LABOR LAWS AND LABOR RELATIONS
BASIC RIGHTS OF WORKERS
1. SECURITY OF TENURE
• Workers cannot be dismissed without just and authorized
causes and due process.
• Workers shall be made regular after 6 months of probation.
2. HOURS OF WORK
• Normal working hours of 8 hours a day
• Meal and rest period: meal break of less than one hour and
short rest periods shall be considered compensable working
time
3. WEEKLY REST DAY
• A day-off of 24 consecutive hours after 6 days of work
should be scheduled by the employer upon consultation with
the workers.
4. WAGE AND WAGE-RELATED BENEFITS
• Minimum wage in the region/sector or more
• Holiday pay: One day pay for every regular holiday even if
unworked subject to certain conditions.
• Premium pay for work within 8 hours on a
✔Special or rest day: plus 30% of basic daily rate (bdr)
✔Rest day falling on a special day: plus 50% of bdr
✔Rest day falling on a regular holiday: plus 30% of 200% of
bdr
• Overtime pay for work in excess of 8 hours on
✔Ordinary days: plus 25% of the basic hourly rate
✔Special days, rest days and holidays: plus 30% of the
regular hourly rate on said days
• Nightshift differential pay: plus 10% of the basic/regular rate
for work between 10 PM-6 AM
• Service incentive leave: 5 days with pay per year of service
• Service charges: 85% for distribution to rank-and-file
employees; 15% for losses, breakages, or distribution to
managerial employees (applicable only in establishments
collecting service charges)
• 13th-month pay: 1/12 of the total basic salary earned within
the calendar year
• Paternity leave: 7 days with full pay to attend to needs of
legal wife before/during/after delivery
• Separation pay: Minimum of 1/2 month pay for every year of
service for authorized causes of separation
• Retirement pay: 22.5 days salary for every year of service for
optional retirement at 60 under RA 7641 or under applicable
agreement or for compulsory retirement at age 65
• For underground mine employees, optional retirement at 50
under RA 7641 as amended by RA 8558; compulsory at 60.
5. PAYMENT OF WAGES
• Wages shall be paid in cash, legal tender at or near the place
of work
• Payment may be made through a bank upon written petition
of majority of the workers in establishments with 25 or more
employees and within one kilometer radius to a bank
• Payment shall be made directly to the employees
Wages shall be given not less than once every two weeks or
twice within a month at intervals not exceeding 16 days
• Preference of workers' money claims over government and
other creditors in case of bankruptcy or liquidation of business
• Labor-only contracting is prohibited and the [so-called]
contractor is considered merely as an agent of the employer
6. EMPLOYMENT OF WOMEN
• Nightwork prohibition unless allowed by the Rules
✓ In industrial undertakings from 10 PM to 6 AM
✓ In commercial/non-industrial undertakings from 12 MN to
6 AM
✓ In agricultural undertakings, at night time unless given not
less than 9 consecutive hours of rest
• Welfare facilities at the workplace such as seats, separate
toilet rooms, lavatories, dressing rooms
• Prohibition against discrimination with respect to pay (i.e.,
equal pay for work of equal value), promotion, training
opportunities, study and scholarship grants
7. EMPLOYMENT OF YOUNG WORKERS
• Minimum employable age is 15 years. A worker below 15
should be directly under the sole responsibility of parents or
guardians; work does not interfere with child's
schooling/normal development; with work permit from DOLE
• No person below 18 can be employed in a hazardous or
deleterious undertaking
8. SAFE AND HEALTHFUL CONDITIONS OF WORK
AND WELFARE SERVICES
• Proper illumination and ventilation, fire exits and
extinguishers, occupational health personnel and services,
family welfare/family planning services at the workplace, etc.
9. SELF-ORGANIZATION AND COLLECTIVE
BARGAINING
10. LABOR EDUCATION THRU SEMINARS, DIALOGS
AND INFORMA TION, EDUCATION AND
COMMUNICATION MATERIALS
11, PEACEFUL CONCERTED ACTIVITIES IN
ACCORDANCE WITH LAW 12. PARTICIPATION IN
POLICY AND DECISION-MAKING PROCESSES
AFFECTING THEIR RIGHTS AND BENEFITS
13. FREE ACCESS TO THE COURTS AND QUASI-
JUDICIAL BODIES AND SPEEDY DISPOSITION OF
THEIR CASE
14. ECC BENEFITS FOR WORK-RELATED
CONTINGENCIES
• Medical benefits for sickness/injuries
• Disability benefits
• Rehabilitation benefits
• Death and Funeral benefits
• Pension benefits
15. SSS BENEFITS
• Maternity, sickness, disability, retirement, death and pension
benefits
Source: BUREAU OF WORKING CONDITIONS,
DEPARTMENT OF LABOR AND EMPLOYMENT
To the list of paid leaves should be added the solo parent's
leave (under R.A. No. 8972) and the so-called "battered
woman leave" (under R.A. No. 9262), both of which are
available under certain conditions. Another recent addition
to paid absences of women workers is the two months"
"special leave" (or surgical leave) with full pay under R.A.
No. 9710, approved on August 14, 2009, known as the
Magna Carta of Women. - CAA
PROTECTION TO LABOR
RIGHTS OF WORKERS
CHAPTER 1
LABOR LAW-April 16,2024
CONSTITUTIONAL FRAMEWORK- It is the basic
conceptual structure of a constitution.
-A constitution is a set of fundamental principles or
established precedents according to which a state or other
organization is governed.
 Sec. 18. The state affirms labor as primary social economic
force. It shall protect the rights of workers and promote their
welfare.
Labor as a primary social economic force. (why? because
the laborers are paying the taxes needed by the gov to build
infrastructure.)
--This topic is discussed under Article XIII (Social Justice
and Human Rights), Section 3.
-Full employment 8 hours a day
You have the right to work
-Republic Act No. 10524 Equal Employment Opportunity
-Republic Act 10911 Anti-Age Discrimination in
Employment Act”
--ARTICLE XIII. SOCIAL JUSTICE AND HUMAN
RIGHTS-
LABOR
Section 3. The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
1. Right to one’s labor deemed property- A man who has been
employed to undertake a certain labor and has put into it his
time and effort is entitled to be protected. The right of a person
to his labor is deemed to be properly within the meaning of
constitutional guarantees. That is his means of livelihood. He
cannot be deprived of his labor or work without due process of
law.
2. Labor, a primary social economic force
PROMOTION OF FULL EMPLOYMENT AND
EQUAL WORK OPPORTUNITIES
1. Creation of employment opportunities imperative- full
employment will enable the citizens to lift their level of life
and thus contribute their share in the task of nation-building.
2. State has duty to eliminate discriminatory practices- the
State is mandated to adopt measures to the end that all persons
who are capable of working may be provided with
employment (not necessarily by the government) and that job
opportunities may be open to all – man or woman, citizen or
alien, Christian or non- Christian.
3. Useful labor essential to personal dignity and development-
by useful labor, man is enabled to acquire the material goods
necessary for his growth and improvement
4. Duty of every citizen to engage in gainful work- while the
right to work of every citizen is recognized, it is also his duty
“to engage in gainful work to assure himself and his family a
life worthy of human dignity.” Work is both a right and a duty
on the part of every citizen.
1. Right to self-organization Everyone who works has the
right to form trade or labor unions or join the trade union of
his choice for the protection of his economic and social
interests subject only to such restrictions which may be
prescribed by law.
2. Right to Collective bargaining the performance of the
mutual obligation of the employer and the representative of
the employees to meet, negotiate and confer in good faith with
respect to wages, hours, and other terms and conditions of
employment.
3. Right to Collective negotiation
- it is a new concept in the Constitution for resolving disputes
between employers and employees.
- This new approach is consistent with the provision
recognizing the right of workers “to participate in policy and
decision-making processes affecting their rights and benefits”
and the principle of shared responsibility between workers and
employers.
4. Right to Peaceful and concerted activities in including
the right to strike
- its purpose is to dramatize a demand of workers or their
stand for or against an issue affecting them.
- concerted activities include strikes, picketing, work
stoppage, and boycotts.
- strike is the final weapon of labor in case of the refusal of
employers to bargain collectively or the inability of workers to
bargain successfully for improvement in their working
conditions.
5. Right to security of tenure- employment should be
terminated against the workers will only for just causes and
under conditions provided for by law.
6. Right to just and humane conditions of work- this right
ensures, in particular, safe and unhealthful working conditions,
equal opportunity to promotion and rest, leisure, and
reasonable limitations of working hours. A worker has a right
to be protected against unfair labor practices.
7. Right to a living wage- a worker has a right to receive a
fair and just compensation for his work. He is entitled to equal
remuneration for work of equal value.
-Salary rates, Fair and just compensation (Correct salary),
work of equal value- Equal remuneration for work they have
done
8. Right to participate in policy and decision- making
processes- workers are granted the right to participate with
management in the formulation of policies or decisions.
 PRINCIPLE OF SHARED RESPONSIBILITY
1. Duty of management and labor both management and
labor share a social responsibility in the promotion of
industrial peace which redounds in the end to the benefit of
all. When disputes or differences have arisen, they must
endeavor o settle them through peaceful means, making
preferential use of voluntary modes in settling disputes,
including conciliation.
2. Duty of the State the State is mandated to promote this
principle of shared responsibility between workers and
employers and the preferential use of voluntary modes, instead
of strikes, etc. and compulsory arbitration, in settling disputes,
and to make sure that the workers and employers comply with
their voluntary agreements in good faith to foster industrial
peace.
 METHODS OF RESOLVING LABOR
DISPUTES
✔ Collective bargaining Agreement in which the employee
and employer arrive at the solution/topic that will benefit both
of them
--an agreement is arrived at between the representatives of the
workers and the employer.
✔ Arbitration There are two forms, namely:
-Voluntary-by this method, the parties submit the controversy
to a third person for final determination; and
-Compulsory by this method, the parties are compelled to
submit their controversy to a court or other government
agency provided by law and pursuant to the procedures laid
down by law.
RECIPROCAL RIGHT OF LABOR AND THEIR
ENTERPRISES
✔ Rights of workers and employers under a wage system-
under the wage system, the worker or employee receives from
the employer or owner of remuneration or compensation
usually in the form of money for his labor or services pursuant
to a contract. He has no share in the profits or losses of the
enterprise. The owner gets the profits and bears the losses. The
profits are his compensation for taking the risks and losses.
-- Ex. Instructor1 receives 27k and other benefits
-Investor shared for losses, not owners
-Owners get the profits but more losses if no worker
✔ Reconciliation of their conflicting rights- in regulating the
relations between workers and employers, the Constitution
enjoins the State to reconcile their conflicting rights.
--To avoid observing the surrounding and study them
Article XIII (13). Sec. 4. AGRARIAN AND NATURAL
RESOURCES REFORM
The State shall, by law, undertake an agrarian reform program
founded on the right of farmers and regular farmworkers who
are landless, to own directly or collectively the lands they till
or, in the case of other farmworkers, to receive a just share of
the fruits thereof. To this end, the State shall encourage and
undertake the just distribution of all agricultural lands, subject
to such priorities and reasonable retention limits as the
Congress may prescribe, taking into account ecological,
development, or equity considerations, and subject to the
payment of just compensation. In determining retention limits,
the State shall respect the right of small landowners. The state
shall further provide incentives for voluntary land sharing.
Undertaking an agrarian reform program
1. Basis or aim of the program
2. Lands covered by the program
3. Distribution of lands and retention limits
4. Transfer of landownership
5. Support services
6. Landownership and internal stability
Article 13 Section 5. The State shall recognize the right of
farmers, farmworkers, and landowners, as well as
cooperatives, and other independent farmers’ organizations to
participate in the planning, organization, and management of
the program, and shall provide support to agriculture through
appropriate technology and research, and adequate financial,
production, marketing, and other support services.
Planning, organization, and management of the program
 To recognize the right of farmers, farmworkers, and
landowners, cooperatives, and other independent farmer’s
 organizations to participate in the planning, organization and
management of the program; and
 To provide support to agriculture through appropriate
technology and research and adequate financial, production,
marketing and other support services.
✔ SEC. 6. The State shall apply the principles of agrarian
reform or stewardship whenever applicable in accordance
with law, in the disposition or utilization of other natural
resources, including lands of the public domain under lease
or concession suitable to agriculture, subject to prior rights,
homestead rights of small settlers, and the rights of
indigenous cultural communities to their ancestral lands.
--The State may resettle landless farmers and farmworkers
in its own agricultural estates which shall be distributed to
them in the manner provided by law.
CHAPTER 2
BEGINNINGS OF EMPLOYER-EMPLOYEE
RELATIONSHIP
• The Guild System
• The Domestic System
• The Industrial Revolution
• The Factory System
• Effect of the Factory System
• Employer-Employee Relationship
• Complexities of Employer-employee Relationship Cases
EMPLOYER-EMPLOYEE RELATIONSHIP?
The employment relationship is the legal link between
employers and employees. It exists when a person performs
work or services under certain conditions in return for
remuneration.

OVERVIEW:
GUILDS are associations of artisans or merchants who
control the practice of their craft in a particular town. The
earliest types of guild were formed as confraternities of
tradesmen. They were organized in a manner something
between a professional association, trade union, a cartel, and
a secret society. They often depended on grants of letters
patent by a monarch or other authority to enforce the flow of
trade to their self-employed members, and to retain ownership
of tools and the supply of materials.
The domestic/putting-out system is a means of
subcontracting work. Historically, it was also known as
the workshop system and the domestic system. In putting-out,
work is contracted by a central agent to subcontractors who
complete the work in off-site facilities, either in their own
homes or in workshops with multiple craftsmen.
------------------
✔ THE GUILD SYSTEM
-The earliest guilds may have been formed in India circa 3800
B.C.E., and certainly existed in Roman times.
-They particularly flourished in Medieval Europe, where they
were an essential and stabilizing economic influence.

✔DOMESTIC SYSTEM (PUTTING-OUT SYSTEM)
Production system widespread in 17th-century
western Europe in which merchant-employers “put out”
materials to rural producers who usually worked in their
homes but sometimes laboured in workshops or in turn put out
work to others. Finished products were returned to the
employers for payment on a piecework or wage basis.
✔THE INDUSTRIAL REVOLUTION
OVERVIEW
Most products people in the industrialized nations use
today are turned out swiftly by the process of mass production,
by people (and sometimes, robots) working on assembly lines
using power-driven machines.
People of ancient and medieval times had no such
products. They had to spend long, tedious hours of hand labor
even on simple objects. The energy, or power, they employed
in work came almost wholly from their own and animals'
muscles.
The Industrial Revolution is the name given the
movement in which machines changed people's way of life as
well as their methods of manufacture.
BRITAIN: BIRTHPLACE OF THE INDUSTRIAL
REVOLUTION
Life for the average person was difficult, as incomes
were meager, and malnourishment and disease were common.
People produced the bulk of their own food, clothing, furniture
and tools. Most manufacturing was done in homes or small,
rural shops, using hand tools or simple machines.
Changes That Led to the Revolution
1. The invention of machines to do the work of hand tools;
2. The use of steam, and later of other kinds of power, in place
of the muscles of human beings and of animals; and
3. The adoption of the factory system.
The Industrial Revolution
• Machines were invented which replaced human labor.
• New energy sources were developed to power the new
machinery-water steam, electricity etc.
• Increase use of metals and minerals.
Starting in Britain and spreading through Europe
and North America, a period of rapid social and economic
change began, with widespread URBANIZATION.
INNOVATION AND INDUSTRIALIZATION
•Developments in the iron industry also played a central role
in the Industrial Revolution.
•In the early 18th century, Englishman Abraham Darby (1678-
1717) discovered a cheaper, easier method to produce cast
iron, using a coke-fueled (as opposed to charcoal-fired)
furnace.
•In the 1850s, British engineer Henry Bessemer (1813-1898)
developed the first inexpensive process for mass-producing
steel.
•Both iron and steel became essential materials, used to make
everything from appliances, tools and machines, to ships,
buildings and infrastructure.
• The steam engine was also integral to industrialization.
TRANSPORTATION AND THE INDUSTRIAL
REVOLUTION
• The transportation industry also underwent significant
transformation during the Industrial Revolution.
• In the early 1800s, American Robert Fulton (1765-1815)
built the first commercially successful steamboat, and by the
mid-19th century, steamships were carrying freight across the
Atlantic
SECOND INDUSTRIAL REVOLUTION
(TECHNOLOGICAL REVOLUTION)
Second Industrial Revolution is generally dated
between 1870 and 1914 up to the start of World War I.
SOCIO-ECONOMIC IMPACTS
The period from 1870 to 1890 saw the greatest
increase in economic growth in such a short period as ever in
previous history. Living standards improved significantly in
the newly industrialized countries as the prices of goods fell
dramatically due to the increases in productivity. This
caused unemployment and great upheavals in commerce and
industry, with many laborers being displaced by machines and
many factories, ships and other forms of fixed capital
becoming obsolete in a very short time span.
✔ THE FACTORY SYSTEM
• The factory system is a method of manufacturing using
machinery and division of labour.
• Because of the high capital cost of machinery and factory
buildings, factories are typically owned by capitalists who
employ the operative labor.
• Use of machinery with the division of labor reduced the
required skill level of workers and also increased the output
per worker.
✔ EFFECT OF THE FACTORY SYSTEM
•The factory system replaced the domestic system, in which
individual workers used hand tools or simple machinery to
fabricate goods in their own homes or in workshops attached
to their homes.
BY THE SECOND HALF OF THE 20TH CENTURY…
• Mechanization
• The modern factory was a well-lit, well-ventilated building
that was designed to ensure safe and healthy working
conditions
•The main advance in the factory system in the latter part of
the century was that of automation
Factory production became increasingly
globalized, with parts for products originating in different
countries and being shipped to their point of assembly. As
labor costs in the developed countries continued to rise,
many companies in labor-intensive industries relocated
their factories to developing nations, where both overhead
and labor were cheaper.
✔ EMPLOYER-EMPLOYEE RELATIONSHIP
What is Employee-Employer Relationship?
•When an employer hires a new employee, he is not just
bringing a new member of the workforce aboard; he is also
starting a new relationship. Because employers and employees
often work in close quarters, they necessarily develop
relationships.
✔ COMPLEXITIES OF EMPLOYER-EMPLOYEE
RELATIONSHIP CASES
•Managing these relationships is vital to business success, as
strong relationships can lead to greater employee happiness
and even increased productivity. To reap these benefits, keep
the dynamics of your employer-employee relationship in
mind.
• The idea of distinguishing between the classification of
employees and independent contractors seems relatively
simple; however, even the slightest oversight can lead to
costly mistakes for employers.
• There are three common law rules employers use to
determine the correct legal business relationship a worker has
with that company. Those rules analyze aspects such as
whether a company has any control over how the worker
performs his job, how the worker is compensated and whether
an employment contract was signed.
•Based on these criteria, the IRS recognizes four primary
types of business relationships: independent contractor,
employee, statutory employee and statutory non-employee.
• An employee, also known as a common-law employee, is
classified as such if the employer has any control over what
the worker does and how he performs the job. Employers must
withhold income taxes and pay Medicare, Social Security and
unemployment taxes for all of its employees. An example of
this type of relationship is an administrative assistant
employed by a marketing firm.
•Therefore, I conclude that “A happy workforce is a
productive workforce'. Creating a sound and efficient work
environment with good management and a strong employer-
employee relation can be the vital key to any business’s
success or failure.”
CHAPTER 3
THE LABOR ORGANIZATION Is a defined group of
employees formed for the purposes of representing those
employees with the employer as to the terms of a collective
contract of employment.
THE NEED FOR ORGANIZATION In order to be able to
help others, to be able to help more sentient beings. As an
individual, we can't do much. We need to be organized.
UNIONISM The policies and practices of labor unions,
particularly those concerned with protecting and furthering the
rights of workers.
UNION CONTRIBUTION AND EFFECTS Unions not
only improve workers' benefits, they also contribute to due
process and provide a democratic voice for workers at the
workplace and in the larger society.
STRUCTURAL ORGANIZATIONAL OF UNION Labor
unions are democratic bodies of workers, and they are set up
according to the philosophy and mission of the group. They
typically have their own constitution and related by-laws.
The organizational structure of a labor union usually
comprises of four main branches of governance: general
membership, executive board, executive officers and
committees.
THE LABOR ORGANIZATION ON THE
PHILIPPINES REGISTRATION
Under PD 442 of the Labor Code of the Philippines, as
amended, the DOLE is mandated to process the application for
registration of labor organizations in order for them to acquire
legal personality and to enjoy the rights given to legitimate
labor organization.
UNION REGISTRATION refers to the process of
determining whether the application for registration of a labor
union organized for collective bargaining, complies with the
documentary requirements prescribed under Rule 3 and 4 of
DOLE Department Order No. 40-03 and the rules
implementing Book V of the Labor Code, as amended.
RIGHTS OF LEGITIMATE LABOR ORGANIZATION
A legitimate labor organization shall have the right:
(a) To act as the representative of its members for the purpose
of collective bargaining;
(b) To be certified as the exclusive representative of all the
employees in an appropriate bargaining unit for purposes of
collective bargaining;
(c) To be furnished by the employer, upon written request,
with its annual audited financial statements, including the
 balance sheet and the profit and loss statement, within thirty
(30) calendar days from the date of receipt of the request, after
the union has been duly recognized by the employer or
certified as the sole and exclusive bargaining representative of
the employees in the bargaining unit, or within sixty (60)
calendar days before the expiration of the existing collective
bargaining agreement, or during the collective bargaining
negotiation;
(d) To own property, real or personal, for the use and benefit
of the labor organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the
organization and its members, including cooperative, housing,
welfare and other projects not contrary to law.
WHO MAY JOIN UNION? The following may join a labor
organization:
a) all employees employed in commercial, industrial and
agricultural enterprises and in religious, charitable, medical or
educational institutions whether operating for profit or not;
b) government employees in the civil service;
c) supervisory personnel;
d) security personnel; and,
e) aliens with valid working permit provided there are
nationals of a country which grants the same or similar rights
to Filipino workers as certified by the Department of Foreign
Affairs (DFA).
ULP ( UNFAIR LABOR PRACTICES )
✔UNFAIR LABOR PRACTICES- are actions taken by
employers or unions that are illegal under the
National Labor Relations Act (NLRA) and other labor laws.
Some of these rules apply to the interactions between the
employer and the union; others protect individual workers
from unfair treatment by an employer or union.
 THE UNFAIR LABOR PRACTICES BY
EMPLOYERS
The NLRA prohibits employers from:
 Interfering with an employee’s right to organize, join or
assist a union; engage in collective bargaining; or engage in
protected, concerted activities.
 Dominating or providing illegal assistance of support to a
labor union.
 Discriminating against employees to encourage or
discourage membership in a labor organization, or replacing
workers who strike to protect unfair labor practices.
 Retaliating against an employee for filling a charge with, or
giving testimony.
 THE UNFAIR LABOR PRACTICES OF LABOR
ORGANIZATION
 Prohibits a union from restraining or coercing employees as
they exercise their rights, such as the right to refrain from
concerted activity.
 Labor Union are prohibited from restraining and coercing
employers when the employee is exercising his or her rights.
 OPEN SHOP
 Also known as a Merit Shop.
 Membership Not Required.
 Is a place of employment at which one is not required to
join or financially support a union as a condition of hiring or
continued employment.
 CLOSED SHOP
 Illegal
 Exist where an employer agrees to hire only union workers.
FEDERATION OF LABOR UNION
Was a group made up of various craft and trade unions whose
goals were to gain collective bargaining powers for its
members so they could fight for better wages, hours, and
working conditions for skilled workers.
INTERNATIONAL LABOR ORGANIZATION
- A United Nations agency dealing with labor issues,
particularly international labour standards,
social protection, and work opportunities for all.
-----------------------------------------------------
CHAPTER 4
THE HUMAN ELEMENT IN AN INDUSTRIAL
ORGANIZATION
Every human being is the most important person in the
world. Every slight to his personal importance, every wound
to his pride, every insult to his dignity will find some way to
express itself. The slight may be unintentional, the wound
purely accidental, the insult resulting from mere carelessness;
but the effect on the employee will be felt and will seek to
make it heard. The employee wants his pride and dignity
respected.
Pride in work. Every self-respecting man takes pride in his
work. Pride in one’s work is a basic expression of individual
dignity. It is one of the most useful characteristics for
management to cultivate and develop.
Acceptance by Fellow Employees. He wants and needs the
acceptance and approval of his fellow employees. If the group,
with or without union intervention, has agreed to restrict
production to an agreed level, most employees will participate
in controlling output, in order to retain
the approval of fellow employees.
PROBLEMS OF EMPLOYEES (TWO KINDS)
1. Personal problems of employees relate to money, financing
mortgages, income tax, legal matters, personal or family
health, housing education of children and others.
2. Job-related problems relate to supervision, opportunities for
advancement, transfer, relocation wages and retirement
COUNSELLING is a means of getting people to do the right
things in their job and in their personal lives.
Two techniques in counselling
1. Directive counseling approach someone gives advice and
guidance.
2. Non-directive counselling approach the counselor gives
neither advice nor guidance but assists the other person to
work out solutions to their own problems.
Guidelines to follow:
1. Make the employees feel welcome and comfortable.
2. Let him talk.
3. Hear the problem.
4. Get the pertinent facts.
5. Don’t take sides.
6. Help Him gain insight into his problem.
7. Let him suggest the solution.
8. Conclude the visit.
GAMBLING COMPULSIVE. Is a progressive behavior
disorder that psychiatrists look upon as a serious emotional
illness.
GAMBLING CONSEQUENCES. Financial losses, daily
emotional strain, divorce, neglected children, broken home,
loss of sleep, poor work performance, bad debtors.
DISCIPLINARY PROGRAM
STEPS OR ACTIONS CONSTITUTE THEIR
DISCIPLINARY ACTIONS:
1. Reminder
2. Reprimand
3. Written warning
4. Suspension
5. Dismissal
6. Corrective action
7. Important guidelines to observe
REMINDER. The employee concern should be told of his
performance and reminded that unless he improves his work
performance, management may be forced to take stern
measures against him.
REPRIMAND. Whenever reprimand or criticism is necessary
on the part of company authorities, it should not be couched in
profane language.
WRITTEN WARNING. What applies to reprimand doubtless
applies also to written warning. In this case, a record is kept in
the 201 files of the erring employee.
SUSPENSION. It becomes necessary to suspend the erring
employee for a certain period of time to impress upon him the
severity of his mistake or its frequency.
DISMISSAL. When the employee is incapable of reform in
spite of number of chances given to him by management, it
might be necessary to terminate his services.
CORRECTIVE ACTION. Is a better term then disciplinary
action. It implies an attempt to cure a fault in work production
or attitude.
PROBLEM EMPLOYEES
-Are simply employees with problems. Their problems are
employee have little or no control over the situation. These are
the people in the workforce who have developed certain
physical, emotional, or psychological ills.
DISCIPLINARY ACTION
Areas of leadership, communication and motivation, is the
need for discipline in the industrial organization. Effective
personal administration requires maintenance of discipline
without which the organization is bound to fail.
DISCIPLINE DEFINED
Is positive when it prompts the individual to observe, and
adopt such ways and means deemed necessary to the
attainment of the goals and objectives of the organization to
which he is a member.
EMPLOYEE BEHAVIOR
- May affect the interests of the organization and as such must
be looked into with thoroughness and dispatch in order to
prevent their severe repercussions and the necessary remedial
measures be instituted as warranted under the circumstances.
ABSENTEEISM
When an employee fails to report for work, some time is
invariably lost until it is determined that he/she is absent.
TARDINESS (Two basic approaches used in dealing with
problem of tardiness)
1. Attempts to control through punishment or reward.
2. Acceptance a reward and punishment method means the
offenders are punished for being docked, or the non-offenders
are rewarded in some way over and above their usual pay.
ALCOHOLISM
- A medical condition in which someone frequently drinks too
much alcohol and becomes unable to live a normal and
healthy life.
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CHAPTER 5
 COLLECTIVE BARGAINING
 Is a processes of negotiation between employers and a group
of employee aimed at agreement to regulate working salaries,
working condition, benefits, and other aspects of workers
compensations and rights
 VIEW OF COLLECTING BARGAINING
 Collective bargaining first used in 1891 by Beatrice Webb
 Founder of the field of industry in Britain
 The National Labor Relation Act of 1935 made it illegal for
any employer to deny union rights to an employee.
 The public-sector trade union was much more controversial
until the 1950s in 1902
 President John F. Kennedy issued an executive order granting
Federal employees the right to unionize
 INDIVIDUAL VS. COLLECTIVE
BARGAINING
Collective bargaining relates to group bargaining as opposed
to individual bargaining about wages and conditions of work.
Flanders has pointed out a member of differences between
collective and individual bargaining
 Individual bargaining is about buying and selling of a
particular commodity whereas an agreement on the condition
under which buying or selling will take place
 Individual bargaining usually stipulates the term and
conditions of trade in detail, whereas in collective bargaining
only the minimum terms and conditions are specified.
 Individual bargaining is essential a market activity
whereas collective bargaining is essentially a political
activity
 STRENGTH OF COLLECTIVE BARGAINING
 collective bargaining is a political rather than economic
activity, different factors have to be taken into account
 Collective bargaining unlike individual bargaining is not
restricted to a discussion of economic matter but is
concerned with other issues.
 PROCEDURES OF COLLECTIVE BARGAINING
 The collective bargaining process involves five core steps:
 Preparation – choosing a negotiation term and
representatives of both the union and employer both parties
 should be skilled in negotiation and labor laws, and both
examine available information to determine whether they
have a strong standing for negotiation.
 Discussion – both parties meet to set ground rules for the
collective bargaining negotiation process.
 Proposal – both representatives make opening statements,
outlining options and possible solutions to the issue at hand.
 Bargaining - following proposals, the parties discuss
potential compromises, bargaining to create an agreement
that is acceptable to both parties. This becomes a “draft”
agreement , which is not legally binding, but a stepping
stone to coming to a final collective bargaining agreement.
 Final Agreement – Once an agreement is made between the
parties, it must be put in writing, signed by the parties, and
put into effect.
NEGOTIATING IMPORTANT ISSUES
Related Legal Terms and Issues:
 Coercing – persuading or forcing a person to do something
through the use of manipulation or threats.
 Dues - The cost of membership when a person join a union
or club does many be required weekly, or annually.
 Grievance – a formal complaint filed by an employee or
agent some employers or agencies have specific procedures
that must be followed.
 Independent contractor – a person who agrees to do work
for someone else using his own methods.
 layoff – a permanent or temporary discharge of employees.
 strike – the act of employees organizing and protesting
employment practices in an attempt to induce changes.
 Union – an organized group of employees that is formed to
protect workers from unfair labor practices.
 NEGOTIATION TECHNIQUE OR PROCEDURE
Negotiation committee be from three to six members
Procedure for negotiation for the union management.
 Be friendly in negotiation and introduce everybody to
relieve the existing tension
 Be willing to listen.
 Give everyone an opportunity to state his position and point
of view.
 Always bear in mind the fact that you have to do what is
right and fair.
 Both parties should strive to maintain an objective approach
to a problem or grievance.
 CONTENT OF LABOR CODE
-where job specifications, responsibilities and benefits of
employees are written.
---At least the following matters are generally recorded in the
contract of employment:
1. The parties to the contract of employment
2. The date of commencement of work
3. Whether the contract is valid for the present of fixed term
4. Probationary period & its duration
5. Place of work
6. Duties
7. Remuneration & its method of payment
8. Working hour
9. Annual holidays & holiday pay
10. Period of notice
11. Mention of the collective agreement that the contract of
employment observes
 CERTIFICATE OF ELECTION
is the most democratic and expeditious method by which the
laborers can freely determine the union that shall act as their
representative in their dealings with the establishment where
they are working
 APPEAL ON CERTIFICATE OF ELECTION
-Orders if there’s a member in the board of directors or
trustees who sees any violation in the law in any elected
officer.
-for instance; if there’s a board of directors who is being
elected is not qualified for her his position there will be some
irregularities happen. It is primarily based on the laws they
have. So technically appeal is came from entity?
CHAPTER EXTRA
LABOR RELATIONS
Labor relations is the practice of managing and maintaining
relationships with employees organized by labor unions,
including the establishment, negotiation, and administration of
collective bargaining agreements.
--THE NATIONAL LABOR CODE--
-WAGNER ACT OF 1935
National Labor Relations Act
-TAFT-HARTLEY ACT OF 1947
Labor Management
Relations Act
-LANDRUM-GRIFFIN ACT OF 1959
Labor Management
Reporting and Disclosure Act
WAGNER ACT 1935
Regarded as the most important labor law, the act was passed
to:
1. Protect employees and employer rights
2. Encourage collective bargaining
3. Control labor activities
EMPLOYEE RIGHTS
The specific rights provided under Section 7 of the NLRA to
employees include the following rights:
• To attempt to or form a union at their workplace.
• To join a union, even if it's not recognized
• To assist in union-organizing efforts
• To engage in group activities (collective activity)
• To refuse to do any or all of the above
CONCERTED ACTIVITY
Concerted activity exists when two or more employees act
together to try to improve working conditions, or when a
single employee approaches management after conferring with
other employees on their behalf or is acting on behalf of other
employees.
UNFAIR LABOR PRACTICES
Denying rights to employees are known as ULPs and are
prohibited by Section 8 of the NLRA:
• Interfering with employees' rights
• Interfering with the formation of labor organization
• Discriminating against employees involved
• Discharging because of action under the Act
• Refusing to bargain collectively
NATIONAL LABOR RELATIONS BOARD [NLRB]
Agency of the United States government that was created by
Congress to administer the NLRA. The agency has two main
functions:
1. Prevent and remedy unfair labor practices.
2. Decide whether groups of employees want labor union
representation.
TAFT HARTLEY 1947
• NLRA perceived to give too much to unions
• Act protects employee rights and make NLRB more
impartial
• Employees cannot be forced to join a union
LAN- DRUM GRIFFIN 1959
• Protects union members from abuse
• Sets responsibilities of union officers
• "Bill of Rights" that gives union members free speech, due
process, right to sue
 COLLECTIVE BARGAINING Bilateral negotiations
between labor and management teams over wages, terms,
and conditions of employment.
1. MANDATORY BARGAINING SUBJECTS-
Mandatory bargaining subjects are those that directly
relate to the NLRA stipulation:
• Wages
• Hours
• Merit Increases
• Health and Welfare
• Discharge
• Grievance
• Discipline
• Seniority
• Promotions
• Work Assignments
2. POSITIONAL BARGAINING- Negotiations often take
the form of positional bargaining:
• Parties bargain from their separate opening positions to agree
on one position
• Does not tend to produce good agreements
• Agreements tend to neglect the parties' interests
 NEGOTIATION
PRINCIPLED NEGOTIATION- Provides a better way of
reaching good agreements. There are four elements:
• Separate people from the problem
• Focus on interests rather than positions
• Generate a variety of options before settling
• Agreement based on objective criteria
 GRIEVANCE- A dispute over an interpretation or
application of a provision of a labor agreement.
 MEDIATION- Method of resolving disputes by
employing a neutral third party to assist in reaching an
agreement.
 ARBITRATION -Method of resolving labor disputes by
employing a neutral third party, an arbitrator, to review the
facts and make a binding decision.
STATUTORY LABOR POLICY
Labor policy assumes that employers have power and workers
do not.
The Labor Policy Association, a nonprofit association of
corporate human- resources executives, recently surveyed 123
Fortune 500 companies.
INCOME TAX & SOCIAL SECURITY IN THE
PHILIPPINES
• The Philippines' Tax Year runs from 1st January to 31st
December. There are four statutory social security obligations
that both Employees and Employers are obliged to adhere to
under Philippine Law: the monthly Social Security,
PhilHealth, and Pag-IBIG Fund (HDMF) contributions from
the Employee's' salary, together with the Employer's share of
contributions.
INCOME TAX IN THE PHILIPPINES
•Withholding Tax
•Every employer is required to deduct and withhold taxes on
employees' compensation in accordance with Philippine Law.
Consequently, personal income tax is collected from the
employee through payroll, and the employer acts as the
withholding agent.
SOCIAL SECURITY IN THE PHILIPPINES
• SSS is a privatized social insurance program established to
protect members and their families against the hazards of
disability, sickness, maternity, old age, death and other
contingencies resulting in loss of income or financial burden.
All private employees and employers are compulsorily
covered under this program. The Social Security premiums of
both the employee and employer will vary depending on the
employee's monthly compensation bracket. Employers must
deduct the Social Security contributions from the employee's'
salary and remit these contributions, together with the
employer's share of contributions, to the SSS or any accredited
banks.
AN SSS EMPLOYEE-MEMBER SHOULD:
• Secure their SS numbers;
• Ensure that they are reported for coverage under the SSS by
their employers;
• Pay their monthly share of contributions and ensure that
these contributions are remitted to the SSS by their employers;
• Submit to their employer their SSS Salary Loan Voucher or
Statement if any, to commence loan amortization deductions
from their monthly payroll.
• Ensure that the employer has done the necessary ML2
posting
AN EMPLOYER IS OBLIGED TO:
• Require the presentation of the SSS number of a prospective
employee;
• Report all employees for SSS coverage within thirty (30)
days from the date of employment | Deduct from employees
monthly SSS contributions based on the schedule of
contributions;
• Submit a summary of all employees' contributions
• Ensure that Monthly SSS Electronic Collection Lists, along
with Payment Reference Number where employees' names are
included, are submitted to the SSS with payment.
•Take responsibility for the collection and remittance to the
SSS (through payroll deduction) of the amortization due on
the member-borrower's salary loan.
PHILIPPINE HEALTH INSURANCE CORPORATION
(PHIC)
• The Philippine Health Insurance Corporation popularly
known as PhilHealth is a government funded Health Care
system in the Philippines. It was established to administer the
National Health Insurance Program which prioritizes the needs
of the underprivileged, sick, elderly and disabled, and of
women, and children.
• Both Employers and Employees are required to contribute to
the PHIC equally, based on the employees' monthly salary.
Employers must deduct the monthly PhilHealth contribution
from employees' salaries and remit it, together with the
employer's portion, to PhilHealth.
EMPLOYEE BENEFITS
• 13 Month Pay: A financial benefit given to non-senior
employees who have worked for at least one month -
amounting to 1/12 of their employee's annual salary.
• Night Shift Differential: A night shift differential of at least
10% of an
employee's regular wage is given for each hour of work
performed between 10pm and 6am.
LEAST 10% OF AN EMPLOYEE'S REGULAR WAGE
IS GIVEN FOR EACH HOUR OF WORK PERFORMED
BETWEEN 10PM AND 6AM.
• Performance bonuses
• Employee Share Schemes (ESS)
• Enhanced medical insurance or healthcare
• Company car
• Company phone/laptop/tablet
• Travel allowance
• Meal vouchers
• Work from home/flexi-time plans
• Career development options
• Global mobility options
• Access to gym/leisure facilities
• Children's educational stipend
LEAVERS IN THE PHILIPPINES
| Final payment will be given to leaving employees 30 days
after completion of clearance.
Employers have a responsibility to notify SSS, PHIC, and
HDMF of an employee's resignation within 30 calendar days
from the date of separation.
PAYROLL
Employers in the Philippines must observe a range of payroll
compliance regulations, which include monthly withholding
obligations. The three main statutory contributions deducted
from employee salaries each month are:
• Social Security: General social insurance covering sickness,
disability, maternity and old age.
• PhilHealth: The Philippine Health Insurance Corporation
scheme aims to provide access to quality medical and health
care services for all employees.
• Home Development Mutual Fund: A housing program
designed to provide short term loans and access to housing
programs for all workers in the Philippines.
HOW DO YOU CALCULATE LATE PAY?
• To compute for the deduction for absences, tardiness and
undertime, multiply the hourly rate of the employee against
the # of hours for absences, late and undertime. There are two
ways to get the hourly rate of a monthly-rate employee:
Monthly Rate x 12 / # Working Days per Year / # Working
Hours per Day.
WILL I GET MY SALARY IF I RESIGN?
• If the employee doesn't give proper notice and you choose to
hold her to the contract, then the contract terminates after the
full period of the notice. You will get your salary as you get in
normal course. But, if you resign without serving the notice
period, then the company is entitled to recover the notice pay.
SERVICE INCENTIVE LEAVE (SIL)
• An employee who has rendered at least one year of service
shall be entitled to a yearly service incentive leave of five days
(5) with pay.
• The service incentive leave does not apply to those
employees enjoying vacation leave of at least five days with
pay. Moreover, unused service incentive leave shall be
converted to cash.
MATERNITY LEAVE
• A female employee who has paid at least three (3) monthly
contributions in the twelve month period immediately
preceding the semester of her birth to the SSS, shall be paid a
daily maternity benefit equivalent to one hundred percent
(100%) of her average salary credit for sixty (60) days or
seventy- eight (78) days in case of caesarean delivery but it
has conditions.
PATERNITY LEAVE
• Paternity Leave refers to the seven (7) days with pay leave
granted to a married male employee for the purpose of
allowing the husband to help and assist his wife during
childbirth, recovery and nurture of the infant. • A married male
employee may be able to avail of this leave for the first four
(4) deliveries or miscarriage of his legitimate spouse with
whom he is cohabiting. It is incumbent upon the male
employee to notify his employer of the pregnancy of his
legitimate spouse and the expected date of such delivery.
-------------------------------------------By: J.M.E.O.------