Train Law

- uses excise tax, therefore, police power is exercised.

- PROMOTES: Public Health / Public Safety / Improved Public
Transportation
- It discourages people to buy (carbonated drinks) beverages due to high
price imposed on it.

Inherent Powers of the State:

 Police Power
 Tax
 Eminent Domain

*Dues/Liabilities/Facilities/CarPlans CAN BE deducted from salary (when signed

and written)*

Article 100

- prohibition against elimination or diminution of benefits.

- Example, 1 sack of rice every month.
- BENEFITS THAT HAVE BEEN GIVEN FOR THE LONGEST TIME
CANNOT BE STOPPED WITHOUT PRIOR NOTICE OR
ALTERNATIVES.

*company practice should be consistent and deliberate*

*benefits is okay to vanish, if there will be a promotion that will happen*

Wage Distortion

- lecturer wage from 500 – 600

- instructor wage from 550 – 600

*REST DAY MUST BE RESPECTED BY THE EMPLOYERS: EXAMPLE,

SABATH DAY, REGARDLESS of MGT PREROGATIVE*

*PREMIUM PAY must be given to employees who worked during rest days and
special days*

13th month pay – must be given before December 24.

Serious Misconduct
- Theft of company product
- Employees linked in scandal
-
SSS/GSIS – provides retirement benefits (tax free)
4 ELEMENTS of Four-fold tests
– this test is a yardstick to determine employer-employee relationship.
- Selection and engagement of the employee
- Payment of wages
- Power of dismissal
- Employer’s power to control the employee’s conduct WITH respect to the
means and methods by which the work is to be accomplished.

Probationary Employee
– shall not exceed 6 months.
– No work, No Pay policy
– ENDO is applicable
Regular Employee
– HAS security of tenure (protects employee from termination, but can be if
there is a just cause).
– Can not be removed without probationary period (notice to explain of
termination; AN EXAMPLE OF SUBSTANTIVE PROCESS).
– CAN be removed with a JUST and REASONABLE CAUSE.
– Can be considered as permanent employee, although there is no such
thing as permanent.
Contractual Employee
– Sick leave is allowed.
– ENDO is applicable
Project Employee
– CAN be regularized when repetitively being assigned to same work over
and over.
– ENDO is applicable

*Transfer of branch manager is LEGAL because it is under mgt prerogative*

RA 7641

Section 1. Article 287 of Presidential Decree No. 442, as amended, otherwise

known as the Labor Code of the Philippines, is hereby amended to read as
follows: "Art. 287. Retirement. – Any employee may be retired upon reaching
the retirement age established in the collective bargaining agreement or other
applicable employment contract.

Section 2. Nothing in this Act shall deprive any employee of benefits to which he
may be entitled under existing laws or company policies or practices.

Section 3. This Act shall take effect fifteen (15) days after its complete publication
in the Official Gazette or in at least two (2) national newspapers of general
circulation, whichever comes earlier.
CONTRACTUALIZATION - Started in 1989, contractualization or “endo” (end
of contract) or “555” or contractualized work is a work scheme whereby workers
are hired by principal employers through a contract forged with manpower
service providers and contractors to meet added production demand.

After five months or less, however, contractualized workers’ contracts are

terminated and renewed for employers to avoid payment of mandated minimum
wage, social and health insurance benefits, leave credits and other wages and
benefits that regular employees receive.

Collective bargaining agreement means an agreement in writing or writings

between an employer and a trade union setting forth the terms and conditions of
employment or containing provisions in regard to rates of pay, hours of work or
other working conditions of employees.

The registration of Collective Bargaining Agreements (CBAs) is closely

monitored as an indicator of harmonious labor-management relations and
industrial peace in the country. A collective bargaining is a process where both
parties, labor and management, agree to fix and administer terms and conditions
of employment which must not be below the minimum standards fixed by law,
and sets a mechanism for resolving the parties’ grievances.

Specifically, a CBA is a contract executed upon incorporating the agreements

reached after negotiations with the employer and the exclusive bargaining
representative of the employees with respect to wages, hours or work and all
other terms and conditions of employment. As such, a CBA includes economic
provisions and non-economic provisions. Economic provisions include monetary
value of wage increases, loan benefits, bonuses, allowances, retirement plan,
and other fringe benefits. On the other hand, non-economic clauses include
union security clauses, grievance procedures, labor-management cooperation
schemes, and other provisions without monetary value.

NOTE: Collective bargaining agreement leads to INDUSTRIAL PEACE (no

lockouts and strikes)