LECTURE 5: LABOR RELATIONS AND
STANDARDS
EMPLOYER-EMPLOYEE RELATIONSHIP
• Four-fold test
• Selection and engagement of the workers
• Payment of wages
• Power of dismissal
• Power to control the workers' conduct
• Refers to existence of power and not
necessarily to the actual exercise
thereof
 
HOURS OF WORK
• All time during which an employee is required
to be on duty or to be at the prescribed
workplace
• Rest period of short duration: counted as
hours worked
• Normal hours of work for hospital workers: 5
days (40 hours) a week
 
NIGHT SHIFT DIFFERENTIAL
At least 10% of regular wage for each hour of
work between 10:00 pm to 6:00 am
Example:
• Regular wage: Php 100 per hour
• Shift: 11 pm to 7 am
• How much is the salary on that night shift?
OVERTIME WORK
Work performed beyond 8 hours a day
Additional compensation
• Regular wage: + at least 25% thereof
• Holiday: + at least 30% thereof
COMPULSORY OVERTIME WORK
• If the country is at war or when there is a
declaration of national or local emergency
• To prevent loss of life or property, or in case
of imminent danger to public safety caused by
accidents. fire. floods, typhoons. epidemic. or
other disaster or calamities
• When there is urgent work to be performed
on machines. Installations or equipment to
avoid serious loss or damage
• To prevent loss or damage to perishable
goods
• Completion of work is necessary to prevent
serious business loss
• To avail of favorable weather
MEAL BREAK
• Not less than 60 minutes time-off for regular
meals
• May be taken outside company premises
• Case: PAL vs. NLRC (GR 132805)  
REST DAY
• Duty of employer: 24 hours rest period after
every 6 consecutive normal work days
 Employer shall respect the preference
of employees as to their weekly rest day
when such preference is based on
religious grounds
 
HOLIDAY PAY
Work on special holiday: 30% of the regular
wage
Work on regular holiday: 200% of the regular
wage
 
What are the regular holidays? (RA 9849)
 New Year (January 1)
 Maundy Thursday and Good Friday
 Araw ng Kagitingan (April 9)
 Labor Day (May 1)
 Independence Day (June 12)
 National Heroes Day
 Bonifacio Day (November 30)
 Eid'l Fitr
 Eid'l Adha
 Christmas Day (December 25)
 Rizal Day (December 30)
13TH MONTH PAY
• PD 851: 1 / 12 of an employee's basic annual
salary
• May be given in 2 installments (May and
December)
FORMS OF PAYMENT
"No employer shall pay the wages of an
employee by means of promissory notes,
vouchers, coupons, tokens, tickets, chits or
any object other than legal tender, even when
expressly requested by the employee."
MATERNITY /PATERNITY LEAVE
In service at least 6 months
• RA 11210: 105 days leave with pay + an
option to extend for 30 days without pay
(single parent: additional 15 days with pay)
•Miscarriage or emergency termination of
pregnancy: 60 days with pay
 Paternity leave (RA 8187) - Fair and reasonable criteria in
• 7 days with full pay for the first 4 deliveries ascertaining redundant positions:
(or any miscarriage) of the legal spouse with efficiency, seniority
whom he is cohabiting  
Retrenchment
SECURITY OF TENURE - Last resort: dismissing employees to
"A regular employee shall remain employed avoid or minimize losses (BEFORE the
unless his or her services are terminated for losses anticipated are actually
just or authorized cause and after observance sustained)
of procedural due process." - 1 month written notice
  - Separation pay
TERMINATION OF EMPLOYMENT - in good faith
Balancing of interests in disciplinary cases - Fair and reasonable criteria
- Labor’s interest: right to labor and due
process Closure of the Company
- Management's interests: promulgation - In good faith
of rules and regulations and enforce - 1 month written notice
and implement them for efficient - Separation pay needed, except in
business operations cases of serious business losses
   
JUST CAUSES Disease or Illness
AUTHORIZED CAUSES: needs separation - Continued employment is prohibited by
pay law or prejudicial to health
  - Medical certificate needed: disease
JUST CAUSES can't be cured within 6 months
Serious misconduct - 1 month written notice
- Serious; related to performance of - Separation pay
duties   
- Sexual harassment, fighting within  Other causes for termination
company premises, theft of company • Failure of the probationary employee to
property. drug abuse, falsification of qualify as a regular employee
time records • Totality of infractions doctrine
• Several warnings
Willful disobedience/insubordination
- Willful/intentional PROCEDURAL DUE PROCESS
- Order violated must be reasonable,
lawful. and made known to the Notice of appraisal: specifying the grounds of
employee termination giving time to employee to rebut
Gross negligence/habitual neglect of duties Hearing or conference
- Absenteeism. abandonment of work
  Notice of termination: after considering all
Fraud/loss of trust and confidence circumstances
- Misappropriation of company funds
No due process
Commission of a crime or offense against • Authorized causes: P50,000 damages
the employer • Just causes: P30,000 damages
Other analogous causes
Questioning the legality of dismissal
 
AUTHORIZED CAUSES Substantive grounds
Redundancy Absence of a just or authorized
- Services of an employee are in excess cause supporting the dismissal
of what is reasonably demanded
- I month written notice
- Separation pay (l month per year of Procedural grounds
service)
 Failure of the employer to give
the employee an opportunity to explain
his or her side

• THE EMPLOYER has the DUTY to prove

the dismissal is valid

Termination by employee
Resignation

• Written notice at least 1 month in

advance
• No written notice:
o Serious insult by the employer
o Inhuman and unbearable treatment
o Commission of a crime or offense
by the employer against the
employee