Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Labor Standards and Relations Based on the outline of Professor D.P. Disini, Jr. I. Introduction Labor Law_ It is the law governing the rights and duties of ER and EE [a] with respect to the terms and conditions of employment, and [b] with respect to labor disputes arising from collective bargaining respecting such terms and conditions. 3 Branches 3 branches: 1. Labor Standards 2. Labor Relations 3. Welfare Legislation Labor Standards -generally binding and valid on the parties and must be complied with until finally revised/amended unilaterally or preferably through negotiation by competent authority (unless shown to be grossly oppressive or contrary to law) China Banking Corporation v. Borromeo, 440 SCRA 622 (2004) WON Labor Case Lapanday Agricultural Development Corporation v. CA, 324 SCRA 77 (2001) [a] presence of ER-EE relationship [b] theres a violation of the Labor Code (LC). Other than these, it is not a labor case. LC is the regulatory law; there must be strict interpretation. Management Function/ Management Prerogative - It is the employers prerogative to prescribe reasonable rules and regulations necessary or proper for the conduct of its business or concern to provide certain disciplinary measures to implement said rules and to assure that the same be complied with. At the same time, it is one of the fundamental duties of the employee to yield obedience to all reasonable rules, orders, and instructions of the employer, and willful or intentional disobedience thereof, as a general rule, justifies rescission of the contract of service and the preemptory dismissal of the employee. Gustilo v. Wyeth Philippines Inc., 440 SCRA 67 (2004) -The Court has always respected a companys exercise of its prerogative to devise means to improve its operations. Thus, it has held that management is free to regulate, according to its own discretion and judgment, all aspects of employment, including hiring, work assignments, supervision and transfer of employees, working methods, time, place and manner of work Philcor Employees Union v. Phil.Global Communications, 495 SCRA 214 (2006) Limitations to Management Prerogative
Labor standards provide the working conditions of employees, including entitlement to overtime pay and premium pay for working on rest days. Penaranda v Baganga Plywood Corp., 489 SCRA 94 (2006) Labor standards refers to the minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost of living allowance and other monetary and welfare benefits, including occupational, safety and health standards. Batong Buhay Goldmines Inc v dela Serna, 312 SCRA 22 (1999)
Basis for Enactment of Labor Law 1. The Constitution Art.II.5(1987 Consti): The maintenance of peace and order, the protection of life, liberty, and property, and promotion of the general welfare are essential for the enjoyment by all the people of the blessings of democracy. Art. II.18 (1987 Consti): The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. 2. Police Power: The [SSS Law] implements the general welfare mandate of the Constitution and constitutes a legitimate exercise of the police power of the State. CMS Estate Inc v Social Security System, 132 SCRA 106 (1984) Sources of Law A. Labor Code, IRR B. Contract -The MOA, being a contract freely entered into by the parties, now constitutes as the law between them, and the interpretation of its contents purely involves an evaluation of the law as applied to the facts herein. Kasapian ng Malayang Manggagawa sa Coca-Cola v. CA C. CBA -The CBA is the norm of conduct between the parties and compliance therewith is mandated by the express policy of the law. DOLE Phils. v. Pawis ng Makabayang Obrero, 395 SCRA 112 (2003) D. Past Practices (company practices) Requisites to be a source of rights and obligations 1. freely, voluntarily and continuously given within a considerable length of time Davao Fruits Corp v Associated Labor Union, 225 SCRA 562 (1993) 2. not just a single instance (not granted only once) Samahang Manggagawa etc. v. NLRC, 295 SCRA 171 (1998) 3. should have been done over a long period of time and must be shown to have been consistent and deliberate (American Wire and Cable Daily Rated Employees Union v. American Wire and Cable Co, Inc., 457 SCRA 684 (2005) 4. not be by reason of a strict legal or contractual obligation, but by reason of an act of liberality on the part of the employer Pag-asa Steel Works, Inc. v. CA, 486 SCRA 475 (2006) E. Company Policies
1. 2.
Law, CBA, fair play and justice DOLE Philippines, Inc. v. Pawis, 395 SCRA 112 (2003) Even as the law is solicitous of the welfare of employees, it must also protect the rights of an employer to exercise what are clearly management prerogatives. As long as the companys exercise of those rights and prerogatives is in good faith to advance its interest and not for the purpose of defeating or circumventing the rights of employees under the laws or valid agreements, such exercise will be upheld. Valiao v. CA, 435 SCRA 543 (2004)
Compromise and Waiver Periquet v NLRC, 186 SCRA 724 (1990) 1. The law frowns upon waivers and compromise as a general principal because it is subject to abuse (Law recognizes that the situation is not of even or equal terms bet. ER and EE. Principle is grounded on fair play) 2. But not all C & W are void or contrary to law (Labor law not meant to oppress ERs. Just as it protects EEs, it also protects ERs. Theres a shared responsibility: EEs right to the fruits of their labor, and Ers rights to the return of their investment) 3. There is a test to determine the validity of C & W: [a] Voluntarily entered into [b] Proximate equality, no moral ascendancy over the other [c] Amount is reasonable and not unconscionable II. Labor and Constitution Labor Sector -characterized as the primary social economic force [ArtIi.18, 1987 Constitution) Protection of Labor_ 7 basic rights of labor under ArtXIII.3right to
Social Justice [ArtXIII.1) -humanization of laws and the equalization of social and economic forces by the State so that justice in its rational and objective secular conception may at least be approximated Calalang v. Williams, 70 Phil 726 (1940) -Limitation: not intended to countenance wrongdoing simply because it is committed by the underprivileged. Compassion for the poor is an imperative of every humane society but only when the recipient is not a rascal claiming an undeserved privilege PLDT v. NLRC, 164 SCRA 671 (1988) Management and the Constitution GR: Consti protect and promote welfare of EE X: when the ER is right (EE wrong). -Law, in protecting rights of labor, authorized neither oppression nor self-destruction of an employer company which itself is possessed of rights that must be entitled to recognition and respect Dayan v BPI, 369 SCRA 712 (2001) -Constitutional policy for full protection of labor is not a sword to oppress employers. Agabon v. NLRC, 442 SCRA 573 (2004) Labor as Property -A workers employment is property in the constitutional sense. He cannot be deprived of his work without due process. Asuncion v. NLRC, 362 SCRA 56 (2001) Due Process Requirements Ang Tibay v. CIR, 59 Phil 635 (1940): Procedural Due Process Requirements 1. Right to a hearing. Includes the right of a part to present his own case and submit evidence in support thereof. 2. The tribunal must consider the evidence presented. 3. Decision must be supported by evidence. 4. Evidence must be substantial; i.e. more than a mere scintilla, such relevant evidence as a reasonable mind might accept as adequate to support a conclusion, even if other minds equally reasonable would opine otherwise. 5. Decision must be rendered on the evidence presented at the hearing or at least contained in the record and disclosed to the parties affected. Only by confining the administrative tribunal to the evidence disclosed to the parties, can the latter be protected in their right to know and meet the case against them. 6. Independent consideration of judge. Must not simply accept the views of a subordinate in arriving at a decision. 7. Decision rendered in such a manner as to let the parties know the various issues involved and the reasons for the decision rendered. + 8. a tribunal so constituted as to give him reasonable assurance of honesty and impartiality, and one of competent jurisdiction Air Manila Inc. v. Balatbat 9. specially for termination cases: twin notice rule Agabon v. NLRC, 442 SCRA 573 (2004) Liberty of Contract and State Interference
any person compulsorily covered by the GSIS under Commonwealth Act Numbered One hundred eighty-six, as amended, including the members of the Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, substitute or contractual, or any person compulsorily covered by the SSS under Republic Act Numbered Eleven hundred sixty-one, as amended. any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless the Code so explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other
1.
boundary system: The fact that the driver does not receive fixed wages but only the excess of the boundary given to the owner/operator is not sufficient to change the relationship between them. Indubitably, the driver performs activities which are usually necessary or desirable in the usual business or trade of the owner/operator. The existence of an employment relation is not dependent on how the worker is paid but on the presence or absence of control over the means and method of the work. Villamaria v. CA, 487 SCRA 571 (2006) Commissions: payment of compensation by way of commission does not militate against the conclusion EER exists. Under Art.97 of LC, wage shall mean however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, price or commission basis. Insular Life Assurance Co v. NLRC 1998
2.
Hours of Work
5.
6.
1.
2.
7.
X: -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 (Project employee) -service to be performed is seasonal in nature and the employment is for the duration of the season (seasonal employees) Special Rules Project employees *A280: (1) For a specific project or undertaking; (2) completion/termination determined at time of engagement *immaterial if the employment lasts longer than 1 year: length of service is not controlling for project employees. Even if service renewed, if every time renewed, they had a contract for a specific term or duration Palomares v. NLRC, 277 SCRA 439 (1997) *if dismissal unjustified + before expiration of the term, the project EE should be paid his salary for the unexpired portion of his contract. AM Oreta & Co v. NLRC, 176 SCRA 218 (1989) *the project and principal business must be separate and distinct from each other ALU-TUCP v. NLRC, 234 SCRA 678 (1994) Casual Empolyees TEST: not the employment contract, but the nature of the job (if usually necessary or desirable to the main business of the ER, EE regular employee AM Oreta & Co v. NLRC, 176 SCRA 218 (1989) *If more than 1 year in service: status of regular employment attaches to the casual worker on the day immediately after the end of his 1st year of service Kimberly v. Drilon, 185 SCRA 190 (1990) *On janitorial and messengerial services: may be considered directly related to the business, BUT they are deemed necessary San Miguel Corp v. Abella, 461 SCRA 392 (2005) Fixed term employment Brent v. Zamora Doctrine 1. Fixed term employment is valid. Nothing in the law prohibits fixed term employment, provided, that it does not intend to circumvent the law on tenurial security 2. 2 requisites for validity: (a) entered knowingly and voluntarily by the parties without any force, duress or improper pressure (b) ER and EE dealt with each other on more or less equal terms, no moral dominance over the other
shall not exceed 6 months from date the employee started working (unless apprenticeship for a longer period). 6 month period = 180 days Mitsubishi v. Chrysler Labor Union, 433 SCRA 206 (2004) services may be terminated for just cause
b.
when EE fails to qualify as a regular EE in accordance with reasonable standards made known by ER to EE at the time of his engagement *termination may be done even before the end of the probationary period, International Catholic Migration Commission v. NLRC, 169 SCRA 508 (1989)
3. 4.
ER has obligation to inform the EE of the reasonable standards to qualify as regular EE Mitsubishi v. Chrysler Labor Union, supra. if allowed to work after the probationary period, shall be considered a regular EE Holiday Inn Manila v. NLRC, 226 SCRA 417 (1993)
Exceptions to the 6-month rule: *Buiser v. Leogardo (salesrep case), 131 SCRA 151 (1984): 6month rule may be extended provided: 1. parties agree so 2. longer period necessary to learn the nature of the work to be performed * probi EE may become a regular EE even before the 6 months had lapsed. International Catholic Migration Commission v. NLRC, supra * Mariwasa v. Leogardo, 169 SCRA 465 (1989): 6-month period may be extended, provided: 1. absence of any indication that the extension is a mere stategem of the ER to avoid the legal consequences of a probi period satisfactorily completed 2. written consent of the EE 3. EE wanted the extension to improve his performance and to qualify for regular employment *Absorbed employees (merger of companies, EEs of the absorbed company absorbed into the newer company) -cannot be considered probi: they were already well-trained in their respective functions Cebu Stevedoring v. Regional Director, 168 SCRA 315 (1988) -no double probation: if probi before then became a regular EE, then absorbed to another company, cannot be subjected to another probi employment. A Prime Security Services v. NLRC, 322 SCRA 283 (2000) *Private School Teachers -rehired successively for continuous years + teach full time + service satisfactory = regular teachers (manual of regulation for Private Schools) *IRR:
2.
Covered: EEs in all establishments and undertakings, whether for profit or not. (Sir: All EEs in private sector) NOT Covered: Governmentt EEs, Managerial EEs, Field Personnel, Members of ERs family dependent upon for support, Domestic helpers, Persons in personal Service of another, Piece worker Note: If Piece worker earns less than minimum wage, then hes paid the minimum wage *Managerial EE primary duty consists of mgt of establishment, includes members of managerial staff *Field Personnel non-agricultural EE who regularly perform duties away from principal place of business and whose actual hours of work in the field cannot be determined with reasonable certainty. TEST to determine if Field Personnel:
Qualifications Sec12 employment of children below 15yo 1. when child works directly under sole responsibility of parents/legal guardian -only members of employers family employed -provided: a. no danger b. provide with education 2. public and entertainment/info (cinema, theater, radio, tv) -DOLE permit -concluded by parents -express agreement by child -prevent child exploitation, discrimination -continuing program for training and skills acquisition Terms and Conditions A61 1. max. 6 months 2. min 75% below min. wage 3. apprenticeship program approved by DOLE A72 (OJT): without compensation Costs: A71 -ER may deduct costs of training expenses from taxable income provided: a. apprenticeship program recognized by DOLE b. deduction shall not exceed 10% of direct labor wage c. pay apprentice min. wage (not 75% of the min wage) B. Learners 1. trainees in a. semi-skilled b. other industrial occupation (non-apprenticeable) 2. Learnership program APPROVED by authority 3. can only be hired when (A76(b)): a. no experienced worker available b. employment necessary to prevent curtailment of employment opportunities c. employment doesnt create UNFAIR COMPETITION in terms of labor costs/impair/lower working standards 4. the contract should include (A75): a. names and addresses b. duration (maximum of 3 months) c. wages: minimum 75% of applicable min. wage d. commitment of ER to hire learners as regulars 5. would be deemed as regulars if: worked first 2 months, terminated before end of stipulated period, no fault on learner C. Handicapped Workers - If qualified, handicapped workers may be considered apprentices or for apprenticeship -should be given the same terms and conditions of a qualified able-bodied person. Should be paid full compensation, like a regular EE, Bernardo v, NLRC, 310 SCRA 186 (1999) VI. Conditions of Employment A. Hours of Work Coverage A82
1. 2.
not under the effective control and supervision of the ER Merdicar Fishing Corp. v. NLRC, 297 SCRA 440 (98) number of hours spent working cannot be reasonably ascertained Union of Filipro Employees v. Vivar, 205 SCRA 200 (1992)
Normal Hours of Work (A83): 8 hours max Health personnel GR: 8 hrs, 5 days/wk (40 hrs) X: 8hrs, 6 days/wk (48 hrs) entitled to min 30% of regular wage on 6th day Compressed Work Week: Requisites (a) the employee voluntarily agrees to it (b) there is no diminution in their weekly or monthly take home pay or fringe benefits (c) The benefits are more than or at least commensurate or equal to what is due the employees without the compressed work week. (d) overtime pay will be due and demandable when they are required to work on those days which should have ceased to be working days because of the compressed work week schedule. (e) no strenuous physical exertion or that they are given adequate rest periods (f) it must be for a temporary duration as determined by the department of labor Hours worked (to be compensable) (A84): includes a. EE required to be on duty b. EE suffered or permitted to work Travel time, when beneficial to ER Rada v. NLRC, 205 SCRA 69 (1992) i. travel from home to work: if on call and required to travel ii. all in the days work: traveling is the principal activity, regardless of contract, custom, practice iii. travel away from home: cuts across EEs workday *Not counted when: (Luzon Stevedoring v. Luzon Marine Department Union, 101 Phil. 257 (1957)) i. EE ceases to work; ii. EE may rest completely; iii. EE may leave at his will the spot where he actually stays while working to go somewhere else. iv. when work is broken/not continuous NDC v. CIR, 6 SCRA 763 (1962)
c. d.
a)
viii.
2.
3.
EE died: pay wages to heirs ER authorized in writing by EE to pay wages to a family member 4. payment to another person authorized by law + in writing Non-interference (A112) -ER cannot interfere with freedom of EE to dispose wages -EE cannot be compelled to purchase from ER Wage Deduction (A113) GR: ER cannot make deductions from EEs wages X: -insurance premium -union check-off -when ER authorized by law or SOLE regulations -with written authorization from EEs, ER not pecuniary benefit Unlawful deductions/ Withholding/ Deposits 1. Deposits for Loss or Damage (A114) GR: no deposit for reimbursement of loss of or damage to tools, materials, or equipment supplied by the employer X: -ER engaged in trades, occupation or businesses with recognized practice of making deductions or requiring deposits -deductions/deposits necessary or desirable as determined by SOLE *if deposit for actual amount paid by EE, EE should have been heard + his responsibility clearly shown (A115) 2. Witholding Wages and Kickbacks (A116): unless with the EEs consent 3. deduction to ensure employment (A117)
d.
regardless if accepted or not -ER has duty to prevent it, provide procedures for settlement -ER liable if failed to act/no immediate action done even if informed of the act XI. Minors (RA 7610) *children: below 18/ above 18 but cant fully take care of themselves *Child abuse: -maltreatment -habitual/not *working children: if BELOW 15: Cant be employed unless: -works directly under sole responsibility of parents, only ERs family employed -works in publicentertainment/onfo *Work permit should be first secured from DOLE *Nonformal education program should be provided *Cant employ child models for: -alcoholic beverages -intoxicating drinks -tobacco and by-products -violence XII. Househelpers *Coverage (A141): -service in ERs home (if works in corporations resthouse and recreational facilites for use of top executives and clients of the corporation, not domestic employees Apex Mining Co. Inc vs. NLRC, 196 SCRA 251 (1991) -usually necessary/desirable for MAINTENANCE/ENJOYMENT thereof -includes MINISTERING TO THE PERSONAL COMFORT AND CONVENIENCE of members of ERs household -includes services of family drivers *Period of Contract: 2 years, renewable *Minimum Wage (A143), minimum cash wage = basic cash wage + lodging, food and medical attendance (A144) *non-household work (commercial/industrial/agricultural): should be paid higher salary rate than agricultural/nonagricultural workers (A145) *Opportunity for education (A145): -below 18 years -opportunity for at least elementary education -cost of education: part of compensation, unless contrary stipulation *Treatment of Househelpers: -just and humane manner, no physical violence (A147) -furnish with free suitable and sanitary living quarters + adequate food + medical attendance (A148) *domestic househelpers EXPRESSLY EXCLUDED from coverage of OT, holiday pay, premium pay, SIL (A82) XIII. Homeworkers ER (155): 1. delivers/cause to be delivered any goods to be processed/fabricated, returned to be disposed/distributed 2. sell goods, articles, have same processed/fabricated/rebuys Industrial Homeworker: work for an ER/contractor is carried out by a Homeworker at his/her home -materials may/may not be furnished XIV. Termination of Employment Coverage (A278): -all establishment -for profit or not *for contract employees: security of tenure only to a limited extent: during period of time their respective contract of
4.
employment remained in effect :Labajo v. Alejandro, 165 SCRA 747 (1988) *Probationary employees: enjoys security of tenure (Skillworld Management and Marketing Corporation v. NLRC 186 SCRA 465 (1990): -during the probationary period -before the contract expires A. Termination of Employment by the EE Causes: a. just cause (285b): -without serving notice: 1. serious insult by employer of honor and person of employee 2. inhuman and unbearable treatment 3. commission of a crime/offense 4. analogous causes b. w/o just cause (288a) -serve written notice at least 1month in advance