CHAPTER 4 The Actual Workplace
CHAPTER 4 The Actual Workplace
CHAPTER 4
THE ACTUAL WORK PLACE
Introduction
Hospitality and Tourism Management students are expected to have a clear
understanding of some basic concepts of law that they might probably encounter in
their future work industry. It is in this connection that the following concepts of
law affecting employment are discussed:
Employer's Rights
1. Reasonable return on investment
2. Expansion and growth
3. Exercise management prerogative
3.1.to lay down and execute management policies;
3.2.to hire;
3.3.to transfer;
3.4.to discipline;
3.5.to dismiss;
3.6.3.6.Retrenchment. It exists during the period of business recession,
industrial depression, or seasonal fluctuations;
3.7.To declare redundancy. It exists where the services of an employee are in
excess of what is reasonably demanded by the actual requirements of the
enterprise;
3.8.To cease operations. The management may cease business operations or
undertaking even if it is not suffering from serious business losses or
financial reverses as long as he pays his employees their termination pay in
the amount corresponding to their length of service;
3.9.To sell the company;
3.10. To abolish positions.
Authorized Causes
The causes for the termination of employment contract should not be
imputed neither of the employees and employers. The termination of employment
contract is allowed by law since it recognizes the right of employers to legitimately
decrease labor costs and other circumstances inevitable in the management of
business. The following are the authorized causes in the termination of
employment contract:
1. Redundancy. It exists when the services of an employee are in excess of
what is reasonably demanded by the actual requirements of the enterprise.
2. Retrenchment. It means reduction in the workforce to forestall business
losses or stop the hemorrhaging of capital.
3. Installation of Labor-Saving Device
4. Closure or Cessation of operation of the establishment or undertaking due
to financial losses.