LABOR LAW

P.D. No. 442

WHY STUDY LABOR LAW?

• Because our employment system is highly regulated.
• Because employees are favored by our laws.
• Because you need to be sure that you are getting the right kind of legal advice.
• Because you don’t want to get your business or company into trouble, especially if you have no
or little access to expert legal help.
• Because you want to deal with employees and their unions in the most effective way.

LABOR LAW
• It is the field of law that defines the relationship between employer and their employees, as well
as certain third parties, in connection with employment.
• It establishes the rights of each parties... and determines their duties and obligations.
• It also defines the role of government.

WHERE CAN YOU FIND LABOR LAW?

• Constitution
• Decisions of the Supreme Court (Jurisprudence) • Civil Code and Revised Penal Code
• Special statutes that are not yet codified
• American jurisprudence
• LABOR CODE
• Labor regulations

LABOR CODE
1. revolutionized our employment system on May 1, 1974.
2. It is a code, which is composed of numerous books.

PARTS OF THE LABOR CODE

• Book 1: Pre-Employment (with the Preliminary Title)
• Book 2: Human Resources Development Program
• Book 3: Conditions of Employment
• Book 4: Health, Safety and Social Welfare Benefits
• Book 5: Labor Relations
• Book 6: Post Employment
• Book 7: Transitory and Final Provisions

WHO ARE COVERED?

• Labor Law applies only if an employer-employee relationship exist.
• It applies to employers and their employees, as well as to certain third parties.
• Third Parties:
o Recruitment agencies in overseas contract workers cases.
o Indirect employer in job contracting arrangements.

WHO ARE EXEMPTED?

1. No employer-employee relationship:
a. The Principal and his Agent.
b. The Capitalist Partner and his Industrial Partner.
c. The Project Owner and his Contractor.
2. Rule No. 1: Labor Law applies only when there is an employer-employee relationship.
3. Exception to the Rule: Non-employment related.

TEST OF EMPLOYMENT: Four-fold Test (or the 4 Elements):

• SELECTION AND PLACEMENT
• PAYMENT OF WAGES
• POWER OF DISMISSAL
• POWER OF CONTROL – manner of doing the work

Management Prerogative
1. Employer has the right to regulate its own operation. provided it is within the bounds of law.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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CONTROL TEST
2. The power of one party to determine, not only the end result of the work, but also the manner
of doing the work is the POWER OF CONTROL.
3. Only an employer has the power of control over his employees.
4. Illustrations:
a. Job contracting arrangements.
b. Independent contracting arrangements.

CLASSIFICATION OF EMPLOYEES
• Based on Employer:
o Civil Service and non-Civil Service (including Private and Employees of GOCCs).
• Based on Security of Tenure:
o Regular and Non-Regular.
• Based on Function:
o Rank-and-file and Non-rank-and-file (including Managerial, Confidential & Supervisory).
• Based on Nature:
o Agricultural and Non-Agricultural.
• Based on Time and Motion:
o Field Personnel, Piece-Rate, Task-based, Domestic & Personal Assistants, etc.

LABOR STANDARDS
1. The minimum requirements of law with respect to hours of work, rates of pay, and other terms
and conditions of employment is Labor Standards.
2. Constitutional Right to Humane Conditions of Work and to a Living Wage.
a. Rule – It is prohibited to have terms and conditions of employment lower than what the
law provides.

LABOR STANDARDS BENEFITS

• Minimum Wage
• Holiday Pay
• Premium Pay
• Overtime Pay
• Night Shift Pay
• Service Charge Share
• Service Incentive Leave 8. Maternity Leave
• Paternity Leave
• Parental Leave
• Leave for VAWC
• Special Leave for Women
• 13th Month Pay
• Separation Pay
• Retirement Pay
• Employee Compensation (ECC) Benefits* 17. PhilHEALTH Benefits*
• SSS Benefits*
• PagIBIG Benefits*

MINIMUM WAGE LAW (R.A. No. 6727)

• National Wages and Productivity Commission (NWPC).
• Regional Tripartite Wage and Productivity Boards.
• Wage Order by Region and by Sector: Non-Agriculture, Agriculture (Plantation/Non-Plantation),
Cottage/Handicraft, Service/Retail, depending on number of workers or capitalization or gross
sales.
• Penalty for Violation:
o Imprisonment of 2 to 4 years (without probation benefits); or
o Fine of P25,000 to P100,000;
o or both.
o Plus DOUBLE INDEMNITY for the workers.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
P.D. No. 442

• EXCEPTIONS:
o Reduced working hours, i.e Underemployed or those working less than 8-hours of work
per day.
o Reduced working days, i.e. Shortened workweek.
o Workers paid be results i.e. They should be paid not less than the minimum wage rate
proportionate to the number of working hours they actually rendered.
o Apprentices, Learners, and (unqualified) Disabled Workers: 75% of minimum wage.

RULES ON WAGES
• Across-the-Board Wage Increase might result to a wage distortion.
• What is the Rule on Payment of Wages?
o Paid in legal currency at or near the workplace.
o Frequency: 2x/month NOT exceeding 16 days interval.
• What is the Rule on Wage Deduction?
o Mandatory
§ Even without authorization from the employee, provided that they are mandatory
deduction.
o Non-mandatory: Written Authorization.

HOURS OF WORK: WHO ARE COVERED?

• All employees in all establishments, for profit or not.
• Exceptions –
o Government employees subject to Civil Service Law;
o Managerial employees and managerial staff;
o Domestic helpers and persons in the personal service of another;
o Workers paid by results;
o Field personnel and those whose time and performance are unsupervised; and
o Dependent family members of the Employer.

THE MANAGERIAL EMPLOYEES?

• Principal Duty – Management of the establishment in which they are employed, or a
department or division thereof.
• They customarily direct the work of 2 or more employees.
• They have authority to hire/fire, or their suggestions on this matter are given weight.
• They exercise Management Prerogative on behalf of the Employer.

THE MANAGERIAL STAFF

• Primary duty – Perform work directly related to management policies.
• They customarily exercise discretion and independent judgment.
• They regularly assist managerial employees.
• They do not devote more than 20% of their work time to activities not related to all the above.

NORMAL HOURS OF WORK

• Shall not exceed 8 hours/day.
• Rationale.
• Broken time or workday is lawful.
• Shortening of work week is lawful.

WHAT ARE HOURS WORKED?

• All time during which is required to be on duty or at a prescribed work place.
• All the time during which an employee is permitted or suffered to work.

PRINCIPLES TO DETERMINE HOURS WORKED

• All hours required, whether spent in productive labor or involve physical or mental exertion, are
hours worked.
• The rule on rest period.
• The rule on work interruptions.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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OTHER RULES ON WORK HOURS

• Waiting time – compensable if integral part of work.
• On call – compensable if time cannot be used for personal.
• Travel time – if part of work, yes. Home to work, no. Travel away from home, only if it cuts across
employee’s workday.
• Attendance to seminar – No if voluntary, outside of work hours, no productive work done.
• Power interruptions – yes, if less than 20 minutes. No if more, and employee leave premises.
• Union matters – no, unless CBA provides otherwise.
• Attendance at hearings – not compensable.
• Strike participation – NO.

MEAL PERIODS
• Required – not less than 60 minutes but not compensable.
• Shortening to less than 60 minutes – yes, but must be paid.

OVERTIME PAY
• Overtime Pay refers to the additional compensation for work performed beyond 8 hours per
day.
• Rule: Overtime work is NOT permitted.
• Exceptions:
o When there is an emergency or urgent situation.
o When completion or continuation after work hours is necessary to prevent prejudice to
business or operations.
o Rate
§ 125% of regular hourly rate on ordinary working days
§ 130% for overtime work on Rest Day
o COLA NOT included in computation.

WHEN IS OVERTIME WORK VALID & MUST BE PAID?

• Even if without prior permission:
o The work performed was necessary.
o The work benefited the Employer.
o Employee could NOT abandon his work at the end of normal working hours because
there is no replacement.

UNDERTIME NOT OFFSET BY OVERTIME

• Undertime work on any day shall NOT be offset by overtime work on any other day.
• Permission granted by the Employer for the Employee to go on leave on some other day shall
NOT exempt him from the payment of additional compensation for overtime work rendered.
• Valid overtime work is ALWAYS subject to Overtime Pay.

HOLIDAY PAY
• Holiday Pay refers to the payment of regular daily wage for any unworked Regular Holiday at
the rate of 100%.
o Regular Holiday - 200% of his daily wage rate (Basic Wage + COLA).
o 2 Regular Holidays fall on the same day - 300%.
• Exception: Same as before + Retail/Service Establishment regularly employing less than 10
workers.

RULES ON HOLIDAY PAYMENT

• Employees are entitled when they are present or on leave with pay on the preceding workday.
• Employees are NOT entitled if absent or on leave without pay on the preceding workday, unless
they work on such Regular Holiday, in which case they are entitled to 200%.
• When preceding day is non-work day or rest day, the Employee is entitled, if he worked on the
day before such non-work day or rest day.
• In case of successive Regular Holidays i.e. Holy Week, the Employee shall NOT be entitled to the
successive Regular Holidays if he is absent or on leave without pay on the preceding work day
(Wednesday), unless he worked on the first Holiday.
• Seasonal workers may NOT be paid during off season.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
P.D. No. 442
• Those without regular working days are entitled.
• When company is on temporary or periodic shutdown not due to business reverses, the
employee is entitled. But when shutdown is due to business reverses, the employee is not
entitled.
• If a Regular Holiday falls on the same day, the Employee shall still be paid 100% for each days
or a total of 200%.

REGULAR HOLIDAYS
• EO 292, as amended by RA 9849.
• 12 Regular Holidays: New Year’s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan,
Labor Day, Independence Day, National Heroes’ Day, Eidl Fitr, Eidl Adha, Bonifacio Day,
Christmas Day, Rizal Day.
• 4 Muslim Holidays observed in ARMM (for both Muslims and Non-Muslims) and applicable to all
Muslims outside ARMM.

SPECIAL DAYS
• EO 292, as amended by RA 9849.
• Special Days: Ninoy Aquino Day, All Saints Day, Last Day of the Year, Chinese New Year, and
Immaculate.
• The President or Congress may proclaim other days as Special Day.
• Unworked Special Day is NOT paid.
• Work performed on a Special Day is paid 130%.
• Special Work Day, on the other hand, is treated as an ordinary work day.

WEEKLY REST DAYS

• It is the duty of the Employer to provide a Rest Day of not less than 24 hours after 6 consecutive
working days.
o Old law: Rest Day is Sunday.
o New law: Rest Day is any day.
• Employer determines the Rest Day of the Employee, subject to agreement and rules of DOLE.
• Employees are given preference based on religion.

PREMIUM PAY (REST DAY/SPECIAL DAY PAY)

• Rule: Work on Rest Day (and Special Day) is NOT permitted.
• Exceptions (Rest Day):
o When there is an emergency or urgent situation.
o When work is necessary to prevent prejudice to business or operations.
• Rate: 130% of regular hourly rate on ordinary working days. 150% if Rest Day and Special Day fall
on the same day.
• COLA NOT included in the computation (unlike in Holiday Pay).

NIGHT SHIFT DIFFERENTIAL PAY

• NSD Pay refers to the the additional compensation for each hour of work performed between
10PM and 6AM.
• Rate: 110% of the regular hourly wage rate.
• Exception: Same as before + Retail/Service Establishment regularly employing less than 5
workers.

SERVICE INCENTIVE LEAVE

• The Employee is entitled to 5 days of leave with pay for every one year of service; provided
that he has served for 1 year already.
• If Employer grants vacation leave with pay of at least 5 days every year, then this is already
compliance with SIL.
• Commutable to cash and becomes SIL Pay.
• Part-time employees are also entitled to full service
• NO Labor Code provisions on vacation leave or sick leave.
• Exception: Same as before + Retail/Service Establishment regularly employing less than 10
workers.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
P.D. No. 442

SERVICE CHARGES
• Employees are entitled to a share from the Service Charge being collected by the Employer
from his customers.
o Rank-and-file employee’s share: 85%
§ Rank-and-file employees shall receive equal share.
o Management’s share: 15%.
• If abolished, the share of the Rank-and-file employees shall be considered integrated to their
wages.
• If the Employer does NOT collect Service Charge, the pooled tips shall be treated the same way
as Service Charge.
• The purpose of a service charge is for breakages or damages so that the amount will not be
deducted directly on the wage of the employee.

RETIREMENT PAY
• Retirement age: 60 - 65 years old.
• Employee must also have worked for at least 5 years for the Employer.
• Rate: Equivalent to 22.5 days salary for every year of service payable by Employer.
• Distinct from the Retirement Benefits from SSS.
• Excluded: Government employees; and Retail/ Service/ Agricultural Establishments employing
not more than 10 workers.

SEPARATION PAY
• Employees terminated by the Employer on the basis of Authorized Causes are entitled to
Separation Pay.
• Retrenchment, Closure of Business, Serious Disease
o Rate: 1 Month or 1⁄2 Month Salary for every year of service
• Labor-saving device, Redundancy, and Impossible Reinstatement
o Rate: 1 Month or 1 Month Salary for every year of service
• Regular Allowance is included in the computation.

Just Cause – attributable to the employee

13TH MONTH PAY

• Rank-and-file employees are entitled to 13th month pay; provided they worked for at least 1
month.
• Rate: 1/12 of the total basic salary earned by an Employee in a year.
• Excluded: Government employees, Househelpers, Employees paid based on results, and
Managerial employees.

MATERNITY LEAVE
• All pregnant female workers are entitled to Maternity Leave subject to SSS Law.
• Normal birth or miscarriage
o 60 days of the average daily salary credit
o Republic Act No. 11210, or the “105-Day Expanded Maternity Leave Law,”
• Ceasarian section delivery
o 78 days of the average daily salary credit.
o Republic Act No. 11210, or the “105-Day Expanded Maternity Leave Law,”
• Employees can extend their leave by an additional 30 days without pay, subject to notifying
their employer 45 days before the end of the leave.
• Mothers who are single parents can request an additional 15 days’ leave with full pay.
• In case of a miscarriage or an emergency termination of pregnancy, the entitlement is 60 days
of paid maternity leave
• Requirements: Membership in the SSS with at least 3 months contributions prior to delivery or
miscarriage.

PATERNITY LEAVE
• All married male workers are entitled to Paternity Leave of 7 calendar days with pay for the first
4 deliveries (or miscarriage) of his lawful wife whom he is cohabiting with.
• Paternity Leave is NOT convertible to cash.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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PARENTAL LEAVE FOR SOLO PARENTS

• Parental Leave shall mean leave benefits granted to a solo parent to enable him or her to
perform parental duties and responsibilities where physical presence is required.
• The solo parent is entitled to 7 days leave with pay.
• Parental Leave is NOT convertible to cash.
• Requirements: At least 1 year of service and DSWD Solo Parents ID.

LEAVE FOR VICTIMS OF VAWC

• Female employees who are certified as victims under the “Anti-Violence Against Women and
their Children Act of 2004” are entitled to 10 days of leave with pay to enable her to attend to
medical and legal concerns.
• VAWC Leave is NOT convertible to cash.
• Requirements: Certification from the barangay, prosecutor, or clerk of court that a VAWC case
involving the victim female employee is pending.

SPECIAL LEAVE FOR WOMEN

• Female employees who has undergone surgery due to gynecological disorders are entitled to
2 months leave with pay to enable her to attend to medical and legal concerns.
• Special Leave is NOT convertible to cash.
• Requirements: Certification from physician, and employment service of at least 6 months within
the 12 month period prior to surgery.

EMPLOYEES’ COMPENSATION PROGRAM

• The ECP is designed to provide a compensation package to Employees and their dependents
in case of work-related sickness, injury, disability or death.
• Benefits: Loss of income benefit; Medical benefit; Rehabilitation services; Carer’s allowance;
and Death benefits.
• Workers in the formal sector are covered starting on day 1 of their employment.

PHILHEALTH BENEFITS
• The National Health Insurance Program, which is administered by PhilHEALTH, provides financial
assistance to member-Employees when they get hospitalized.
• All employees are required to be members.
• Benefits: Inpatient hospital care; and outpatient care based on a Schedule of Benefits.
• PhilHealth and beneficiaries have access to a comprehensive package of services, including
inpatient care, catastrophic coverage, ambulatory surgeries, deliveries, and outpatient
treatment for malaria and tuberculosis.

SOCIAL SECURITY BENEFITS

• The Social Security Program provides a package of benefits in the event of death, disability,
sickness, maternity, and old age. It provides replacement for income lost during these
contingencies.
• All employees in the private sector are mandatorily covered, including househelpers earning at
least P1,000/ month salary.
• Benefits: Sickness, Maternity, Disability, Retirement, Death & Funeral, based on a Schedule of
Benefits.

LOAN AND MISCELLANEOUS BENEFITS

• Socialized loans for emergency, housing and other purposes are available to employees who
are qualified members of the SSS and PagIBIG Fund.
• The duty of the Employer is to deduct and remit the Employees’ contributions as well as his
required contributions to SSS, PhilHEALTH, ECC, and PagIBIG.
• Failure on the part of the Employer to remit the mandatory contributions has serious
consequences.

OCCUPATIONAL SAFETY AND HEALTH STANDARDS

• Every covered Employer is required to keep and maintain his workplace free from work hazards
that are causing or likely to cause physical harm to the workers or damage to property.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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• The Occupational Safety and Health Standards, as amended, is the body of rules and
regulations that protect every worker against the dangers of injury, sickness or death through
safe and healthful working conditions.

SPECIAL PROTECTION
• Children.
• Physically-impaired.
• Women.
• Househelpers.
• Homeworkers and the informal sector.
• Filipino professionals and labor –versus- aliens.

COMPANY-INITIATED BENEFITS
1. Employers are not prohibited from, and in fact encouraged to, provide terms and conditions of
employment that are better or higher than Labor Standards.
2. Higher than Labor Standards Benefits are either initiated by the Employer, on its own, by request
of the Employees, or by demand of their Union or Association.

NON-DIMINUTION OF BENEFITS
1. The reduction or elimination of benefits provided under the law, agreement or voluntary
practice is prohibited.
2. EXCEPTIONS –
a. If circumstances no longer justify grant of benefits (Dislocation pay, relocation allowance,
per diem, supplements, etc.)
b. Rule on grant of bonus – management prerogative, but not if given as a salary
supplement and without conditions.

WHEN DOES AN ACT BECOME A PRACTICE?

3. If done for a long period of time (ex. Three years).
4. The act is done consistently and intentionally.
5. The act should NOT be a product of erroneous interpretation of law.

LABOR RELATIONS
• Right to Security of Tenure
• Right to Just Share in the Fruits of Production
• Right to Self-Organization
• Right to Bargain Collectively.
• Right to Strike and Other Peaceful Concerted Action
• Right Against Unfair Labor Practices

ROLE OF GOVERNMENT
1. Policy-Maker
2. Regulator
3. Program Administrator
4. Inspector
5. Conciliator and Mediator
6. Arbitrator or Arbiter or Adjudicator
7. Enforcer

LABOR ORGANIZATION
• any union or association of employees which exist in whole or in part for the purpose of
o (a) collective bargaining or
o (b) for dealing with employers concerning terms and conditions of employment.

“LEGITIMATE” LABOR ORGANIZATION

• one which is duly registered with the Department of Labor and Employment.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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WHAT DISTINGUISHES A LEGITIMATE LABOR ORGANIZATION?

1. Right to represent its members for purposes of collective bargaining.
2. Right to be certified as exclusive representative of all employees in bargaining unit for purposes
of col. Bargaining
3. To be furnished financial records
4. To sue and be sued in its registered name
5. To own property
6. To undertake programs to benefit the org/members

REQUIREMENTS FOR REGISTRATION

• Registration fee
• Names of officers, their addresses, the address of the org., minutes of org. meeting and list of
workers who participated.
• Names of all members who comprise 20% of all employees in the bargaining unit where it seeks
to operate.
• Annual financial records.
• Copies of constitution and by-laws

PURPOSE OF REGISTRATION REQUIREMENTS

• To prevent fraud
• To protect members from unscrupulous or fly by night unions.

IS THE REQUIREMENT FOR UNION REGISTRATION A VIOLATION OF THE FREEDOM TO ASSOCIATE?

• Any group of employees may organize into a union, even without registration.
• But registration is condition sine qua non for the exercise of privileges.
• A group may not register but they cannot avail of the rights of legitimate unions.
• Registration is an exercise of police powers by the state because union is invested with public
interest.

CRITICAL REQUIREMENTS TO BE ABLE TO REGISTER

• Membership must be at least 20% of all the employees in the bargaining unit.

BARGAINING UNIT
• It is a group or cluster of jobs or positions that supports the labor organization which is applying
for registration.
• Test whether the bargaining unit is appropriate
o if it will best assure to all employees the exercise of their collective bargaining rights.

EMPLOYER UNIT
• Refers to a case where there is only 1 bargaining unit for all the employees of the company.
• Purpose why the employer unit is encouraged by the state.

ANOTHER WAY OF ORGANIZING AS A LABOR UNION

• Affiliation as a chapter of an existing labor federation or a national union.

DUTY OF AN EMPLOYER WHEN WORKERS ORGANIZE

• Self-organization is a constitutional right. Therefore, the company must respect the right of
employees to organize.

PENALTY FOR INFRINGING ON THE RIGHT TO UNIONIZE

• Unfair labor practice is a prohibited act.
• It is considered a criminal offense.
• Penalty includes imprisonment and payment of fine.

WHAT HAPPENS WHEN A UNION IS ORGANIZED/REGISTERED?

• It becomes entitled to the privileges of a legitimate labor organization.
• But it is NOT automatically a bargaining agent or majority representative.
• To be a bargaining agent, it needs to be certified that it is the exclusive bargaining agent.

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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WHAT IS NEEDED TO BE CERTIFIED AS A BARGAINING AGENT?

• It must win a certification election; or,
• It is voluntarily recognized by the employer; or,
• It is selected by the employees through a consent election.

CERTIFICATION ELECTION (CE)

• It is a process by which the members of a bargaining unit choose one among contending unions
to be its exclusive bargaining agent.
• Non-adversarial
• Fact-Finding
• Administered by DOLE

Who can participate in Certification Election?

• Role of Employer in a Certification Election: Neutral Observer.

When a union fights in a CE and loses, does it mean that it does not have any more duty to its members?
• It continues to represent its members but it does NOT have the right to engage in collective
bargaining.

What is the importance of being a bargaining agent?

• A bargaining agent possesses the right, by law, to demand from the employer that it negotiates
with it (union) terms and conditions of employment, including wages, hours of work, and rates
of pay.

PRODUCT OF BARGAINING
• A collective bargaining agreement or CBA, if the union is able to have an agreement with the
employer about its proposed terms and conditions of employment.

RECOURSE OF UNION IN THE EVENT OF FAILED NEGOTIATIONS

• It can engage in strike.
• It can engage in other concerted activities.
• All of which are protected by law if no criminal act attends the holding of said actions.

WIN-WIN LABOR RELATIONS

1. Master the Basic Principles of Labor Relations.
2. Observe the Golden Rule of Human Relations.
3. Documentation, Documentation, Documentation!
4. Write Clearly.
5. Consult the Experts.
6. Use Best Practices.
7. Be Open-minded.
8. Negotiate, Negotiate, Negotiate!

The employment relationship is governed by human and labor relations.

• Industry, Employer, Workers + Productivity

WHERE DOES THE EMPLOYER- EMPLOYEE RELATIONSHIP START?

• Contract of Employment

THE 4-POINT TEST OF AN EMPLOYER- EMPLOYEE RELATIONSHIP

1. selection of employees
2. payment of wages
3. power to dismiss
4. power to control employee’s conduct, output and means of delivering the output

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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RIGHTS OF THE EMPLOYEE

1. Right to self
2. Right to join a union or disaffiliate from it
3. Right to collective bargaining and negotiation
4. Right to Strike
5. Right to be given an opportunity to be heard in disciplinary cases

RIGHTS OF THE EMPLOYER

1. Right to reasonable returns on investments, expansion, & growth
2. Right to select person to be hired
3. Right to adopt, implement, modify, amend, or revoke reasonable employment regulations
4. Right to transfer employees
5. To determine work assignments, working methods, time , place, & manner of work, tools to be
used and processes to be followed (TERMS & CONDITIONS OF EMPLOYMENT)
6. Right to determine standard of work and levels of efficiency
7. To introduce new or improved methods, facilities and devices e.g. labor saving devices
8. To create, merge, divide, reclassify & abolish positions in the company
9. Right to sell or close business
10. Right to lockout in a labor dispute
11. Right to suspend or terminate employees

TERMINATION OF EMPLOYMENT
1. By the Employee
2. By the Employer
a. Actual (Termination)
b. Constructive (Constructive Dismissal)

JUST CAUSES FOR TERMINATION

1. Serious Misconduct
2. Gross and Habitual Neglect of Duty
3. Fraud or Willful Breach of Trust; Loss of Confidence
4. Commission of a Crime or Offense by Employee
5. Other Analogous Cases

AUTHORIZED CAUSES FOR TERMINATION

1. Redundancy –
a. employees’ positions are “superfluous” because their work is duplicated or unnecessary
(e.g. installation of labor saving devices, merger of two companies, streamlining of
operations
2. Retrenchment
a. serious and imminent losses force the employer to let some employees go
3. Closure/Cessation of Business
a. the employer stops doing business

IF TERMINATION IS OF AUTHORIZED CAUSE:

• Payment of separation pay
• Provide written notice to concerned employee thirty (30) days before the effectivity of the
termination
• Notice of Termination to DOLE thirty (30) days prior effectivity

Pursuant to Art. 279 LC, when an employee is illegally terminated, he has the right to:
1. Reinstatement
2. Backwages
3. Damages
4. Attorney’s Fees

By Aira Jaimee S. Gonzales – BSA3

LABOR LAW
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Question: Does basic pay include, ECOLA? How much is the COLA and ECOLA?
Answer: Basic Pay does NOT include ECOLA. (20 + 30 pesos = 50 pesos)

Question: Does overtime pay include, ECOLA?

Answer: Overtime pay does not include ECOLA, only just the basic pay.

Question: What is the maximum childbirth in claiming maternity leave?

Answer: Under the new expanded maternity leave, there is no maximum childbirth, delivery,
miscarriage.

Question: Can you claim both miscarriage leave and child birth leave in one year?
Answer: In cases of overlapping, you can claim both.

Question: If the father is working overseas, can he claim for paternal leave?
Answer: The rationale for the paternal leave is to lend a hand to the mother. Thus, the father cannot
claim for paternal leave.

Question: How can one claim for solo parent leave?

Answer: There must be a legal relationship whether by affinity or consanguinity.

By Aira Jaimee S. Gonzales – BSA3