HOSPITALITY LAWS

HOSPITALITY INDUSTRY
The hospitality industry is a broad category of fields
within service industry that includes lodging, event
planning, theme parks, transportation, cruise line, and
additional fields within the tourism industry. The
hospitality industry is a multibillion-dollar industry that
depends on the availability of leisure time
and disposable income. A hospitality unit such as a
restaurant, hotel, or an amusement park consists of
multiple groups such as facility maintenance and direct
operations (servers, housekeepers, porters, kitchen
workers, bartenders, management, marketing, and
human resources etc.).
 THREE CATEGORIES OF THE
HOSPITALITY INDUSTRY
The hospitality industry's backbone is comprised of
customer service, a concept shared by all segments of
the industry. Your small business may focus on one or all
facets of hospitality. How accomplished you and your
staff are at serving others will determine your business'
level of success. You may find it easier to excel in just
one category of the hospitality industry. However,
though costs and challenges will increase, owning or
managing several facets of hospitality can provide you
with many more opportunities to generate success.
 FOOD AND BEVERAGE
In hospitality, food and beverage reigns supreme. It is
the largest element of the hospitality industry and can
take the form of high-end restaurants, fast-food
eateries, catering establishments and many other
manifestations. The food and beverage trade can
symbiotically function as part of other businesses, such
as in bowling alleys or movie theaters. When your
restaurant is part of a hotel, food and beverage can
dramatically enhance the overall guest experience by
offering excellent food and first-class customer service.
 ACCOMMODATIONS
Hotels, bed and breakfast enterprises and other places
offering lodging represent a broad segment of the
hospitality industry. Types of businesses run the gamut
from extravagant resorts to hostels and campgrounds.
Your business' focus on providing lodging should
integrate comfort, efficiency and attentive customer
service as its foundation. Travelers value thoughtful
treatment and simple amenities. When they feel
appreciated and catered to, your guests will tell others
about their experience and may become repeat
customers.
 TRAVEL AND TOURISM
Another chief segment of the hospitality business
encompasses transportation. This includes airlines,
trains, cruise ships and the staff for each. Flight
attendants and cruise staff function as food servers and
hoteliers in their efforts to provide food or drink and a
comfortable experience. Business travelers and
vacationers alike form the basis for this area of
hospitality. Travel and tourism requires knowledgeable
employees in information technology, and they are
also considered a part of hospitality. Destinations such
as amusement parks draw thousands of people, all of
whom want to benefit from great customer service
while enjoying a memorable adventure.
 SOURCES OF LAW
Constitutional law - The Philippine Constitution
Delegated powersexpressly allocated to the federal
government in the Constitution
Interstate commercebusiness affecting more than one
state
Legislative processmethod by which Congress adopts laws
Administrative or executive orders, regulations and rulings
Law promulgated by legislators and generally agreed to by
the executive (president, governor, or mayor)
Statutelaw adopted by federal or state legislature
Ordinancelaw adopted by local legislature
 DEFINITION OF LAW
It is the science of moral laws founded on the rational
nature of man that governs his free activity for the
realization of the individual and social ends of life under
an aspect of mutual conditional dependence
 KINDS OF LAW
As to purpose: As to Scope:
Substantive Law - General or Public
create, defines and Law - applies to all
regulates rights, or the people of the
which regulates the state or to all
rights and duties of particular class of
which give rise to the persons with qual
course of action force and
Adjective Law - obligations.
provides the method of
aiding and protecting
certain rights
 Example:
Criminal Law - dealing with crimes and punishment
International Law - body of rules or principles of
action governing the relations between states
Political Law - a law regulating the relations
sustained by the inhabitants of a territory to the
sovereign
Special or Private Law - relates to particular persons or
things of a class.
Example:Civil Law - mass of percepts that determines
and regulates those relations of assistance, authority and
obedience existing among members of a family and
those which exist among members of society for the
protection of private interests
 Maritime Law - law dealing with commerce by sea,
involving regulations of ships and harbors and the status
of seamen
Mercantile Law - law of special transactions derived
from the law of merchant which includes commercial
paper, insurance other types of agencies
 CONCEPT OF TOURISM
LAW
A body of rules and or principles of action which deals
with the regulation, authority, relations and obedience
among members of a society involved in tourist travel
and accommodation. It includes persons traveling
from place to place for pleasure and business
establishments or persons engaged in the occupation
of providing services to the tourists
 LEGAL SYSTEM IN THE
PHILIPPINES
The Philippine legal system is aptly described as a blend
of customary usage, and Roman (civil law) and Anglo-
American (common law) systems. The civil law
operates in areas such as family relations, property,
succession, contract and criminal law while statutes
and principles of common law origin are evident in
such areas as constitutional law, procedure,
corporation law, negotiable instruments, taxation,
insurance, labour relations, banking and currency. In
some Southern parts of the islands, Islamic law is
observed. This particular legal system is the result of the
immigration of Muslim Malays in the fourteenth century
and the subsequent colonization of the islands by Spain
and the United States.
 Historical Background Philippine legal history may be
categorized according to the various periods in the
political history of the country: the pre-Spanish period
(pre 1521); the Spanish regime (1521-1898); the
Philippine Republic of 1898; the American regime
(1898-1935); the Commonwealth era (1935-1946); the
Japanese occupation (1941-1944); the Period of the
Republic (1946-1972); the Martial Law Period (1972-
1986); and the continuation of the Republic.
 HOSPITALITY LAW
Hospitality law is a legal and social practice related to
the treatment of a person's guests or those who
patronize a place of business. Related to the concept
of legal liability, hospitality laws are intended to protect
both hosts and guests against injury, whether
accidental or intentional.
 Hospitality laws relate to food service, travel, and
lodging industries. It governs the various nuances of the
hotel, restaurant, bar, spa, country club, meeting, and
convention industries, among others.
Much like entertainment law, homeowners association
law, and other specialty fields, hospitality law is much
more a description of the types of clients who seek out
the attorneys who focus their practices in these areas
rather than an actual set of laws.
Hospitality law commonly encompasses a wide array of
laws including contracts, anti-trust, torts, real estate,
and many others.
 DUTY TO GUESTS
Hotels and other business operators are expected to
"act prudently and use reasonable care" to ensure that
their premises are (reasonably) free of risk. While not
specifically requiring that a business owner ensure his
guests are safe, most jurisdictions interpret 'prudent and
reasonable' to include foreseeable dangers, such as
tripping hazards or unsecured shelving.
In most cases, unless directly disclaimed (for example,
with some insurance waivers), hospitality law does not
protect a business owner against charges of
negligence
 Common law holds innkeepers liable for any loss of
guest property when the guest in on the premises of a
place of business; in practice, such liability is often
overlooked provided that the business owner meets
certain conditions (such as having a guest sign a
waiver of liability). In most countries, for liability waivers
to be enforceable, notification of the waiver must be
posted in an accessible, visible location (usually at the
front desk or in a common area of the business), and
must be printed in clearly legible text.
 COMMON LAW
Consists of legal rules that evolved from decisions of judges
and from custom and practice
Gradually modified as habits were modified, as new
inventions created new wants and conveniences, and as
new methods of doing business developed
Precedents
Case decisioninterpretation of the law applied by a judge
to a set of facts in a given case
Precedentcase decision becomes precedent
Stare decisisprocess of following earlier cases gives some
uniformity to the law
To some extent statutes and common law are intertwined
Sometimes statutes are adopted to modify common law
 A process can be implemented that will help reduce
employee errors and omissions and, therefore, litigation
and liability. The process is called STEM, for select,
teach, educate, and manage.
 1. SELECT
Managers can begin reducing litigation by selecting
the right employee for the right job.
Managers cannot hire just anyone at the last
minute.
Employees must be selected based on specific job
qualifications, written job specifications, and
information derived from a thorough investigation of
the candidate for the position, whether the employee
to be hired is a busperson, waitperson, hostess, door
supervisor, or line supervisor.
 2. TEACH
Managers must develop proper training methods for
employees, including feedback devices such as
competency testing, to ensure that the training is
effective.
 3. EDUCATE
Managers must continuously educate themselves so
that they know which topics and procedures must be
passed on to employees through effective teaching
methods.
 4. MANAGE
Effective managers know that if you consistently do
things the right way, the chances for mistakes and,
therefore, for litigation will diminish.
Management has been defined as consisting of four
functions: planning, organizing, controlling, and
motivating. While all four have legal implications, the
STEM process focuses almost exclusively on the
motivating function.
A manager who creates a supportive work
environment will gain the trust and respect of
employees, who will then be motivated to do their best
work, and thus avoid making errors that could result in
litigation.
 THE TRAINING TRAIL
What was taught?
Who was taught?
How was the training conducted?
When was the training provided?
How did you determine its effectiveness?
The evidentiary trail.
 APPLICATIONS
Ask job-related and legally acceptable questions.
Review the application form for obvious problems.
Note any large gaps in employment, or frequent job
changes.
Contact the applicant immediately to answer
questions.
Ask the applicant to sign an authorization and release
form for checking references.
Dont just hire anyone, be selective.
negligent hiring
 CHECKING THE
APPLICANTS RECORDS
Interview the applicants former manager by phone to:
Check the facts on the application form.
Probe for information.
Ask about how the applicant interacted with other
employees.
Ask if the employee left on good terms and is eligible for
rehire at that company.
Check the applicants educational record, credit rating,
and criminal convictions.
 TESTING APPLICANTS
Hiring Tests
Must be legal and valid.
Must comply with Civil Rights Act of 1964 and the
Americans with Disabilities Act of 1990.
Must not be biased against anyone because of race,
color, religion, age, sex, national origin, or
disabilities.(exception: bona-fide occupation
qualification).
 TRAIN AND EDUCATE
These two aspects are interrelated.
Train your employees the right way to perform the
task(s) the first time. It is easier to train than to retrain.
Ensure that the trainer is properly trained himself/herself.
Remember, it is the evidentiary trail that wins lawsuits,
not who is right or wrong.
Educate yourself about new trends, technological
innovations, laws, and rules and regulations which
impact your industry
 Positive Management and Employee Loyalty
How to become a positive manager and build
employee loyalty.
raise employee morale and self-esteem
reduce turnover
enhance service
enhance customer satisfaction
reduce litigation
enhance the bottom line
 PROPER MANAGEMENT
AND MOTIVATION
As a manager - Lead by example!
Todays culturally diverse workforce will require diverse
motivating techniques.
People are motivated by different things.
Find out what it is that motivates your employees.
Involve employees in the process.
Ask your employees how you are doing as a manager.
 SITUATION NUMBER 1
A fellow supervisor and friend confides in you that that
he has been arrested a second time in two years for
driving under the influence of alcohol. His current case
has not yet gone to trial. This supervisor is responsible for
the late-night closing of the restaurant in which you
both work. You know bars in your city close at 2:00
A.M., the same time the restaurant closes
 1. Should you discuss this situation with the restaurant's
General Manager?
2. Which aspect of STEM is relevant here?
 SITUATION NUMBER 2
Assume that you are the Food and Beverage Director
of a large hotel. You are planning for your New Years
Eve gala, and require a large amount of wine and
champagne. You conduct a competitive bidding
process with the purveyors in your area, and, based
upon quality and price, you place a very large order (in
excess of 20,000) with a single purveyor. One week
later, you receive a case of very expensive
champagne, delivered to your home with a nice note
from the purveyors representative stating how much
they appreciated the order and that they are really
looking forward to doing business with you in the years
ahead. What do you do with the champagne?
 Ethical Analysis Your first thought may be the most
obvious one; that is, you drink it. But hopefully, you will
first ask yourself the seven questions of the ethical
decision-making process.
 ETHICAL DECISION-
MAKING PROCESS
1. Is it legal?
2. Does it hurt anyone?
3. Is it fair?
4. Am I being honest?
5. Would I care if it happened to me?
6. Would I publicize my action?
7. What if everyone did it?
 TESTS:
1. Give a hospitality example of the importance that
selection makes in the STEM process.
2. Give a hospitality example of the importance of
teaching in the STEM process.
3. Give a hospitality example of the importance of
education in the STEM process.
4. Give a hospitality example of the importance that
managing makes in the STEM process.
 GOVERNMENT AGENCIES
THAT IMPACT THE
HOSPITALITY INDUSTRY
Federal Regulatory and Administrative Agencies
State Regulatory and Administrative Agencies
Local Regulatory and Administrative Agencies
Regulatory Interaction and Oversight Impacting Travel
and Tourism
Managing Conflicting Regulations
Responding to an Inquiry
Monitoring Regulatory Change
 I. FEDERAL REGULATORY
AND ADMINISTRATIVE
AGENCIES
1. Bureau of Internal Revenue
2. Occupational Safety and Health Administration (OSHA),
3. Environmental Protection Agency (EPA)
4. Food and Drug Administration (FDA)
5. Equal Employment Opportunity Commission (EEOC)
6. Bureau of Alcohol, Tobacco, and Firearms (ATF)
7. Department of Labor and Employment(DOLE): Wage and
Hours Pensions and Welfare Benefits Plant Closings and
Layoffs Employee Polygraph Protection Act Family and
Medical Leave Act
8. Department of Justice (DOJ)
 II. STATE REGULATORY AND
ADMINISTRATIVE AGENCIES
1. Employment Security Agency
2. Alcohol Beverage Commission (ABC)
3. Treasury Department/Controller
4. Attorney General
5. Public Health Department
6. Department of Transportation
 III. LOCAL REGULATORY
AND ADMINISTRATIVE
AGENCIES
Health and Sanitation
Building and Zoning Courts and Garnishment
Historical Preservation
Fire Department
Law Enforcement
Tax Assessor/Collector
 IV. REGULATORY
INTERACTION AND
OVERSIGHT IMPACTING
TRAVEL AND TOURISM
 V. GOVERNMENT AGENCIES
REGULATING THE TRAVEL
INDUSTRY
a. Department of Trade & Industry (DTI)
b. Centers for Disease Control (CDC)
c. Department of the Interior & Local Government
(DILG)
d. Department of Homeland Security (DHS)
e. Treasury Departmentf. Department of Transportation
(DOT)g. Department of Tourism (DOT)
f. Department of Environmental and Natural Resources
(DENR)