Case Study

Yes, we believe that Shangri-La
Hotel Manila observed due process

in the given case for
according to the “Termination
of Employment”, it is the
constitutional right of workers
to
security of tenure and their right
to be protected against dismissal
EXCEPT for just and
authorized cause and without
prejudice to the requirement of
notice under Article 298 of the
Labor Code. Due process in
termination disputes is the heath
of security of tenure and is
personal to the employee. Since
Nath works as a Director of
Rooms but as a probationary
employee only, which means that
she was on trial by her employer to
determine whether she is
qualified or not for permanent
employment, but she was
apprised by her poor work
performance and non-compliance
with company rules according to
Gerard Sintes, her Resident
Manager who meets Nath for their
regular weekly meeting and the
one who scheduled to have
a performance evaluation on
September 11. But On September
7, Monday, Nath called up the
hotel and lef word that she was ill
and could not report for work until
she never reports to work
again until her scheduled
evaluation.
When the Personnel Manager
Teresa Lalin returned Nath's call to
remind the latter that
a medical certificate ought to be
submitted by Nath but still
didn’t report for work on
September 9, Wednesday,
second notification is when the
General Manager Al Wymann's
message requiring Nath to report
for work and reminded Nath of her
scheduled evaluation on
September 11 but again, failed to
report for work. Nath was given
enough time and notification
regarding her “return to work
order” but still defy. So in this
given case we based our answer
based on the given standards of
due process for termination of
employment under Article
292(b) of the Labor Code
wherein Shangri-La Hotel
Manila comply and gave Melva
Nath a
written notice of termination
served on her indicating that upon
due consideration of all the
circumstances, grounds have
been established to justify the
termination and the foregoing
notices are served on the last
known address of Nath where
Lalin and Sales Director Gami
Holazo even visited Nath at her
residence for they believe that this
is one of the standards of the
Labor Code and to have a due
process. Lastly is that she
showed misconduct or willful
disobedience of the lawful orders
of his employer as she failed to
report for her work as being
asked and wilful breach by Nath of
the trust reposed by her which is
under Article 297 of the
Labor Code which is considered
just causes for termination.
A. Research and look on the case of Melva Nath versus Shangri-La Manila Hotel and respond to
the following questions:
1. Did the company observe due process in the case?
We believe that the Shangri-La Hotel Manila followed due process in the case of Melva
Nath based on the "Termination of Employment" clause, which ensures the right to job security
and protection against dismissal for employees, except for justifiable and authorized causes, and
with proper notice. Nath worked as a Director of Rooms on probationary status, meaning she
was being evaluated for permanent employment. However, her Resident Manager, Gerard
Sintes, apprised her of her poor performance and non-compliance with company rules during
their regular weekly meeting and scheduled a performance evaluation on September 11. Despite
being notified and reminded by Personnel Manager Teresa Lalin and General Manager Al
Wymann to submit a medical certificate and report for work, Nath failed to do so and showed
willful disobedience of lawful orders, which is considered a just cause for termination under the
Labor Code. Based on these standards of due process, we agree with the court's decision to
dismiss Nath's case against Shangri-La Hotel Manila.
Tourism-related establishments are more prone to labor cases due to the industry's
nature, which relies heavily on labor and human interaction. To prevent cases like the one
mentioned above, labor best practices for tourism and hospitality entities should include clear
and specific job descriptions, performance expectations, and evaluation criteria for employees.
Regular communication, feedback, and coaching sessions can help address and correct
employee performance and behavior issues before they escalate. Establishing a transparent and
objective disciplinary process with clear consequences for misconduct can also prevent
misunderstandings and disputes between employers and employees. Additionally, ensuring
compliance with labor laws and regulations, providing fair compensation and benefits, and
promoting a positive and respectful workplace culture can help attract and retain talented and
motivated employees.
2. Do you agree with the decision of the court? Why or not?
We completely agree with the court's decision, as we have previously stated that Nath
was employed as a Director of Rooms on a probationary basis. A probationary employee is a
type of employee who is on trial by the employer to determine whether or not they are qualified
for permanent employment. The probationary period cannot exceed six months unless there is
an apprenticeship agreement specifying a longer duration. An employee engaged on
probationary terms can be terminated for just cause or when they fail to meet the reasonable
standards set by the employer at the time of their engagement. Nath was a managerial
employee and held a position of discretion, and thus was held to higher expectations than other
employees. Unfortunately, her poor work performance, non-compliance with company rules,
and work ethics did not meet the employer's reasonable standards. In addition, it is within the
employer's power to terminate a probationary employee if they are dissatisfied with the
employee's performance, provided it is done in good faith and does not violate the law or the
employment contract.
3. Why do you think tourism-related establishments are more prone to labor cases than other
industries?
Tourism-related businesses are more likely to face labor issues compared to other
industries. This is because many of these establishments operate 24/7, leading to long and
irregular working hours for their employees, which can include evenings, nights, and holidays.
Some businesses also prefer to hire temporary employees to save on training costs. As a result,
tourism-related employees tend to receive lower wages, have fewer career advancement
opportunities, and often work as seasonal or part-time workers, which can make them
underemployed. The wide range of organizations and workplaces in the tourism sector, including
hotels, restaurants, bars, travel agencies, and conference centers, can also contribute to issues
such as sexual harassment. The nature of the industry, which attracts sociable and outgoing
individuals, can result in misunderstandings and misperceptions, leading to incidents of
unwanted sexual attention or intimidation. Given the industry's size and scope, with many
employees from diverse cultures and backgrounds, it is crucial for these establishments to
promote a culture of respect and tolerance to avoid labor issues.
B. RESEARCH OR DEVELOP LABOR BEST PRACTICES FOR TOURISM AND HOSPITALITY ENTITIES
TOPREVENT, LIKE THE CASE MENTIONED ABOVE, FROM HAPPENING.
Below is the list of the Best Labor Practices being implemented in various tourism and hospitality
establishments:
 Comply with labor laws and regulations - Establishments should be familiar with the labor
laws and regulations applicable to their operations and ensure compliance with them. This
includes ensuring that employees receive fair wages, benefits, and working conditions.
 Establish clear employment policies and procedures - Employers should have clear policies
and procedures regarding employment, including hiring, termination, compensation, and
performance evaluation. These policies should be communicated to employees and
consistently applied.
 Provide training and development opportunities - Employers should provide opportunities
for employees to acquire new skills and advance their careers. This can help to improve
employee morale and retention.
 Foster a positive work environment - Employers should promote a positive work
environment that encourages teamwork, respect, and open communication. This can help to
reduce conflict and promote job satisfaction.
 Address employee grievances promptly and fairly - Employers should have a process for
employees to report grievances and ensure that they are addressed promptly and fairly. This
can help to prevent disputes from escalating and avoid legal action.

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Yes, we believe that Shangri-La

Hotel Manila observed due process

1. Did the company observe due process in the case?

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

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