Mod13Wk15 LaborSocialLegislation

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 32

INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩1

MODULE 13
LABOR LAW AND SOCIAL LEGISLATION

WEEK 15
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩2

 CONSTITUTIONAL BASIS. – The 1987


Constitution is replete with labor-related provisions, but
the more commonly quoted provisions are those found
under Section 3, Article XIII, to wit:

“Section 3. The State shall afford full protection to


labor, local or overseas, organized and unorganized and
promote full employment and equality of employment
opportunities for all.

“It shall guarantee the rights of all workers to self-


organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right to
strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work and a
living wage. They shall also participate in policy and
decision-making processes affecting their rights and
benefits as may be provided by law.

“The State shall promote the principle of shared


responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes,
including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.

“The State shall regulate the relations between


workers and employers, recognizing the right of labor to
its just share in the fruits of production and the right of
enterprises to reasonable returns on investments, and
to expansion and growth.”
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩3

These provisions somewhat sum up what


Labor Law is all about. Through the intervention of the
State, a balance has to be attained between the interests
of capital vis-à-vis the interests of the laborer or worker.
With such an aim in mind, the country saw the
promulgation of the Labor Code of the Philippines, which
provided for a two-tiered approach to labor – labor
standards and labor relations.

Hence, Books I to IV of the Labor Code is mainly


concerned with labor standards, while the remaining
Books V to VI focuses on labor relations.

 Construction in favor of labor – One essential


feature of labor laws is – all doubts in the interpretation
and implementation of the provisions of the Labor Code
and other labor-related statutes shall be resolved in favor
of labor (Article 4, New Labor Code). This statutory
pronouncement under the Labor Code underlines the
state’s commitment to the constitutional mandate of
providing full protection to labor since it has affirmed that
labor is a primary social economic force (Section 18, Article
II, 1987 Constitution).

 Balance between labor and capital – This


constitutional mandate of construction in favor of labor,
however, should not be taken to mean that capital will
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩4

always be at the losing end of the equation. This has to be


reconciled with another constitutional mandate to
harmonize and balance the needs and demands from both
labor and capital, since capital is recognized as having an
indispensable role in national development (Section 20,
Article II, 1987 Constitution). Both are essential cogs in
the wheels of national development and should be treated
equally.

Labor laws are there


to protect the rights of
Labor against unscrupulous
employers as well as to
protect employers from
abusive employees. It
should be noted that the
protection provided under
the Labor Laws goes both
ways, i.e., for the laborer
and the employer.

 ILLUSTRATIVE EXAMPLE: One good


example to illustrate the balance between labor and
capital is on the matter of termination of employment.
Under our labor laws, a qualified employee is granted
security of tenure, and cannot be removed except for
authorized and legal causes. This does not mean,
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩5

however, that an employer is to be burdened with


undesirable employees. The Labor Code provides for the
grounds where an employer can rightfully initiate
disciplinary proceedings against an employee, which
necessarily include termination of employment.

 LABOR LAWS, ITS MAIN AREAS OF CONCERN.–

(A) LABOR LAWS: These laws govern the rights and


obligations of employers and employees, providing as well
for the rules by which such rights and obligations may be
enforced. This field of law is divided into three main areas
of concern – labor standards, labor relations and social
legislation.

(B) SOCIAL LEGISLATION: There is a saying that “those


who have less in life should have more in law”. This
statement encapsulates what social legislation is all about.
It refers to statutes that level the playing field between
employers and employees. Such laws endeavor to strike a
balance between the rights of workers vis-à-vis the
underlying goal of employers to generate profit. More
often than not, the lowly employee or worker is not
situated in an equal footing, so to speak, with powerful
and moneyed employers, and thus social legislation seeks
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩6

to ensure that workers are afforded what is due them in


terms of salary, benefits, working conditions and the like.
Social legislation is also designed to secure the future of
the worker as well as his family because of what happens
to the worker arising from the hazards, incidents or effects
of employment.

 Examples of such laws are as follows:


(1) RA 8187 (Paternity Leave Act of 1996)
11 June 1996

⚫ “AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS


WITH FULL PAY TO ALL MARRIED EMPLOYEES IN THE PRIVATE
AND PUBLIC SECTORS FOR THE FIRST FOUR (4) DELIVERIES OF
THE LEGITIMATE SPOUSE WITH WHOM HE IS COHABITING AND
FOR OTHER PURPOSES.”

(2) RA 7610 (Special Protection of Children Act)


17 June 1992
⚫ ”AN ACT PROVIDING FOR STRONGER DETERRENCE AND
SPECIAL PROTECTION AGAINST CHILD ABUSE, EXPLOITATION
AND DISCRIMINATION, PROVIDING PENALTIES FOR ITS
VIOLATION AND FOR OTHER PURPOSES.”

(3) RA 7877 (Anti-Sexual Harassment Act of 1995)


14 February 1995
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩7

⚫ ”AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN


THE EMPLOYMENT, EDUCATION OR TRAINING ENVIRONMENT,
AND FOR OTHER PURPOSES.”

(4) RA 7655 (An Act Increasing the Minimum Wage for


House helpers)
19 August 1993

⚫ “AN ACT INCREASING THE MINIMUM WAGE OF


HOUSEHELPERS, AMENDING FOR THE PURPOSE ARTICLE 143
OF PRESIDENTIAL DECREE NO. 442, AS AMENDED.”

(5) RA 8042 (Migrant Workers Act of 1995)


7 June 1995

⚫ ”AN ACT TO INSTITUTE THE POLICIES OF OVERSEAS


EMPLOYMENT AND ESTABLISH A HIGHER STANDARD OF
PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT
WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN
DISTRESS, AND FOR OTHER PURPOSES

(6) RA 8282 (Social Security Act of 1997)


1 May 1997

⚫ AN ACT FURTHER STRENGTHENING THE SOCIAL


SECURITY SYSTEM THEREBY AMENDING FOR THIS
PURPOSE REPUBLIC ACT NO. 1161, AS AMENDED,
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩8

(7) RA 8291 (Government Service Insurance


System Act of 1997) - 30 May 1997
⚫ “AN ACT AMENDING
PRESIDENTIAL DECREE
NO. 1146, AS AMENDED,
EXPANDING AND
INCREASING THE
COVERAGE AND BENEFITS
OF THE GOVERNMENT
SERVICE INSURANCE
SYSTEM, INSTITUTING
REFORMS THEREIN AND
FOR OTHER PURPOSES.”

(8) RA 7875 (National Health Insurance Act of 1995)


10 February 2004

⚫ “AN ACT INSTITUTING A NATIONAL HEALTH INSURANCE


PROGRAM FOR ALL FILIPINOS AND ESTABLISHING THE
PHILIPPINE HEALTH INSURANCE CORPORATION FOR THE
PURPOSE.”

(9) RA 7641 (Retirement Pay Law)


9 December 1992

⚫ “AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE


NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR
CODE OF THE PHILIPPINES, BY PROVIDING FOR RETIREMENT
PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE
ABSENCE OF ANY RETIREMENT PLAN IN THE
ESTABLISHMENT.”
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩9

(10) RA 9231 (Act Against Child Labor)


19 December 2003

⚫ “AN ACT PROVIDING FOR THE ELIMINATION OF THE WORST


FORMS OF CHILD LABOR AND AFFORDING STRONGER
PROTECTION FOR THE WORKING CHILD, AMENDING FOR THIS
PURPOSE REPUBLIC ACT NO. 7610, AS AMENDED, OTHERWISE
KNOWN AS THE "SPECIAL PROTECTION OF CHILDREN AGAINST
CHILD ABUSE, EXPLOITATION AND DISCRIMINATION ACT."

(11) PD 851 (13th Month Pay Law)


16 December 1976

⚫ “REQUIRING ALL EMPLOYERS TO PAY THEIR EMPLOYEES A


13th-MONTH PAY”
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 10

(C) LABOR STANDARDS LAW: The area of labor


standards provides for the basic requirement as provided
by law that employers have to provide for their employees
whether in the workplace or in the matter of wages.
These minimum requirements are established in order to
protect workers’ rights as well as set the standard in all
business establishments. In short, labor standards provide
for the conditions of employment in any business.

 A matter of right – These minimum


standards prescribed by law in relation to work is a matter
of right on the part of the laborer, and non-compliance by
an employer of said minimum standards would be met
with the punitive force of the law.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 11


Provision for higher but not below the
minimum prescribed – These minimum conditions are
normally indicated in an employee’s employment contract.
Some firms or employers even provide for higher
standards than that provided for under the law. What is
important is that the conditions of work, more particularly
the benefits, do not fall below the minimum prescribed
under the Labor Code.

 Workers not covered – These minimum


standards prescribed by law in relation to work applies to
employees in all establishments and undertakings,
whether for profit or not, EXCEPT the following:

(a) Government employees;

(b) Managerial employees;

(c) Field personnel;

(d) Members of the family of the employer who are


dependent on him for support;

(e) Domestic helpers, or persons in the personal


service of another; and

(f) Workers paid by result.


INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 12

 Some prescribed minimum conditions – The


conditions regarding employment or work are covered
under Book III of the Labor Code, and are generally
categorized into the following:

 Normal hours of work, including hours worked –


➢ The Labor Code provides that normal working
hours shall not exceed eight (8) hours a day.

➢ Hours worked shall include:


(a) All time during which an employee is
required to be on duty or to be at a
prescribed workplace; and

(b) All time during which an employee is


suffered or permitted to work.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 13

➢ Rest periods of short duration during working


hours shall be counted as hours worked. (Arts. 83 &
84, Labor Code)

➢ The following are other circumstances relative


to normal working hours as provided in the Labor
Code:

(a) Compressed Work Week (CWW) is valid,


subject to regulations provided by the
Department of Labor and Employment
(DOLE);

(b) Health personnel in government service are


not covered by this provision. Their
employment benefits are governed by
Republic Act No. 7305;

(c) Waiting time is considered hours worked if


it is an integral part of one’s work, or one is
engaged by his employer to wait; and

(d) It is considered hours worked when an


employee is required to remain on call in
the employer’s premises or close thereto
that he cannot use the time effectively for
his own purpose.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 14

 Meal periods – The


law mandates every
employer to give his
employees not less
than sixty (60)
minutes time-off for
their regular meals
(Art. 85, Labor Code).

 Night Shift Differential – Every employee shall be paid a


night shift differential of not less than ten percent
(10%) of his regular wage for each hour of work
performed between ten o’clock in the evening and six
o’clock in the morning (Art. 86, Labor Code).
➢ Night shift differential pay is given as an
incentive because the employee is rendering work
past his supposed bedtime.

 Overtime work – Work may be performed beyond eight


hours a day provided that the employee is paid, for the
overtime work, an additional compensation equivalent to
his regular wage plus at least twenty-five percent (25%)
thereof (Art. 87, Labor Code).

➢ Overtime on a holiday or rest day – Work


performed beyond eight hours on a holiday or rest day
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 15

shall be paid an additional compensation equivalent to


the rate for the first eight hours on a holiday or rest
day, plus at least thirty percent (30%) thereof.

➢ Undertime not offset by overtime – Undertime


work on any particular day shall not be offset by
overtime work on any other day. Permission given to
the employee to go on leave on some other day of the
week shall not exempt the employer from paying the
additional compensation required under the Labor
Code (Art. 88, Labor Code).

✓ Rationale: The value paid for overtime work


is more than the value paid for undertime work. If
undertime work is allowed to be offset by overtime
work, the worker will be at a disadvantage.

➢ Requirement for overtime –


✓ An employee cannot, as a rule, be compelled
to render overtime work for his employer, except only
under certain conditions provided under Article 89 of
the Labor Code when an employee may be required by
the employer to perform emergency overtime work.

✓ It is enough that an employee renders


overtime work. An express instruction from the
employer is not a requirement. However, if overtime
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 16

work will be rendered on holidays or rest days, an


express instruction from the employer is required.

 Right to weekly rest periods – The law mandates that it


shall be the duty of every employer, whether operating for
profit or not, to provide each of his employees a rest
period of not less than twenty-four consecutive hours
after every six consecutive normal work days.

➢ Factors such as preference of worker,


prerogative of employer and DOLE regulations shall
play a part in the determination when such rest day
will be given.
➢ However, the employer shall respect the
preference of employees as to their weekly rest day
when such preference is based on religious grounds
(Art. 91, Labor Code).

 Holiday pay – Holiday pay is a day’s pay given by law to


an employee even if he does not work on a regular or legal
holiday as listed by law. Such grant, however, does not
apply to a retail and service establishment regularly
employing less than ten (10) workers (Art. 94, Labor Code).
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 17

➢ The employer may require an employee to work


on any holiday, but such employee shall be paid
compensation equivalent to twice his regular rate.

➢ For holiday pay to be compensable, the


employee should have reported for work on the day
preceding the holiday.

 Service incentive leave – Every employee who has


rendered at least one (1) year of service shall be entitled
to a yearly service incentive leave of five (5) days with pay
(Art. 95, Labor Code).

➢ Such grant shall not apply to those who are


already enjoying the benefit, those enjoying vacation
leave with pay of at least five (5) days, and those
employed in establishments regularly employing less
than ten (10) employees, or in establishments
exempted from granting this benefit by the Secretary
of Labor after considering the viability or financial
condition of such establishment.

➢ Service Incentive Leave can be converted to


cash if not availed at the end of the year. This is to
encourage continuous work of the employees.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 18

➢ Vacation and Sick Leaves are not required by


law. It is a management prerogative.

 13th Month Pay – Thirteenth-month pay refers to one-


twelfth (1/12) of the basic salary of an employee within a
calendar year.

➢ All employers are required to pay all their


employees, regardless of the nature of their
employment, a thirteenth-month pay not later than
December 24 of every year, provided that they have
worked for at least one (1) month during a calendar
year (P.D. No. 851, 16 December 1975).

➢ An employee who resigned or was terminated


from work at any time before payment of the 13th
month pay, is still entitled to said pay in proportion to
the time he worked during the year.

(D) LABOR RELATIONS LAW: Labor Relations Law refers


to laws, rules and regulations which govern the
relationship between employees and their employers,
promote the right of the employees to self-organization
and collective bargaining, penalize unfair labor practice,
and provide modes for the settlement of labor disputes
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 19

such as conciliation, mediation, grievance machinery,


voluntary arbitration and compulsory arbitration.

 MANAGEMENT PREROGATIVE. – Management


prerogative refers to the right of management to regulate
according to its own discretion and judgment all aspects of
employment, and if practiced properly and in good faith, is
protected by labor laws. Some of the more common
management prerogatives are as follows:

(a) Right to selection of employees;


(b) Right to discipline employees;
(c) Right to prescribe company rules;
(d) Right to transfer or re-assign employees; and
(e) Right to determine company policy.

 Limitations to its exercise – Management


prerogative, however, is subject to limitations provided by
the following:

(a) Law;
(b) Contract or collective bargaining agreements; and
(c) General principles of fair play and justice.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 20

 EMPLOYER-EMPLOYEE RELATIONSHIP. –

 Importance of determination - The


determination of whether employer-employee relation
exists between the parties is very important.

(a) Entitlement tolabor standard benefits (i.e.,


minimum wages, hours of work, overtime pay,
etc.), or to social benefits under the laws (i.e.,
social security law, workmen’s compensation law,
etc.), or to termination pay, or to unionism and
other labor relations provisions under the Labor
Code, are largely dependent on the existence of
employer-employee relationship between the
parties.

(b) The existence of employer-employee relationship


between the parties will determine whether the
controversy should fall within the exclusive
jurisdiction of the labor agencies or not. If for
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 21

example the parties are not employer-employee of


each other, respectively, but perhaps partners or
associates, then any dispute between them will not
be covered by the jurisdiction of labor agencies but
by regular courts.

 READ THIS CASE IN ITS ORIGINAL TEXT:


Indophil Textile Mills, Inc.
vs. Engr. Salvador Adviento,
G.R. No. 171212, 4 August 2014.


NLRC – The National Labor Relations
Commission is a quasi-judicial body attached to the
Department of Labor and Employment (DOLE), which is
tasked to promote and maintain industrial peace by
resolving labor and management disputes involving both
local and overseas workers through compulsory
arbitration and alternative modes of dispute resolution.

 How established – To establish an employer-


employee relationship, a contract of employment is
necessary. This can be in writing, or there may only be an
oral agreement.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 22

 Four-fold test to determine its existence – The


usual test to determine the existence of an employer-
employee relationship is the so-called four-fold test. In
applying this test, the existence of four (4) elements that
are determinative of such a relationship are generally
considered, to wit:

(a) Right to hire or to the selection and engagement of


the employee.

(b) Payment of wages and salaries for services.

(c) Power of dismissal or the power to impose


disciplinary actions.

(d) Power to control the employee with respect to the


means and methods by which the work is to be
accomplished. This is known as the “Control Test.”

➢ Of the above-mentioned elements, the


“control test” is considered the most important element in
determining the existence of employment relation. The
“control test” refers to the employer’s power to control
the employee’s conduct not only as to the result of the
work to be done, but also with respect to the means and
methods by which the work is to be accomplished.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 23


It should be noted that control by the
employer need not be actually exercised in order to be
determinative of an employer-employee relationship. It is
sufficient that such power is reserved to the employer
although the use of the same has never arisen.

 READ THIS CASE IN ITS ORIGINAL TEXT:


South East International Rattan, Inc.
vs. Jesus Coming,
G.R. No. 186621, 12 March 2014.

 KINDS OF EMPLOYEES –

(A) REGULAR EMPLOYEES – Typically, regular employees


are those who are entitled to benefits such as: SSS, Pag-
IBIG, PhilHealth, 13th month pay, holiday pay, overtime
pay, vacation leave, and other benefits provided by law.
 Regular employees by nature of work – It is
commonly believed that all employees must serve at least
six months before they become regular. This is untrue.
Under the Labor Code, so long as an employee performs
any function that is necessary and desirable in the ordinary
course of business, then such employee is deemed regular
regardless of the term of his service. The only way to
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 24

prevent such an employee from becoming regular on his


first day would be to hire him on a probationary basis.

 Regular employees by years of service – Any


employee who has rendered at least one year of service,
whether continuous or intermittent, is deemed regular
with respect to the activity he performed and while such
activity actually exists (Art. 281, Labor Code).

 READ THIS CASE IN ITS ORIGINAL TEXT:


Moises De Leon vs. NLRC,
G.R. No. 70705, 21 August 1989.

 Security of tenure – Regular employees enjoy


security of tenure. Their employment may only be
terminated for just causes or authorized causes set out in
the law. In addition, regular employees enjoy procedural
due process, where the employee must be informed of the
grounds for termination, and be given the opportunity to
present his defense or evidence. Thereafter, the
employee must be notified of the employer’s decision to
terminate his services. This is also referred to as the “two-
notice rule” where the employer must send a first notice
to the erring employee composed of the formal charge
and the opportunity to defend himself. The second notice
is the notice of termination.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 25

(B) PROBATIONARY EMPLOYEES –


Probationary
employees are those hired for a trial (or probationary)
period during which the employee must demonstrate the
ability to perform the job for which he has been hired.
Upon doing so, at the end of the probationary period, the
employee becomes a regular employee.

 Probationary period – Under the law, (a) a


probationary period must not exceed six (6) months and
(b) at the start of this period, the employer must inform
the employee of the standard by which his performance
will be evaluated. If any of these requirements are not
met, then the probationary employment is void and the
employee is deemed regular from day one. It is advisable
therefore to properly document the probationary
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 26

employment to ensure that all legal requirements have


been met.

 Security of tenure – It is important to


remember that probationary employees also enjoy
security of tenure during the probationary period, and the
employment may not be terminated without a substantive
reason and compliance with the aforementioned two-
notice rule.

(C) CONTRACTUAL EMPLOYEES – Contractual employees


are employees whose period and condition of
employment are dependent on the provisions of their
contract. The Labor Code does not explicitly permit
contractual or fixed-term employment, but the courts
have ruled that so long as the term in the contract is not
used to pre-emptively end the employment and deny the
employee’s security of tenure, then it is valid.

 Security of tenure – It should be noted that


contractual or fixed-term employees enjoy the right to
security of tenure while the contract is in effect.

(D) SEASONAL and PROJECT EMPLOYEES – Seasonal


employees are employed for seasonal work. Project
employees are called to work only for the accomplishment
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 27

of a particular project. The period of employment is co-


terminus with the season or the project, as the case may
be. In both cases, the employment is for a temporary
period at the end of which the employee ceases to work
for the employer.


Security of tenure – During the seasonal or
project employment, the employee enjoys security of
tenure and may not be terminated without cause.

 TERMINATION OF EMPLOYMENT –
Termination of employment refers to the cessation of the
services of the employee by management either through
just or authorized causes. The employee’s constitutional
right to security of tenure, wherein the employer cannot
terminate his services without just or authorized causes,
applies both to regular and non-regular employees.

(A) JUST CAUSES FOR TERMINATION. – Under Article 297


of the Labor Code, the employer may terminate the
services of the employee under the following just causes:

 Serious misconduct or willful disobedience by the


employee of the lawful orders of his employer or
representative in connection with his work;
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 28

 Gross and habitual neglect by the employee of his


duties;

 Fraud or willful breach by the employee of the trust


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 or any immediate
member of his family or his duly authorized
representative; and

 Other causes analogous to the foregoing.

(B) AUTHORIZED CAUSES FOR TERMINATION. – An


authorized cause refers to an economic circumstance not
due to the employee’s fault. Under Article 298 of the
Labor Code, the employer is authorized to terminate the
employment of an employee due to the following
authorized causes:

 Installation of labor-saving devices, also known


as “Automation/Robotics”;
 Redundancy;
 Retrenchment to prevent losses; and
 Closure or cessation of business
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 29

(C) PRECONDITIONS TO VALID TERMINATION. –

(C.1) Due process in case of just causes; the “two-notice rule”–


The employer is required by law to furnish employees with
two written notices before termination of their
employment due to any of the just causes under Article
297 of the Labor Code. Thus, the following steps must be
observed; otherwise, the dismissal is illegal:

 The first written notice to be served on the


employees should contain the specific causes or grounds
for termination against them, and a directive that
employees are given the opportunity to submit their
written explanation within a reasonable period. The
notice should specifically mention which company rules, if
any, are violated and/or which among the grounds under
Article 297 of the Labor Code is being charged against the
employees.

 After serving the first notice, the employees


should schedule and conduct a hearing or conference
wherein the employees will be given the opportunity to (a)
explain and clarify their defense to the charge against
them; (b) present evidence in support of their defense; and
(c) rebut the evidence presented against them by the
management. During the hearing or conference, the
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 30

employees are given the chance to defend themselves


personally, with the assistance of a representative or
counsel of their choice.

 After determining that termination is


justified, the employer shall serve the employees a written
notice of termination indicating that: (a) all the
circumstances involving the charge against the employees
have been considered; and (b) grounds have been
established to justify the severance of their employment.

(C.2) Due process in case of authorized causes – To effect the


termination of any employee for any of the authorized
causes, the employer must serve a WRITTEN NOTICE on
the worker and the Department of Labor and Employment
at least one (1) month before the intended date thereof.

* * * END * * *
HAPPY READING & LEARNING!

INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 31

SOURCES of NOTES:

The discussions outlined in this module


have been collectively lifted from the
cases cited and commentaries made by
the authors in the references cited
below:

1. Aquino, David Robert C. Introduction to Law.


Quezon City: Central Book Supply, Inc., 2017.

2. Dascil, Rodelio T. Threshold to the Legal


Profession: An Introduction to Law. Manila: Rex Book
Store, 2013.

3. Suarez, Rolando A. Introduction to Law. Manila:


Rex Book Store, 2017.
INTRO – MODULE 13 (Labor Law & Social Legislation) [WEEK 14] 🚩 32

FOOD FOR
THOUGHT

You might also like