Why is there a need for labor law?

- To prevent abuses.

*Unjust equality – employer yumayaman while the employee is retained on the same lifestyle.

To determine the need for labor, there are 2 questions.

What are the Interests of the employer?

- The employer controls the business in order for the company to profit. -gives the capital,control
how the business should run, to hire, in order for the company to profit.

What are the interests of employee?

- Don’t care about the profit of the company. Cares about working so he/she can have daily
economical needs.

There is now conflict of interest between employee and employer.

That is the role of the labor law. To balance the interest of the employee and employer.

How?

The labor law gives right of an employee based on the labor code. The state balances how the employer
should manage his or his business.

Security of tenure to the employee. E.g., If the employee work for that company for about 10yrs don’t
terminate the employee. Give security of tenure. workers are guaranteed security of tenure. They
can be terminated from service only for a valid cause supported by substantial evidence and
after due process where they are afforded the opportunity to be heard and to present their
defense.

CONDITION OF EMPLOYMENT

Work days and work hours

Weekly rest days

Payment of wages

Wage related benefits – philheath, pagibig, gsis,

Right to self-organization and collective bargaining (Union).

Safe working conditions

Employment of children

Female employees

Equal work opportunities for all

LABOR LAW

A. EMPLOYER-EMPLOYEE RELATIONSHIP

Why is it important to determine whether there is employee-employer relationship?

When you are able to determine there is employer-employee relationship, then the provisions on the
labor code or the labor standard will apply. If there is no relationship, then the labor code will not apply.

A lot of employers try to deny liability or negate just to escape giving benefits to the employee.

Question: I’ve been working for 6 months at company X but they still haven’t given me a contract. Am I
legitimate employee of company x? yes. There is 4-fold test to check if the person is already employed
by a company even without a written contract.

Selection on hiring. It is not forced. You have been interviewed and hired by the company.

HIRING is a process wherein a vacancy is filled through selection. Proseso

RECRUITMENT is having list of potential candidates for a specific position when the need arises.

Payment of wages. The employee should prove that he is being paid. The employer should prove that
he/she pays the person.

SALARY is associated with employee compensation quoted on an annual basis (monthly). Buwanang
sahod

WAGES associated with employee compensation that is based on the number of hours worked
multiplied by an hourly rate of pay. Per araw

Dismissal. If an employee is dismissed due to labor dispute, he is still an employee.

Control test. The employer’s power to control the employees conduct. Employee has the right
prerogative or the right to control the employee on how he/she should do the work. The employer’s
power to control or right to control the employee not only as to the result of the work to be done but
also as to the means and methods by which the same is to be accomplished.

SECURITY OF TENURE – THE CONSTITUTIONAL AND STATUTORY RIGHT OF EVERY EMPLOYEE NOT TO BE
DISMISSES FROM HIS/HER WORK WITHOUT JUST OR VALID CAUSE AND IN THE ABSENCE OF DUE
PROCESS.

IF EER ESTABLISHED HINDI PWEDE BASTA BASTA ALISIN WITHOUT VALID REASON. BY VIRTUE OF YOUR
RIGHT ON SECURITY OF TENURE. GUARANTEED BY CONSTITUTION AND STATUTORY RIGHT. HINDI LANG
SAPAT NA MAY DAHILAN, DAPAT MAY DUE PROCESS DIN. PWEDENG MAY DAHILAN PERO DI BINIGYAN
NG DUE PROCESS, PERO YUNG PAGKAKATANGGAL ILLEGAL, ANG TAWAG AY ILEGAL DISMISSAL.

B. KINDS OF EMPLOYEES/ EMPLOYMENT (REGULAR, PROJECT, SEASONAL, CASUAL)

IN THE ABSENCE OF ANY STIPULATION BETWEEN THE EMPLOYEE AND EMPLOYER. ANG DEFAULT
ASSUMPTION KUNG ANONG KLASENG EMPLEYADO KA AY REGULAR. NAKAY EMPLOYER ANG BURDEN
OF PROOF SHOWING HINDI NYA ITINUTURING NA REGULAR SI EMPLOYEE.

IN ORDER FOR THE EMPLOYER TO MAKE OTHER KIND OF EMPLOYMENT, KAILANGAN MAY WRITTEN
AGREEMENT STIPULATING THAT SUCH EMPLOYMENT OF EMPLOYEE IS NOT REGULAR. MALINAW DAPAT
NA NAKALAGAY KUNG PROJECT LANG, SEASONAL, O CASUAL. KUNG WALANG WRITTEN CONTRACT,
ANG DEFAULT AY REGULAR – THE EMPLOYMENT OF THE EMPLOYER TO THE EMPLOYER SHOULD BE
DEEMED TO BE REGULAR. KUNG WALANG WRITTEN CONTRACT, BASTA MAY MALINAW NA USAPAN –
MAY STIPULATION EDI HINDI REGULAR.

REGULAR

THOSE WHO HAVE BEEN ENGAGED TO PERFORM ACTIVITIES WHICH ARE USUALLY NECESSARY OR
DESIRABLE IN THE USUAL TRADE OR BUSINESS OF THE EMPLOYER.

E. G. PHARMACIST – PHARMACY. DI MO PWEDE ITURING NA DI REGULAR ANG ISANG PHARMACIST

BECAUSE THEY ARE PERFORMING ACTIVITIES THAT ARE NECESSARY OR DESIRABLE IN THE FIELD OF
BUSINESS THAT IS THE PHARMACY.

SAME AS SALES PERSON, CASHIER IN THE MALL.

AN EMPLOYEE WHO HAS RENDERED ATLEAST 1 YEARS OF SERVICE, WHETHER SUCH SERVICE IS
CONTINOUS OR BROKEN, SHALL BE CONSIDERED A REGULAR EMPLOYEE WITH RESPECT TO THE
ACTIVITY IN WHICH HE/SHE IS EMPLOYED AND HIS/HER EMPLOYMENT SHALL CONTINUE WHILE SUCH
ACTIVITY EXISTS.

KUNG NAKA 1 YR KA NA NG SERBISYO WHETHER THAT SERVICE IS CONTINOUS OR BROKEN, DEEMED TO

BE REGULAR EMPLOYEE WITH RESPECT DUN SA ACTIVITY KUNG SAAN KA NA EMPLOYED AT TULOY
TULOY PA YUNG EMPLOYMENT MO. HINDI KA NA PWEDE ITURONG NA IBANG KLASENG EMPLOYEE
KUNG MAHIGIT ISANG TAON MO NA GINAGAWA YUNG TRABAHO MO.

INAADRESS NITO YUNG LUSOT NG IBANG ENTERPRISE OR BUSINESS NA NILULUSUTAN YUNG BATAS.
GUSTONG MAKAIWAS SA PAGREREGULAR NG EMPLOYEE. ANG GAGAWIN NILA, KUKUHA SILA NG
CONTRACTUAL EMPLOYEES. IHAHIRE SILA, 4 MONTHS OR 5 MOTHS.

EXAMPLE: KINUHA KANG CONTRACTUAL EMPLOYEE FOR 5 MONTHS PARA SA QUALITY CONTROL,
TINAPOS KONTRATA MO, AFTER A MONTH HINIRE KA NA NAMAN QUALITY CONTROL ULIT. TAPOS
GANUN ULIT YUNG CYCLE. ALL IN ALL, NAKA 15 MONTHS KA NA, SAME ACTIVITY. EDI NAKAPAG RENDER
NA NG 1 YR SERVICE. HABANG HINAHIRE KA ANDUN PA RIN YUNG TRABAHO KUNG SAN KA UNANG
NAEMPLOY.

BAKIT CINOCONSIDER NG LAW NA REGULAR KA NA PAG NAKAPAG RENDER KA NA NG ATLEAST 1 YR

SERVICE WHETHER SUCH SERVICDE IS CONTINOUS OR BROKEN? – KASI KUNG PAULIT ULIT KANG
HINAHIRE DUON SA ACTIVITY NA YUN, IBIG SABIHIN YUNG ACTIVITY NA YUN, IN RELATION DUN SA
FIRST WAY ON DETERMINING WHETHER SUCH EMPLOYMENT IS REGULAR EMPLOYMENT, IBIG SABIHIN
YUNG ACTIVITY NA YUN SINCE ANDUN NAMAN LAGI E DISIRABLE NA YUNG ACTIVITY AND USUALLY
NECESSARY NA. KASI KUNG HINDI USUALLY NECESSARY AND DESIRABLE, EDI SANA PAGTAPOS NG
CONTRACT MO AS CONTRACTUAL EMPLOYEE FOR 5 MONTHS, DAPAT WALA NA RIN YUNG QUALITY
CONTROL NA ACTIVITY NA YUN. KUNG PAULIT ULIT KA NANG HINAHIRE DUON SA ACTIVITY NA YUN IBIG
SABIHIN USUAL AND NECESSARY NA YUNG ACTIVITY DUN SA BUSINESS NG EMPLOYER.

BAKIT PINUPUTOL PUTOL LANG YUNG PAGHAHIRE SAYO? KASI GUSTO LANG MATAKASAN YUNG BATAS
AT PAG REREGULAR SA EMPLOYEE.

A PROBATIONARY EMPLOYEE WHO IS ALLOWED TO WORK AFTER THE PROBATIONARY PERIOD.

YUNG PROBATIONARY YAN YUNG PERIOD KUNG SAN DINEDETERMINE NG EMPLOYER KUNG OK OR FIT
KA BA FOR THE JOB OR KUNG ITUTUTLOY BA YUNG EMPLOYMENT SAYO NI EMPLOYER. KUNG
PINAGPATULOY KA PA RIN BEYOND THE PROBATIONARY PERIOD YOU WILL BE DEEMED AS REGULAR
EMPLOYEE.

PROJECT EMPLOYEE

THOSE WHOSE EMPLOYMENT HAS BEEN FIXED FOR A SPECIFIC PROJECT OR UNDERTAKING, THE
COMPLETION OR TERMINATION OF WHICH HAS BEEN DETERMINED AT THE TIME OF ENGAGEMENT
OF THE EMPLOYEE.

A PRIMARY FACTOR IN DETERMINING WHTHER AN EMPLOYEE IS A PROJECT EMPLOYEE IS WHETHER

THAT EMPLOYEE CARRIES OUT A SPECEFIC PROJECT OR UNDERTAKING. PLUS, THE DURATION OF SUCH
PROJECT AY SPECIFIED.

SEASONAL -Seasonal can be Regular employee.

THOSE WHO WORK OR PERFORM SERVICES WHICH ARE SEASONAL IN NATURE, AND THE
EMPLOYMENT IS FOR THE DURATION OF THE SEASON.

the most common form of seasonal employment happens in the agriculture sector since sowing
and tilling the lands occur during the period covering the pre-monsoon and monsoon months,
and the harvesting occurs at the end of the crop season.

Farm workers generally fall under the definition of seasonal employees. Seasonal employees may be
considered as regular employees

CASUAL

THOSE WHO ARE NOT REGULAR, PROJECT OR SEASONAL EMPLOYEES

As a casual employee, they are devoid (WITHOUT) of security of tenure. For example, a
mechanic who is hired from time to time to fix the machinery in a manufacturing
company is a casual employee. A painter in a realty company who was hired to repaint the
company building is a casual employee.

C. PROBATIONARY EMPLOYMENT

PROBATION IS THE PERIOD WHICH THE EMPLOYER MAY DETERMINE IF THE EMPLOYEE IS QUALIFIED
FOR POSIBLE INCLUSION IN THE REGULAR FORCE. GENERALLY, 6 MONTHS. HOWEVER, THE PARTIES
MAY AGREE OTHERWISE. EXTENDABLE UPON MUTUAL AGREEMENT IN WRITING BY THE PARTIES.

PARTIES CAN AGREE FOR LONGER PERIOD OF PROBATIONARY. EXTENDABLE DIN. PWEDE 1 YR BASTA
MAY MUTUAL AGREEMENT IN WRITING.
PAG NAG EXCEED NA BEYOND PROBATIONARY PERIOD TAPOS DI NAGNONOTIFY SI EMPLOYER KUNG
HIRED KA BA O HINDI, YOU WILL BE DEEMED AS REGULAR EMPLOYEE. KASI DAPAT BEFORE PA
MATAPOS YUNG PROBATIONARY PERIOD, MAY ASSESSMENT NA DAPAT SI EMPLOYER SAYO WHETHER
OR NOT YOU WILL CONTINUE THE EMPLOYMENT. OR PWEDE RIN IEXTEND DEPENDE SA
MAKAKAPAGKASUNDUAN. KUNG NAGEXCEED NA SA USAPAN NYONG PROBATIONARY PERIOD, HINDI
KA NAMAN TINANGGAL TAPOS WALA NAMAN PASABI SAYO, YOU WILL BE DEEMED AS REGULAR
EMPLOYEE.

D. TERMINATION BY EMPLOYER (SI EMPLOYER ANG MAGTETERMINATE NG EMPLOYEE) –

MAGHIHIWALAY NA NG RELATIONSHIP SI EMPLOYER AT EMPLOYEE.

PAG MAGTATANGAL OR TERMINATE SI EMPLOYER NG EMPLOYEE DAPAT MAY JUST CAUSE.

SUBSTANTIVE DUE PROCESS- Ang pag tanggal sa empleyado ay dapat ang dahilan ay just cause or
authorized causes. THE DISMISSAL MUST BE FOR CAUSE

JUST CAUSES – MGA KASALANANG NAGAWA NG EMPLOYEE

SERIOUS MISCONDUCT OR WILLFUL DISOBEDIENCE BY THE EMPLOYEE OF THE LAWFUL ORDERS OF

HIS EMPLOYER OR REPRESENTATIVE IN CONNECTION WITH HIS WORK.

EX: NASA BPO INDUSTRY KA, NIGHT SHIFT. PARA GISINGIN YUNG SARILI SA TRABAHO, NAGSHABU KA.

IMMORAL CONDUCT PWEDE RIN.

KUNG HALIMBAWA SA REST QUARTERS GUMAWA KAYO NG KABABALAGHAN, SERIOUS MISCONDUCT

NA RIN. NAG SEXUAL INTERCOURSE WITHIN THE COMPANY’S PREMISES.

NAGSUNTUKAN SA REST QUARTERS

WILLFUL DISOBEDIENCE – INTENTIONAL

EX: INORDER NG EMPLOYER NA RAMDOM DRUG TEST, NAGREFUSE KA, INTENTIONAL DISOBEDIENCE
NA.

GROSS AND HABITUAL NEGLECT BY THE EMPLOYEE OF HIS DUTIES.

LAGI NANG LATE SA WORK.

FRAUD OR WILLFUL (SINASADYA) BREACH BY THE EMPLOYEE OF TRUST REPOSED (PUT) IN HIM BY HIS
EMPLOYER OR DULY AUTHORIZED REPRESENTATIVE.

FRAUD IS ANY ACT WHICH INVOLVES A BREACH OF LEGAL DUTY, TRUST OR CONFIDENCE JUSTLY
REPOSED IN EMPLOYEE. EX OF FRAUD: THEFT ON COMPANY PROPERTY, UNAUTHORIZED USE OF
VEHICLE.

BREACH OF TRUST REFERS TO VIOLATION BY THE EMPLOYEE OF THE TRUST AND CONFIDENCE REPOSED
IN HIM BY HIS EMPLOYER OR DULY AUTHORIZED REPRESENTATIVE.

COMMISSION OF A CRIME OR OFFENSE BY THE EMPLOYEE AGAINST THE PERSON OF HIS EMPLOYER
AR ANY IMMEDIATE MEMBER OF HIS FAMILY OR HIS DULY AUTHORIZED REPRESENTATIVES.
EX: CRIME AGAINST ER, FAMILY OR REP

OTHER CAUSES ANALOGOUS TO THE FOREGOING. (SIMILAR SA NASA TAAS)

Abandonment. Abandonment of job is a form of neglect of duty. intent to discontinue his

employment without any intention of returning back.
Gross inefficiency. Gross inefficiency is analogous to and closely related to gross neglect for both
involve acts or omissions on the part of the employee resulting in damage to the employer or to
his business.
Disloyalty/conflict of interest. Disloyalty exists when one asserts an interest, or performs acts
adverse to one’s employer, such as secretly engaging in a business which renders him a
competitor and rival of his employer. It constitutes a breach of an implied condition of the
contract of employment.

Dishonesty. Acts of dishonesty deemed to be patently inimical to the employer is analogous to

breach of trust and is a valid cause for termination of employment.
PROCEDURAL DUE PROCESS- THE EMPLOYEE MUST BE AFFORDED AN OPPORTUNITY TO BE HEARD AND
DEFEND HIMSELF. DAPAT MAPAGBIGYAN SI EMPLOYEE NA MAPAKINGGAN YUNG SIDE NYA.

STATUTORY DUE PROCESS – KUNG ANO YUNG SINABI SA LABOR CODE NA PAMAMARAAN PARA
IINFORM SI EMPLOYEE AT PASAGUTIN SA MGA DAHILAN NA SINASABI NI EMPLOYER KUNG BAKIT
GUSTO MO NA SYANG TANGGALIN.

CONTRACTUAL DUE PROCESS – UPOJN HIRING EMPLOYEE, NAKASAAD SA CONTRACT YUNG MGA
GUIDELINES KUNG PANO MATATANGGAL SI EMPLOYEE SA TRABAHO.

AUTHORIZED CAUSES – WALANG KASALANAN SI EMPLOYEE BUT SI EMPLOYER MAY DAHILAN NA

PARA MAGTANGGAL NG EMPLOYEE

INSTALLATION OF LABOR-SAVING DEVICE – DI NA KAILANGAN NG EMPLAYADO KASI MACHINE NA YUNG

GAGAWA

REDUNDANCY – YUNG GINAGAWA NG ISANG EMPLEYADO GINAGAWA RIN NG IBA. KUNG PWEDE YUNG
ISANG EMPLOYEE NALANG ANG GAGAWA, YUNG ISA PWEDE NANG TANGGALIN.

RETRENCHMENT (REDUCTION OF COST OR SPENDING) – TO PREVENT BUSINESS LOSSES KAILANGAN

MAGTANGAL. KUNG PATULOY SINASAHURAN YUNG MGA EMPLEYADO PERO WALANG SAPAT NA
INCOME.

CLOSURE OR CESSATION OF BUSINESS OPERATIONS

DISEASE

E. TERMINATION OF EMPLOYMENT BY EMPLOYEE

RESIGNATION
VOLUNTARY RESIGNATION REQUIRES THE SUBMISSION OF A WRITTEN RESIGNATION LETTER ATLEAST
30 DAYS BEFORE ITS EFFECTIVE DATE.

PANO PAG NAGRENDER NG RESIGNATION TAPOS DI INAKSYONAN? AYAW PAALISIN, PWEDE BANG
UMALIS NALANG SI EMPLOYEE? YES PWEDE. WALANG PWEDENG PUMILIT KAY EMPLOYEE NA MAGSTAY
SA ISANG COMPANY.

KUNG IKAW ANG AALIS SA EMPLOYER KAHIT WALANG DAHILAN BASTA AYAW MO NA. ANG JUST AT
AUTHORIZED CAUSE MAGAAPLY LANG YAN KUNG SI EMPLOYER ANG MAGTATANGGAL NG EMPLOYEE.
KAHIT DI PAYAGAN NI EMPLOYER BASTA IOBSERVE ANG 30-DAY NOTICE.

PWEDENG UMALIS IF WALA PANG 30 DAYS PERO BAKA MAGKAROON NG LIABILITIES. BAKA MAY
MAIWANANG TRABAHO.

INVOLUNTARY RESIGNATION- WITH JUST CAUSE; NO NEED FOR THE 30 DAY PRIOR WRITTEN NOTICE

- SERIOUS INSULT BY THE EMPLOYER OR HIS REPRESENTATIVE ON THE HONOR AND PERSON OF
EMPLOYEE. PINAGMUMURA KA NA NI EMPLOYER ARAW ARAW. OR INIINSULTO.
- INHUMAN AND UNBEARABLE TREATMENT BY THE EMPLOYER.
- COMMISION OF CRIME BY THE EMPLOYER
- OTHER CAUSES ANALOGOUS TO ANY OF THE FOREGOING.

CONSTRUCTIVE DISMISSAL

AN INVOLUNTARY RESIGNATION RESORTED TO WHEN CONTINUED EMPLOYMENT IS RENDERED

IMPOSSIBLE, UNREASONABLE OR UNLIKELY.

A DEMOTION IN RANK OR DIMINUTION IN PAY

A CLEAR DISCRIMINATION, INSENSIBILITY OR DISDAIN BY AN EMPLOYER WHICH BECOMES UNBEARABLE

TO THE EMPLOYEE THAT IT COULD FORECLOSE ANY CHOICE BY HIM EXCEPT TO FOREGO HIS
CONTINUED EMPLOYMENT.

RETIREMENT

F. CONDITIONS OF EMPLOYMENT

COVERAGE

EMPLOYEES NOT COVERED UNDER ART. 82

- GOVERNMENT EMPLOYEES BECAUSE THEY ARE COVERED BY THE CIVIL SERVICE LAW, RULES
AND REGULATIONS
- MANEGERIAL EMPLOYEES – NOT INCLUDED BECAUSE HE HAS THE POWER OR PREROGATIVE TO
LAY DOWN AND EXECUTE MANAGEMENT POLICIES, HIRE, TRANSFER, SUSPEND, RECALL AND
DISCIPLINE EMPLOYEES. SUPERVISOR IS EQUAL TO MANEGERIAL EMPLOYEES.
- FIELD PERSONNEL – PERFORM DUTIES AWAY FROM THE PRINCIPAL PLACE OF BUSINESS AND
WHOSE ACTUAL WORK HOURS IN THE FIELD CANNOT BE DETERMINED WITH REASONABLE
CERTAINTY. EX: SALES AGENTS, METER READERS
 - MEMBERS OF THE FAMILY OF THE EMPLOYER WHO ARE DEPENDENT ON HIM FOR SUPPORT. EX:
EMPLEYADO NG TATAY ANG ANAK NYA BECAUSE OF FAMILY BUSINESS.
- DOMESTIC HELPER
- PERSONS IN THE PERSONAL SERVICE OF ANOTHER. – FAMILY DRIVERS
- WORKERS WHO ARE PAID BY RESULTS AS DERTIMNED BY THE SECRETARY OF LABOR IN
APPROPRIATE REGULATIONS.

IN ORDER TO APPLY AND MAKE THE EMPLOYEE QUALIFIED TO ENJOY THE BENEFITS UNDER BOOK3,
DAPAT YUNG EMPLOYER-EMPLOYEE RELATIONSHIP MUST EXIST.

THE EMPLOYEES WHO ARE NOT COVERED BY ARTICLE 82 ARE ASO NOT ENTITLED TO:

- OVERTTIME PAY
- PREMIUM PAY FOR REST DAYS AND HOLIDAYS
- NIGHT SHIFT DIFFERENTIAL PAY
- HOLIDAY PAY
- SERVICE INCENTIVE LEAVE
- SERVICE CHARGES

HOURS OF WORK – NOT MORE THAN 8 HRS A DAY EXCLUDING THE MEAL PERIOD.

WEEKLY REST PERIODS

HOLIDAYS, LEAVES

WAGES