesses are not other enterprises as may be identified by the allowed to offer their services to Filipino residents. Secretary, after due consultation with concerned There are no statutes within the Philippines sectors. gambling laws that prohibit Filipino residents from participating on legally licensed offshore betting Below are examples of Secondary Tourism sites. In addition, the FCLRC in the Cagayan Freeport Enterprise district is an online gambling licensing jurisdiction, o A restaurant is any establishment offering to the and at this time is the only one of its kind in all of public refreshments and/or meals. Asia. o A department store is a store that sells or carries several lines of merchandise and that is organized Online gambling sites that are regulated by the into separate sections for the purpose of promotion, FCLRC are prohibited by law from offering their service, accounting, and control. services to residents of the Philippines. Online o A shop is a small retail establishment offering a gambling laws in the Philippines are all directed line of goods or services. towards owner/operators and not players. While o A sports and recreational club/center is any Filipino players may not have access to any local or establishment offering sports and recreational state based online casinos, there are no restrictions facilities to tourist and to the general public. placed upon them concerning offshore casino o A museum is an institutional establishment where gambling. In fact, a court ruling in 2012 clarified that a collection of valuable objects and artifacts on there are indeed no provisions within Philippines history and culture, arts and sciences are put on Law, including Presidential Decree 1602, that make exhibition for the general public. it illegal for citizens to place bets. Hence, Filipino o A karaoke bar is any establishment offering residents are free to play online casino games for karaoke and videoke facilities to tourists and to the real money wherever they so choose. general public. o A gallery is any establishment that has a formal Are All Legally Licensed Offshore Online Casinos Safe? space for exhibition of paintings, sculptures, prints, No they are not. Just because a site is operating photographs, potteries and mixed media works. legally does not mean they are operating ethically. It o A spa is an establishment that has a holistic is recommended to consider the input of industry approach to health and wellness, rest and relaxation professionals who have vetted and reviewed online that aims to treat the body, mind and spirit by casinos to ensure that players don’t land at a integrating a range of professionally administered questionable or undesirable casino destination. health, wellness, fitness and beauty, water Professional online gambling analysts who are treatment and services. experts in vetting the quality of legitimately licensed o Tertiary hospital – it is an institution, for medical and regulated online casinos have approved the tourism, that provides clinical care and management recommendations found in this guide. as well as specialized and sub- specialized forms of treatments, surgical procedure and intensive care. o Medical tourism – involves travelling for the purpose of availing health care services or treatments of illnesses and health problems in order Persons not allowed to stay and play at the gambling to maintain one’s health and well-being. casinos o Government officials Categories of Spa o Members of PNP and AFP a) Day Spa which offers a variety of professionally o Persons under 21 years of age or students of any administered spa. Services to clients on a day use school basis including hair and beauty salons and wellness clinics that shall offer at least one water treatment. Laws Regulating Caterers A caterer is defined as a b) Destination/Resort Spa which sole purpose is to person, firm or association providing food and provide clients with lifestyle improvement and supplies, and sometimes services, for parties, health enhancement through professionally weddings and other social functions. administered spa services, physical fitness, 2 Kinds of Catering Services education programming and on-site o On-premise catering – the caterer has his own accommodations where spa cuisine or healthy food banquet hall with an attached kitchen or production is offered. area c) Hotel Spa. This spa is located within a o Off-premise catering – the caterer brings the hotel/urban/out of town providing professionally complete service to the customers. It is a kind of administered spa services, fitness and wellness banquet operation that takes place in a venue components. chosen by a client or in an airline, boat, industrial d) Cruise Spa as a spa aboard a cruise ship that site and other places. provides professionally administered spa services, fitness and wellness components and spa cuisine Food Caterers of the Philippines (FCAP) menu choices. o It is a group of catering companies with the need e) Club Spa as a facility whose primary purpose is to professionalize the industry and serve the needs fitness, offering a variety of professionally of the Philippine catering industry. administered spa services on a day-use basis to both club members and non-members Food, Drug, & Cosmetic Act f) Medical Spa as an individual, solo practice group o The law seeks to ensure safety and good quality and institution comprised of medical and spa supply of food, drugs and cosmetics, and to regulate professionals whose primary purpose is to provide the production, sale and traffic of the same to comprehensive medical and wellness care in an protect the health of the public. environment which integrates spa services, as well as conventional and complementary therapies and Food Safety Act of 2013 treatments. o Republic Act (RA) No. 10611, also known as the g) Wellness Center as a spa which provides services “Food Safety Act of 2013” defines food as any and an environment wherein the substance or product whether processed, partially interconnectedness of diet, lifestyle, exercise, processed or unprocessed that is intended for relaxation and rejuvenation must exist in order to human consumption. It includes drinks, chewing bring about the balance gum, water and other substances, which are h) Rehabilitation Center as a spa which primarily intentionally incorporated into the food during its focuses on rehabilitation therapy for various manufacture, preparation and treatment (Section accident or health induced incapacity (strokes, heart, 4.g). On the other hand, food safety refers to the etc.) incorporating mainstream and alternative assurance that food will not cause harm to the modalities in order to bring the patients to its consumer when it is prepared or eaten according to maximum level of wellbeing its intended use (Section 4.n). i) Hospital Spa as a hospital facility with a spa, wherein it integrates mainstream medicine and o The law primarily aims to strengthen the food other alternative approach to promote healing and safety regulatory system in the country. Food safety balance of mind, body and soul. regulatory system is the combination of regulations, food safety standards, inspection, testing, data Laws Regarding Casino and Gaming Establishments collection, monitoring and other activities carried The PAGCOR (Philippine Gaming Amusement out by food safety regulatory agencies (FSRAs) and Corporation) was established to regulate all games by the Local Government Units (LGUs) in the of chance in the Philippines. implementation of their responsibilities for the control of food safety risks in the food supply chain (Section 4.q). Specifically, it aims to: protect the public from food-borne and water-borne illnesses and unsanitary, unwholesome, misbranded or 1. Protection against hazards to health and safety; adulterated foods; enhance industry and consumer 2. Protection against deceptive, unfair and confidence in the food regulatory system; and unconscionable sales acts and practices; achieve economic growth and development by 3. Provision of information and education to promoting fair trade practices and sound regulatory facilitate sound choice and the proper exercise of foundation for domestic and international trade rights by the consumer; (Section 3). 4. Provision of adequate rights and means of redress; and o In general, RA 10611 works in the principles of 5. Involvement of consumer representatives in the achieving food safety to protect human life and formulation of social and economic policies. health in the production and consumption of food and protect consumer interests through fair The provisions of the law shall be enforced by the practices in the food trade. The protection of following implementing agencies: consumer interests shall be geared toward the 1. The Department of Health with respect to food, prevention of adulteration, misbranding, fraudulent drugs, cosmetics, devices and substances; practices and other practices which mislead the 2. The Department of Agriculture with respect to consumer, and the prevention of misrepresentation products related to agriculture, and in the labelling and false advertising in the 3. The Department of Trade and Industry with presentation of food. In order to support this food respect to other consumer products not specified legislation, standards for food safety measures shall above. be developed. Food safety standards refer to the Amongst all the relevant departments involved in formal documents containing the requirements that the implementation of RA 7394, the DTI plays the foods or food processors have to comply with to central role. It is also the focal point for the ASEAN safeguard human health. It should be noted that the Consumer Protection Committee (ACCP) food safety standards shall be based on risk assessment which is anchored to sound scientific LIQUOR LICENSING LAW evidence. Liquor licensing laws in the Philippines, like in many other countries, regulate the sale, distribution, and Responsibilities on Food Safety consumption of alcoholic beverages. These laws are o Food safety is a foremost responsibility of food implemented to ensure responsible alcohol business operators and key government agencies. consumption, maintain public order, and generate The food business operators, a person engaged in revenue for the government. the food business including one’s agents, shall have the principal responsibility to ensure that food Liquor licenses are issued by local government units satisfies the requirements of food law relevant to (LGUs) or municipalities. The specific agency or their activities in the food supply chain and that department responsible for issuing licenses may control systems are in place to prevent, eliminate or vary by region. Businesses that intend to sell alcohol, reduce risks to consumers (Section 13). such as bars, restaurants, convenience stores, and clubs, must apply for the appropriate license from o On the other hand, among the key government the local authorities. agencies with the prime responsibility of ensuring food safety include the Department of Agriculture Types of Licenses (DA), the Department of Health (DOH), the There are different types of liquor licenses, Department of Interior and Local Government (DILG) depending on the nature of the establishment and and the Local Government Units (LGUs). the intended sale of alcoholic beverages. Common categories include: Food, Drug and Cosmetic Act o The principal law for consumer protection in the 1. Special Commercial (SC) License - Allows for the Philippines is the Consumer Act of the Philippines sale of alcoholic beverages in bars, clubs, and similar (Republic Act No. 7394). It came into effect on July establishments. 15, 1992. 2. Retail (R) License - Permits the sale of alcoholic o The law anchored on the basic policy of the state beverages for consumption on or off the premises, to protect the interests of the consumer, promote such as in convenience stores and supermarkets. his general welfare and to establish standards of 3. Wholesale (W) License - Issued to wholesalers conduct for business and industry. and distributors who sell alcoholic beverages in bulk o Towards the end, the State shall implement to retailers. measures to achieve the following objectives: The legal drinking age in the Philippines is 18 years Who is a Regular Employee? old. Establishments selling alcohol are required to 1. One who is either engaged to perform activities check the identification of customers to verify their that are necessary or desirable in the casual trade or age before serving alcoholic beverages. Liquor business of the employer or licensing laws also specify the permissible operating 2. A casual employee who has rendered at least one hours for establishments selling alcohol. These hours year of service, whether continuous or broken, with may vary by region and type of license. respect to the activity in which he is employed (Article 280, Labor Code). Taxes & Fees, Responsible Service, Location 3. In Article 281 of the Labor Code an employee who Restrictions and Penalties is allowed to work after a probationary period Businesses holding liquor licenses are typically becomes Regular Employee. required to pay annual fees and taxes related to *It is the nature of the activity that determines their alcohol sales, which contribute to government whether employment is regular or casual. revenue. Businesses that serve alcohol are often expected to adhere to responsible service practices. Casual Employment This includes not serving alcohol to intoxicated ✓ An employee is engaged to perform a job, work individuals and ensuring the safety of customers. or service which is merely incidental to the business of the employer Some regions may have specific zoning regulations ✓ Such job, work or service is for a definite period that dictate where alcohol establishments can of time made known to the employee at the time of operate, especially in relation to schools, churches, the engagement and other sensitive areas. Violations of liquor ✓ Article 280 of the Labor Code of the Philippines licensing laws can lead to penalties, fines, or the states that any employee who has rendered at least suspension or revocation of a liquor license. The one year of service, whether such service is severity of penalties may vary depending on the continuous or broken, shall be considered a regular nature and frequency of the violation. employee with respect to the activity in which he is employed and his employment shall continue while LABOR LAW AND MANAGEMENT IN THE TOURISM such activity exists. AND HOSPITALITY ESTABLISHMENTS LABOR CODE OF THE PHILIPPINES ▪ The Labor Code of the Philippines stands as the law governing employment practices and labor relations in the Philippines. ▪ It was enacted on Labor day of 1974 by President Ferdinand Marcos, in the exercise of his then extant legislative powers. ▪ It prescribes the rules for hiring and termination of private employees; the conditions of work including maximum work hours and overtime; employee benefits such as holiday pay, thirteenth month pay and retirement pay; and the guidelines in the organization and membership in labor unions as well as in collective bargaining Project Employment ✓ There is a contract executed stating among Kinds of Employment others that the employment of the project 1. Regular Employment employee is only for the duration of the project of 2. Casual Employment the employer. 3. Project Employment 4. Seasonal Employment Seasonal Employment 5. Fixed-Period Employment ✓ Operates much in the same way as a project 6. Probationary Employment employment, albeit it involves work or service that is seasonal in nature or lasting for the duration of the season. Fixed-Term Employment ✓ An employment with a fixed or definite period. Example: Overseas employment contracts *Seafarers are considered contractual employees. They can be considered as regular employees under Article 280 of the Labor Code. Their employment is governed by the contracts they sign every time they are rehired and their employment is terminated when the contract expires. Their employment is contractually fixed for a certain period of time. Probationary Employment ✓ There is probationary employment where the employee understands his engagement is made to undergo a trial period during which the employer determines his fitness to qualify for regular Termination by Employer: Just Cause in Terminating employment based on the reasonable standards an Employee made known to him at the time of engagement. Article 279 of the Labor Code provides that the ✓ Generally, the probation period of employment is employer shall not terminate the services of an limited to six (6) months except: employee except only for a just or authorized cause. 1. When the parties to an employment contract may Serious Misconduct agree otherwise, such as when the same is For serious misconduct to justify dismissal, the established by company policy. following must be present: 2. When the same is required by the nature of work (a) It must be serious, to be performed by the employee. (b) Must relate to the performance of the ✓ Hotel's system of double probation is NOT employee's duties and, allowed (c) Must show that the employee has become unfit to continue working for the employer. Willful Disobedience of the Lawful Orders (Insubordination) Willful disobedience of the employer's lawful orders, as a just cause for dismissal of an employee, envisages the recurrence of at least two requisites: 1. The employee's assailed conduct must have been willful, that is, characterized by a wrongful and perverse attitude; and 2. The order violated must have been reasonable, lawful, made known to the employee and must pertain to the duties which he had been engaged to discharged. Gross Habitual and Neglect of Duties Termination of Probationary Employee To be a ground for dismissal under Article 282 of the The services of an employee who has been engaged Labor Code, it must be both gross and habitual. on probationary basis may be terminated for any of Gross negligence implies want of care in the the following: performance of one's duties. Habitual neglect 1. A just or imparts repeated failure to perform one's duties for 2. An authorized cause and a period of time, depending on the circumstances. 3. When he fails to qualify as a regular employee in Fraud or Willful Breach by the Employee of the accordance with reasonable standards prescribed by Trust Reposed to Him or Loss of Trust and the employer. Confidence *Tardiness might affect the employee to become Article 282(c) of the Labor Code prescribes two permanent or regular employee. separate and distinct grounds for termination of *An employee who is allowed to work after a employment, namely; (1) fraud; or (2) willful breach probitionary period shall be considered a regular by the employee of the trust reposed in him by his employee. employer or duly authorized representative.  Commission of a crime or offense by the *Failure to observe the above procedure may hold employee against the person of the person of his the employer liable for damages. employer or any immediate member of his family or his duly authorized representatives ❑ Procedural Requirements if the Cause of An employee may be terminated if an employee Termination is any of the Authorized Causes committed a crime or offense against any of the If the cause of termination of employee is due to following: authorized causes the Employer must: a. His Employer 1. Serve a written notice on the workers at least one b. Immediate member of the family of the Employer (1) month before the intended date of termination; or and c. Duly authorized representatives of the Employer. 2. Serve a copy of the written notice of termination to the Department of Labor and Employment. Authorized Causes *Failure to observe the above requirement will hold Article 283 permits the employer to terminate the the employer liable for damages higher than the employee even if the latter did not commit any amount awarded for failure to observe due process wrongful act provided any of the following if the termination is due to Just Causes. circumstances are present: Installation of Labor Saving Device (Automation) o Normal Hours The installation of labor-saving devices Generally the normal hours of work of any contemplates the installation of machinery to effect employees shall not exceed eight (8) hours a day. economy and efficiency in its method of production. o Overtime Work Redundancy Work may be performed beyond 8 hours a day Exists where the services of an employee are in provided that the employee is paid for the overtime excess of what would reasonably be demanded by work, an additional compensation equivalent to hi the actual requirements of the enterprise. regular wage plus at least 25% thereof. Retrenchment "Lay-off" The termination of employment initiated by the Work performed beyond 8 hours on a holiday or rest employer through no fault of the employees and day shall be paid an additional compensation without prejudice to the latter, resorted to by equivalent to the rate of the first 8 hours on a management during periods of business recession; holiday or rest day plus at least 30% thereof. industrial depression; or seasonal fluctuations. Closure or Cessation of Business in Good Faith o Undertime Undertime work on any particular day Closure of business is the reversal of fortune of the shall not be offset by overtime work on any other employer whereby there is a complete cessation of day. business operations and/or an actual locking-up of o Night Shift Differential Pay Every employee shall the doors of the establishment, usually due to be paid a night shift differential of no less than 10% financial losses. of his regular wage for each hour of work performed Disease as a Ground for Termination between ten o'clock in the evening and six o'clock in Article 284 provides that an employer would be the morning. authorized to terminate the services of an employee o Holiday Pay found to be suffering from any disease if the Every worker shall be paid his regular daily wage employee's continued employment is prohibited by during regular holidays, except in retail and service law or is prejudicial to his health or to the health of establishments regularly employing less than 10 his fellow employees. workers. This means that employees are entitled to 100% of Procedure to Terminate Employment their daily wage even if they did not work on a reglar ❑ Procedural Requirements if the Cause of holiday provided that the employee concerned Termination is any of the Just Causes works on the day before the holiday, or that employee is on leave of absence with pay on the day Section 2, Rule XXIII, Book V of the Omnibus Rules immediately preceding the regular holiday. Implementing the Labor Code provides that: For termination of employment based on just causes as defined in Article 282 of the Labor Code: (a) A written notice specifying the ground/s for termination (b) A hearing or conference (c) A written notice of termination  establishments to be distributed completely and equally amongst relevant or “covered employees”. ❑ It means that 100% of the service charges collected by these businesses must now be divided up and paid out equally to their employees. Republic Act No. 11360, Service Charge Law ❑ The Service Charge Law will cover all employees, except managerial employees, under direct employment of the establishment, regardless of their positions, designations or employment status and irrespective of the method by which their wages o Double Pay are paid. If the employee works on the said regular holidays ❑ All service charges collected by an employer must he shall be entitled to 100% basic pay and an be distributed fully and equally, based on actual additional 100% for working during Regular Holiday. hours or days of work or service rendered, among all If the employee works during his established rest covered employees. day which is at the same time a regular holiday the ❑ The service charges collected must be distributed employee shall be entitled to 260%. and paid to such employees: ❑ Not less than once every two weeks; or o Special Holidays ❑ Twice a month at intervals not exceeding 16 days. Unless otherwise modified by law, order, or proclamation, the following are the 3 special days in Republic Act No. 7877, Sexual Harassment Act a year under Executive Order No. 292, as amended RA 7877, Sec. 3 – Work, education or trainingrelated by Republic Act 9849 that shall be observed in the sexual harassment is committed by an employer, Philippines: manager, supervisor, agent of the employer, teacher, 1. Ninoy Aquino Day (Monday nearest August 21) instructor, professor, coach, trainor, or any other 2. All Saints Day (November 1) person who, having authority, influence or moral 3. Last Day of the Year (December 31) ascendancy over another in a work or training or education environment, demands, requests or o Payment for Work Performed during Special otherwise requires any sexual favor from the other, Holidays Work performed on special holiday merits regardless of whether the demand, request or additional compensation of at least 30%of the basic requirement for submission is accepted by the pay or a total 130%. If performed during special object of said Act. holiday and at the same time rest day he shall be entitled to 150%. (a) In a work-related or employment environment, sexual harassment is committed when: o Right to Weekly Rest Day It shall be the duty of (1) The sexual favor is made as a condition in the everyemployer, whether operating for profit or not, hiring or in the employment, re-employment or to provide each of his employees a rest period of not continued employment of said individual, or in less than 24 consecutive hours after every 6 granting said individual favorable compensation, consecutive normal work days. terms, conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, o Compensation for Rest Day If the employee is segregating or classifying the employee which in a made or permitted to work during his rest day, the way would discriminate, deprive or diminish employer must pay the employee his regular daily employment opportunities or otherwise adversely wage (100%) and an additional sum of at least 30% affect said employee; of the regular daily wage. In other words, the pay for (2) The above acts would impaire the employee's rest day is 130% of the pay for ordinary days. rights or privileges under existing labor laws; or (3) The above acts would result in an intimidating, Republic Act No. 11360, hostile, or offensive environment for the employee. Service Charge Law ❑ A new law that requires all service charges collected by hotels, restaurants and other similar ❖ The Demands, Requests for Sexual Favor of  Be provided with training, education and Superior Need not be Expressed orientation; It is not necessary that the demand, request or  To refuse unsafe work without threat or requirement of a sexual favor be articulated in a reprisal from the employer in cases of categorical or written statement. It may be imminent danger. Affected workers may be discerned, with equal certitude, from the acts of the temporarily assigned to other work areas; offender.  To report accidents and dangerous occurrences ❖ Duty of the Employer to DOLE-ROs and other government agencies in Prevent or deter the commission of acts of sexual the most convenient way; Workers shall be harassment and provide the procedures for the free from retaliation for reporting any accident; resolution, settlement or prosecution of acts of sexual harassment. Safety and Health Training Requirements ❖ Liability of the Employer if No Action is Taken ❑ All OSH personnel shall undergo the prescribed Be solidarily liable for damage arising from the acts mandatory trainings from DOLE-accredited Safety of sexual harassment committed in the employment, Training Organizations or its recognized training education or training environment institutions. ❑ All workers shall undergo the mandatory 8-hour Occupational Health and Safety Standards Act OSH seminar as prescribed by DOLE. This training RA 11058 – An Act Strengthening Compliance with may be conducted by the company safety officer in a Occupational Safety and Health Standards and staggered manner. Providing Penalties for Violations Thereof. ❑ Workers performing critical occupations shall The State shall ensure a safe and healthful undergo the mandatory competency assessment workplace for all working people by affording them and certification by TESDA. full protection against all hazards in their work ❑ Workers’ OSH seminars and environment. It shall ensure that the provisions of trainings/orientations required by the employer or the Labor Code of the Philippines, all domestic laws, by other regulations in the performance of their task and internationally recognized standards on shall be undertaken at no cost to the worker and occupational safety and health are being fully considered as compensable working time. enforced and complied with by the employers, and it shall provide penalties for any violation thereof. Workers’ Welfare Facilities All workers shall have FREE access and use of the All workers shall undergo the mandatory eight (8) following welfare facilities: hours safety and health orientation course as ❑ Adequate supply of safe drinking water required by DOLE which shall be jointly participated ❑ Adequate sanitary and washing facilities by workers and employers. Standardized training ❑ Suitable living accommodation as may be module for safety and health personnel shall be applicable such as in construction, shipping, fishing implemented and updated regularly as necessary. and night workers The mandatory workers’ OSH seminar may be ❑ Separate sanitary, washing and sleeping quarters conducted by the safety officer of the establishment for all genders, as may be applicable or any certified OSH practitioner or consultant. ❑ Lactation Station ❑ Ramps, railings and the like Employer’s Duties: provide a safe and healthy ❑ Medical Facilities (treatment room/clinic) workplace through the following, among others: ❑ Other workers’ welfare facilities as may be  Capacity building of all workers including prescribed by the OSH Standards and other mandatory trainings; issuances  Provision of information on OSH;  Use of devices/equipment with approved industry standards;  Compliance with all the requirements of the OSH Standards;  Provide appropriate DOLE tested and approved PPEs FREE of charge to the workers. Workers’Rights:  To know the different types of hazards in the workplace; SESSION 11 – LEGAL ASPECTS IN TOURISM AND HOSPITALITY FORMALITIES OF ENTRY AND EXIT IN THE PHILIPPINE The people’s constitution right to travel is absolute. Accordingly, the government has the duty to issue passport or any travel document to any citizen of the Philippines as long as they comply with the requirements of the law. The right to travel is part of the liberty of which a citizen cannot be deprived without due process of law and only on clear and compelling grounds of national security, public health and public safety as mandated by the Constitution. A passport is defined as an official document of identity and nationality issued to a person intending to travel or sojourn in foreign countries. It is the property of the government of the issuing authority. It is not a private property of the person to whom it has been issued. Common Types of Passport: 1. Diplomatic passports this are issued for persons imbued with diplomatic status or are on diplomatic mission such as the President and former Presidents of the Republic of the Philippines; the Vice President and former Vice Presidents of the Republic of the Philippines; Senate President and Speaker of the House of Representatives; the chief justice of the Supreme Court; The Cabinet Secretaries, undersecretaries and assistant secretary of the department of foreign affairs; ambassadors foreign service officers of all ranks in the career diplomatic service, attachés and members of their families. 2. Official passports - are issued to all government officials and employees on official trip abroad but who are not on a diplomatic mission or delegates to international or regional conferences or has not been accorded diplomatic status such as the Undersecretaries and Assistant Secretaries of the Cabinet other than the Department of Foreign affairs; Associate Justices and other members of the Judiciary. 3. Regular Passports - are issued to private persons who are not eligible to diplomatic or official passports, including government officials or employees going abroad for pleasure or other personal reasons Philippine Passport In the Philippines, a passport is a document issued by the Department of Foreign Affairs certifying the Philippines citizenship of the holder and is used for travel purposes. On the other hand, a travel document is