ENSURE THE COOPERATIVE’S COMPLIANCE WITH LABOR AND RELATED LAWS

ENSURE THE COOPERATIVE’S

COMPLIANCE WITH LABOR AND RELATED

LAWS

Saira Mel Bulanhagui

http://www.visualbee.com/upgrade.html

“Work isn’t to make money; you work to justify life”

~ Marc Chagall

“When I work I relax; doing nothing or entertaining visitors makes me tired”

~ Pablo Picasso

PROVERBS AND SAYING


“A mind always employed is always happy. This is the true secret, the grand recipe, for felicity”

~ Thomas Jefferson

“God give me work, till my life shall end. And life, till my work is done”

~Epitaph of Winifred Holtby

PROVERBS AND SAYING


“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. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotations, and peaceful concerted activites, including the right to strike in accordance to law.

What is the protection-to-labor clause in the Constitution?


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 disputes shares responsibility between workers and employers and the prefential use of voluntary modes in settling, 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

(Section 3 (Labor 3), Article XIII [Social Justice and Human Rights] of the Philippine Consitution)


What are the basic principles enunciated in the Labor Code on Protection to

labor?


A. The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work.


B. Labor conttracts are not ordinary contracts as the relation between capital and labor is impressed with public interest.

C. In case of doubt, labor laws and rules shall be interpretated in favor of law.

D. Labor Code applies to all workers, whether agricultural or non-agricultural.


E. Applicability of Labor Code to government-owned or controlled corporations:

• When created with original or special charter – Civil Service laws, rules and regulations;

• When created under the Corporation Code – Labor Code Applies


COOPERATIVE

A cooperative is a group of people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically

Abigail Lontok


Study and practice of managing unionized employment situations.

Relations between employers and workers.

Labor Relations

http://en.wikipedia.org/wiki/Labor_union


The usual test used to determine the existence of employer-employer relationship is the so-called four-fold test. In applying this test, the following elements are generally considered:

• Right to hire or to the selection and engagement of the employee.

• Payment of wages and salaries for services.• Power of dismissal or the power to impose disciplinary

actions.• 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 right-of-control test.


Substantial evidence


Ensure the Cooperative’s

Compliance with Labor and Related Laws

Jonalie Eridao


Definition:

Emloyees must receive the right compensation according to their performance.


RA 6727 Wage Rationalization Act-July 1, 1989

It is hereby declared the policy of the State to

rationalize the fixing of minimum wages and to promote

productivity-improvement and gain-sharing measures to

ensure a decent standard of living for the workers and their

families; to guarantee the rights of labor to its just share in

the fruits of production; to enhance employment generation

in the countryside through industry dispersal; and to allow

business and industry reasonable returns on investment,

expansion and growth.

Section 2.


Minimum Wage vs.

Living Wage


Is cooperative exempted from Minimum Wage Law?


PRESIDENTIAL DECREE No. 175 April 14, 1973

Section 5. Privileges of Cooperatives. - Cooperatives shall enjoy the

following privileges:

(a) Exemption from income taxes and sales taxes

for income tax purposes, non-agricultural cooperatives shall

be exempt for a period of five (5) years and agricultural cooperatives

for a period of ten (10) years reckoned from the date of registration with

the Department of Local Government and Community Development;

Provided, finally,


(c) In appropriate cases, exemption from the

application of the Minimum Wage Law

upon the recommendation of the Bureau of

Cooperatives Development subject to the

approval of the Secretary of Labor.


Is monthly paid employee not entitled to holiday

pay?

Case Analysis

When the holiday falls on a Sunday, is employer required to pay an additional compensation?


Security of Tenure

Does not exclusively

apply to regular

employment only.

Lailanie Torno


Managerial Employees

• Also enjoy security of tenure. The principle of Security of tenure applies not only to rank and file Employees but also to managerial employees.


What is Regular Employment?

a. The employee has been engaged to perform activities

which are usually necessary or desirable in the usual business

or trade of the employer.

b. The employee has rendered at least one year of service,

whether such service is continuous or broken, with respect to

the

activity in which he is employed and his employment shall

continue while such activity exists.

c. The employee is allowed to work after a probationary

period.


Who is a Probationary Employee?

One who, for a given period of time, Is on observation, Evaluation and trial by an employer during which the Employer determineswhether or not, he is qualified for Permanentemployment. During the probationary period, the employer is given the opportunity to observe the Skill, competence, attitude and fitness of the employee.




GENERAL RULE:

Probationary period should not exceed six (6) months from the date the

employeestarted working. One becomes a

regularemployee upon competition of his six

month period of Probation.


















Case Analysis

The service of a probationary employee was terminatedupon completion of the probationary period of employment for failure to qualify for the position. The employee filed a complaint for illegal dismissal on theground that the employer failed to inform him in writing the reasonable standards for regular employment.











Will the complaint for Illegal Dismissal

prosper?


prosper?


prosper?


prosper?


prosper?


Article 281

Art 282 Termination by Employer

Article 283 and 284

Article 281


Article 283 and 284

Article 281


Article 283 and 284

Article 281


Article 283 and 284

Article 281


Article 283 and 284

Article 281


Article 283 and 284

Article 281


Article 283 and 284


Retirement LawsRA 7641RA 4917

Jemma May Himpil


Section 1 of R.A. No. 7641, otherwise known as 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

RA 7641- Retirement Law





RA 7641 – RETIREMENT LAW

Republic Act No. 7641 made it mandatory for all private employers [with certain exceptions] to provide retirement benefits to employees who, upon reaching the age of sixty [60] years or more, but not beyond sixty five [65] years, have served at least five [5] years in the said establishment. The amount of retirement benefit was defined as “…at least one-half [1/2] month salary for every year of service, a fraction of at least six [6] months being considered as one whole year.





What do we mean “one-half month salary”?

“One-half month salary” includes all the following:

[A] Fifteen [15] days salary of the employee based on his latest salary rate.

[B] The cash equivalent of five [5] days of service incentive leave:

[C] One-twelfth [1/12] of the 13th month pay due the employee and

















[D] All other benefits that the employer and employee may agree upon that should be included in the computation of the employee’s retirement pay.

The above minimum benefits is also applicable to early or optional retirement benefits whenever these are provided in a retirement plan










• ILLUSTRATION Assuming , Ms. Zupsup a coop employee

retired at 65 years old with 35 years of service, receiving at the time of retirement Php 45 000/month, working Mondays to Fridays only. A. How much is the amount of retirement benefit?

B. Is it subject to tax?

ComputationLet A = Fifteen [15] days salary of the employee based on his latest salary rate

Monthly salary/20 days = rate per day x 15 days

45 000/20 = Php 2,250/day x 15 days

• A = Php 33,750


COMPUTATIONLet B = The cash equivalent of five [5]

days of service incentive leave Php 2,250/day x 5 days B = Php 11,250


COMPUTATIONLet C = One-twelfth [1/12] of the

13th month pay due the employee.

C = 1/12 x 45 000 C = Php 3,750Amount of retirement benefit

payable = A+B+C = 33,750+11,250+3,750• Php 48,750 x 35 years = Php

1,706,250





1,706,250





1,706,250





1,706,250


Karen Anne Soria

"An act providing that retirement of employees of private firms shall NOT be subject to attachment, levy, execution or any tax whatsoever".

R.A. No. 4917


If the employee rendered at least TEN YEARS of service in the same private company or firm.

If the employee reaches at least 50 years of age at the time of his retirement.


In case of an official or employee due to sickness, death, physical disability or any cause beyond the control of the employee, the amount received by him or his heirs from the employer shall likewise be exempt from taxation.This Act shall only be effective upon approval.June 17, 1976, R.A. No. 4917 is approved and on 1997 Retirement Act was reformed.


Tax Exemption under R.A. No. 4917

It applies only "in the absence of a retirement plan or Agreement providing for retirement benefits"

Example:

An employer sets a reasonable private benefit plan, but was not approved by the BIR, the retiree will have all retirement benefits subject to tax even if he is 50 years old and has served for 10 years.


Retirement benefits under a collective bargaining agreement, made by the employer,which is under the R.A. No. 7641 will be subjected to tax exemption until the moment when the employer obtain BIR's approval.

Example:

When an employer enters a CBA providing retirement benefits for employees who complete 20 years of service even if his age is below 50; or to retirees who reaches 60 years old provided that he rendered at least 5 years of service.


BIR approved retirement plan is given to employees in excess of the minimum retirement benefit provided by R.A. No. 7641 must satisfy all the requirements or conditons of R.A. No. 4917 in order to have his retirement benefits may be tax exempt.

NOTE:• Retirement benefit comes from the

BIR approved voluntary plan• Retirement benefits not from BIR,

shall be governed for R.A. No. 7641.


The COOPERATIVE may either grant Retirement Benefits and Separation Pay or opt to remove any duplication of benefits by stating that the amount received as a retirement benefit shall be deducted from the separation pay payable.

NOTE:• SSS retirement pay is separate from

the retirement pay under the labor code.• Employer's contribution to employee's

PAG-IBIG Fund may be deducted from the total retirement pay undeR.A. No. 7641


ENSURE THE COOPERATIVE’S COMPLIANCE WITH LABOR AND RELATED LAWS

Career

Transcript of ENSURE THE COOPERATIVE’S COMPLIANCE WITH LABOR AND RELATED LAWS