CASE STUDY PAPER

Legal Aspects in Tourism and Hospitality

THC 8-JSC

Submitted by:

John Gerard C. Jardinico

2nd Semester, AY 2019-2020

Submitted to:

Sir. Mackoy Costales

CASE 1: MELVA NATH vs. SHANGRI-LA HOTEL MANILA

CHAPTER 1: INTRODUCTION
Summary of the Case
Melva Nath a Director of Rooms in Shangri-La Hotel Manila on a probationary
period of not more than six (6) months. On September 4, 1992, Friday, Resident
Manager Gerard Sintes met with Nath for their regular weekly meeting. Since Nath's
performance was due for evaluation on September 11, Sintes apprised Nath of her
poor work performance and non-compliance of company rules. Nath neither disputed
Sintes' findings nor justified her alleged acts and omissions.

On September 7, Monday, Nath called up the hotel and left word that she was
ill and could not report for work. That afternoon, Personnel Manager Teresa Lalin
returned Nath's call to remind the latter that a medical certificate ought to be
submitted by her. Nath informed Lalin she would report for work on September 9,
Wednesday.

Nath did not report on September 9. Lalin and Sales Director Gami Holazo
visited Nath at her residence. They relayed General Manager Al Wymann's message
requiring Nath to report for work and reminded Nath of her scheduled evaluation on
September 11.

On September 10, 1992, Nath sent a letter to Lalin dated September 9, to

quote” “Thank you for taking the trouble to discuss things with me. I appreciate your
concern and admire your efforts at trying to work things out in this rather difficult
situation. “I would be happy to consider returning to work. You will understand,
however, that this would depend upon my performance evaluation - I feel that the
whole exercise becomes academic if my output is evaluated as anything less than
satisfactory. Thus, I would very much appreciate a copy of my official performance
evaluation prior to my return. “Enclosed are copies of most of the work I have
accomplished in what effectively amounts to 2 ½ months on the job. I hope you will
appreciate that what I have produced is quite substantial especially in light of the fact
that I was without a secretary for one month and without a computer for about two."
 On Sept. 14, 1992, the Shang-rila Hotel, dismissed Nath immediately.
Wherein in the content of the letter stated that Nath has been absent from work for 1-
week (7) days. Which leads to his immediate dismissal. After Nath knew of his
immediate dismissal, he immediately filed a complaint for his illegal dismissal in the
Shang-rila Hotel. Without the loss of his seniority rights and other privileges and
further to pay the complaint. Also reinstating her again in her position with full back
wages counted from Sept. 14, 1992.

In her petition stating that there was no due process and the petitioners
alleged substandard work, performance and was never cited a ground for her
immediate termination and was never raised as an issue until further. There was also
no clear, independent, and satisfactory evidence to prove that the petitioner’s work
performance was ever substandard.

Because of this case wherein no due process has been given, 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 acts or omission constituting the grounds for
his dismissal. In cases of abandonment of work, the notice shall be served at 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 clearly stating the reasons therefor.
Throughout the process of this case Nath has been accused of not doing her
job. Her work ethics and not meeting up her designated deadlines. None of her
manuals has finished and the checklist that covered the things complained needed
to accomplish remained outstanding. The quality of her work has never been up to
the standards of the hotel. Throughout the meeting she was urged to respond, to
give feedback on the points raised. But she chose to remain silent.
In Nath’s petition paper she stated that she “was never remiss with her duties
and responsibilities as Director of Rooms of the Shangri-La Hotel”. She was a
managerial employee and not an ordinary employee. Her job involved the exercise of
a lot of discretion. More was expected from her. Unfortunately, her work ethics and
performance fell short of the reasonable standards set by her employer.
 Throughout the process in this case, her dismissal being for just and
authorized cause but without due process, Nath is not entitled to reinstatement,
backwages, damages and attorney's fees. In the end Melva Nath won the case but
was never reinstated again as the Director of Rooms. In view whereof, the decision
of public respondent NLRC is hereby affirmed. No costs.
 CHAPTER 2: DISCUSSION

a. Lessons learned in the case

The case of Melva Nath against the Shangrila Manila Hotel is an absurd
dismissal of the rights of an employee. Whereas the public respondent National
Labor Relations Commission (Second Division) reinstated that the Shangrila Hotel
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 terminations nor as
an issue; and (b) there was no clear, independent, and satisfactory evidence to
prove that petitioner’s work performance was substandard. Hence, the petitioner was
dismissed without due process of Law.

With the statements above, lessons in this case are upheaval. Firstly, it is
learned in this case that each employee should know their rights, more so, to not be
afraid to exercise it most especially if the employee is right. It is affirmed in the rules
implemented by Batas Pambansa Bldg, 130 that it requires for the employer to
provide two written notices before the termination of the worker can legally be
affected. To expound, it is mentioned that the termination of employment can be
legally affected when (1) notice which apprises the employee of the particular acts or
omissions for which his dismissal is sought; and (2) the subsequent notice which
informs the employee of the employer's decision to dismiss him. In this regard, it is
evident that the legal rights of the employee specifically Melva Nath was not properly
given by the Shangrila Hotel. Secondly, the lessons learned in this case is honesty. It
can be seen in the case that Shangrila Hotel had altered some of the small details to
exaggerate that Melva Nath had committed omission on being the Director of Rooms
in Shangrila Hotel. To prove, the letter provided by the private respondent which is
Shangrila Hotel had omitted alteration on exact dates, for instance they said that
their records shows that she has been absent from work since September 8, well in
fact it should be September 7. Another instance is when the letter of dismissal
reiterates that the complaint has not been reported for work since September 11,
well in fact it should be September 10.
 b. Does the company observe due to process in this case?

In the instance provided in the case, due process was not observed by the
Shangrila Hotel. They immediately dismiss Nath without any due process, which
Nath found very unpleasant. Moreover, the company really did a number on Nath,
which is unprofessional. The company also accused Nath of not doing her job
efficiently, and the quality of her work did not meet the hotel’s standard. Hence, she
was immediately dismissed without prior notice.

As mentioned above, it is clear and evident that due process was not
observed in the dismissal of Melva Nath as the Director of Rooms in Shangrila Hotel.
Consequently, clear, independent, and satisfactory evidence was not provided to
prove that the petitioner’s work performance was substandard. Hence, it was not
cited as an issue for termination nor raised as an issue.

To prove the point stated above, it is mentioned in Section 2, Notice of

Dismissal that 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 at the
worker's last known address. More so, it is also stated in Section 6, Decision of
Dismiss that the employer shall immediately notify a worker in writing of a decision to
dismiss him clearly stating the reasons therefor. However, these legal actions were
not practiced by the private respondent - Shangrila Hotel.

c. Do you agree with the decision of the court? & Why do you agree
or why don’t you agree?

The decision of the court with regards to the case of Melva Nath against
Shangri La Hotel is indeed agreeable due to various reasons. Firstly, the decision
manifested the conventional actions required in addressing the case. Furthermore,
the court taking the side of Melva Nath was exemplar because as discussed above
and proven above, the company did not observe the due process before dismissing
the complaint. With this, based on my judgments, the actions taken by the company
is inappropriate. It is evident that they did not even notify Nath’s immediate dismissal
in the hotel that led to Nath’s complaint against Shangri-La hotel being raised to the
court. In regards to the immediate dismissal of the hotel to the complaint, it is raised
in the court that such actions is not in line to the certiorari grounds that states
“respondent National Labor Relations Commision 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 was
substandard”. Consequently, the final decision of the court stated that “Her dismissal
being for just and authorized cause but without due process, Nath is not entitled to
reinstatement, back wages, damages and attorney's fees. As we have ruled in
Wenphil Corporation vs. NLRC, the fact that the employee was not afforded due
process does not operate to eradicate the just causes for which he could be
dismissed. A contrary policy may encourage the employee to do even worse and will
render a mockery of the rules of discipline that employees are required to observe.
Under the circumstances, the dismissal of the employee for just cause must be
maintained”. The judgment proffers that Nath could not be reinstated to his late
position as the Director of Rooms in Shangri-La Hotel, more so, she will not also
have back wages and attorney’s fees. Despite this, the final decision of the court is
still commendable and that it is manifested in this incident that each one of us needs
to observe proper dismissal of employees, in which we must be righteous and
orderly in decision making.

d. Why do you think tourism-related establishments are more prone

to labour cases than other industries?

Tourism is one of the world’s largest and rapidly growing industries. It is also
one of the main economic engines for nations; in the 21st century, the global
economy is driven by three major industries including technology,
telecommunication, and tourism. Moreover, the 21st century world economy is
service-based, and services require people. The tourism-related establishment
operates around the clock wherein extended operation hours, intensive job
demands, and daily or seasonal fluctuations is a normal thing. In tourism-related
establishments people tend to be more involved since in this industry, they serve the
people and the mass in which many cases in labours are piling up and more prone to
it. While other industries, people are not that involved.

There are a lot of unequal treatments for all types of employees, which lead to
major labour cases wherein sometimes affect the company itself. Some which are
unfair treatment among men and women employees; untrained workforce, poor
working condition, seasonality of the sectors, sexual harassment and stress; high
working hours without overtime payment, the sector is low paid salary payer and
other socio-cultural related factors are some to be noted as challenges for
employment conditions in tourism and hospitality business.
 CHAPTER 3: RECOMMENDATIONS

Before you terminate employee’s or other staff in a company, make sure to

follow a due process in order not to be tangled with other problems that will come by.
It is also important to notify the employee ahead of time prior to the termination or
dismissal of an employee. As a good employer you must create well-thought-out
policies and guidelines describing the grounds for termination and how the process
will be handled, when it becomes necessary. You will also need to communicate
effectively with your other employees, so the firing will not negatively impact morale.
This requires transparency – yet you do not want to infringe on the fired person’s
privacy unless necessary. All in all, firing is a painful and, sometimes, risky business.
If you cannot avoid it, then it is important to keep it from getting emotional

You will not win a lawsuit by simply striding into the courthouse and
demanding money from your opponent. Each type of legal claim has several
"elements" that you will need to prove to win. It is an all or nothing proposition. If you
fail to prove an element, you will lose. For example, in a contract dispute, you must
prove that a contract existed, that you held up your end of the bargain, that your
opponent failed to meet his or her contractual obligations, and that you were harmed
as a result. You'll want to plan carefully making sure that you can prove every
element of your case—or, if you are defending yourself against a lawsuit, making
sure that you can disprove at least one element of your opponent's case. One of the
easiest ways to find the elements is by reviewing jury instructions. Jury instructions
are simple statements of the law that the judge will read to the jury so the jury knows
the elements that you must prove, too. Each state has a set of civil and criminal jury
instructions. Look through the table of contents to find your cause of action.

Despite your best attempts to right the ship, there’s a certain employee on
your team who just can’t seem to meet expectations—and, it’s left you scrambling to
figure out exactly how to fire an employee nicely. However, when you are in the
driver’s seat, it’s also up to you to ensure that you maintain a high-performing team.
So, if an employee is repeatedly breaking rules or ignoring expectations—regardless
of how many attempts you have made to correct the behaviour—it is time to cut them
loose.
 Give them time to change, rather than immediately jumping on the firing
bandwagon, it’s worth sitting that employee down, pointing out the behaviours that
need to change, and then identifying some action steps that employees can take to
improve. Find the right time and place, you need to find an atmosphere somewhere
private, quiet, and free from constant distractions where you both can devote your
full attention to that conversation. Always stand firm in your decision, your final
decision must not be immovable at all cost even if the employees are to beg and cry.
CASE STUDY 2: LOST BAGGAGE

CHAPTER 1: INTRODUCTION
You are standing at the baggage carousel for what seems like forever when
the steady flow of bags onto the conveyor belt slows to a trickle, then stops. Your
bags are nowhere in sight. Or your bags do show up but look like an angry gorilla
has been throwing them around his cage for sport. Who is responsible for your
damaged, delayed, or lost luggage?
If airlines have been checking baggage, they’ve been sending a few
somewhere other than where they were supposed to go. Fortunately, airlines are
doing better recently than they did 20 years ago, so your chances for a happy ending
have improved for two reasons:
They are losing fewer bags. The government has been collecting statistics on
mishandled bag reports for decades, and the number of mishandled bag reports per
100,000 passengers has dropped from a high of seven in the early 1990s to about
three since 2009.
They are getting better at tracking the bags they do lose. With barcoded tags
and even a few RFID-enabled tags, the airlines’ systems keep excellent track of
bags. The last two times I have had a bag problem, an agent at the lost-baggage
desk was able to tell me immediately where my bag was and the flight on which it
would arrive.
The airlines typically bring you your luggage when it is found; you will rarely
need to return to the airport to pick it up. If you are staying at a hotel or resort, alert
the front desk about an incoming bag. Airlines usually deliver delayed bags at no
cost to you, but some may ask you to pay. Additionally, many airlines will reimburse
any unexpected expenses caused by the loss or delay (keep your receipts!). No law
requires any specific assistance, only that airlines must have a policy and make it
available to you.
If an airline does not get your bag back to you within five days, the bag may
be truly lost. An airline defines “lost” at anywhere from five to 30 days, at which point
both you and the airline proceed on the assumption that you’ll never see your bag
again. If the airline loses your bags, make sure you get a written claim for damages.
This may require a different form than the original “missing luggage” form. This can
be done at the airport or online.
Any lost baggage claim process is obviously a negotiation. Airlines will
typically cover only the depreciated value of whatever you say you lost, not the
original purchase price. They will ask for receipts, even for a suit you bought 10
years ago. You may go back and forth several times before reaching a deal. The
airline may offer you a voucher for future travel in lieu of cash, which is generally a
good deal only if the voucher value is doubled to triple a satisfactory cash value and,
even then, only if the voucher conditions allow you to travel.
 CHAPTER 2: DISCUSSION

a. Airlines’ Handling of Damaged Suitcases

As stated in the policies of Philippine Airline with regards to how they handle
damaged suitcases there are various guidelines. Firstly, in the Number 7 of the
Conditions of Contract of PAL is stated that “checked baggage will be delivered to
the bearer of the baggage check. In case of damage to baggage moving in
international transportation, a complaint must be made in writing to the carrier
forthwith after discovery of damage and, at the latest, within 7 days from receipt; in
case of delay, complaint must be made within 21 days from date the baggage was
delivered”. Secondly, with regards to the Notice of Baggage Liability Limitations of
PAL, they made mention that when the passenger declared higher valuation, the
Carrier’s liability for loss of or damage to checked baggage shall be limited to
PHP40.00 per kilogram. Lastly, on loss, delay or damage notification, PAL made it
clear that the passenger must report to the Carrier any lost, delayed or damaged
baggage before leaving the airport. More so, a receipt without complaint is an
evidence that the same has been delivered in good condition. Furthermore, it is
advised by PAL that when you notice that your baggage was damaged upon arrival,
you must immediately report it to the Baggage Assistance Counter for them to record
the details of damage to your baggage.
As per the Cebu Pacific, they handle damaged suitcases based on their
policy that states “If baggage is damaged, immediately file a Property Irregularity
Report (PIR) while still at the airport premises of the arrival station. If damage is
proven not to be caused by regular wear and tear, we compensate based on the
Philippines Air Passenger Bill of Rights or the Warsaw Convention”. This means that
in order for the complaint of damaged suitcase to be valid, the customer must file a
PIR while he/she is still in the airport, if proven they will compensate based on
Philippines Air Passenger Bill of Rights or the Warsaw Convention which subjects in
providing for a Bill of Rights for Air Passengers and Carrier Obligations.
On the other hand, the Air Asia handles damaged suitcases through their
policy that states “If you wish to file a claim or an action regarding damage to
checked baggage, you must notify AirAsia as soon as you discover the damage, and
at the latest within 7 (seven) days of receipt of the baggage”. Consequently, details
of the damage to the suitcase will be recorded and the customer will be provided
immediate assistance,
The aforementioned claims above prove that every airline has their own
policies with regards to handling damaged suitcases; more so, they provide
immediate actions when damages are proven.

b. Handling of Arrival of suitcases

The baggage collection at the end of the journey is handled by the belt that
delivers luggage to passengers, where the suitcases that have just been unloaded
from the airplane have been directed, making it easy with the existence of loading
platforms. In this case also, the right delivery path is chosen to make it easy through
the label put on the suitcase. Baggage that has not been automatically recognized
go toward a manual identification and, if this kind of identification is not possible
anymore, they will be brought to the lost baggage office.
This depicts the importance of airport logistics for luggage works. Automatic
systems and accurate timings are the ideal combo for a high-quality service;
furthermore, check-in operations confirm their basic role that guarantees the
accuracy of the whole handling system.

c. Maximum amount airlines can reimburse aggrieved passengers

Airlines actions towards the reimbursement of aggrieved passengers vary
based on the circumstances. For instance, passengers are entitled to be reimbursed
of the value of the fare, taxes, and surcharges and/or other optional fees, to be
endorsed to another air carrier without paying any fare difference, and to rebook the
ticket without additional charges. Moreover, if the flight is cancelled due to other
causes such as force majeure, safety and/or security reasons, passengers must be
reimbursed of the full value of the fare.
Furthermore, the right to compensation for delayed, lost, and damaged
baggage of the passenger states that PHP2, 000 compensation should be provided
to the passenger for every twenty-four (24) hours of delay. Also, if the baggage was
not delivered within twenty-four (24) hours means the refund of checked baggage
fees. Consequently, if the baggage is lost or has suffered any damage, relevant
convention must be applied on international flights, while for domestic flights the
passenger has the right to a maximum amount equivalent to half amount in the
relevant convention (for international flights) in its Peso equivalent.
 CHAPTER 3: RECOMMENDATIONS
As you patiently wait for your bag to roll down the carousel, there is always
the awful suspicion that it may have been lost. Then, as if by magic, your luggage
appears among the very last batch, and all is right with the world.

There are a lot of cases in the world wherein luggages are being lost,
damaged and sometimes stolen. But as a responsible passenger we must always be
more careful in our luggage. Placing tags in your luggage is most important when
travelling, so if ever you’ll lose your bag it has a tag on it, wherein you have your
address on it and contact details. Check in Early to Avoid Luggage Being Delayed or
Lost
There are plenty of reasons why the airlines suggest passengers arrive
several hours before departure, but baggage is certainly a biggie. It takes some time
for baggage handlers to transport all those bags from the check-in drop off all the
way over to the airplane. Those running dangerously close to the wire may clear the
long lines at security, but the bag you checked last minute may not be so lucky.
Add some personality and make your bag easier to spot, there is a good
reason why airport PA systems constantly remind you to check your tag at baggage
claim before exiting the airport. So many bags really do look the same and, after a
long day of travel, it is easy to mistakenly grab a bag that kind of looks like yours, but
belongs to someone else.
To help yourself better spot your bag, and to prevent others from mistaking
your bag for their bag, consider adding a little extra color to your bag. Wrap a
patterned luggage belt around the centre of your suitcase, ideally one in a bold color
or easy to recognize pattern.
If your bag does not show up on the baggage carousel, look immediately for
the airline's nearby baggage office or window (this would be the lost luggage people)
and report it there at once (the office is near it's probably not on another level). Do
not panic; your bag may just be delayed and coming in on another flight. Give the
window clerk your baggage stubs and wait for further instruction. If the airline finds
your bag, they will get it to you. If not, the airline will try to replace the lost luggage
itself with the closest match possible, or rather they will pay for the price of the
luggage. Always report to the station if ever your luggage is lost or damaged. In the
end we must be more careful in our belongings when traveling to places.