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Resource Speaker:
Disclaimer
This seminar will not make you instant lawyers
or experts in Labor Law.
This is not a comprehensive study of the entire
field of Labor Law.
The study of Labor Law is not a one-time
course or undertaking.
This seminar needs focus and attention from
participants, with some amount of interest in
law in general, and Labor Law in particular.
Classification of Labor
Law
Labor Relations
Labor Standards and Social Legislation
Terms and Conditions of Employment
Test of Employment
Four-fold Test (or the 4 Elements):
SELECTION AND PLACEMENT
PAYMENT OF WAGES
POWER OF DISMISSAL
POWER OF CONTROL
What is Management Prerogative?
Control Test
The power of one party to determine, not
only the end result of the work, but also the
manner of doing the work is the POWER OF
CONTROL.
Only an employer has the power of control
over his employees.
Illustrations:
Job contracting arrangements.
Independent contracting arrangements.
Classification of
Employees
Based on Employer: Civil Service and non-Civil
Service (including Private and Employees of GOCCs).
Based on Security of Tenure: Regular and NonRegular.
Based on Function: Rank-and-file and Non-rank-andfile (including Managerial, Confidential & Supervisory).
Based on Nature: Agricultural and Non-Agricultural.
Based on Time and Motion: Field Personnel, PieceRate, Task-based, Domestic & Personal Assistants, etc.
Labor Standards
The minimum requirements of law with respect to
hours of work, rates of pay, and other terms and
conditions of employment is Labor Standards.
Constitutional Right to Humane Conditions of Work
and to a Living Wage.
Rule It is prohibited to have terms and
conditions of employment lower than what
the law provides.
What are the consequences of non-compliance with
Labor Standards?
Labor Standards
Updates
Download from the Bureau of Working Conditions
website:
Handbook
of
Workers
Statutory
Monetary
Benefits,
2012
Edition
(updated as of January 10, 2012)
Other government websites:
Labor Standards
Updates
Download from the National
Productivity Commission website:
Wages
and
Labor Standards
Benefits
1. Minimum Wage
2. Holiday Pay
8. Maternity Leave
Labor Standards
Benefits
13. 13th Month Pay
14. Separation Pay
15. Retirement Pay
16. Employee Compensation (ECC) Benefits*
17. PhilHEALTH Benefits*
18. SSS Benefits*
19. PagIBIG Benefits*
(May 17,
June 3, 2012:
Old COLA Integration to Basic Wage: P22 + P404
= New Basic Wage: P426
New COLA: P20
New Minimum Wage: P426 + P20 = P446
November 1, 2012:
Add P10 to New COLA: P30 + P426 = P456
Exception:
Basic Wage: P389. Add Effective COLA (P20/P30)
= Minimum Wage: P409/P419.
Sector: Agriculture, Private Hospitals with bed
capacity of 100 or less; Retail/Service Establishments
employing 15 workers or less; and Manufacturing
Establishments employing 9 workers or less in NCR.
Minimum Wage
(Region IV-A)
Rule: Wage Order No. IVA-15 (effective May 15, 2012)
Minimum Wage
Other Exceptions:
Civil Service (Government) under Civil Service Law.
Househelpers, including family drivers and workers
in the personal service of another under RA 7655
(P800/P650/P550). (Recently, Kasambahay Law
gave
househelpers
a
minimum
wage
of
PhP2,500.00
Barangay Micro Business Enterprises (BMBEs)
under DTI and LGU guidelines.
Distressed Establishments, but only for a period
not exceeding 1 year under NWPC guidelines.
Minimum Wage
More Exceptions:
Reduced working hours, i.e Underemployed or
those working less than 8-hours of work per day.
Reduced working days, i.e. Shortened workweek.
Workers paid be results i.e. They should be paid
not less than the minimum wage rate
proportionate to the number of working hours
they actually rendered.
Apprentices, Learners, and (unqualified) Disabled
Workers: 75% of minimum wage.
Rules on Wages
What is Wage Distortion?
What is Across-the-Board Wage Increase?
Hours of Work:
Who are covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Domestic helpers and persons in the personal service
of another;
Workers paid by results;
Field personnel and those whose time and performance
are unsupervised; and
Dependent family members of the Employer.
Principles to Determine
Hours Worked
All hours required, whether spent in
productive labor or involve physical or
mental exertion, are hours worked.
The rule on rest period.
The rule on work interruptions.
Other Rules
Power interruptions yes, if less than 20
minutes. No if more, and employee leave
premises.
Union matters no, unless CBA provides
otherwise.
Attendance at hearings not compensable.
Strike participation NO.
Meal Periods
Required not less than 60 minutes
but not compensable.
Shortening to less than 60 minutes
yes, but must be paid.
Overtime Pay
Overtime Pay refers to the additional compensation
for work performed beyond 8 hours per day.
Rule: Overtime work is not permitted.
Exceptions:
When there is an emergency or urgent situation.
When completion or continuation after work hours is
necessary to prevent prejudice to business or operations.
Overtime Pay:
Who are Covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Househelpers and persons in the personal service of
another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised; and
Dependent family members of the Employer.
15-Minute Break
Masters, treat your slaves
the SAME WAY. Dont
threaten them; remember,
you both have the same
Master in Heaven, and he
has no favorites.
(EPHESIANS 6:9 NLT)
Holiday Pay
Holiday Pay refers to the payment of
regular daily wage for any unworked
Regular Holiday at the rate of 100%.
If the Employee is allowed or required to
work on a Regular Holiday, he is entitled to
200% of his daily wage rate (Basic Wage +
COLA).
If 2 Regular Holidays fall on the same day
and the Employee is allowed or required to
work on such day, he is entitled to 300%.
Holiday Pay:
Who are Covered?
All employees in all establishments, for profit or not,
including daily-paid workers.
Exceptions
Rules on Holiday
Payment
Employees are entitled when they are present or on leave
with pay on the preceding workday.
Employees are NOT entitled if absent or on leave without
pay on the preceding workday, unless they work on such
Regular Holiday, in which case they are entitled to 200%.
When preceding day is non-work day or rest day, the
Employee is entitled, if he worked on the day before such
non-work day or rest day.
In case of successive Regular Holidays i.e. Holy Week, the
Employee shall NOT be entitled to the successive Regular
Holidays if he is absent or on leave without pay on the
preceding work day (Wednesday), unless he worked on the
first Holiday.
Premium Pay
(Rest Day/Special Day Pay)
Premium Pay:
Who are Covered?
All employees in all establishments, for profit or not.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Househelpers and persons in the personal service of
another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised;
Dependent family members of the Employer.
Service Charges
Employees are entitled to a share from the Service Charge
being collected by the Employer from his customers.
Rank-and-file employees share: 85%
Managements share: 15%.
Rank-and-file employees shall receive equal share.
If abolished, the share of the Rank-and-file employees shall
be considered integrated to their wages.
If the Employer doesnt collect Service Charge, the pooled
tips shall be treated the same way as Service Charge.
Retirement Pay
Retirement age: 60 to 65 years old.
Employee must also have worked for at least 5
years for the Employer.
Rate: Equivalent to 22.5 days salary for every
year of service payable by Employer.
Distinct from the Retirement Benefits from SSS.
Excluded: Government employees; and Retail/
Service/ Agricultural Establishments employing
not more than 10 workers.
Separation Pay
Employees terminated by the Employer on the
basis of Authorized Causes are entitled to
Separation Pay.
Rate: 1 Month or Month Salary for every year
of service: Retrenchment, Closure of Business,
Serious Disease.
Rate: 1 Month or 1 Month Salary for every year of
service: Labor-saving device, Redundancy, and
Impossible Reinstatement.
Regular Allowance is included in the computation.
Maternity Leave
All pregnant female workers are entitled to
Maternity Leave subject to SSS Law.
60 days of the average daily salary credit for
normal birth or miscarriage.
78 days of the average daily salary credit for
ceasarian section delivery.
Requirements: Membership in the SSS with at
least 3 months contributions prior to delivery
or miscarriage.
Paternity Leave
All married male workers are entitled to
Paternity Leave of 7 calendar days with pay
for the first 4 deliveries (or miscarriage) of
his lawful wife whom he is cohabiting with.
Paternity Leave is Not convertible to cash.
Employees Compensation
Program
The ECP is designed to provide a
compensation package to Employees and
their dependents in case of work-related
sickness, injury, disability or death.
Benefits: Loss of income benefit; Medical
benefit; Rehabilitation services; Carers
allowance; and Death benefits.
Workers in the formal sector are covered
starting on day 1 of their employment.
PhilHEALTH Benefits
The National Health Insurance Program,
which is administered by PhilHEALTH,
provides financial assistance to memberEmployees when they get hospitalized.
All employees are required to be members.
Benefits: Inpatient hospital care; and
outpatient care based on a Schedule of
Benefits.
Loan and
Miscellaneous Benefits
Socialized loans for emergency, housing and other
purposes are available to employees who are
qualified members of the SSS and PagIBIG Fund.
The duty of the Employer is to deduct and remit
the Employees contributions as well as his
required contributions to SSS, PhilHEALTH, ECC,
and PagIBIG.
Failure on the part of the Employer to remit the
mandatory contributions has serious
consequences.
Special Protection
Children.
Physically-impaired.
Women.
Househelpers.
Homeworkers and the informal sector.
Filipino professionals and labor versusaliens.
Company-initiated
Benefits
Employers are not prohibited from, and in
fact encouraged to, provide terms and
conditions of employment that are better or
higher than Labor Standards.
Higher than Labor Standards Benefits are
either initiated by the Employer, on its own,
by request of the Employees, or by demand
of their Union or Association.
Non-diminution of
Benefits
The reduction or elimination of benefits
provided under the law, agreement or
voluntary practice is prohibited.
Exceptions to Rule on
Non-diminution
If circumstances no longer justify
grant of benefits (Dislocation pay,
relocation allowance, per diem,
supplements, etc.)
Rule on grant of bonus
management prerogative, but not if
given as a salary supplement and
without conditions.
Labor Relations
Right to Security of Tenure.
Right to Just Share in the Fruits of
Production.
Right to Self-Organization.
Right to Bargain Collectively.
Right to Strike and Other Peaceful
Concerted Action.
Right Against Unfair Labor Practices.
Labor Relations
Updates
2011 NLRC Rules of Procedure. (Effective
August 2011)
DOLE Department Order No. 18-A Rules
Implementing Article 106 to 109 of the
Labor Code, As Amended. (Effective
December 2011)
The Rules of Procedure of the Single Entry
Approach (SEnA) (Effective March 2011)
Role of Government
Policy-Maker
Regulator
Program Administrator
Inspector
Conciliator and Mediator
Arbitrator or Arbiter or Adjudicator
Enforcer
What is a Labor
Organization?
Definition any union or association of
employees which exist in whole or in part
for the purpose of (a) collective bargaining
or (b) for dealing with employers concerning
terms and conditions of employment.
What is a legitimate
labor organization?
Definition one which is duly registered
with the Department of Labor and
Employment.
What distinguishes a
legitimate labor organization?
Right to represent its members for purposes of
collective bargaining.
Right to be certified as exclusive representative of
all employees in bargaining unit for purposes of col.
Bargaining
To be furnished financial records
To sue and be sued in its registered name
To own property
To undertake programs to benefit the org/members
Requirements for
Registration
Registration fee
Names of officers, their addresses, the
address of the org., minutes of org. meeting
and list of workers who participated.
Names of all members who comprise 20% of
all employees in the bargaining unit where it
seeks to operate.
Annual financial records.
Copies of constitution and by-laws
Purpose of registration
requirements
To prevent fraud
To protect members from unscrupulous or
fly by night unions.
Critical requirements to be
able to register
Membership must be at least 20% of all the
employees in the bargaining unit.
What is a bargaining
unit?
It is a group or cluster of jobs or positions
that supports the labor organization which
is applying for registration.
Test whether the bargaining unit is
appropriate-if it will best assure to all
employees the exercise of their collective
bargaining rights.
What is an employer
unit?
Refers to a case where there is only 1
bargaining unit for all the employees of the
company.
Purpose why the employer unit is
encouraged by the state.
What is a Certification
Election (CE)?
It is a process by which the members of a
bargaining unit chooses one among
contending unions to be its exclusive
bargaining agent.
Non-adversarial
Fact-Finding
Administered by DOLE
Product of Bargaining
A collective bargaining agreement or CBA, if
the union is able to have an agreement with
the employer about its proposed terms and
conditions of employment.
Win-Win Labor
Relations
1.
2.
3.
Documentation, Documentation,
Documentation!
4.
Write Clearly.
5.
6.
7.
Be Open-minded.
8.
Thank You!
Do not twist JUSTICE in legal
matters by favoring the poor
or being partial to the rich
and powerful. Always judge
people fairly. (LEVITICUS
19:15 NLT)