OBLIGATIONS OF EMPLOYEES TO BUSINESS

Introduction
The concept of ethics is a highly complex one. As technology researcher and businessman Valdemar
W. Stezer once said, "Ethics is not definable... because it is not conscious; it involves not only our
thinking, but also our feeling." Ethics, or moral obligation, guide human decisions in many arenas,
including within the workplace. When an individual is acting as an employee, there are certain ethical
obligations he has towards his employer that should guide his decision making and impact his
actions.

 Job Completion
o When employers perform certain checkups on employees, often completing regular
evaluations and other job-performance checks, managers cannot keep all employees
under watch at the same time. While some employees choose to put less effort into
their work when they are not being watched, they are ethically compelled to give 100
percent effort to their job at all times.

 Honesty
o Ethical employees are always honest, consistently giving truthful information to their
employers and, in doing so, helping the employer make informed decisions. Remaining
truthful without fail can present a challenge, particularly when presenting a little white lie
would help an individual advance within her current position; however, honesty is not
only the best policy, but it is also the morally correct path on which all employees should
remain.

 Money Usage
o In the world of business, monetary transactions are highly common, presenting the
opportunity for employees with unsavory motives to mis-allocate funds. While the
opportunity to cash in on some easy money is too tempting for some workers to resist,
ethical employees use money responsibly and in alignment with company policy even
when they know that a monetary misuse will not be caught.

 Conflict of Interest
o When an individual is an employee of more than one company simultaneously, conflicts
of interest can occur. Some companies specifically forbid employees from working with
competing companies or in another fashion that could present a conflict of interest.
Even when this prohibition is not in place, employees with strong ethics should avoid
these conflicts of interest. In doing so, they can ensure that their relationship with their
current company remains strong and their reputations as business people remain
unblemished.

OBLIGATIONS OF BUSINESS TO EMPLOYEES

 Equal Work Opportunities for All

o The State shall protect labor, promote full employment, provide equal work opportunity
regardless of gender, race, or creed; and regulate employee-employer relations.
o Male and female employees are entitled to equal compensation for work of equal value
and to equal access to promotion and training opportunities. Discrimination against
 female employees is unlawful. It is also unlawful for an employer to require a condition
of employment that a woman employee shall not get married, or to stipulate expressly
or tacitly that a woman employee shall be deemed dismissed upon marriage.
o The minimum age of employment is 18 years for hazardous jobs, and 15 years for non-
hazardous jobs. But a child below 15 maybe employed by parents or guardians in a
non-hazardous job if the employment does not interfere with the child's schooling.

 Security of Tenure
o Every employee shall be assured security of tenure. No employee can be dismissed
from work except for a just or authorized cause, and only after due process.
o Just Cause refers to any wrongdoing committed by an employee including:
 serious misconduct
 willful disobedience of employers' lawful orders connected with work
 gross and habitual neglect of duty
 fraud or willful breach of trust
 commission of crime or offense against the employer, employer's family
member/s or representative
 other analogous cases
o Authorized Cause refers to an economic circumstance not due to the employee's fault,
including:
 the introduction of labor-saving devices
 redundancy
 retrenchment to prevent losses
 closure or cessation of business
o Due Process in cases of just cause involves:
 notice to employee of intent to dismiss and grounds for dismissal
 opportunity for employee to explain his or her side
 notice of decision to dismiss
o In authorized causes, due process means written notice of dismissal to the employee
specifying the grounds, at least 30 days before the date of termination.
o The inability of a probationary employee to meet the employer's prescribed standards of
performance made known to him or her at the time of hiring is also a just cause for dismissal.

 Work Days and Work Hours

o Work Day refers to any day during which an employee is regularly required to work.
Hours of Work refer to all the time an employee renders actual work, or is required to
be on duty or to be at a prescribed workplace. The normal hours of work in a day is 8
hours. This includes breaks or rest period of less than one hour, but excludes meal
periods, which shall not be less than one hour.
o An employee must be paid his or her wages for all hours worked. If all or any part of his
or her regular work hours falls between 10:00 p.m. to 6:00 a.m., a covered employee
shall be entitled to a night shift pay in addition to his or her pay for regular work hours.
If he or she works for more than 8 hours in one day, he or she shall be entitled to
overtime pay.
 Weekly Rest Day
o A day-off of 24 consecutive hours after 6 days of work should be scheduled by the
employer upon consultation with the workers.

 Wage and Wage-Related Benefits

o Wage is the amount paid to an employee in exchange for a task, piece of work, or
service rendered to an employer. This includes overtime, night differential, rest day,
holiday and 13th month pay. It also includes the fair and reasonable value of board,
lodging and other facilities customarily furnished by the employer.
o Wage may be fixed for a given period, as when it is computed hourly, daily or monthly.
It may also be fixed for a specified task or result. If wage is for a fixed period, the
minimum wage for a regular 8-hour workday shall not be lower than the minimum daily
wage applicable to the place of work as determined by the Regional Tripartite Wage
and Productivity Board having jurisdiction over workplace.
o If wage is paid by result, the worker shall receive at least the prescribed minimum wage
for 8 hours of work. The amount may be increased or reduced proportionately if work
is rendered for more or less than 8 hours a day.
o An employer cannot make any deduction from an employee's wage except for
insurance premiums with the consent of the employee, for union dues, or for
withholding taxes, SSS premiums and other deductions expressly authorized by law

 Payment of Wages
o Wages shall be paid in cash, legal tender at or near the place of work. Payment may be
made through a bank upon written petition of majority of the workers in establishments
with 25 or more employees and within one (1) kilometer radius to a bank. Payment
shall be made directly to the employees.
o Wages shall be given not less than once every two (2) weeks or twice within a month at
intervals not exceeding 16 days.

 Employment of Women
o Nightwork prohibition unless allowed by the Rules:
o in industrial undertakings from 10PM to 6AM
o in commercial/non-industrial undertakings from 12MN to 6AM
o in agricultural undertakings, at night time unless given not less than 9 consecutive
hours of rest
o Welfare facilities must be installed at the workplace such as seats, separate toilet
rooms, lavatories, and dressing rooms.
o Prohibition against discrimination with respect to pay (i.e. equal pay for work of equal
value), promotion, training opportunities, study and scholarship grants

 Employment of Children
o Minimum employable age is 15 years. A worker below 15 years of age should be
directly under the sole responsibility of parents or guardians; work does not interfere
with child's schooling/normal development.
o No person below 18 years of age can be employed in a hazardous or deleterious
undertaking.

 Safe Working Conditions

o Employers must provide workers with every kind of on-the-job protection against injury,
sickness or death through safe and healthful working conditions.
 o Jobs may be hazardous or highly hazardous. Hazardous jobs are those which expose
the employee to dangerous environment elements, including contaminants, radiation,
fire, poisonous substances, biological agents and explosives, or dangerous processes
or equipment including construction, mining, quarrying, blasting, stevedoring,
mechanized farming and operating heavy equipment.

 Right to Self-Organization and Collective Bargaining

o The right to self-organization is the right of every worker, free of any interference from
the employer or from government, to form or join any legitimate worker's organization,
association or union of his or her own choice. Except those classified as managerial or
confidential employees, all employees may form or join unions for purposes of
collective bargaining and other legitimate concerted activities. An employee is eligible
for membership in an appropriate union on the first day of his or her employment.
o Collective Bargaining involves two parties:
 the representative of the employer
 a union duly authorized by the majority of the employees within a bargaining unit
called exclusive bargaining agent.
o It is a process where the parties agree:
o to fix and administer terms and conditions of employment which must not
be below the minimum standards fixed by law
o to set a mechanism for resolving their grievances

The result of collective bargaining is a contract called collective bargaining agreement (CBA). A
CBA generally has a term of five years. The provisions of a CBA may be classified as political or
economic. Political provisions refer to those which define the coverage of the CBA and recognize the
collective bargaining agent as the exclusive representative of the employees for the term of the CBA.
Economic provisions refer to all terms and conditions of employment with a monetary value. Economic
provisions have a term of five years but may be renegotiated before the end of the third year of effectivity
for the CBA.

 EC Benefits for Work-Related Contingencies

The Employees' Compensation Program is the tax-exempt compensation program for employees
and their dependents created under Presidential Decree No. 626 which was implemented in March
1975. The benefits include:
 Medical benefits for sickness/injuries
 Disability benefits
 Rehabilitation benefits
 Death and funeral benefits
 Pension benefits