Saint Louis University

School of Law

FIELD STUDY: LABOR STANDARDS

The Realities of Life as Seen in the Eyes of an Employee:

Assessment of Labor Standards Compliance of Restaurants within
Baguio City

May 6, 2019

ESTRADA, JOSELLE DARA N.

FERRERIA, CHARMIE ANN C.

LLAMAS, CLEAH MARYELL D.

JD 2-C

ATTY. LEILANEE Q. DASIG-QUANGUEY

 Abstract

The subject of this study focuses on labor standard

compliance of restaurant establishments which gives services
to people through the food industry. Such business requires a
relative number of work force as service crew members, cooks
and bartenders. This study is aimed to determine the status of
compliance to labor standards amongst restaurant employers in
relation to wages, facilities and other employee benefits.
Descriptive type of research was used to assess the compliance
of the establishment to the labor standards that can be an
input to keep up with a harmonious relationship of the
employer and employee. This study yielded that the restaurant
owners are compliant with most of the labor standards imposed
by the Labor Code.

Introduction

People need to work in order to make money. They need

money for their necessities, and to have fun with their
friends and family. Compliance with the requirements of law is
good for business. Compliance with the law does not only
protect the employee but as well as the employer, in case that
there will be disputes. If employers establish a system
promoting fairness, accuracy, and consistency, employees feel
secured with their employers and, as a result, are more
committed to deliver and are better engaged at work. 1

These conditions of employment may be summarized as

follows: (a) the employees wage must not be less than the
regional minimum wage applicable to the place of employment;
(b) normal hours of work of eight hours in a day; (c) one (1)
day rest period after six consecutive days of work; (d)
1
https://kittelsoncarpo.com/issuance-pay-slips-encouraging-employer-compliance-labor-laws-protecting-employees-
philippines/
1
regular pay on holidays; (e) five days service incentive leave
th
each year; (f) 13 month pay;(g) coverage by medical care,
social security and employees compensation; and (h)
retirement benefits upon reaching the age of sixty years or
sixty-five years for compulsory retirement in the amount
equivalent to one-half month pay for every year of service
rendered.2

Eating is a very essential part of one’s life. People

tend to eat outside during special occasions, or for just a
day to day need, and another people would need to serve those
who would dine out. But are those who deliver such service
properly compensated and given what is due them?

Review of Related Literature

This study is anchored from the previous research of the

Asia Pacific Journal of Academic Research in Business
Administration assessing the compliance to labor standards of
a local manpower agency. The previous study explained how to
evaluate the level of compliance to labor standards of the
agency to yield a result that harmonizes the relationship
between its clients, employees and the employer. This idea
aided the researchers to pursue the study on compliance to
labor standards of restaurant establishments here in Baguio
city.

Methods

Research design

This study is focused on the compliance to the working

conditions set forth by statutes of different restaurant
owners around Baguio City. To achieve the general objective,

2
Macaraya, B., The Philippines: Workers’ Protection in a New Employment Relationship
2
the proponents used descriptive method of research since it
reveals the practices of employers that are compliant or not
compliant with the rules on working conditions.

Participants

This study is limited to employees and employers of local

restaurants located in Baguio City. The questions are focused
on labor standard specifically on the compliance of the
company on the working conditions provided under the Labor
Code.

Procedure

The first step in data collection was to contact with

Human Resource Department. The researchers’ obtained
appointments with the Operations Manager for approval of the
study within the company during break time of manpower. A
cover letter was included explaining the purpose of the study
was attached. Modified questionnaire was adopted in the
assessment strategy in order to consider how best to gather
the needed data. It is also helpful to consult a variety of
resources, including company policies, certificates, wage
slips, and records. Workers in the facility are a valuable
resource, and it may be impossible to get accurate information
without their input. Respondents are encouraged to respond
candidly and completely to the questionnaire, establishing a
true baseline of FAMSI practices and management from which
future performance improvements and impact can be tracked,
measured, and communicated.3 Among the significant ethical
issues that were considered in the research process include
informed consent and confidentiality. Before the questions
were forwarded to potential respondents, the researches

3
Asia Pacific Journal of Academic Research in Business Administration, April 2016
3
acquired the permission from their respective employers first,
and the proponents also asked permission from the employees.
The participants could withdraw from the study even during the
process. With this, the respondents were not forced to
participate in the research. The names of the participants as
well as the establishments will not be disclosed to ensure
their anonymity and security.

Only relevant details that helped in answering the

research questions were included.

Instrument

A comprehensive set of modified questionnaires adopted

from Department of Labor and Employment, in order to ensure
that the data collected would provide a complete illustration
of the labor standard compliance of restaurant establishments
under this study. The research explored the in-depth nature
and origins of the respondent’s viewpoints. Each statement in
the questionnaire was answered by a mere yes or no depending
on the compliance and non- compliance of the employer in each
question. To determine the assessment of the respondents
regarding the compliance to labor standards, the comparison
method was used by the researches. Verbal interpretations were
also presented as the main source of data.

Discussion

Data Analysis

The researcher discussed and analyzed the findings from

the answers during interviews and survey questionnaire
distributed from the respondents. The discussion and analysis
attempted to answer the objectives of the research.

4
 This research is divided into subsections relating to
labor standard compliance issues that were answered by the
manager or the owner of the said restaurants which compares
the answers of the employer or manager to employees.

Transcript of the Interview Method used by the Researchers

A. TABLE 1: Restaurant A

Restaurant A
EMPLOYER EMPLOYEE
A. Length of EE 1: 2 months Employee that was
Service EE 2: 1 year 1 month interviewed:
EE 3: 6 Months EE 3: 8 months
EE 3: 1 year 6 months
EE 4: 8 months
EE 5: 8 months
EE 6: 1 year 1 month
EE 7: 9 months
EE 8: 3 months
B. Wages: The starting The staring wage is
wage of the employee 310 pesos per day
Amount and Day
is Php. 310 per day. and additional
of Payment
However, an increase increase of 40
is given to every pesos will be added
employee for the to the salary
amount of 40 pesos depending on their
every 3 months performance for
depending on their every 3 months.
performance to be
assessed by the
employer. ie. No
absences, no
tardiness)
C. Overtime pay 40 pesos for every 40 pesos for every

5
 hour hour
D. Instances of The employer never The employer
Wage Deduction deducts from the never deducts from
employee’s wage for our wages for every
every damage an damage we incur.
employee makes. (ie.
Destroyed machines
and glasses)
E.Enrollment in The employer complies The employee is
SSS/Philheath with the SSS and enrolled for 8
PhilHeath benefits of months already.
the employees.
However, some of the
employees refuse to
be enrolled in the
SSS and PhilHeath
Benefits.
F. Additional 30-40 pesos meal 30 pesos meal
Benefits (Meal benefit with rice. No benefit with rice.
Benefits) deduction from the No deduction from
wage of the employee. the wage of the
employee.
G. Service If it is left on the If it is left on
Charges table, it will be the table, it will
divided equally among be divided equally
all employees. But if among all
it is personally employees. But if
given to the it is personally
employee, the given to the
employee could take employee, the
it as his/ her own. employee could take
it as his/ her own.
H. Separate Yes Yes
Restroom

6
(Male/Female)

REMARKS:

EMPLOYER EMPLOYEE
Is there a No Contract
contract?
Is there a No Yes. I just don’t
deduction for late know how much is
employee? being deducted.

B. TABLE 2: Restaurant B

Restaurant B
EMPLOYER EMPLOYEE
A. Length of 6 months
Service
B. Wages: The employee
Amount- receives 310 pesos
per day.
C. Overtime pay 30 pesos for every
hour
D. Instances of The Employee
Wage Deduction The employer was not is required to pay
interviewed. 350 pesos for every
absence they incur.
E.Enrollment in Yes
SSS/Philheath
F. Additional Additional 1,000
Benefits pesos for every
month provided,
(Meal Benefits)
there is no
7
 absences or
tardiness. However,
this will be
divided among all
employees who did
not incur
The employer was not
absences/tardiness
interviewed.
for that month.
G. Service Yes. This is
Charges centralized.
H. Separate No
Restroom
(Male/Female)

REMARKS:

The Employee is required to pay 350 pesos for every

absence they incur.

C. TABLE 3: Restaurant C

Restaurant C
EMPLOYER (Human EMPLOYEE
Resource Manager)
A. Length of The length of service EE 1: 2 years
Service of the employees is
EE 2: 10 months
different. Some are 2
years, 3 months, 6 EE 3: 10 months
months, 9 months, etc. EE 4: 9 months

EE 5: 1 year 5
months

EE 6 (operations
manager):7 month

8
B. Wages: Amount Employees are EE 1: P6,500–7th &
(per month) receiving 340 pesos a 22nd
day.
EE 2: P6,500-7th &
22nd

EE 3: P8,000-7th &
22nd

EE 4: P8,000-
sometimes delayed
for a week

EE 5: P8,000-7th &
22nd

EE 6 (operations
manager): P11,206-
15th & 30th
C. Overtime pay There is an overtime EE 1: Yes
pay but amount of
EE 2: Yes
premium was not
disclosed. EE 3: Yes

EE 4: Yes

EE 5: Yes

EE 6 (operations
manager): No, fixed
kami
D. Instances of The establishment is EE 1: Yes
Wage Deduction deducting from the
EE 2: Yes
employee’s wages and
this policy is known EE 3: Yes
by employees under EE 4: Never Tried
their contract with
EE 5: Yes
the said
establishment. EE 6 (operations

9
 manager): Yes

E. Enrollment in They enroll their EE 1: Yes

SSS/ PhilHeath employees in SSS and
EE 2: Yes
PhilHealth and this
is written in their EE 3: Yes
pay slip. EE 4: I don’t know,
I never checked my
SSS and Philheath

EE 5: *blank

EE 6 (operations
manager): Yes. It
is written in our
pay slip
F. Additional EE 1: Free Rice:no
Benefits (Meal deduction
The management is
Benefits) providing 1 cup of
EE 2: No
rice for every
employee and this is
not deducted from EE 3: Yes: no
their wages. deduction

EE 4: 1 cup of
rice, no viand

EE 5: 1 cup of
rice, no viand

EE 6 (operations
manager): Yes. Not
deducted because
this is an
additional
allowance
G. Service All the tips placed EE 1: blank
Charges in the table, tip
EE 2: I don’t know
box, or personally

10
 given the employee EE 3: Yes, it is
are centralized. This distributed monthly
is equally divided to
EE 4: Yes,
them at the end of
centralize
the month.
EE 5: Yes. It is
distributed monthly

EE 6: Yes, it is
distributed monthly
H. Separate Yes. EE 1: No
Restroom
EE 2: No
(Male/Female)
EE 3: Yes

EE 4: No

EE 5: Yes

EE 6: No

D. TABLE 4: Restaurant D

Restaurant D
A. Length of EE 1: 2 Years
Service
EE 2: 2 Years

EE 3: 3 Years
The employer was not
B. Wages: interviewed. EE 1, EE 2, EE 3:
Amount-
320 per day (crew)

*375 per day (cook)

* 355 per day

(cashier)
C. Overtime pay EE 1, EE 2, EE 3:

11
 50 pesos per hour
D. Instances of When the employee is
Wage Deduction late for more than
10 minutes. However,
the employee does
not know how much is
being deducted.
E. Enrollment in The employer was not Yes. SSS,
SSS/Philheath interviewed. PhilHealth, and
another health
insurance
F. Additional It depends in the
Benefits (Meal productivity of the
Benefits) employees.
G. Service If it is left on the
Charges table, it will be
divided equally
among all employees.
But if it is
personally given to
the employee, the
employee could take
it as his/ her own.
H. Separate None.
Restroom
(Male/Female)

REMARKS:

Withholding of monthly wages if the employee was not able to

process his or her Automated Teller Machine (ATM) because
their mode of payment is through ATM.

12
 Conclusion

Majority of the respondents we’re males aging 22-28

years old and are High School graduates and had been 6-11
months in the business. From the given data, it can be
inferred that most of the restaurant owners are compliant as
to the general labor standards in accordance with wages and
complies for Working Conditions and Government Mandated
Reports. When it comes to wages, from the data gathered it
yielded that the minimum wage was implemented and was followed
accordingly. In terms of the working conditions set by the
labor code specifically, the legal working hours, overtime pay
and nigh shift differential, the information from the
respondents generated that they pay the prescribed 25% for
overtime pay and 10% for nigh shift differential.

Recommendation

In this competitive world of economics, it is very

commendable to see employers who still comply with the law and
even give extra incentives which are not even mandated by the
law. It is but just to give both the employee and the employer
to give equal protection. As shown in the findings of our
study, it is shown that the restaurant owners are compliant
with the rules, however there are some noticeable practices
that does not mirror the spirit of the law. Efforts must be
given to correct these practices in order to promote
employment in the Philippines and lessen overseas work. The
State and the industry must work hand in hand to stabilize the
economic growth in order to prevent business owners into doing
these kinds of practices. The government must also provide
more education opportunities to the employees about their
rights in order to protect them from opportunistic employers.

13
 REFERENCES

Asia Pacific Journal of Academic Research in Business

Administration, April 2016

14
Fajardo, G. and Buenviaje, M., 2016, Compliance of a Local
Manpower Agency to Occupational Health, Safety and Labor
Standards as Input to Sustained Business Partner
Relations, Retrieved from:
http://research.lpubatangas.edu.ph/wp-
content/uploads/2016/02/APJARBA2016.2.1.05.pdf?fbclid=IwA
RqjrHG09bE5avz9bg0mFXrBGy3n4RLPZjUvE_pAqT9L_zSmRCWcJPDh3c

Kittelson & Carpo Consulting, 2017, Issuance of Pay Slips:

Encouraging Employer Compliance to Labor Laws and
Protecting Employees in the Philippines, Retrieved from:
https://kittelsoncarpo.com/issuance-pay-slips-
encouraging- employer-compliance-labor-laws-protecting-
employees- philippines/

Macaraya, B., The Philippines: Workers’ Protection in a New

Employment Relationship

15