Tuesday, September 28, 2010

Anti-discrimination laws in Australia

Over the past 30 years, the Australian Government has introduced anti-discrimination laws to help protect people from discrimination and harassment.

The following laws operate at a federal level and the Australian Human Rights Commission has statutory responsibilities under them:

* Age Discrimination Act 2004
* Australian Human Rights Commission Act 1986
* Disability Discrimination Act 1992
* Racial Discrimination Act 1975
* Sex Discrimination Act 1984

The above laws strictly impose penalties that make Australian employers vigilant in implementing the same. Indeed, Australia has evolved in terms of its legislation to provide equal opportunities to its citizens, especially in terms of employment. Australian legislation on anti-discrimination and equal employment opportunities provide a foundation for the companies in Australia, especially in hiring, managing and terminating their employees.

In the Philippines, we only have the Labor Code to refer which contains provisions on equal employment opportunities. By reason of the Labor Code of the Philippines, has the Philippines improved in terms of hiring and managing human resources for companies?

Sometimes, interviewers have the tendency to ask questions to applicants such as: "Are you gay, because you look gay," without any relation to the job requirements at all. This line of questioning automatically constitutes a violation of the basic right of an individual for equal employment opportunity. This further poses a concern to some companies which have the tendency to disregard such important detail in terms of training their interviewers on the right questions to ask applicants during job interviews.

Therefore, it can be surmised that it may be good to follow the footsteps of Australia; enact laws on anti-discrimination and equal employment opportunities, providing stiff penalties in case of violation. That way, companies may always be compelled to be on their toes in observing good practices while interviewing job applicants. That may take a long while to evolve, but at least it will be a stepping stone for companies to have structured models in finding the right people for the job.

The principle of Self-settled spendthrift trust

Self-settled spendthrift trusts are very popular under US laws. It is important to look at the basic principle for possible future legislation in the Philippines.

Self-settled trust is a kind of trust where the grantor (i.e. creator, settlor or donor) is one of the beneficiaries, or the sole beneficiary of the trust. Spendthrift trust is a kind of trust where the beneficiary receives income from the trust, but the trustee is prohibited from distributing any of the principal to other parties. As its name implies, a spendthrift trust is a good way to keep an irresponsible son or daughter from squandering his or her inheritance on foolish investments or luxury purchases.

A self-settled spendthrift trust is a kind of trust that is a combination of a self-settled and a spendthrift trust. It is a self-settled trust with a spendthrift provision that the beneficiary (who is also the grantor of the trust) is prohibited from transferring his interest in the trust to other parties (i.e. his creditors).

With a spendthrift trust, the trustee is given discretion to make or not make distributions to beneficiaries. Because distributions are discretionary, beneficiaries are prevented from voluntarily or involuntarily transferring current or future rights in the trust. In other words, beneficiaries cannot give away trust income or principal in advance of receiving it. One effect of such alienation language in a trust is that creditors of a trust beneficiary cannot claim that trust assets are assets of the beneficiary. Therefore, creditors cannot stake a claim against trust assets, but can only collect money that is actually distributed to the beneficiary.

For the self-settled spendthrift trust to work, it is important that trustees must be independent; the grantor cannot be a trustee or co-trustee, and must not perform any of the trustee's duties, such as filing fiduciary tax returns or maintaining trust records. However, the grantor can provide investment advice to the trustee and retain the power to veto trust distributions.

Living Trust

As I have been working with clients lately, I experienced that there are a lot of ways of managing properties without fear of paying huge amount of estate taxes and lawyer's fees for probate. The principle that I am going to share is the principle of LIVING TRUST.

By way of introduction, trust is defined as a legal arrangement by which the assets of one person are transferred to another person or institution for the benefit of a third party. In a trust, the person with the assets (known as the settlor) transfers ownership of his property to someone (the trustee) who promises to administer the property for a third party (the beneficiary) according to the settlor's wishes. Under the Civil Code of the Philippines, "A person who establishes a trust is called the trustor; one in whom confidence is reposed as regards the property for the benefit of another person is known as the trustee; and the person for whose benefit the trust has been created is referred to as the beneficiary." (Art. 1440)

In a living trust, the settlor transfers ownership of his property to a trustee who manages it throughout the settlor's lifetime. Upon the death of the settlor, the trustee distributes the trust to the beneficiaries in accordance with the settlor's instructions.

In most cases under US jurisdiction, the settlor of a living trust reserves the right to modify or revoke the trust as long as he lives. This type of living trust is known as revocable trust. If you are creating a revocable living trust, you can name yourself as a trustee, but you will have to name a successor trustee to manage your estate if you become incapacitated and to distribute your assets when you die. In this kind of trust, property will pass automatically to the beneficiaries without the delay and expenses involved in probating a will. Living trusts do not have to be probated.

In the Philippines, banking institutions are designated as trustees for a fee.

This concept will be very useful for people to cut cost on probate expenses and estate taxes.

Wednesday, September 22, 2010

Book Launch -- September 15, 2010 -- SMX, Mall of Asia

Written by: Danny A. Cabulay and Christine C. Aldeguer

(This was presented during the book launching of my three books, namely: Philippine Tourism Laws, Human Resource Management in the Tourism and Hospitality Industry, and Smart Guide to Apprenticeship and Practicum Training for Accounting, Business Management, Tourism Management and HRM Students)

Slide No. 1
Good afternoon, ladies and gentlemen. May I know who among you have a province to go to during holidays and semestral breaks? May I know who among you have traveled abroad, at least, once. I asked these two question first because I believe every person is a traveler by nature. Traveling and tourism are two related human activities that date back as old as the history of mankind.
Slide No. 2
But as we travel and tour various places and establishments, what we do not know it that there is a possibility that our rights may be violated. This is the reason why Dean Danny Cabulay and I decided to write our very first book, Philippine Tourism Laws. There are so many laws that affect travelers and tourists alike.
Slide No. 3
In the past 10 years, statistics reveal that 1,721 airplanes crashed resulting in 12,241 fatalities. In the US, 76 million people get sick and sometimes get hospitalized annually due to contaminated food eaten in restaurants. Again, in the US, 4.4 million luggages were reported missing while in transit in various airlines and the worst airline is Southwest Airline accounting for a whopping 14% share of total lost luggages. These are just some of the glaring figures why we need to study Tourism Laws.

Slide No. 4
Tourism law may be defined as a body of rules 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 (tourist), and business establishments or persons engaged in the occupation of providing various services for tourists. Our country is governed by many statutes, administrative orders, judicial decisions, rules and regulations. It is imperative to take a closer look on these which affect our tourism industry.

The growth and development of the tourism industry is imperative in the context of regional and countryside development. It generates employment, trade and business opportunities. It also promotes strong backward and forward linkages with other industries such as transport, real estate and property development-- hotels/resorts, gift shops, restaurants, jewelry, and construction among others. Consider the following situations where tourism laws should have been very handy, without which our country or the world would have been a better place to live.

Slide No. 5
TERRORISM. We will not forget what happened during the December 30, 2000 Light Railway terrorist attack, also known as the Rizal Day Attack where many have died and one hundred victims injured. These victims’ only concern was to avail of the enjoyment of traveling from one place to another through the convenience of the Light Railway Transit. Would it have made a difference if the LRT management strictly followed security measures in order to deter such attacks?

Slide No. 6
Similarly, the recent Quirino Grandstand hostage taking surely put the country in the blacklist of large tourist markets like Hongkong.

Slide No. 7
THE OIL SPILL IN THE GUIMARAS ISLANDS. The oil tanker M/T Solar I, carrying more than two million liters of bunker fuel, sank on August 11, 2006 at the Guimaras Strait off the coast of the Guimaras and Negros Occidental provinces, causing some 500,000 liters of oil to pour into the strait. Such oil spill has adversely affected marine sanctuaries and mangrove reserves in three out of five municipalities in Guimaras Island. Feeding and reproduction in these grounds are also hindered and these organisms became susceptible to diseases. Its effects on corals are swollen tissues, excessive production of mucus and tissue degeneration. For marine birds and mammals, such as whales and dolphins, their insulation and buoyancy are affected since their feathers and fur become matted and soaked with oil. Definitely, the oil spill in the Guimaras Islands has made news all over the world, not to mention in the Philippine Tourism industry. Allegations have been made stating that the tanker only had a capacity of 1.2 million, implying the possibility of overloading. Other investigations have claimed that the captain of the ship has no capacity to manage it. Would it have made a difference if tourism laws were taken more seriously in order to prevent such devastating incident?

Slide No. 8
THE 2007 GLORIETTA EXPLOSION. This occurred in the Glorietta 2 section at Ayala Center in Makati on October 19 2007. The blast killed eleven and injured at least 126 persons. The most probable cause, according to authorities, was the accumulation of methane gas in the building's septic tanks, as well as other combustible materials in its basement. Authorities, however, are not ruling out the possibility of a terrorist attack and are still investigating the incident to discover the true cause of the explosion. Whether or not it is caused by an accident or terrorist attack, tourism laws also play a vital role in assessing liabilities and responsibilities of the government and the management of Glorietta 2.

Slide No. 9
TRAGEDY AT SEA. The sinking of the MV Princess of the Stars at the height of typhoon Frank put the Philippine Coast Guard and the owners of Sulpicio Lines in a very bad light. Whoever is responsible for the death and injury of the passengers in MV Princess of the Stars, you cannot, however, remove the fact that tourism laws still play a vital part in assessing the responsibilities and liabilities, not only the ship captain and owner of the MV Princess of the Stars, but also the proper government agency.

Slide No. 10
Today, society has evolved wherein business establishments engaged in tourism have been in the food service, hotel service, transportation service, travel and tour operations, events management and even medical tourism, among others, all for the interest of gratification, happiness, amusement, entertainment, safety and security of people traveling from place to place.

Slide No. 11
E-commerce has now been considered a way of necessity to do business in tourism. All things being considered, it will not be denied that there are now various or even millions of commercial transactions involved in tourism. In addition, numerous regulations are being imposed by the different government agencies in order to promote tourism development for national interest, security and safety. Hence, there is a need to study the different principles and statutes governing tourism development.

Slide No. 12
So, why is there a need to study tourism laws? These are the four reasons:
First, it protects the rights of travelers and tourism workers. Every Filipino has at least experienced becoming a traveler in one part of his life. It would be worthwhile to take a closer look on the different statutes governing these rights.

Slide No. 13
Second, to preserve tourism resources so that future generations can enjoy. We know that as responsible Filipinos, we can be instrumental in being part of this endeavor of preserving tourism resources such as our infrastructure, natural and human resources, museums, art collections, etc. so that our children, grand children, great grand children, great great grandchildren would be happy and delighted to enjoy them.

Slide No. 14
Third, to provide better tourism services. I have been working with practitioners, entrepreneurs and businessmen in the tourism industry. And one thing I have observed is that they have this mission of providing excellent service to the Filipino people.

Slide No. 15
Lastly, to promote growth of the tourism industry. We have a new Secretary of Tourism, Honorable Alberto Lim, who promises to revive the industry as soon as the bureaucracy is given a much needed reorganization and enhancement of its operational and marketing budgets. In this regard, tourism laws will be instrumental in helping our government generate income for our country’s survival and growth so that we can compete in a global economy.

Slide No. 16
Our book Philippine Tourism Laws is unique in the sense that it is not your regular law book that is boring to read. We have incorporated numerous cases and case studies which the students can easily understand and relate to. The teachers have choices of activities at the end of each chapter that will make the teaching of the subject more interesting and livelier.

Slide No. 17
We have discussed the following chapters comprehensively:
• The Philippine Constitution
• Law on Obligations and Contracts
• Law on Partnership and Corporation
• Law on Sales, Agency, and Credit Transactions
• The Tourism Public Sector
• Laws Regulating Transportation Establishments
• Laws Regulating Accommodation Establishments
• Laws Regulating Travel and Tour Services

Slide No. 18
• Laws Regulating Restaurants and Other Tourism-Oriented Establishments
• Laws Regulating Professional Congress Organizers
• Laws Related to Tourism Investments and Finance
• Labor Law
• Insurance Law
• Tourism and Hospitality Management Education
• Formalities of Entry In and Exit from the Philippines
• Special Topics

Slide No. 19
In the final analysis, it is very important to study Tourism Laws in order to be more effective as a tourism professional. Ignorance of the law excuses no one. A good grasp of tourism laws can even save the company thousands if not millions of pesos from expensive litigation cases. Thus, we also highly recommend that every manager and employee in a tourism or hospitality-related establishment should get a copy of our book Philippine Tourism Laws. Get one now, read it, understand the chapters. It is never too late.

Slide No. 20
For our last book, Human Resource Management in the Tourism and Hospitality Industry, we have really recognized the importance of human resources being the most valuable assets of any company. One needs to ask these three questions: (1) Did you hire the right people? (2) Did you train and pay them well? (3) Are they contributing to the goals of the organization?

Slide No. 21
Human resources is broad and generally encompasses four areas – personnel management, training, labor relations and organizational development.

Slide No. 22
Through the years, HR has evolved from the simple mom and pop type of operation to the multinational corporation and transnational corporation set up we have today.

Slide No. 23
Today, as organizations have grown and modernized rapidly, the demands of customers have also become more complex. This only means that the HR manager must keep up with all these new and emerging challenges.

Slide No. 24
How was the attendance checked in the 1960s until 1990s. It was through the old bundy clock.

Slide No. 25
In the current decade, more and more companies are using finger scanners, iris scanners, voice recognition systems, and other biometric driven systems.

Slide No. 26
Everyday, there is growing evidence that the tourism and hospitality industry is evolving at a rapid pace. It is, therefore, imperative that HR managers are abreast with new techniques, new strategies, and new methods of solving critical problems. HR practitioners nowadays are seen as strategic partners at the corporate level. They could make or break an organization.

Slide No. 27
Look at what happened to Hyatt Regency Manila.

Slide No. 28
Northwest Airlines in the United States.

Slide No. 29
Grand Boulevard Hotel, which holds the record for the most number of violations in the Labor Code, and many other establishments

Slide No. 30
The critical issues that HR managers are confronted with today are: (1) technological advancement, (2) labor cost, (3) quality and innovation, (4) globalization, (5) multiculturalism and diversity management, (6) employee empowerment and intrapreneurship, and (7) the balanced HR scorecard

Slide No. 31
In our book, we discussed emerging trends that will happen in the field of Human Resources Management. There’s a lot to know and anticipate about the future. For example, many high-tech unusual hotels are currently being constructed with very challenging features. For example, The Apeiron Dubai in the United Arab Emirates,

Slide No. 32
Waterworld Hotel in China.

Slide No. 33
Caspian Plus Hotel in Azerbaijan. Have you ever thought what kind of employees will be needed for these fabulous hotels in the future?

Slide No. 34
Well, if a diminutive brilliant Filipina conquered the Whitehouse to feed the most powerful man in the world and his distinguished guests, then, nothing is impossible.

Slide No. 35
As one Filipina puts it candidly, “there’s nothing major major problem that we could not surpass.” Just remember, all schools who will prescribe our books will get a complimentary CD containing the test banks and powerpoint lecture presentations for the teachers. Mabuhay po ang tourism industry ng Pilipinas. Thank you and have good day.

Monday, September 6, 2010

It takes a great leader to admit mistakes

Throughout my lifetime, I only see few leaders who would admit mistakes and take full responsibility. I grew up from a proud family where admission is tantamount to admission of guilt. That is why I learned to never admit mistakes, no matter what. But when I became an academic manager, I learned there is nothing wrong in admitting mistakes. Admitting mistakes with all humility makes one a great leader.

I first experienced a leader being humble and taking full responsibility for the mistakes of his managers during the reign of Dr. Edilberto De Jesus. It was in the year 2001 when the university he worked in had an issue on the computerized enrollment. Since the computerized enrollment system was not tested fully, there were a lot of problems encountered which resulted to a breaking of the glass door at the university's electronic library, defective queuing system, complaints from students who waited for a week just to be enrolled, and complaints from enrollment advisers (faculty members) who were not educated enough on how to enroll students using the electronic system of enrollment. There were managers who were actually responsible for the negligent act. But it was Dr. Edilberto de Jesus who took full responsibility of the ineffectiveness of the untested computerized enrollment system. It took guts to take full responsibility and be accountable at that. Since then, I have learned to respect the man for being a humble gentleman.

When I learned that our President Noynoy Aquino publicly announced that he is taking full responsibility for the HK Hostage Crisis, I suddenly remembered my experience with Dr. Edilberto de Jesus. It really takes a man to publicly admit mistakes of his officials and be accountable. President Aquino is not a man of angst, he is a man who is genuinely serving Filipinos. From the moment President Aquino admitted his mistakes, I once again found another great leader next to Dr. Edilberto de Jesus.

To the people who said that a public apology from President Noynoy Aquino regarding the HK hostage aftermath is unnecessary, YOU ARE STILL LIVING IN THE DARK AGES.

It takes a great leader to be humble and admit mistakes without giving any justification. Taking full responsibility for the acts of his officials is an experience for our dear President in his first year term. Our public officials and leaders should learn from it and then move on to better serve their constituents. President Aquino's noble intentions have been clear from the beginning. No matter how people react, I still say it takes a great leader to admit his mistakes and take full responsibility at that.