CHAPTER 5 : THE WORKPLACE d.
Commission of a crime or offense by the
INTRODUCTION
Ethics and law are not synonymous-that what is
legal is not always regarded as morally permissible.
Nevertheless, an equilibrium between morality and
legality would better serve the purpose of creating a
harmonious and just Society.
Bill of Rights
The provisions under the Bill of Rights aim to strike
an equilibrium between the inherent and express
powers of the government and the rights of the
citizenry. The provisions therein serve as basis for
the enactment of laws and implementing rules and
regulations, which then regulates the relationship
between private citizens.
CIVIL LIBERTIES IN THE WORKPLACE :
RIGHT TO DUE PROCESS OF LAW
The due process clause in Article III, Section 1 of
the Constitution
 is a system of rights based on moral principles
that are fundamental to a
civilized society
 comports with the deepest notions of what is
fair and right and just and is a constitutional
restraint on the legislative and judicial powers
of the government.
Procedural Due Process
 Relates to the modes of procedures which
government agencies must follow in the
enforcement and application of laws.
Substantive Due Process
 Guarantees that life, liberty, and property shall
not be taken away from anyone absent the
existence of a reasonable law allowing the
same.
Article 282 of the Labor Code
 provides the just causes for which an employee
may terminate employment
a. Serious misconduct or willful disobedience by
the employee of the lawful orders of his employer
or representative in connection with his work
b. Gross and habitual neglect by the employee of
his duties
c. Fraud or willful breach by employees of the trust
reposed in him by his employer or duly authorized
representative
employee against the person of his employees or
any immediate member of his family or his duly
authorized representatives
e. Other causes analogous to the foregoing
Articles 282 and 284 authorized the causes of
terminating employment.
a. Installation of labor-saving devices/Automation
b. Redundancy
c. Retrenchment to prevent losses
d. Closure or cessation of operation of the
establishment or undertaking
e. Disease
f. Other analogous cases
Section 2, Rule 1 of the Labor Code
 states that due process must be observed
substantially, not strictly and that a formal
hearing or conference is not an absolute,
mandatory, or exclusive avenue of due process.
Employees have the right to basic civil rights in the
workplace, which are protected by the right to
security of tenure.
Article 279 of the Labor Code
 states that in cases of regular employment the
employer shall not terminate the services of an
employee except for a just cause or when
authorized by this title
Employees have the right to basic civil rights in the
workplace, which are protected by the right to
security of tenure.
A regular employee under Article 280 of the labor
code;
a. Has been engaged to perform activities that are
usually necessary or desirable in the usual business
or trade of the employee, his employment not being
fixed for a specific project or undertaking the
completion or termination of which has been
determined at the time of engagement, or seasonal
in nature and the employment is for the duration of
the season.
b. Has rendered at least one (1) year of service,
whether such service is continuous or broken, with
respect to the activity in which he is employed.
 Civil Liberties in the Workplace : Right to self-
organization
Right to Self-Organization
 One of the main priorities of the State is to
afford full protection to labor, which finds its
manifestation in the multi-faceted safeguards
being extended to employment by our legal
system.
“There is strength in number.”
Section 8 Article III of the Constitution
 Section 8 Article III of the constitution
provides that “the right of the people, including
those employed in the public and private
sectors, to form unions, associations, or
societies for purposes not contrary to law shall
not be abridged.”
 This is the controlling principle behind the
RIGHT TO SELF-ORGANIZATION given
to employees, as vested by the constitution and
solidified by the labor code.
 These organizations are ordinarily known as
LABOR UNIONS.
Article 257 of the Labor Code
 States that “it shall be unlawful for any person
to restrain, coerce, discriminate against or
unduly interfere with employees and workers in
their exercise of the right to self-organization.
Such right shall include the right to form, join
or assist in the formation of a labor
organization of their own choosing for
purposes of collective bargaining through
representatives of their own choosing and to
engage in lawful concerted activities for
purposes of collective bargaining or for their
mutual aid and protection.”
Industrial Democracy
 One of its manifestation is the right to self-
organization through the formation of labor
organizations.
Labor Organization
 Its main objective is to voice out to the
employer the needs and interests of the
employee, which should spur from a sound
labor-management relations.
Article 248 of the Labor Code
- provides an enumeration of unfair labor practices
which violate the right to self-organization of
employees ;
a. Interference. To interfere with, restrain, or
coerce employees in the exercise of their right to
self- organization.
b. Yellow Dog Condition. To require as a
condition for employment that a person or an
employee shall not join a labor organization or shall
withdraw from one to which he belongs.
c. Contracting out. To contract out services or
functions being performed by union members when
such will interfere with, restrain, or coerce
employees in the exercise of their right to self-
organization.
d. Company-Domination of Union. To initiate,
dominate, assist, or otherwise interfere with the
formation or administration of any labor
organization, including the giving of financial or
other support to it or its organizers or officers.
e. Discrimination. To discriminate in regard to
wages, hours of work, and other conditions of
employment in order to encourage or discourage
membership in any labor organization.
f. Discrimination because of Testimony. To
dismiss, discharge, or otherwise prejudice or
discriminate against an employee for having given
or being about to give testimony under this code.
g. Violation of Duty to Bargain. To violate the
duty to bargain collectively as presented by this
code.
h. Paid Negotiation. To pay negotiation or
attorney’s fees to the union or its officers or agents
as part of the settlement of any issue in collective
bargaining or any other disputes.
i. Violation of the Collective Bargaining
Agreement.
Article 247 of the Labor code
 provides for the prosecution of unfair labor
practices and states that the penalty for such
acts are two folded:
Civil
 The civil aspect of the case is within the
jurisdiction of the Labor Arbiter of the National
Labor RelationsCommission(NLRC)
 Those who are found guilty shall be liable for
the payment of damages.
Criminal
 The criminal aspect of the case can only be
prosecuted after the finality of judgment in a
labor case.
 If the respondent is proven guilty beyond a
reasonable doubt, then he/she shall be meted
with the penalty of fine and/or imprisonment.
 Management Prerogative
Prerogative
 an exclusive or special right, power, or
privilege (merriam-webster dictionary)
Management Prerogative
 Management (or managerial) prerogative refers
to the right of management to take and act upon
decisions affecting the business or organization.
(Eurofound) right of the employer to certain
prerogatives in terms of who to hire, who to
remove, how to manage his business and
everything in between
The only limitation to the exercise of
management prerogative:
 the principle of reasonableness and good faith.
Some recognized management rights that an
employer enjoys and is legally entitled to:
1. Right to Transfer
2. Right to Discipline
3. Right to Promote
4. Right to Demote
5. Right to Grant Bonuses
Right to Transfer
A transfer means a movement:
1. from one position to, another of equivalent rank,
level or salary, without a break in the service; or
2.from one office to another within the same
business establishment. It involves lateral
movement. This management prerogative is
inherent to the right of an employer to control his
business or industry effectively.
Valid Transfer
 Transfer of an employee to avoid conflict of
interest is a valid exercise of management
prerogative.
Invalid Transfer
 The exercise of the right is vitiated by improper
motive and is merely a disguised attempt to
remove or punish the employee sought to be
transferred, then the Court may strike such
transfer as invalid.
 The transfer must not be completely
unreasonable, inconvenient or prejudicial to the
employee.
An employee who refuses to be transferred, when
such transfer is valid, is guilty of insubordination
or willful disobedience.
Right to Discipline
 instilling discipline upon erring employees, as
long as it is within the bounds of
reasonableness.
 must be controlled by substantive due process
and tempered by the fundamental policy of
protection to labor enshrined in the
Constitution.
 The only criterion to guide the exercise of this
right is that the policies, rules and regulations
on work-related activities of the employees
must always be fair and reasonable.
 The matter of imposing the appropriate penalty
generally depends on the employer.
 The employer has the right to impose a heavier
penalty than that prescribed in the company
rules and regulations if circumstances warrant
the imposition.
Right to Promote
Promotion
 is the advancement from one position to
another involving increase in duties and
responsibilities as authorized by law and
increase in compensation and benefits.
 It is the upward vertical movement of the
employee' s rank or position.
An employee has the right to refuse promotion
Right to Demote
Demote means to change the rank or position of
someone or something to a lower or less important
one.
Demotion means there is reduction in position,
rank or salary as a result of a transfer.
Example: when an employee occupying a highly
technical position requiring the use of an employee'
s mental faculty, is transferred to another position
where he/she performed mere mechanical work.
Personal vendetta on an employee is definitely
not a valid ground for demoting an employee.
Right to Grant Bonuses
Bonus is not a demandable right and enforceable
obligation.
However, this becomes an obligation on the part of
the employer if:
a. It is stipulated in an employment contract of
CBA.
b. It is a company policy or practice.
c. It is agreed as an additional compensation which
the employer agreed to give without any condition.
 WAGES
Wage- is the remuneration or earnings, however
designated, capable of being expressed in terms of
money, whether fixed or ascertained on a time, task,
piece, or commission basis, or other method of
calculating the same, which is payable by an
employer to an employee under a written or
unwritten contract of employment for work done or
to be done, or for services rendered or to be
rendered and includes the fair and reasonable value,
as determined by the Secretary of Labor, of board
lodging, or other facilities customarily furnished by
the employer to the employee.
- Article 97 of the Labor Code
“The age-old rule governing the relation between
labor and capital, or management and employee of
a ‘fair day' s wage for a fair day' s labor’ remains as
the basic factor in determining employees wages. If
there is no work performed by the employee there
can be no wage or pay.” No work, no pay-as others
would put it.
Another principle that we follow as regards the
payment of wages is the principle of equal pay for
equal work.
John Rawls
 a renowned political philosopher
 believes that a good government will have
three major jobs, to wit:
1) guarantee basic rights
2) assign basic duties
3) determine the division of advantages that result
from the combined efforts of the members of
the society
 believes that the society best suited for
happiness and justice will guarantee to every
rational citizen:
1) equal citizenship status and political liberties
2) freedom of thought
3) equal opportunity (including access to education
and culture)
4) free choice of occupation
5) and a GUARANTEED "SOCTAL MINIMUM"
OR LIVING STANDARD
The fixing of a minimum wage is primarily aimed
at protecting the welfare of workers who,
economically speaking is at a disadvantaged stance
as against powerful capitalists and
employers.
On the other hand, "the establishment of a
minimum wage also gives protection to the
enlightened employer who without any legal
compulsion voluntarily pays a decent wage to his
workers against competition of the employer who
pays his workers inadequate wages and thus
operate at a lower cost and sell his products at
lower prices".
What the law provides is only the minimum.
Through the mechanism of collective bargaining or
the initiative of the employer, an employee can get
a considerably higher salary than the minimum
amount mandated by law.
Most Important Aims of Collective Bargaining
a. To establish industrial peace by enabling capital
and labor to resolve their disputes and controversies
on terms mutually acceptable and satisfactory to
themselves.
b. To enhance industrial efficiency through speedy
resolution of labor disputes concerning the fixing of
wages, working hours and other terms and
conditions of employment, the execution of
contracts incorporating such agreements, and the
adjustments or settlement of any grievance arising
thereunder.
c. To establish benefits for labor higher or greater
than those fixed by law.
Collective Bargaining Agreement ( CBA )
 the negotiated contract between the exclusive
bargaining representative and the employer
from the aforementioned process
Regional Tripartite Wages and Productivity
Boards
 the governmental agency or body that is vested
with the power to fix minimum wage rates
 they determine the applicable rate in their
respective regions,provinces, or industries
subject only to the guidelines issued by the
National Wages and Productivity
Commission
Article 123 of the Labor Code
 the Board is required, in the performance of its
wage-fixing functions, to conduct public
hearings/consultations with prior notices to
employees and employers groups and other
interested parties
 After the aforementioned process has been
concluded, the Board shall issue a Wage
Order, which shall hence contain the minimum
 wage and other pertinent details as regards the
same. Moreover,
Article 123 mandates that the Wage Order shall
take effect only after fifteen (15) days from its
complete publication in at least one (1) newspaper
of general circulation in the region. "It is a
fundamental rule, borne out of a sense of fairness,
that the public is first notified of a law or wage
order before it can be held liable for violation
thereof."
V.A. Non-Diminution of Benefits
Under Article 100 of the Labor Code, it is
provided that “Nothing in the Labor Code shall be
constructed to eliminate or in any way diminish
supplements, or other employee benefits being
enjoyed at the time of the promulgation of this
Code”.
In order for the above-mentioned rule to apply,
the following must first be established:
1.The grant of the benefit is founded on an express
policy or has ripened into a practice over a long
period;
2.The practice is consistent and deliberate;
3.The practice is not due to error in the construction
or application of a doubtful or difficult question of
law; and
4.The diminution or discontinuance is done
unilaterally by the employer.
V.B. Payment of Wages
Article 102 of the Labor Code provided that “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.”
In the case of National Federation of Labor vs.
Court of Appeals the Court ruled that in certain
instances salary can be paid through checks or
money orders. They are as follows:
a. It has been customary practice on the date of
effectivity of the Labor Code;
b. It is necessary because of special circumstances
as determined by the Secretary of Labor;
c. It is stipulated in the CBA;
d. Where the following conditions are met;
1.There is a bank or other facility for encashment
within a radius of 1 kilometer from the workplace;
2.The employer, or any of this agents or
representatives, does not receive any pecuniary
benefit directly or indirectly from the arrangement;
3.The employees are given reasonable time during
banking hours to withdraw their wages from the
bank which time shall be considered as
compensable hours worked if done during working
hours;
4.The payment by check is with the written consent
of the employee concerned if there is no CBA
authorizing the payment of wages by bank check.
V.C. Time of Payment
Under Article 103 of the Labor Code, payment of
wages shall be made (a) at least once every two
weeks or (b) twice a month at intervals not
exceeding 16 days. However, there are special
cases when strict compliance to this rule is not
required. They are as follows:
1.In case of force majeure or other circumstances
beyond the employee’s control, payment must be
made immediately after such occurrence has ceased.
2.If engaged to perform a task which cannot be
completed in two (2) weeks and in the absence of
CBA, the following conditions shall be complied
with:
a.That payments are made at intervals not
exceeding 16 days, in proportion to the amount of
works completed;
b.That final settlement is made upon completion of
the work.
V.D. Place of Payment
The general rule, as regards the place of payment of
wages, is it shall be made at or near the place of
undertaking or job, as provided under Article 104
of the Labor Code. But under the Implementing
Rules of the Labor Code, payment outside the
workplace shall be allowed under the following
circumstances:
1.When payment cannot be effected at or near the
place of work by reason of the deterioration of
peace and order conditions, or by reason by actual
or impending emergencies caused by fire, flood,
epidemic, or other calamity rendering payment
threat impossible;
2.When the employer provides free transportation
to the employees back and forth; and
3.Under any analogous circumstances, provides that
the time spent by the employees in collecting their
wages shall be considered compensable hours
worked.
In today' s generation, the common way of paying
wages is done through banks. The requisites for
this arrangement are as follows:
1.There must be written permission of the majority
of the employees concerned in an establishment;
2.The establishment must have 25 or more
employees;
3.The establishment must be located within one
kilometer radius to the bank.
Payment through an ATM, is now widely practiced.
But for this to be validly effected, the following
conditions must be met:
1.The ATM system of payment is with the written
consent of the employee concerned;
2.The employees are given reasonable time to
withdraw their wages from the banks facility which,
if done during working hours, shall be considered
as compensable hours worked;
3.The system shall allow the employee to receive
their wage within the period in the amount
prescribed under the Labor Code;
4.There is a bank or ATM facility within a radius of
1 kilometer from the workplace;
5.Upon the request of the concerned employee, the
employer shall issue a record evidencing payment
of wages, benefits and deductions for a particular
period;
6.The ATM system of payment shall neither result
in diminution of benefits and privileges of the
employee nor shall the latter incur additional
expenses in the process; and
7.The employer shall assume full responsibility in
case the wage protection provisions of law and
regulations are not complied with under the
arrangement.
V.E. Direct Payment of Wages
Article 105 specifically provides, for obvious
reasons, that wages should be paid directly to the
workers to whom they are due. There are, however,
certain instances which allows the payment of
wages to a person other than the worker himself, to
with;
1.In cases of force majeure such rendering such
payment impossible or under special circumstances
to be determined by the Secretary of Labor in
appropriate regulations, in which case the worker
may be worker for the purpose; or
2.Where the worker has died, in which case the
employer may pay the wages of the deceased
worker to the heirs of the latter without the
necessity of intestate proceedings. The claimants, if
they are all of age, shall execute an affidavit
attesting to their relationship to the deceased and
the fact that they are his heirs, to the exclusion of
all other persons. If any of any of the heirs is a
minor, the affidavit shall be executed on his behalf
by his natural guardian, or next of kin. The affidavit
shall be presented to the employer who shall make
payment through the Secretary of Labor or his
representatives.
Aside from those already mentioned previously, the
Labor Code further provides for other prohibitions
as regards wages. One of these proscriptions is the
non-interference in the disposal of wages, pursuant
to Article 112, which states that “no employer shall
limit or otherwise interfere with the freedom of any
employee to dispose of his wages. "
This prohibition also finds company in another
provision of the Labor Code, Article 116, which
provides that “it shall be unlawful for any person,
directly or indirectly, to withhold any amount from
the wages of a worker, or induce him to give up any
part of his wages by force, stealth, intimidation,
threat or by any other means whatsoever without
the workers consent”.
V.F. Prohibitions of Wages
Another such prohibition under the Labor Code is
found in Article 113, which avers that “no
employer, in his own behalf or in behalf of any
person, shall make any deduction from the wages of
his employees”.
There are, however, instances when wage deduction
is allowed by law but with the written consent of
the employee involved. They are the following:
1.SSS payments
2.PHILHEALTH payments
3.Contribution to PAG-IBIG Fund
4.Payments to third persons
5.Deductions of absences.
Still pursuant to Article 113 of the Labor Code,
there are those allowable wage deductions which no
longer require consent from the employee - some of
which are as follows:
1.In cases where the worker is insured with his
consent by the employer, and the deduction is to
recompense the employer for the amount paid by
him as premium on the insurance;
2.For union dues, in cases where the right of the
worker or his union to check-off has been
recognized by the employer;
3.In cases where the employee is indebted to the
employer, where such indebtedness has become due
and demandable””
4.In court awards, wages may be the subject of
execution or attachment, but only for debts incurred
for food, shelter, clothing and medical attendance;
5.Withholding tax; and
6.In cases where the employer 1s authorized by law
or regulations issued by the Secretary of Labor.

Article 114 prohibits an employer from requiring

his workers to make deposits from which
deductions shall be made for reimbursement of loss
of or damage to tools, materials or equipment
supplied by the employer.

Article 115 prohibits an employer from making any

deductions from an employee for the actual amount
of loss or damage committed by the latter, except
when the employee has been given the chance to be
heard as regards his culpability, and his
responsibility has been clearly shown.

Equally prohibited by law is the refusal to pay

wages as a means of retaliating against an employee.
Article 118 speaks of this prohibition, to wit: “It
shall be unlawful for an employer to refuse to pay
or reduce the wages and benefits, discharge or in
any manner discriminate against any employee who
has filed any complaint or instituted any proceeding
(against the employer) or has testified or is about
to testify in such proceedings.
 CHAPTER 6 : THE FIRM AND THE
LABOURERS
INTRODUCTION
LABOR CODE OF THE PHILIPPINES
- it is the legal code governing employment
practices and labor relations in the Philippines.
ARTICLE 4 OF THE LABOR CODE OF THE
PHILIPPINES
- “Construction in favor of labor”
The Wealth of Nations 1776 by Adam Smith
“No society can surely be flourishing and happy, of
which the far greater part of the members are poor
and miserable. It is but equity, besides, that they
who food, clothe, and lodge the whole body of the
people, should have such a share of the produce of
their own labour as to be themselves tolerably well
fed, clothed and lodged.”
Social Justice
 Means the PROMOTION OF THE
WELFARE of all people, the adoption by the
government of measures calculated to ensure
economic stability of all the component
elements of society through the maintenance of
proper economic and social equilibrium in the
interrelations of the members of the
community."
Sexual Harassment
 Any unwelcome sexually determined behaviour
such us; physical contact and advances,
sexually colored remarks, showing
pornography and sexual demand, whether by
words or actions.
Internalization Labour Organization (ILO)
 Sexual harassment is a clear form of gender
discrimination based on sex, a manifestation of
unequal power relations between men and
women.
Convention on the Elimination of all forms of
Discrimination Against Women (CEDAW)
 Has also noted the seriousness of this issue, and
urged for “measures to protect women from
sexual harassment and other forms of violence
or coercion in the workplace”
Forms of Sexual Harassment in the Workplace
QUID PRO QUO
 Latin term “This for That”. It refers to
conditions placed on a person’s career or terms
in return for sexual favors.
HOSTILE WORK ENVIRONMENT
 Any conduct directed at an employee because
of that employee's sex that unreasonably
interferes with the employee's work
performance or creates an intimidating, hostile
or offensive working environment.
This issue of workplace sexual harassment in
Singapore remains for the most part a hidden
problem. In 2008, the Association of Women for
Action and Research (AWARE) conducted a survey
to address this issue. Their study on 500
respondents and 92 companies reported these
findings:
SEXUAL HARASSMENT IS COMMON IN
THE WORKPLACE
 54% (272) had experienced some form of
workplace sexual harassment
 27% of the 272 respondents experienced
harassment by their colleague, while 17% were
harassed by their superior
 79% of the victims are women, 21% were men
 12% had received threats of termination if they
did no comply with the requests of the sexual
harassment
SEXUAL HARASSMENT OCCURS ACROSS
THE BOARD
 Both women and men are more likely to have
been harassed by the opposite sex, although
some have also experienced harassment from
the same sex. In AWARE's survey, 79% of the
respondents who reported havingexperienced
workplace sexual harassment were female;
21% were male.
 Sexual harassment occurs across the board.
Most of the harassment is experienced at
executive levels, followed by administrative
staff. While reports of victimization are fewer,
there are incidents of sexual harassment at
management and senior management positions.
 AWARENESS OF MECHANISM FOR
REDRESS WITHINTHE WORKPLACE
 66.6% (333) were not aware of any policies.
 50.4% indicated that they were aware of a
department or resource person they could
approach on sexual harassment.
REPUBLIC ACT 7877
“An Act Declaring Sexual Harassment Unlawful In
The Employment, Education Or Training
Environment, And For Other Purposes”
Section 1
Also known as Anti-sexual Harassment Act of 1995
Section 2. Declaration of Policy
Section 3. Work Education or Training- related
Sexual Harassment Defined
In a work-related or employment environment,
sexual harassment is committed when:
1.The sexual favor is made as a condition in the
hiring or in the employment, re-employment or
continued employment of said individual, or in
granting said individual favorable compensation,
terms, conditions, promotions, or privileges; or the
refusal to grant the sexual favor results in limiting,
segregating or classifying the employee which in
any way would discriminate, deprive or diminish
employment opportunities or otherwise adversely
affect said employee;
2.The above acts would impair the employee’s
rights or privileges under existing labor laws; or
3.The above acts would result in an intimidating,
hostile, or offensive environment for the employee
Section 4. Duty of the Employer or Head of
Office in a Work-related, Education or Training
Environment.
1.Promulgate appropriate rules and regulations in
consultation with and jointly approved by the
employees, through their duly designated
representatives, prescribing the procedure for the
investigation of sexual harassment cases and the
administrative sanctions therefor.
2.Create a committee on decorum and investigation
of cases on sexual harassment. The committee shall
conduct meetings, as the case may be, with officers
and employees to increase understanding and
prevent incidents of sexual harassment. It shall also
conduct the investigation of alleged cases
constituting sexual harassment. The committee
shall be composed of at least one (1) representative
each from the management, the union, if any, the
employees from the supervisory rank, and from the
rank and file employees.
Civil Service Commission ( CSC ) Resolution No.
01-0940
“ ADMINISTRATIVE DISCIPLINARY
RULES ON SEXUAL HARASSMENT CASES”
SEXUAL HARASSMENT BE COMMITTED
UNDER THE PROVISION OF CSC NO.-0940
Sexual Harassment may take place:
1. In the premises of the workplace or office or of
the school or training institution;
2. In any place where the parties were found, as a
result of work or education or training
responsibilities or relations;
3. At work or education- or training-related social
functions;
4. While on official business outside the office or
school or training institution or during work or
school or training-related travel;
5. At official conferences, fora, symposia or
training sessions; or by telephone, cellular phone,
fax machine or electronic mail.
FORMS OF SEXUAL HARASSMENT UNDER
CSC RESOLUTION NO. 01-0940
 Physical Sexual Harassment
 Verbal Sexual Harassment
 Visual Sexual Harassment
RULE VI
THE COMMITTEE ON DECORUM
AND INVESTIGATION OF SEXUAL
HARASSMENT CASES
SECTION 7
 A Committee on Decorum and Investigation
shall be created in all national or local agencies
of the government, state colleges and
universities, including government- owned or
controlled corporations with original charter.
The Committee shall perform the following
functions:
(a) Receive complaints of sexual harassment;
(b) Investigate sexual harassment complaints in
accordance with the prescribed procedure;
(c) Submit a report of its findings with the
corresponding recommendation to the disciplining
authority for decision;
(d) Lead in the conduct of discussions about sexual
harassment within the agency or institution to
increase understanding and prevent incidents of
sexual harassment;
LOCALIZED COMMITTEES ON DECORUM
AND INVESTIGATION
- Established in the regional or field offices
A MEMBER OF AUTHORITY BEING THE
COMPLAINANT OR COMPLAINED OF IN
SEXUAL HARASSMENT
=  COMPLAINT
DISQUALIFICATION
SECTION 8
 COMPOSITION
In work related environment
A committee on Decorum and Investigation
composed of :
1 - representative each from management
1 - accredited union
1 - second level employee
1 - first level employee
Only selected by unit concerned
Educational or Training Institutions
A committee on Decorum and Investigation shall be
composed:
1- representative from administration, trainers,
teachers, instructors, professors, or coaches
1 - students or trainees
SECTION 9
 The agency may formulate its own rules
governing the term of office of its members
which should be more than two years, and
other matters pertaining to the functions of the
Committee not otherwise provided in these
Rules.
RULE VII
PRE - FILING STANDARD OPERATING
PROCEDURES IN ATTENDING TO VICTIMS
OF SEXUAL HARASSMENT
SECTION 10
 PRE - FILING STAGE
The agency may adopt mechanisms to provide
assistance to an alleged victim of sexual harassment.
RULE VIII
STANDARD PROCEDURAL
REQUIREMENTS
SECTION 11
 The procedural rules provided hereunder are
the standard requirements in handling a sexual
harassment case.
SECTION 12
A. ) The complaint may be filed at any time with
the disciplining authority of the office or agency, or
with the Committee on Decorum and Investigation.
Upon receipt of the complaint by the disciplining
authority of the office or agency, the same shall be
transmitted to the Committee on Decorum and
Investigation, if there is any. In the absence of a
Committee on Decorum and Investigation, the head
office or agency shall immediately cause the
creation of Committee on Decorum and
Investigation in accordance with the law and rules,
and transmit the complaint to the Committee.
B. ) The complaint must be in writing, signed and
sworn to by the complainant. It shall contain the
following:
1. the full name and address of the complainant;
2. the full name, address, and position of the
respondent;
3. a brief statement of the relevant facts;
4. evidence, in support of the complainant, if any;
5. a certification of non-forum shopping
In the absence of any one of the aforementioned
requirements, the complaint shall be dismissed
without prejudice to its refiling.
NOT UNDER OATH = SUMMONED BY
COMMITTEE
C. Complaints sent in : TELEGRAM, EMAIL,
RADIO
D. Withdrawal of the complaint at any stage of the
proceedings.
SECTION 13
ACTION OF THE COMPLAINT - COUNTER -
AFFIDAVIT / COMMENT OF PERSON
COMPLAINED OF
SECTION 14
 PRELIMINARY INVESTIGATION SECTION 19
A preliminary investigation shall be conducted by ANSWER
the Committee on Decorum and Investigation. Must be in writing and under oath.
 During Pre - Investigation
 Upon receipt of the counter - affidavit / SECTION 20
comment under oath FAILURE TO FILE AN ANSWER
 Strict Confidentiality of Proceedings The respondent has waived his right thereto and
formal investigation may commence.
SECTION 15
 DURATION OF THE INVESTIGATION SECTION 21
Commence not later than 5 days from receipt 15 PREVENTIVE SUSPENSION
working days - terminated Proper disciplinary authority may order the
preventive suspension of the respondent during
SECTION 16 formal investigation.
 INVESTIGATION REPORT
Within 5 working days of termination of SECTION 22
preliminary investigation. DURATION OF PREVENTIVE SUSPENSION
Shall not be more than 90 days
SECTION 17
DECISION OR RESOLUTION AFTER SECTION 23
PRELIMINARY INVESTIGATION REMEDIES FROM THE ORDER OF
 3 working days from receipt of the PREVENTION SUSPENSION
investigation report. Within 15 days from receipt order
 In absence of prima facie case, dismissed in
same period. SECTION 24
CONDUCT A FORMAL INVESTIGATION
SECTION 18 - The investigation shall be held not earlier than 5
FORMAL CHARGE days nor later than 10 days from receipt of the
After finding a prima facie case, the disciplining respondent's answer.
authority shall formally charge the person - Finished within 30 days from issuance of formal
complained of. charge
The formal charge shall contain a
 specification of the charge(s) SECTION 25
 a brief statement of material or relevant facts PRE HEARING CONFERENCE
accompanied by certified true copies of the - CODI may conduct a pre- hearing conference to
documentary evidence the parties to appear.
 if any, sworn statements covering the testimony - The hearing proper and the order of presentation
of witnesses of eveidences is governed by Sections 26 to 35 of
 a directive to answer the charge(s) in writing the Administrative Disciplinary Rules on Sexual
under oath in not less than seventy two hours Harassment Cases of the CSC.
from receipt thereof
 an advice for the respondent to indicate in SECTION 26
his/her answer whether or not he/she elects a CONTINUOUS HEARING UNTIL
formal investigation of the charge(s) TERMINATED ; POSTPONEMENT
 a notice that he/she is entitled to be assisted by - 5 days before the first scheduled hearing
a counsel of his/her choice. - 3 days postponements upon oral or written
-If the respondent fails to appear = the investigation
Respondent submitting additional evidence/s after shall proceed ex-parte and waived his right to be
preliminary investigation. present.

The CODI shall not entertain: SECTION 27

- request for clarification PRELIMINARY MATTERS
- bills of particular motion to dismiss
CODI shall note the appearance of the parties and
shall proceed with the reception of evidence for the
complainant.
SECTION 28
APPEARANCE OF PARTIES
Person representing parties shall manifest orally or
in writing his/her appearance
SECTION 29
Order of Hearing
Unless the Committee on Decorum and
Investigation directs otherwise, the order of hearing
shall be as follows:
a. The complainant shall present evidence in
support of the charge;
b. The respondent shall then offer evidence in
support of his/her defense;
C. The complainant may then offer rebuttal
evidence, and the respondent, sur-rebuttal evidence.
Every witness may be examined in the following
order:
a. Direct examination by the proponent;
b. Cross-examination by the opponent;
c. Re-direct examination by the opponent;
d. Re-cross examination by the opponent.
SECTION 32
Request for Subpoena
If a party desires the attendance of a witness or the
production of documents of things, he/she shall
make a request for the issuance of the necessary
subpoena.
SECTION 33
Issuance of Subpoena
The Committee on Decorum and Investigation may
issue:
 subpoena ad testificandum
 subpoena duces tecum
SECTION 35
Effect of the Pendency of an Administrative
Case
The pendency of any administrative case shall not
disqualify the respondent for promotion or from
claiming maternity/paternity benefits.
SECTION 36
Formal Investigation Report.
The complete records of the case shall be attached
to the Report of investigation.
SECTION 37
When Case is Decided
The disciplining authority shall render his decision
on the case within thirty (30) days from receipt of
the Report on Investigation.
SECTION 38
Finality of Decisions
A decision rendered by heads of agencies where a
penalty of suspension for not more than thirty (30)
days or a fine in an amount not exceeding thirty (30)
days salary is imposed, shall be final and executory
RULE IX
REMEDIES AFTER A DECISION
SECTION 39
Filing of Motion for Reconsideration
The party adversely affected by the decision may
file a motion for reconsideration with the
disciplining authority who rendered the decision
within fifteen (15) days from receipt thereof.
SECTION 40
When Deemed Filed
A motion for reconsideration shall be deemed filed
on the date stamped on the official copy by the
proper receiving authority
SECTION 41
Grounds for Motion for Reconsideration
The motion for reconsideration shall be based on
any of the following:
a. New evidence has been discovered which
materially affects the decision rendered;or,
b. The decision is not supported by the evidence on
record; or
c. Errors of law irregularities have been committed
prejudicial to the interest of the movant.
SECTION 42
Limitation
Only one motion for reconsideration shall be
entertained.
SECTION 43
Effect of Filing
The filing of a motion for reconsideration within
the elementary period of fifteen (15) days shall stay
the execution of the decision sought to be
reconsidered.
SECTION 44
Filing of Appeals
 Decisions of heads of departments, agencies,
provinces, cities, municipalities and other
instrumentalities imposing a penalty exceeding
thirty (30) days suspension or fine in an amount
exceeding thirty (30) days salary, may be
appealed to the Commission Proper within a
period of fifteen (15) days from receipt thereof.
 In case the decision rendered by a bureau or
office head is appealable to the Commission,
the same may be initially appealed to the
department head and finally to the Commission
Proper.
 Pending appeal the same shall be executory
except where the penalty is removed, in which
case the same shall be executory only after
confirmation by the Secretary concerned.
SECTION 47
Perfection of an Appeal
To perfect an appeal , the appellant shall within
fifteen ( 15 ) days from receipt of the decision
submit the following :
a . Notice of appeal which shall specifically state
the date of the decision appealed from and the date
of receipt thereof;
b . Three ( 3 ) copies of appeal containing the
grounds relied upon for the appeal, together with
the certified true copy of the decision , resolution or
order appealed from , and certified copies of the
documents or evidence ;
c . Proof of service of a copy of the appeal
memorandum to the disciplining office;
d . Proof of payment of the appeal fee; and
e . A statement or certification of non - forum
shopping
SECTION 48
Effect of Filing
An appeal shall not stop the decision from being
executory, and in case the penalty is suspension or
removal, the respondent shall be considered as
having been under preventive suspension during the
pendency of the appeal, in the event he wins the
appeal.
SECTION 50
Petition for Review
A complainant may elevate the decision of the
disciplining authority dismissing a complaint for
lack of a prima facie case before the Commission
Proper through a Petition for Review within fifteen
( 15 ) days from the receipt of said decision .
SECTION 51
Petition for Review with the Court of Appeals
A party may elevate a decision of the Commission
before the Court of Appeals by way of Petition for
Review under Rule 43 of the 1997 Revised Rules of
Court.
SECTION 52
Petition for Certiorari
When the disciplining authority has acted without
or in excess of jurisdiction, or with grave abuse of
discretion amounting to lack or excess of
jurisdiction and there is no appeal, nor any plain,
speedy and adequate remedy in the ordinary course
of law, a person aggrieved thereby may file a
verified petition for certiorari in the proper court
under Rule 65 of the Rules of Court .
RULE X
CLASSIFICATION OF ACTS OF SEXUAL
HARASSMENT
SECTION 53
Sexual harassment is classified as grave offenses:
A. Grave Offenses shall include , but are not limited
to:
1. unwanted touching of private parts of the body
(genitalia , buttocks and breast);
2. sexual assault;
3. malicious touching
4. requesting for sexual favor in exchange for
employment , promotion , local or foreign travels ,
favorable working conditions or assignments , a
passing grade , the granting of honors or
scholarship , or the grant of benefits or payment of
a stipend or allowance , and
5. other analogous cases .
SECTION 53
Sexual harassment is classified as less grave
offenses:
B. Less Grave Offenses shall include , but are not
limited to:
1. unwanted touching or brushing against a victim's
body;
2. pinching not falling under grave offenses;
3. derogatory or degrading remarks or innuendoes
directed toward the members of one sex , or one's
sexual orientation or used to describe a person;
4. verbal abuse with sexual overtones ; and
5. other analogous cases.
SECTION 53
Sexual harassment is classified as light offenses:
C. The following shall be considered Light
Offenses;
1. surreptitiously looking or staring a look of a
person' s private part or worn undergarments ;
2. telling sexist / smutty jokes or sending these
through text , electronic mail or other similar
means , causing embarrassment or offense and
carried out after the offender has been advised that
they are offensive or embarrassing or , even without
such advise , when they are by their nature clearly
embarrassing , offensive or vulgar ;
3. malicious leering or ogling ,
4. the display of sexually offensive pictures ,
materials or graffiti ;
5. unwelcome inquiries or comments about a
person' s sex life ;
6. unwelcome sexual flirtation , advances ,
propositions ;
7. making offensive hand or body gestures at an
employee;
8. persistent unwanted attention with sexual
overtones;
9. unwelcome phone calls with sexual overtones
causing discomfort embarrassment, offense or
insult to the receiver; and
10. other analogous cases.
RULE XI
ADMINISTRATIVE LIABILITIES
SECTION 54
 The head of office who fails to act within
fifteen (15) days from receipt of any complaint
for sexual harassment properly filed against
any employee in that office shall be charged
with Neglect of Duty.
SECTION 55
 Any person who is found guilty of sexual
harassment shall, after the investigation, be
meted the penalty corresponding to the gravity
and seriousness of the offense.
SECTION 56
 The penalties for light, less grave, and grave
offenses are as follows:
A. For light offenses:
1st offense - Reprimand
2nd offense - Fine or suspension not exceeding
thirty (30) days
3rd offense - Dismissal
B. For less grave offenses:
1st offense - Fine or suspension of not less than
thirty (30) days and
not exceeding six (6) months
2nd offense - Dismissal
C. For grave offenses: Dismissal
SECTION 57
 If the respondent is found guilty of two or more
charges or counts, the penalty to be imposed
should be that corresponding to the most
serious charge or count and the rest shall be
considered as aggravating circumstances.
Other than the remedies provided under RA 7877
and (CSC RESOLUTION NO. 01-0940, victims of
sexual harassment may also go court file for
criminal charges and/or damages against the
offender.
Employee Discrimination
 normally considered as wrong if the uneven or
unequal treatment is extended to people who
belong in the same group or are similarly
situated. The discrimination in employment is
usually based on gender, race, age, religion, or
nationality
Article III Section 1:
 "..no person shall be denied of the equal
protection of laws. under the Labor Code, "the
State shall afford protection to labor, promote
full employment, ensure equal work
opportunities regardless of sex, race or creed,
and regulate the relation between workers and
employers."
Article 133 of the Labor Code:
 it shall be unlawful for any employer to
discriminate against any woman employee with
respect to terms and conditions of employment
solely on account of sex (gender). "Being a
woman should not be a basis for
disqualification from a work opportunity or a
particular term or condition of employment.
Under R.A. 7192
 "the State recognizes the role of women in
nation building and shall ensure the
fundamental equality before the law of women
and men. The State shall provide women rights
and opportunities equal to that of men."
ARTICLE 134 of the Labor Code
 "it shall be unlawful for an employer to require
as a condition of employment or continuation of
employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that
upon getting married, a woman employee shall be
deemed resigned or separated, or to actually dismiss,
discharge, discriminate or otherwise prejudice a
woman employee merely by reason of her
marriage."
Article 133 of the Labor Code provides for other
acts of discrimination:
a. Payment of lesser compensation, including wage,
salary or other form of remuneration and fringe
benefits, to a female employee as against a male
employee, for work of equal value; and
b. Favoring a male employee over a female
employee with respect to promotion, training
opportunities, study and scholarship grants solely
on account of their sexes.
Other unlawful discriminatory acts against
women are provided under Article 137 of the
Labor Code.
1. To deny any woman employee the benefits
provided for in this Chapter or to discharge any
woman employed by him for the purpose of
preventing her from enjoying any of the benefits
provided under this Code.
2. To discharge such woman on account of her
pregnancy, or while on leave or in confinement due
to her pregnancy,
3. To discharge or refuse the admission of such
woman upon returning to her work for fear that she
may again be pregnant.
There are, instances when discrimination to women
as regards work is allowed. "When the job itself
necessarily requires a particular qualification, then
the job applicant or worker who does not possess it
may be disqualified on that basis. This is known as
the bona fide occupational qualification (BFOQ)
History of Permissible Discrimination
Title VII of the Civil Rights Act of 1964
 made it unlawful for any employer or
employment agency to refuse or fail to hire, or
to discharge, withhold privileges of
employment, or reduce compensation to
someone based on that individual's race, color,
religion, sex, or national origin.
 The law recognizes that educational institutions
that are "owned, supported, controlled, or
managed by particular religion," or at which
the curriculum of the educational institution is
"directed toward the propagation of a particular
religion," should be allowed to fill certain key
positions based on religious affiliation of the
applicant.
Examples of Acceptable and Unacceptable
BFOQS
Some jobs require attributes that would, under other
circumstances, be considered discrimination,
including :
 Mandatory retirement ages for public and mass
transit drivers and pilots.
 Religious affiliation for churches and church-
operated companies or institutions in key
positions.
 The hiring of actors or models of particular sex,
national origin, or race for the purpose of
authenticity
But the employer cannot use the BFOQ
indiscriminately and capriciously. The Court has set
certain standards that the employer must satisfy in
order to justify the selective and discriminative
hiring, In Star Paper Corporation vs. Simbol (2006),
the Court ruled that to justify a BFOQ. the
employer must prove two factors:
a. That the employment qualification is reasonably
related to the essential operation of the job involved,
and
b. That there is a factual basis for believing that all
or substantially all persons meeting the
qualification would be unable to properly perform
the duties of the job.
ARTICLE 248 (e) of the Labor Code
 provides that it shall be unlawful for an
employer "to discriminate in regard to wages,
hours of work, and other terms and conditions
of employment in order to encourage or
discourage membership in any labor
organization"
ARTICLE 280 OF LABOR CODE
“The provisions of written agreement to the
contrary notwithstanding and regardless of the oral
agreement of the parties, an employment shall be
deemed to be regular where the employee has been
engaged to perform activities which are
usuallynecessary or desirable in the usual business
or trade of the employer, except where the
employment has been fixed for a specific project or
undertaking the completion or termination of which
has been determined at the time of the engagement
of the employee or where the work or services to be
performed is seasonal in nature and the
employment is for the duration of the season”
ARTICLE 280 of the Labor Code determines
regular or casual employees
REGULAR EMPLOYMENT
REGULAR EMPLOYEE
 Has been engaged to perform activities
(necessary or desirable in the usual business or
trade of employer)
 His employment is not being fixed for a
specific project/undertaking the
completion/termination of which has been
determined at the time of engagement/seasonal
in nature and the employment is for the
duration of the season
 Has rendered at least 1 year of service
(continuous or broken) aligned to the activity
he is employed
CASUAL EMPLOYEE
 Second category of regular employment
 His or her job is NOT usually necessary or
desirable in the usual business or trade of
employer
 Has the status only within a year from their
employment
How can a casual employee be a regular employee?
 Passage of time
 If a casual employee completes one year of
service
 If after the year, there is continued service
NOTE: it is not necessary that an employee is
issued as a regular or be formally declared as such
before they can acquire the regular status.
HOW TO DETERMINE REGULARITY OF
STATUS?
 nature of the activities to be and being
performed
 Actual work performed by the employee
 Reasonable connection between the
particular activity performed by the employee
in relation to the usual business or trade of
the employer
 Neither the nomenclature or title of the job that
an employee has nor the description laid down
in one’s employment contract
ADVANTAGE OF A REGULAR
EMPLOYMENT
 A regular employee gets to enjoy the right to
security of tenure in its fullest extent.
ARTICLE 280 OF LABOR CODE
 “The provisions of written agreement to the
contrary notwithstanding and regardless of the
oral agreement of the parties, an employment
shall be deemed to be regular where the
employee has been engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of the
employer, except where the employment has
been fixed for a specific project or undertaking
the completion or termination of which has
been determined at the time of the engagement
of the employee or where the work or services
to be performed is seasonal in nature and the
employment is for the duration of the season”
ARTICLE 280 OF LABOR CODE
 Reinforces the constitutional mandate to
protect the interest of labor
 Manifests the intent to safeguard the tenurial
interest of the worker One should not be denied
of the rights and benefits due to lopsided
agreements with the economically powerful
employer
 Refrains tolerance on keeping an employee on
a casual status for the employer’s convenience
CONTRACTUALIZATION
 Circumvention of the rights guaranteed and
enshrined under the Constitution and other
labor laws
 Specifically the right to become a regular
employee
 By resorting to contractualization
 An employer virtually frees himself from the
burden of providing to a worker some of the
benefits he/she is entitled to
- Social Security Law (R.A. 8282)
- PhilHealth (R.A. 7875)
 Workers become dispensable, disposable, and
susceptible to easy replacement — they are not
entitled to the fullest protection of the right to
security of tenure
 Only protection — duration of the contract
upon which their employment is based
 It is not illegal and allowed by the law,
although regulated.
 Common workers under contractualization:
 Security Guards
 Salesladies
 Waiters
 Seamen
CONTRACTUALIZATION
Contracting and Subcontracting Agreements
 Expressly allowed by law and subject to
regulation for the promotion of employment
and the observance of the rights of workers to
just and humane conditions of work, security of
tenure, self-organization, and collective
bargaining
Effect of Slowing the Formation of Unions
 It was reported in the last decade, the number
of trade union members and workers covered
by CBAs was cut in half partly because of the
practice of hiring contractual employees
(contractualization)
TIMELINE OF CONTRACTUALIZATION IN
THE PHILIPPINES
EARLY 1990s
 Contractualization has been accelerating since
this era
 On the employee side, the share of contractual
workers in enterprise-based employment
jumped from 14-15% (1990-1994) to 21.1% as
far as back as 1997
CONTRACTUALIZATION UNDER THE
LAW? SECTION 3 © D.O.NO.18-A
CONTRACTING AND SUBCONTRACTING
 Arrangement whereby a principal agrees to
put out or farm out with a contractor or
subcontractor the performance or
competition of a specific job, work, or service
within a definite or predetermined period,
regardless of whether such job, work, or service is
to be performed or completed within or outside the
premises of the principal.
 In other words, the principal, rather than
directly hiring workers to perform jobs in its
company or enterprise, engages the services of
a contractor who in turn provides the former
with the needed manpower.
CASE SUMMARY: SERRANO VS. NLRC
 Employer’s Good Faith - the termination of
employees was to promote economy and
efficiency
 Absent proof that management acted in a
malicious or arbitrary manner, the Court will
not interfere with the exercise of judgment by
an employer.
THREE PARTIES
1. Principal/Contractee
 Refers to any employer, whether a person or
entity, including government agencies and
government-owned and controlled corporations,
who/which puts out or farms out a job, service,
or work to a contractor.
2. Contractor
 Refers to any person or entity, including a
cooperative, engaged in a legitimate
contracting and subcontracting arrangement
providing either services, skilled workers,
temporary workers, or a combination of
services to a principal under a service
agreement.
3. Workers (Contractor' s Employees)
 Includes one employed by a contractor to
perform or complete a job, work, or service
pursuant to a Service Agreement with a
principal.
TWO AGREEMENTS/CONTRACTS IN THIS
ARRANGEMENT
RIGHT AND PRIVILEGES AS PROVIDED IN
THE LABOR CODE:
All contractor’s employees, whether deployed or
assigned as reliever, seasonal, weekender,
temporary or promo jobbers, shall be entitled to all
rights and privileges as provided for in the Labor
Code, to include the following:
1.Safe and healthful working conditions;
2.Labor standards such as but not limited to:
a.Service incentive leaves
b.Rest days
c.Overtime Pay
d.Holiday Pay
e.13th Month Pay
f.Separation Pay; as may be provided in the Service
Agreement or under the Labor Code
3.Retirement benefits under the SSS or Retirement
plans of the contractor, if there is any
4.Social Security and welfare benefits
5.Right to self-organization, collective
bargaining, and peaceful concerted activities,
and
6.Security of Tenure
LIABILITY OF SUB/CONTRACTOR AND
PRINCIPAL
 If the contractor or subcontractor fails to pay
the wages of his employees, the principal shall
be jointly and severally (solidary) liable
 The principal may be forced to pay the wages
of the workers if the contractor fails to pay the
same.
 There exists no employer-employee
relationship between the principal and workers
but the rule is aligned under the overarching
principle of paramount protection to labor.
Legitimate Contracting/Subcontracting
(SECTION 4 OF D.O. No. 18-A)
A. The contractor must be registered and carries
a distinct and independent business and
undertakes to perform the job, work, or service on
its own responsibility, according to its own manner
and method, and free from control and direction of
the principal in all matters connected with the
performance of the work EXCEPT as to the results
thereof;
B. The contractor has substantial capital and/or
investments;
C. The Service Agreement ensures compliance
with all the rights and benefits under Labor
Laws
Contracting is NOT lawful if:
(1) Labor-Only Contracting
(2) Arrangement is otherwise unlawful for being
against Public Policy
SPECIFIC FORMS OF
CONTRACTUALIZATION PROHIBITED BY
LAW
1. Labor-only contracting
2. Arrangements of violate public policy
3. 5-month contract
1. LABOR-ONLY CONTRACTING
 Article 106 of the Labor Code
 It refers to an arrangement where the
contractor or subcontractor merely recruits,
supplies, or places workers to perform a job,
work, or service, and any of the following
elements are present:
 The contractor or subcontractor does NOT
have substantial capital which relates to
thejov, work, or service to be performed and
the employees recruited supplied or placed by
such contractor or subcontractor are performing
activities which are directly related to the main
business of the principal; or
 The contractor does NOT have the right to
control over the performance of the work of
the contractual employee. (D.O. No. 18- 02)
2. ARRANGEMENTS VIOLATIVE OF
PUBLIC POLICY
 Section 7 of D.O. No. 18-A
 Contracting out of a job, work, or service
when not done in good faith and not justified
by the exigencies of the business such as the
following:
1. Contracting out of jobs, works, or services when
the same results in the termination or reduction of
regular employees and reduction of work hours or
reduction or splitting of the bargaining unit
2. Contracting out of work with a “cabo”.
 Cabo- Refers to a person or group of persons
or to a labor group which, in the guise of a
labor organization, supplies workers to an
employer, with or without any monetary or
other consideration whether in the capacity of
an agent of the employer or as an ostensible
independent contractor
3. Taking undue advantage of the economic
situation or lack of bargaining strength of the
contractor’s employees, or undermining their
security of tenure or basic rights, or circumventing
the provisions of regular employment, in any of the
following instances:
 I. Requiring them to perform functions that are
currently being performed by the regular
employees of the principal;
 II. Requiring them to sign, as a precondition to
employment or continued, an antedated
resignation letter; a blank payroll; a waiver of
labor standards including minimum wages and
social or welfare benefits or a quitclaim
releasing the principal, contractor or
subcontractor from any liability as to payment
of future claims.
4.Contracting out of a job, work, or service through
an in-house agency
5.Contracting out of a job, work, or service that is
necessary or desirable or directly related to the
business or operation of the principal by reason of
a strike or lockout whether actual or imminent
6. Contracting out of a job, work, or service being
performed by union members when such will
interfere with, restrain, or coerce employees in the
exercise of their rights to self-organization as
provided in Article 258 of the Labor Code
7. Repeated hiring of employees under an
employment contract of short duration or under a
Service Agreement of Short Duration with the
same or different contractors, which circumvents
the Labor Code Provisions on the security of tenure
ARTICLE 295 OF LABOR CODE
 Probationary employment shall not exceed six
(6) months from the date the employee started
working unless it is covered by an
apprenticeship agreement stipulating a longer
period. The services of an employee have been
engaged on a probationary basis may be
terminated for a just cause or when he fails to
qualify as a regular employee in accordance
with reasonable standards made known by the
employer to the employee at the time of his
engagement. An employee who is allowed to
work after a probationary period shall be
considered a regular employee
3.) 5 MONTHS CONTRACT
 Another scheme being used by employers to
avoid the regularization of employees is
limiting their contract to 5 months, renewable
every end of the period
 Mandated period of the law for probationary
employment is 6 months After 6 months, once
rehired, the employee automatically becomes a
regular and permanent employee
 PROBATIONARY EMPLOYEE
 One who is on trial by an employer during
which the employer determines whether or not
he is qualified for permanent employment
 Probationary period = Trial Period
 Gives the employer an opportunity to observe
the fitness of the employee to continue working
for him.
CASE SUMMARY : PUREFOODS CORP vs.
NLRC
CHAPTER 7 : THE FIRM AND CONSUMER
INTRODUCTION
Much of the rules and laws governing commercial
transactions and undertakings are motivated by
ethical norms and considerations. For in as much as
we want to simply base our dealings upon the basic
virtues of trust and good heartedness, history and
experience would tell us different narrative that is
precisely because we cannot fully trust each other
that these rules must be institutionalized.
ADULTERATION
Have you ever bought a food with foul smell, or a
beverage with a foreign object inside?
If not, then you are lucky. The social media has
been the most convenient forum for voicing out
their dismay and rage of people who have been
victimized with adulterated products. In its simplest
sense, adulteration is the unethical practice of
debasing a pure or genuine commodity by imitating
or counterfeiting it, by adding something to
increase its bulk or volume, or by substituting an
inferior product for a superior one for the purpose
of profit.
In the Philippines, the notion of adulteration has
been expanded to include those which contain
poisonous or deleterious substance that may injure
one's health. R.A. 7394, or the Consumer Act of the
Philippines, prohibits the manufacture, importation,
exportation sale, offering for sale, distribution or
transfer of any food, drug, device or cosmetic that is
adulterated or mislabeled.
FRAUD
 One of the most common deceptions in the
business world is fraud. Simply, it is the
conscious and intentional proposition to evade
the normal fulfillment of an obligation.70
Under the law, fraud is further divided into two
kinds: dolo causante and dolo incidente. The
former is employed to get a person to agree or
enter into a contract, while the latter is utilized
in the actual performance of the obligation
FALSE ADVERTISING
 the act of publishing, transmitting, or otherwise
publicly circulating an advertisement
containing a false claim, or statement, made
intentionally (or recklessly) to promote the
sale of property, goods, or services. A false
advertisement can be classified as deceptive if
the advertiser deliberately misleads the
consumer, rather than making an unintentional
mistake. A number of governments use
regulations to limit false advertising.
• DECEPTIVE PACKAGING
 There is deceptive packaging when the
packaging is specifically designed to mislead
and deceive consumers. Normally this is done
by giving the impression, through the
packaging, that they are getting more, in terms
of quantityor quality,than what is actually
inside.
• MISBRANDING
 This fraudulent and deceitful mode of
advertising is quite common in the Philippines.
Misbranding is the labelling of a product so
that it replicates another, more famous or
profitable, product or giving misinformation as
to the actual content or ingredients of the item.
INSIDER TRADING
 A lot of issues and intrigues have plagued the
stability that the stock market used to enjoy in
the last few decades. But despite all the
conundrums that the stock market had to
endure, the number of people who invested
their money through this venture did not
dwindle in dramatic fashion. People still saw
the stock market as a good place to keep their
hard-eared money, with the hope of adding
more zeroes at its end. And in spite of the
perceived volatility of investing in stocks, it has
nonetheless created itself an image of providing
the highest potential returns for one's money.
INSIDER TRADING
1. Stocks have offered the most poteential for
growth
2. You can ride out ups and downs of stocks
3. You don’t need to invest all your money in
stocks.
 CHAPTER 8
ETHICAL CONSUMERISM and
CORPORATE SOCIAL RESPONSIBILITY
INTRODUCTION
The growing awareness of the social impact of the
products we buy paved way to the rise of ethical
consumerism.
In a sense, ethical considerations have become
increasingly important to a company's reputation at
a time when public opinion can go viral in an
instant.
People are switching to energy-efficient light bulbs,
organic food, and eco-friendly products.
The marketing strategy of making it appear that
consumers get to help others (through whatever
advocacy or charity works the company is
associated with) by purchasing their products.
On the side of activism, more and more non-
governmental organizations are starting to sprout
calling out for the boycott on products that they
believe are unethical.
As a matter of fact…
 In Uganda, Improving Health (and Wealth)
Avon-Style
 Pumping Up the Harvest
 Brewing Up Social Justice
CORPORATE SOCIAL RESPONSIBILITY (CSR)
 is concerned with what is – or should be – the
relationship between global corporations,
governments of countries and individual
citizens.
 The definition is concerned with the
relationship between a corporation and the
local society in which it resides and operates. It
is also concerned with the relationship between
a corporation and its stakeholders.
 According to the EU Commission, is that "it is
a concept whereby companies integrate social
and environmental concerns in their business
operations and in their interaction with their
stakeholders on a voluntary basis"
 It is apparent therefore that any actions which
an organisation undertakes will have an effect
not just upon itself but at the external
environment within which hat organisation
resides.
 It must be recognized that his environment
includes both the business environment in
which he firm is operating, the local societal
environment in which the organization is
located and the wider global environment.
 This effect of the organization can take many
forms, such as:
 The utilization of natural resources as a part of
its production processes
 The effects of competition between itself and
other organizations in the same market
 The enrichment of a local community through
the creation of employment opportunities
 Transformation of the landscape due to raw
material extraction or Waste product storage.
 The distribution of wealth created within the
firm lo the owners of that firm (via dividends)
and the workers of that firm (through wages)
and the effect of this upon the welfare of
individuals.
 And more recently the greatest concern has
been with climate change and the way in which
the emission of greenhouse gases is
exacerbating this.
CSR, in today's generation…
It’s no longer "mind your business in a world where
one's affairs significantly affect other's ventures
and, ultimately, lives.”
BASIC PRINCIPLES OF CORPORATE
SOCIAL RESPONSIBILITY (CSR)
Sustainability- is concerned with the effect which
actions taken in the present has upon the options
available in the future.
Accountability- is concerned with an organization
recognizing that its actions affect the external
environment, and therefore assenting responsibility
for the effects of its actions.
Transparency- it means that the external impact of
the organization can be ascertained from the
organization's reporting and pertinent facts are not
disguised within that reporting.
COMPONENTS OF CORPORATE SOCIAL
RESPONSIBILITY (CSR)
 According to Archie Carroll, total corporate
social responsibilities are based on economic,
legal, ethical and discretionary responsibilities.
 He argued that these four components are not
necessarily mutually exclusive, but rather,
represent a continuum in which corporate
social responsibility is examined.
ECONOMIC RESPONSIBILITIES
 are based on the underlying foundation of why
a firm has been created, normally to develop
economic value economic responsibilities are
based on the belief that the firm has a
responsibility to use resources available to
produce goods and services for society.
Some specific components:
 maximizing earnings per share,
 generating a high and consistent level of
profitability,
 establishing and maintaining a strong
competitive position, and
 operating the firm at a high efficiency level
LEGAL RESPONSIBILITIES
 are the laws and regulations that all firms are
expected to abide by as they perform their daily
functions.
Some specific components:
 the firm perform in a way that is consistent
with governmental and legal expectations;
 displaying complete compliance with all local,
state, federal and international regulations; and
 being a good, law-abiding corporate citizen.
ETHICAL RESPONSIBILITIES
 are difficult to define and can change over time
because they are based on the expectations of
society.
Some specific components:
1. making sure the firm performs in a manner that
meets or exceeds the expectations of both
social and ethical norms
2. Having ability to adapt to new or evolving
ethical and moral norms within society
3. Ensuring that ethical norms are not ignored or
compromised so that the firm can achieve its
objective
4. Behaving in a manner commensurate with
being a good corporate citizen based on its
ethical and moral conduct
5. Realising that corporate integrity and ethical
behaviour go beyond the minimum legal and
governmental standards.
DISCRETIONARY RESPONSIBILITIES
 are those responsibilities in which society does
not have a clear message to present to
businesses what their courses of actions should
be.
Some examples of discretionary responsibilities
include:
 having firms give charity organization
 Providing programs to help people who are
drug dependent or
 Providing day care centers to help families
cope in a work environment
PHILANTHROPIC COMPONENTS OF A
FIRM’S CORPORATE RESPONSIBILITY
COULD INCLUDE:
 ensuring that the firm performs in a manner
that is consistent with charitable expectations
from society
 Helping support causes such as the fine arts and
the performing arts to enrich the cultural basis
of society
 Ensuring that managers and other employees
also become involved by volunteering at
various charitable organizations
 Providing financial and nonfinancial assistance
to educational institutions
 Volunteering to support community projects
that enhance the overall quality of life for the
community.
THE ROLE OF CORPORATE
PHILANTHROPY
 Michael Porter and Mark Kramer warn that
corporations must understand the true meaning
of strategic philanthropy.
 Porter and Kramer argue that true strategic
philanthropy is based on the belief that the
actions of the firm can benefit society and
expertise.
 Caroll hence concludes that CSR is defined by
how well a company meets these
responsibilities. He also presented, through
what he called the pyramid of corporate social
responsibility, how the profitability of the firm
is the foundation that becomes intertwined with
the firm’s legal responsibilities.
 “Charles Fombrun argues that corporate
reputation is not just nice to have but can add
overall value to the corporation.
 A reputation is valuable to the company
because it communicates the expectations of
the company to the buyer”
•The most progressive companies are talking about
triple bottom line PROFIT-PLANET- AND
PEOPLE
As a matter of fact…
NIKE AND TAG HEUER CUT TIES WITH
MARIA SHARAPOVA
In 2015, Forbes estimated that Sharapova,
the world’s highest-paid female athlete for the 11th
consecutive year, had earned 16M in endorsement.
Her lucrative eight-year contract with Nike was
signed in 2010 and worth almost 50M.
Nike and Tag Heuer have become the first major
sponsors to cut ties with Maria Sharapova after the
tennis star revealed she had tested positive for the
banned substance, with Porsche also suspending
promotions with the player.
And companies are willing to do all of these for the
sake of good corporate reputation. And having a
strong positive reputation can produce three major
benefits for the strategic focus of the firm:
1. Stakeholders prefer to do business with firms
that have a positive corporate reputation. When
a customer is unfamiliar with attributes of one
product versus another, the reputation of the
firm is considered.
2. It can greatly aid a company during a crisis.
3. It can increase the financial performance of the
firm because of the firm’s superior competitive
advantage.
However, it must be noted that CSR initiatives are
not all the impeccable calls for social and ethical
responsibility are left unheeded, especially when it
comes to issues whose moral value is highly
debatable.
As a matter of fact…
Calvin Klein is sticking by its 'upskirt' ad that has
caused social media uproar and a petition for its
removal.
ENVIRONMENTAL SUSTAINABILITY
 As pointed out above, one of the basic
principles of corporate social responsibility is
sustainability. And while all of the issues
normally associated with CSR are all important,
environmental concerns seem to be of more
urgency.
ENVIRONMENTAL SUSTAINABILITY
 In Joe DesJardin’s Corporate Environmental
Responsibility, he explained why
environmental sustainability is of utmost
importance especially in today’s generation.
 First, a significant percentage of the world’s
population live or below a minimal level of
subsistence.
 Second, even conservative estimates suggest
that during these fifty years world population
will double, bringing the total world population
to over eleven billion people. Thus, economic
activity needs to increase minimally by ten-to-
twentyfold to bring the standard of living of the
actual world population in fifty years into line
with that enjoyed by people in the
industrialized present
 Lastly, we must recognize that the only source
for this economic activity, ultimately, are the
natural resources of the planet.
 In simple terms, environmental sustainability
involves making decisions and taking action in
the interests of protecting the natural world, the
particular emphasis on preserving the
capability of the environment to support human
life. It is about making responsible decisions
that will reduce the business’ negative impact
on the environment.
Business Case for Environmental Sustainability
Some of them are the following:
1. Moving towards environmentally sustainable
practices presents few or no risks to business
operations.
2. Potential to reduce your expenses in the
medium to long term.
3. It may also have a competitive edge when it
comes to attracting customers and investors.
4. It does not negatively impact on a business’
ability to generate a profit.

Another edge that environmental sustainability

gives to companies that adopt the same is business
differentiation.

 Creating own trend, setting a new tad to people

to follow
 Taking the route from the opposite side
 Create corporate image patterned after this
expectation

Social and Environmental Responsibility

 Company's commitment to taking part in

sustainable economic development in order to
improve the quality of life and environment,
which will be beneficial for the Company itself,
the local community and society in general.

 An example of small entrepreneurs and big

corporations alike are starting gear towards
embracing the call for environmental
responsibility. Crayola, for example.

 In the September 200 issue of Times Magazine,

they cited companies who are making green
changes in their policies, either as an innovator
or simple one adapting to this growing social
demand.

 Turning Trash Cans in the Piggy bank

 Selling Solar in the Cheap
 Green is good for Business

In the Philippines:
 Ayala Group of Companies
 SM Prime Holding
 Water Management
 Air Quality Management