Labor legislation is divided broadly Labor legislation is divided broadly into:into:

LABOR STANDARDSLABOR STANDARDS – refers to the – refers to the minimum terms and conditions of minimum terms and conditions of employment which employees are legally employment which employees are legally entitled to and employers must comply with.entitled to and employers must comply with.

LABOR RELATIONSLABOR RELATIONS – refers to the – refers to the interactions between employer and interactions between employer and employees or their representatives and the employees or their representatives and the mechanism by which the employment mechanism by which the employment standards are negotiated, adjusted and standards are negotiated, adjusted and enforced.enforced.

Books I to IV of the Labor Code deal with Books I to IV of the Labor Code deal with StandardsStandards

Books V to VII deal with Relations. Books V to VII deal with Relations.

Social Legislation are laws which Social Legislation are laws which provide social security benefits provide social security benefits

through:through:1.1. Income substitutes in case they suffer Income substitutes in case they suffer

contingencies resulting in temporary or contingencies resulting in temporary or permanent loss of earning capacity;permanent loss of earning capacity;

2.2. Rehabilitation assistance for work-Rehabilitation assistance for work-related disabilityrelated disability

3.3. Financial assistance or allowance for Financial assistance or allowance for death or sicknessdeath or sickness

4.4. Old age pensions in case of retirementOld age pensions in case of retirement

5.5. Credit access for social needsCredit access for social needs

Social Security benefits are sourced Social Security benefits are sourced from a common fund sustained by from a common fund sustained by

contributions both from employers and contributions both from employers and employees. These are:employees. These are:

1.1. The EMPLOYEES COMPENSATION The EMPLOYEES COMPENSATION PROGRAM, which provides employees and PROGRAM, which provides employees and dependents with tax-exempt income and dependents with tax-exempt income and medical benefits in case of work-medical benefits in case of work-connected disability or death;connected disability or death;

2.2. The SOCIAL SECURITY PROGRAM, which The SOCIAL SECURITY PROGRAM, which provides tax-exempt benefits for provides tax-exempt benefits for employees and their families in case of employees and their families in case of disability, sickness, old age or death;disability, sickness, old age or death;

3.3. The HOUSING PROGRAM, which provides The HOUSING PROGRAM, which provides employees who are members of SSS and employees who are members of SSS and PAGIBIG PROGRAM with housing loans.PAGIBIG PROGRAM with housing loans.

Also a part of Social Legislation is Also a part of Social Legislation is the RETIREMENT LAW, which the RETIREMENT LAW, which provides retirement benefits provides retirement benefits equivalent to 22.5 days salary for equivalent to 22.5 days salary for every year of service for optional every year of service for optional retirement at 60 under R.A. 7641 retirement at 60 under R.A. 7641 or under applicable agreement or or under applicable agreement or for compulsory retirement at age for compulsory retirement at age 65.65.

For underground mine employees, For underground mine employees, optional retirement at 50 under optional retirement at 50 under R.A. 7641 as amended by R.A. R.A. 7641 as amended by R.A. 8558; compulsory at 60. 8558; compulsory at 60.

WORKER’S WORKER’S STATUTORY STATUTORY BENEFITSBENEFITS

1. MINIMUM WAGE1. MINIMUM WAGE

REPUBLIC ACT No. 6727 (also known as the REPUBLIC ACT No. 6727 (also known as the “Wage Rationalization Act”)“Wage Rationalization Act”) mandates the mandates the fixing of the statutory minimum wages fixing of the statutory minimum wages applicable to different industrial sectors, applicable to different industrial sectors, namely, Non-Agricultural, Agricultural namely, Non-Agricultural, Agricultural Plantation and Non-Plantation, Plantation and Non-Plantation, Cottage/Handicraft, and Retail/Service, Cottage/Handicraft, and Retail/Service, depending on the number of workers or depending on the number of workers or capitalization or annual gross sales in capitalization or annual gross sales in some sectors.some sectors.

The said law rationalized wage determination by The said law rationalized wage determination by establishing the mechanism and proper standards establishing the mechanism and proper standards through the creation of Regional Tripartite Wages through the creation of Regional Tripartite Wages and Productivity Boards authorized to determine and Productivity Boards authorized to determine the wage rates in the different regions based on the wage rates in the different regions based on established criteria.established criteria.

Existing Regional Wage Orders prescribe the daily Existing Regional Wage Orders prescribe the daily minimum basic wage rates per industry per minimum basic wage rates per industry per locality within the region, in some instances locality within the region, in some instances depending on the number of workers and the depending on the number of workers and the capitalization of enterprises. The Wage Orders capitalization of enterprises. The Wage Orders likewise provide the basis and procedure for likewise provide the basis and procedure for exemption from compliance. Some Wage Orders exemption from compliance. Some Wage Orders grant allowances instead of wage increases.grant allowances instead of wage increases.

A. CoverageA. CoverageThe wage increases prescribed under Wage Orders apply to all The wage increases prescribed under Wage Orders apply to all

private sector workers and employees regardless of their private sector workers and employees regardless of their position, designation or status and irrespective of the position, designation or status and irrespective of the method by which their wages are paid, except the method by which their wages are paid, except the following:following:

1.1. Househelpers, including family drivers and workers in the Househelpers, including family drivers and workers in the personal service of another whose conditions of work are personal service of another whose conditions of work are prescribed in R.A. 7655.prescribed in R.A. 7655.

2.2. Workers and employees in: a) retail/service Workers and employees in: a) retail/service establishments regularly employing not more than ten establishments regularly employing not more than ten (10); b) of distressed establishments; and c) of other (10); b) of distressed establishments; and c) of other firms or employers as determined by the Board, when firms or employers as determined by the Board, when specifically exempted from compliance for a period fixed specifically exempted from compliance for a period fixed by the Board.by the Board.

3.3. Workers of registered Barangay Micro Business Workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority issued Enterprises (BMBEs) with Certificates of Authority issued by the Office of the Municipal or City Treasurer. by the Office of the Municipal or City Treasurer.

2. HOLIDAY PAY 2. HOLIDAY PAY (Art. 94)(Art. 94)

Holiday PayHoliday Pay refers to the payment of the refers to the payment of the regular daily wage for any unworked regular regular daily wage for any unworked regular holiday.holiday.

COVERAGE:COVERAGE:This benefit applies to all employees except:This benefit applies to all employees except:1.1. Government employees, whether employed by Government employees, whether employed by

the National Government or any of its political the National Government or any of its political subdivisions, including those employed in subdivisions, including those employed in government-owned and/or controlled government-owned and/or controlled corporations with original charters or created corporations with original charters or created under special laws.under special laws.

2.2. Those of retail and service establishments Those of retail and service establishments regularly employing less than ten (10) workers. regularly employing less than ten (10) workers.

HOLIDAY PAY - Coverage HOLIDAY PAY - Coverage cont…..cont…..

3. Househelpers and persons in the personal service 3. Househelpers and persons in the personal service of another.of another.

4. Managerial employees, if they meet all the 4. Managerial employees, if they meet all the following conditions:following conditions:

4.1 Their primary duty is to manage the 4.1 Their primary duty is to manage the establishment in which they are employed or of a establishment in which they are employed or of a department or subdivision thereat.department or subdivision thereat.

4.2 They customarily and regularly direct the 4.2 They customarily and regularly direct the work of two or more employee therein.work of two or more employee therein.

4.3 They have the authority to hire or fire other 4.3 They have the authority to hire or fire other employees of lower rank; or their suggestions and employees of lower rank; or their suggestions and recommendations as to hiring, firing and recommendations as to hiring, firing and promotion or any other change of status of other promotion or any other change of status of other employees are given particular weight.employees are given particular weight.

5.5. Officers or members of a managerial staff, if they perform Officers or members of a managerial staff, if they perform the ff. duties and responsibilities:the ff. duties and responsibilities:5.1 Primarily perform work directly related to 5.1 Primarily perform work directly related to management policies of their employer;management policies of their employer;5.2 Customarily and regularly exercise discretion and 5.2 Customarily and regularly exercise discretion and independent judgment.independent judgment.5.3. (a) Regularly and directly assist a proprietor or 5.3. (a) Regularly and directly assist a proprietor or managerial employee in the management of the managerial employee in the management of the establishment or subdivision thereof in which he/she is establishment or subdivision thereof in which he/she is employed; (b) execute, under general supervision, work employed; (b) execute, under general supervision, work along specialized or technical lines requiring special along specialized or technical lines requiring special training, experience or knowledge; or (c) execute, under training, experience or knowledge; or (c) execute, under general supervision, special assignments and tasks; andgeneral supervision, special assignments and tasks; and5.4 Do not devote more than twenty percent (20%) of 5.4 Do not devote more than twenty percent (20%) of their hours worked in workweek to activities which are their hours worked in workweek to activities which are not directly and closely related to the performance of the not directly and closely related to the performance of the work described in par. 5.1, 5.2, and 5.3 above.work described in par. 5.1, 5.2, and 5.3 above.

HOLIDAY PAY - Coverage contHOLIDAY PAY - Coverage cont…..…..

HOLIDAY PAY - Coverage HOLIDAY PAY - Coverage cont…..cont…..

6. Field personnel and other 6. Field personnel and other employees whose time and employees whose time and performance is unsupervised by the performance is unsupervised by the employer, including those who are employer, including those who are engaged on task or contract basis, engaged on task or contract basis, purely commission basis or those purely commission basis or those who are paid a fixed amount for who are paid a fixed amount for performing work irrespective of the performing work irrespective of the time consumed in the performance time consumed in the performance thereof.thereof.

REGULAR HOLIDAYSREGULAR HOLIDAYS

Every employee covered by the Holiday Pay Every employee covered by the Holiday Pay Rule is entitled to his/her daily basic wage Rule is entitled to his/her daily basic wage and ECOLA. This means that the employee and ECOLA. This means that the employee is entitled to at least 100% of his/her basic is entitled to at least 100% of his/her basic wage even if he/she did not report for wage even if he/she did not report for work. Provided he/she is present or is on work. Provided he/she is present or is on leave of absence with pay on the work day leave of absence with pay on the work day immediately preceding the holiday.immediately preceding the holiday.

When a Regular Holiday falls on a Sunday, When a Regular Holiday falls on a Sunday, the following Monday shall not be a the following Monday shall not be a holiday, unless a proclamation is issued holiday, unless a proclamation is issued declaring it a special day.declaring it a special day.

There are eleven (11) Regular Holidays in There are eleven (11) Regular Holidays in a year under Executive Order No. 203, as a year under Executive Order No. 203, as amended by Republic Act 9177, namely:amended by Republic Act 9177, namely:

New Year’s Day January 1New Year’s Day January 1Maundy ThursdayMaundy Thursday Movable date Movable dateGood FridayGood Friday Movable date Movable date

Araw ng Kagitingan April 9Araw ng Kagitingan April 9Labor DayLabor Day May 1 May 1Independence Day June 12Independence Day June 12National Heroes Day Last Sunday ofNational Heroes Day Last Sunday of

AugustAugustEidl Fitr Movable dateEidl Fitr Movable dateBonifacio Day November 30Bonifacio Day November 30Christmas Day December 25Christmas Day December 25Rizal Day December 30 Rizal Day December 30

MUSLIM HOLIDAYSMUSLIM HOLIDAYS Presidential Decree 1083 Presidential Decree 1083

Amun Jadid (New Year), which falls on the first day Amun Jadid (New Year), which falls on the first day of the lunar month of Muharram;of the lunar month of Muharram;

Maulid-un-Nabi (Birthday of the Prophet Maulid-un-Nabi (Birthday of the Prophet Muhammad), which falls on the twelfth day of the Muhammad), which falls on the twelfth day of the third lunar month of Rabi-ul-Awwal;third lunar month of Rabi-ul-Awwal;

Lailatul Isra Wal Miraj (Nocturnal Journey and Lailatul Isra Wal Miraj (Nocturnal Journey and Ascension of the Prophet Muhammad), which falls Ascension of the Prophet Muhammad), which falls on the twenty-seventh day of the seventh lunar on the twenty-seventh day of the seventh lunar month of Rajab;month of Rajab;

Id-ul-Adha (Hari Raha Haji), which falls on the Id-ul-Adha (Hari Raha Haji), which falls on the tenth day of the twelfth lunar month of Dhu’l-Hijja.tenth day of the twelfth lunar month of Dhu’l-Hijja.

The dates of Muslim Holidays shall be determined The dates of Muslim Holidays shall be determined by the Office of the President of the Philippines in by the Office of the President of the Philippines in accordance with the Muslim Lunar Calendar accordance with the Muslim Lunar Calendar (Hijra).(Hijra).

PRESIDENTIAL PROCLAMATION NO. PRESIDENTIAL PROCLAMATION NO. 1198 (26 October 1973)1198 (26 October 1973)

““All private corporations, offices, agencies All private corporations, offices, agencies and entities or establishments operating and entities or establishments operating within the provinces and cities within the provinces and cities enumerated herein shall observe the enumerated herein shall observe the legal holidays as proclaimed, provided, legal holidays as proclaimed, provided, however, that all Muslim employees however, that all Muslim employees working outside of the Muslim provinces working outside of the Muslim provinces and cities shall be excused from work and cities shall be excused from work during the observance of the Muslim during the observance of the Muslim Holidays as recognized by law without Holidays as recognized by law without diminution or loss of wages during the diminution or loss of wages during the said period . . . .”said period . . . .”

3. PREMIUM PAY3. PREMIUM PAY (Articles 91-93 – Labor Code)(Articles 91-93 – Labor Code)

PREMIUM PAYPREMIUM PAY refers to the additional compensation refers to the additional compensation for work performed within eight (8) hours on non-for work performed within eight (8) hours on non-work days, such as rest days and special days.work days, such as rest days and special days.

SPECIAL DAYSSPECIAL DAYS – Executive Order No. 203, as – Executive Order No. 203, as amended by R.A. 9256, lists down three (3) Special amended by R.A. 9256, lists down three (3) Special Days that shall be observed in the Philippines:Days that shall be observed in the Philippines:

Ninoy Aquino DayNinoy Aquino Day August 21August 21

All Saints DayAll Saints Day November 1November 1

Last Day of the YearLast Day of the Year December 31 December 31

4. OVERTIME PAY4. OVERTIME PAY(Article 87)(Article 87)

OVERTIME PAYOVERTIME PAY refers to the additional refers to the additional compensation for work performed beyond compensation for work performed beyond eight (8) hours a day.eight (8) hours a day.

WORK DAYWORK DAY refers to any day which an refers to any day which an employee is regularly required to work.employee is regularly required to work.

HOURS OF WORKHOURS OF WORK refer to all the time an refer to all the time an employee renders actual work, or is employee renders actual work, or is required to be on duty or to be at a required to be on duty or to be at a prescribed workplace. The normal hours of prescribed workplace. The normal hours of work in a day is 8 hours. This includes work in a day is 8 hours. This includes breaks or rest period of less than one hour, breaks or rest period of less than one hour, but excludes meal periods which shall not but excludes meal periods which shall not beless than one hour.beless than one hour.

OVERTIME PAY . . .OVERTIME PAY . . . Cont.Cont.

An employee may not be compelled to An employee may not be compelled to work overtime except: work overtime except:

during war, emergencies, disasters or during war, emergencies, disasters or calamities; calamities;

when urgent repairs need to be when urgent repairs need to be undertaken; undertaken;

when work is necessary to preserve when work is necessary to preserve perishable goods, avoid serious perishable goods, avoid serious obstruction or prejudice to the obstruction or prejudice to the employer’s business; or employer’s business; or

take advantage of favorable weather take advantage of favorable weather conditions.conditions.

OVERTIME PAY . . .OVERTIME PAY . . . Cont.Cont.

An employee may not be compelled to An employee may not be compelled to work overtime except: work overtime except:

during war, emergencies, disasters or during war, emergencies, disasters or calamities; calamities;

when urgent repairs need to be when urgent repairs need to be undertaken; undertaken;

when work is necessary to preserve when work is necessary to preserve perishable goods, avoid serious perishable goods, avoid serious obstruction or prejudice to the obstruction or prejudice to the employer’s business; or employer’s business; or

take advantage of favorable weather take advantage of favorable weather conditions.conditions.

5. NIGHT SHIFT 5. NIGHT SHIFT DIFFERENTIALDIFFERENTIAL

(Article 86)(Article 86)

Night Shift Differential (NSD)Night Shift Differential (NSD) refers refers to the additional compensation of ten to the additional compensation of ten percent (10%) of an employee’s percent (10%) of an employee’s regular wage for each hour of work regular wage for each hour of work performed between 10pm and 6am.performed between 10pm and 6am.

6. SERVICE CHARGES6. SERVICE CHARGES(Article 96)(Article 96)

SHARINGSHARING – All rank-and-file employees of – All rank-and-file employees of employers collecting service charges are employers collecting service charges are entitled to an equal share in the eighty-five entitled to an equal share in the eighty-five percent (85%) of the total of such charges. percent (85%) of the total of such charges. The remaining fifteen percent (15%) of the The remaining fifteen percent (15%) of the charges may be retained by management to charges may be retained by management to answer for losses and breakages and for answer for losses and breakages and for distribution to managerial employees, at distribution to managerial employees, at the discretion of the management in the the discretion of the management in the latter case. Service Charges are collected latter case. Service Charges are collected by most hotels and some restaurants, night by most hotels and some restaurants, night clubs, cocktail lounges, among others.clubs, cocktail lounges, among others.

7. SERVICE INCENTIVE LEAVE 7. SERVICE INCENTIVE LEAVE (Article 95)(Article 95)

Every employee who has rendered at least Every employee who has rendered at least one (1) year of service is entitled to one (1) year of service is entitled to Service Incentive Leave (SIL)Service Incentive Leave (SIL) of five (5) of five (5) days with pay. The phrase “one year of days with pay. The phrase “one year of service” of the employee means service service” of the employee means service within twelve (12) months, whether within twelve (12) months, whether continuous or broken, reckoned from the continuous or broken, reckoned from the date the employee started working.date the employee started working.

8. MATERNITY LEAVE 8. MATERNITY LEAVE (R.A. 1161, as amended by R.A. 8282)(R.A. 1161, as amended by R.A. 8282)

This benefit applies to all female employees, This benefit applies to all female employees, whether married or unmarried and is entitled whether married or unmarried and is entitled to sixty (60) days leave benefit in case of to sixty (60) days leave benefit in case of normal delivery or miscarriage and seventy-normal delivery or miscarriage and seventy-eight (78) days in case of Caesarian section eight (78) days in case of Caesarian section delivery with benefits equivalent to one delivery with benefits equivalent to one hundred percent (100%) of the average daily hundred percent (100%) of the average daily salary credit of the employee as defined under salary credit of the employee as defined under the law. The female employee should be an SSS the law. The female employee should be an SSS member employed at the time of her delivery member employed at the time of her delivery and have paid at least three monthly and have paid at least three monthly contributions to the SSS within the twelve-contributions to the SSS within the twelve-month period immediately before the date of month period immediately before the date of the contingency. This benefit is granted by the the contingency. This benefit is granted by the Social Security System in lieu of wages. Social Security System in lieu of wages.

9. PATERNITY LEAVE9. PATERNITY LEAVE(R.A. 8187)(R.A. 8187)

Paternity LeavePaternity Leave is granted to all married male is granted to all married male employees in the private sector, regardless of employees in the private sector, regardless of their employment status (e.g. probationary, their employment status (e.g. probationary, regular, contractual, project basis). The purpose of regular, contractual, project basis). The purpose of this benefit is to allow the husband to lend this benefit is to allow the husband to lend support to his wife during her period of recovery support to his wife during her period of recovery and/or in nursing her newborn child.and/or in nursing her newborn child.

Government employees are also entitled to the Government employees are also entitled to the paternity leave benefit. They shall be governed by paternity leave benefit. They shall be governed by the Civil Service rules.the Civil Service rules.

The Paternity Leave shall be for seven (7) calendar The Paternity Leave shall be for seven (7) calendar days, with full pay, consisting of basic salary and days, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage mandatory allowances fixed by the Regional Wage Board, if any, provided that his pay shall not be Board, if any, provided that his pay shall not be less than the mandated minimum wage. Said less than the mandated minimum wage. Said benefit shall apply to the first four(4) deliveries of benefit shall apply to the first four(4) deliveries of the employee’s lawful wife with whom he is the employee’s lawful wife with whom he is cohabiting.cohabiting.

11. LEAVE FOR VICTIMS OF 11. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND VIOLENCE AGAINST WOMEN AND

THEIR CHILDRENTHEIR CHILDREN(R.A. 9262)(R.A. 9262)

““Violence against women and their children” as Violence against women and their children” as used in Republic Act 9262 (the “Anti-Violence used in Republic Act 9262 (the “Anti-Violence Against Women and Their Children Act of 2004”),Against Women and Their Children Act of 2004”), refers to any act or a series of acts committed by refers to any act or a series of acts committed by any person against a woman who is his wife, any person against a woman who is his wife, former wife, or against a woman with whom the former wife, or against a woman with whom the person has or had a sexual or dating relationship, person has or had a sexual or dating relationship, or with whom he has a common child, or against or with whom he has a common child, or against her child whether legitimate or illegitimate, within her child whether legitimate or illegitimate, within or without the family abode, which will result in or or without the family abode, which will result in or is likely to result in physical, sexual, psychological is likely to result in physical, sexual, psychological harm or suffering, or economic abuse including harm or suffering, or economic abuse including threats of such acts, battery assault, coercion, threats of such acts, battery assault, coercion, harassment or arbitrary deprivation of liberty.harassment or arbitrary deprivation of liberty.

10. PARENTAL LEAVE FOR 10. PARENTAL LEAVE FOR SOLOSOLO PARENTSPARENTS (R.A. 8972)(R.A. 8972)

““PARENTAL LEAVEPARENTAL LEAVE”” shall mean leave shall mean leave benefits granted to a solo parent to enable benefits granted to a solo parent to enable him/her to perform duties and him/her to perform duties and responsibilities where physical presence is responsibilities where physical presence is required. This benefit is granted to any solo required. This benefit is granted to any solo parent or individual who is left alone with parent or individual who is left alone with the responsibility of parenthood. This is in the responsibility of parenthood. This is in addition to leave privileges under existing addition to leave privileges under existing laws and shall be for seven (7) work days laws and shall be for seven (7) work days every year, with full pay, consisting of basic every year, with full pay, consisting of basic salary and mandatory allowances fixed by salary and mandatory allowances fixed by the Regional Wage Board, if any, provided the Regional Wage Board, if any, provided that his/her pay shall not be less than the that his/her pay shall not be less than the mandated minimum wage.mandated minimum wage.

This benefit is in addition to other paid This benefit is in addition to other paid leaves under existing labor laws, company leaves under existing labor laws, company policies, and/or collective bargaining policies, and/or collective bargaining agreements. The qualified victim-agreements. The qualified victim-employees shall be entitled to a leave of employees shall be entitled to a leave of up to ten (10) days with full pay, up to ten (10) days with full pay, consisting of basic salary and mandatory consisting of basic salary and mandatory allowances fixed by the Regional Wage allowances fixed by the Regional Wage Board., if any. Said leave shall be extended Board., if any. Said leave shall be extended when the need arises, as specified in the when the need arises, as specified in the protection order issued by the barangay or protection order issued by the barangay or the court. The leave benefit shall cover the the court. The leave benefit shall cover the days that the woman employee has to days that the woman employee has to attend to medical and legal concerns.attend to medical and legal concerns.

12. THIRTEENTH-MONTH PAY12. THIRTEENTH-MONTH PAY(Presidential Decree 851)(Presidential Decree 851)

All employers are required to pay their rank-and-All employers are required to pay their rank-and-file employees file employees Thirteenth-Month PayThirteenth-Month Pay, , regardless of the nature of their employment regardless of the nature of their employment and irrespective of the methods by which their and irrespective of the methods by which their wages are paid, provided they worked for at wages are paid, provided they worked for at least one (1) month during a calendar year. least one (1) month during a calendar year. The Thirteenth-Month Pay should be given to The Thirteenth-Month Pay should be given to the employees not later than December 24 the employees not later than December 24 every year. Said pay shall not be less than one-every year. Said pay shall not be less than one-twelfth (1/12) of the total basic salary earned twelfth (1/12) of the total basic salary earned by an employee in a calendar year. The by an employee in a calendar year. The mandated pay need not be credited as part of mandated pay need not be credited as part of the regular wage of employees for purposes of the regular wage of employees for purposes of determining overtime and premium payments, determining overtime and premium payments, fringe benefits, as well as contributions to the fringe benefits, as well as contributions to the State Insurance Funds, Social Security System, State Insurance Funds, Social Security System, Medicare and private retirement plans.Medicare and private retirement plans.

13. SEPARATION PAY13. SEPARATION PAY(Articles 283-84 Labor Code)(Articles 283-84 Labor Code)

Separation PaySeparation Pay is given to employees in is given to employees in instances covered by Articles 283 and 284 of the instances covered by Articles 283 and 284 of the Labor Code . An employee’s entitlement to Labor Code . An employee’s entitlement to Separation Pay depends on the reason or ground Separation Pay depends on the reason or ground for the termination of his/her services. An for the termination of his/her services. An employee may be terminated for just cause and employee may be terminated for just cause and other similar causes as enumerated under Article other similar causes as enumerated under Article 282 of the Labor Code and, generally, may not be 282 of the Labor Code and, generally, may not be entitled to Separation Pay. On the other hand, entitled to Separation Pay. On the other hand, where the termination is for authorized causes, where the termination is for authorized causes, Separation Pay is due. Computation of Separation Separation Pay is due. Computation of Separation Pay shall be based on his/her latest salary rate.Pay shall be based on his/her latest salary rate.

14. RETIREMENT PAY14. RETIREMENT PAY(Article 287, as amended by RA (Article 287, as amended by RA

7641)7641)Employees shall be retired upon reaching Employees shall be retired upon reaching

the age sixty (60) or more but not the age sixty (60) or more but not beyond sixty-five (65) years old. It beyond sixty-five (65) years old. It provides retirement benefits equivalent provides retirement benefits equivalent to 22.5 days salary for every year of to 22.5 days salary for every year of service, optional or compulsory. This service, optional or compulsory. This benefit applies to all employees except:benefit applies to all employees except:

1. government employees;1. government employees;2. employees of retail, service and 2. employees of retail, service and

agricultural establishments/operations agricultural establishments/operations regularly employing not more than ten regularly employing not more than ten (10) employees.(10) employees.

15. BENEFITS UNDER THE 15. BENEFITS UNDER THE EMPLOYEES’ COMPENSATION EMPLOYEES’ COMPENSATION

PROGRAM PROGRAM (Pres. Decree 626)(Pres. Decree 626)

The The Employees’ Compensation ProgramEmployees’ Compensation Program (ECP)(ECP) is is a government program designed to provide a a government program designed to provide a package of benefits for public and private package of benefits for public and private sector employees and their dependents in sector employees and their dependents in the event of work-related contingencies such the event of work-related contingencies such as sickness, injury, disability or death. This as sickness, injury, disability or death. This covers all workers in the formal sector. covers all workers in the formal sector. Coverage in the ECP starts on the first day of Coverage in the ECP starts on the first day of employment. Employees in the private sector employment. Employees in the private sector who are registered members of the SSS, who are registered members of the SSS, except self-employed workers and voluntary except self-employed workers and voluntary members of the SSS.members of the SSS.

16. PHILHEALTH BENEFITS16. PHILHEALTH BENEFITS(R.A. 7875, as amended by R.A. 9241)(R.A. 7875, as amended by R.A. 9241)

The The National Health Insurance Program National Health Insurance Program (NHIP),(NHIP), formerly known as Medicare, is a formerly known as Medicare, is a health insurance program for SSS members health insurance program for SSS members and their dependents whereby the health and their dependents whereby the health insurance subsidize the sick who may find insurance subsidize the sick who may find themselves in need of financial assistance themselves in need of financial assistance when they get hospitalized.when they get hospitalized.

The The Philippine Health Insurance Philippine Health Insurance CorporationCorporation or or PhilHealthPhilHealth is the mandated is the mandated administrator of the Medicare program under administrator of the Medicare program under the National Health Insurance Act of 1995 the National Health Insurance Act of 1995 (R.A. 7875) (R.A. 7875)

17. SOCIAL SECURITY 17. SOCIAL SECURITY BENEFITSBENEFITS

(RA 1161, as amended by RA 8282)(RA 1161, as amended by RA 8282)

The The Social Security ProgramSocial Security Program provides a provides a package of benefits in the event of death, package of benefits in the event of death, disability, sickness, maternity and old age. disability, sickness, maternity and old age. Basically, the SSS provides for a Basically, the SSS provides for a replacement of income lost on account of replacement of income lost on account of the aforementioned contingencies. This the aforementioned contingencies. This covers a private employee, whether covers a private employee, whether permanent, temporary or provisional; a permanent, temporary or provisional; a household helper earning at least P1,000 a household helper earning at least P1,000 a month subject to compulsory coverage month subject to compulsory coverage starting Sept. 1, 1993.starting Sept. 1, 1993.

OVERVIEW OVERVIEW OF LABOR OF LABOR

RELATIONS RELATIONS IN THE IN THE

PHILIPPINEPHILIPPINESS

1.1. ConstitutionConstitution2.2. Labor Code and its Labor Code and its

Implementing Rules and Implementing Rules and RegulationsRegulations

3.3. Civil Code of the Civil Code of the PhilippinesPhilippines

4.4. Special Laws/OrdersSpecial Laws/Ordersa.a.Wage OrderWage Orderb.b.Productivity Incentives Productivity Incentives

ActActc.c. RetirementRetirementd.d.PaternityPaternitye.e.Sexual HarassmentSexual Harassment

SOURCES OF LABOR RIGHTS

f.f. Prohibition on Discrimination Prohibition on Discrimination ActAct

g.g. Child Abuse, Exploitation and Child Abuse, Exploitation and Discrimination ActDiscrimination Act

h.h. Solo Parents’ Welfare ActSolo Parents’ Welfare Act

i.i. OthersOthers

5.5. Employment ContractsEmployment Contracts

6.6. Company Personnel Policy (CPP)Company Personnel Policy (CPP)

7.7. Company Rules and Regulations Company Rules and Regulations (CRR)(CRR)

8.8. Collective Bargaining Agreement Collective Bargaining Agreement (CBA)(CBA)

SOURCES OF LABOR RIGHTS

RELEVANT PROVISIONS OF THE RELEVANT PROVISIONS OF THE CONSTITUTIONCONSTITUTION

ARTICLE II, SECTION 18ARTICLE II, SECTION 18– The State:The State:

Affirms Labor as a Primary Social Affirms Labor as a Primary Social Economic Force;Economic Force;

Shall Protect the Rights and Promote Shall Protect the Rights and Promote the Welfare of Workersthe Welfare of Workers

– The Workers:The Workers: Shall be entitled to security of tenure, Shall be entitled to security of tenure,

humane conditions of work, and living humane conditions of work, and living wagewage

Shall participate in policy and decision-Shall participate in policy and decision-making processes affecting their rights making processes affecting their rights and benefits as may be provided by law.and benefits as may be provided by law.

ARTICLE XIII, SECTION 3ARTICLE XIII, SECTION 3

– The State:The State: Shall afford full protection to labor, local and Shall afford full protection to labor, local and

overseas, organized and unorganized;overseas, organized and unorganized; Shall promote full employment and equality Shall promote full employment and equality

of employment opportunities for all;of employment opportunities for all; shall guarantee the rights of workers to:shall guarantee the rights of workers to:

Self-organization, collective bargaining Self-organization, collective bargaining and negotiationsand negotiations

Peaceful concerted activities, including Peaceful concerted activities, including the right to strike in accordance with law.the right to strike in accordance with law.

Shall promote principle of shared Shall promote principle of shared responsibility between workers and responsibility between workers and employersemployers

State Policies on Labor State Policies on Labor RelationsRelations

Article 211, Labor CodeArticle 211, Labor Code Primacy of collective bargainingPrimacy of collective bargaining Provision of an adequate administrative Provision of an adequate administrative

machinery for the expeditious machinery for the expeditious settlement of labor or industrial settlement of labor or industrial disputesdisputes

Ensuring a stable but dynamic and just Ensuring a stable but dynamic and just industrial peaceindustrial peace

Ensuring the participation of workers in Ensuring the participation of workers in decision and policy-making processes decision and policy-making processes affecting their rights, duties and welfareaffecting their rights, duties and welfare

MANAGEMENT MANAGEMENT PREROGATIVESPREROGATIVES

1.1. PREROGATIVE TO REGULATE ALL ASPECTS OF PREROGATIVE TO REGULATE ALL ASPECTS OF EMPLOYMENT ACCORDING TO ITS DISCRETION AND EMPLOYMENT ACCORDING TO ITS DISCRETION AND JUDGMENT.JUDGMENT.

2.2. MANAGEMENT CANNOT BE DEPRIVED OF ITS MANAGEMENT CANNOT BE DEPRIVED OF ITS PREROGATIVE TO DISCIPLINE ITS EMPLOYEES.PREROGATIVE TO DISCIPLINE ITS EMPLOYEES.

3.3. MANAGEMENT PREROGATIVE TO TRANSFER OR MANAGEMENT PREROGATIVE TO TRANSFER OR REASSIGN.REASSIGN.

4.4. SECURITY OF TENURE DOES NOT MEAN SECURITY OF TENURE DOES NOT MEAN PERMANENCY IN ONE’S POSITION.PERMANENCY IN ONE’S POSITION.

5.5. MANAGEMENT PREROGATIVE TO DOWNSIZE, MANAGEMENT PREROGATIVE TO DOWNSIZE, RIGHTSIZE OR CLOSE OPERATIONS.RIGHTSIZE OR CLOSE OPERATIONS.

6.6. MANAGEMENT PREROGATIVES ARE NOT ABSOLUTE.MANAGEMENT PREROGATIVES ARE NOT ABSOLUTE.

7.7. MANAGEMENT PREROGATIVES SHOULD BE MANAGEMENT PREROGATIVES SHOULD BE EXERCISED IN GOOD FAITH.EXERCISED IN GOOD FAITH.

Constitutional Right

Management Prerogative

Statutory Right

Security ofTenure

Right toProperty

Right toLife

BILL OF RIGHTSBILL OF RIGHTS[Article III, Section I, Constitution][Article III, Section I, Constitution]

““No person shall be deprived of No person shall be deprived of life, liberty, or property without life, liberty, or property without due process of law, nor shall any due process of law, nor shall any

person be denied the equal person be denied the equal protection of the laws.”protection of the laws.”

SOCIAL JUSTICE & HUMAN SOCIAL JUSTICE & HUMAN RIGHTSRIGHTS

Article XIII, Section 3Article XIII, Section 3ConstitutionConstitution

““The State shall afford full The State shall afford full protection to labor, local and protection to labor, local and

overseas, organized and overseas, organized and unorganized and promote full unorganized and promote full employment and equality of employment and equality of employment opportunities employment opportunities

for all.”for all.”

RIGHTSRIGHTS - are those which an - are those which an individual has a rightful claim as individual has a rightful claim as a person I relation to his/her a person I relation to his/her workplace by law.workplace by law.

PRIVILEGESPRIVILEGES – are those benefits – are those benefits given by the company to a given by the company to a worker and which may be taken worker and which may be taken away at any time. However, it away at any time. However, it should be emphasized that once should be emphasized that once those privileges are incorporated those privileges are incorporated in the contract, they in the contract, they automatically become rights of automatically become rights of the worker.the worker.

CLASSIFICATION OF RIGHTSCLASSIFICATION OF RIGHTSINDIVIDUAL RIGHTSINDIVIDUAL RIGHTS - are rights which are - are rights which are

inherent as a person in relation to his inherent as a person in relation to his workplace. These rights exist workplace. These rights exist independently of any worker’s independently of any worker’s organization.organization.

COLLECTIVE RIGHTSCOLLECTIVE RIGHTS – pertains to rights – pertains to rights exercised by employees as a group exercised by employees as a group including the right to form unions, including the right to form unions, bargain collectively with management bargain collectively with management and to engage in collective action or and to engage in collective action or concerted activities within the limits concerted activities within the limits prescribed by law and to participate in prescribed by law and to participate in decision-making processes. These are in decision-making processes. These are in addition to the worker’s individual addition to the worker’s individual rights. rights.

BASIC INDIVIDUAL RIGHTSBASIC INDIVIDUAL RIGHTSin accordance to the Labor Codein accordance to the Labor Code

1.1. The right to join or not to join The right to join or not to join unions/organizations.unions/organizations.

2.2. Right to Security of TenureRight to Security of Tenure

3.3. Right to just and humane Conditions of Work.Right to just and humane Conditions of Work.

Right to rest.Right to rest.

Right to overtime pay for work in excess Right to overtime pay for work in excess of of

eight (8) hourseight (8) hours

Right to a meal period (one (1) hour.Right to a meal period (one (1) hour.

Right to rest day premium.Right to rest day premium.

Right to holiday pay and premium.Right to holiday pay and premium.

4.4. Right to Service Incentive LeaveRight to Service Incentive Leave

BASIC INDIVIDUAL RIGHTSBASIC INDIVIDUAL RIGHTSin accordance to the Labor in accordance to the Labor

CodeCode5.5. Right to statutory minimum wage with Right to statutory minimum wage with

COLA integration.COLA integration.6.6. Right to 13Right to 13thth Month Pay. Month Pay.7.7. Right to Service ChargeRight to Service Charge

85% for employees85% for employees15% for management15% for management

8.8. Right to Night Shift Differential.Right to Night Shift Differential.9.9. Right to protection of wages.Right to protection of wages.10.10. Right of labor to its just share in the fruits Right of labor to its just share in the fruits

of production.of production.11.11. Right to Maternity and Paternity LeaveRight to Maternity and Paternity Leave12.12. Right to certain facilities.Right to certain facilities.

Legal Framework of Labor Legal Framework of Labor Relations In the Relations In the

PhilippinesPhilippinesI

Workers’Rights

IILaw/CBA

IIIManagementPrerogatives

Workers’ Rights

1.Security of Tenure2.Self Organization3.Collective Bargaining4.Just and Humane

Conditions of Work5.Strikes/Concerted Actions6.Participation in Decision Making7.Just Share in the Fruits of Production8.Labor Standards9.CBA Rights

Law/CBA

A. CompensationB. BenefitsC. Labor Relations a. Grievance b. Dialogue c. Strike d. Voluntary

ArbitrationD. Employment/ Termination of Employment

Management Prerogatives

1.Hire2.Fire3.Transfer4.Promote/

Demote5.Lay Off6.Lay Down

Policies7.Discipline8.Working Hours9.Working

Procedures

Objectives of CPP and Objectives of CPP and CRRCRR

1.1. To ensure that the people in To ensure that the people in the company undertake their the company undertake their tasks as effectively as possible.tasks as effectively as possible.

2.2. To promote efficiency, well-To promote efficiency, well-being and well-disciplined being and well-disciplined conduct and behavior of the conduct and behavior of the employees.employees.

COMPANY POLICIESCOMPANY POLICIES

Two of the most elastic terms in the vocabulary of Two of the most elastic terms in the vocabulary of industry areindustry are ‘ ‘COMPANY POLICYCOMPANY POLICY’ ’ and ‘and ‘CORPORATE CORPORATE OBJECTIVEOBJECTIVE’. The first is often a cloak to hide the ’. The first is often a cloak to hide the behind; and, the second is a managerial haven behind; and, the second is a managerial haven for generalities.for generalities.

POLICYPOLICY is merely the outgrowth of practice. In any is merely the outgrowth of practice. In any operation, there is a customary way of doing operation, there is a customary way of doing things.things. This is what we call theThis is what we call the practicepractice. When . When the performance of a single task is standardized, the performance of a single task is standardized, a method is established. A series of interrelated a method is established. A series of interrelated steps performed in sequence becomes a steps performed in sequence becomes a procedureprocedure. While a . While a systemsystem is a network of is a network of related procedures. All of these activities are related procedures. All of these activities are accomplished within the framework of accomplished within the framework of COMPANYCOMPANY POLICYPOLICY . Whether written or unwritten. . Whether written or unwritten.

Company Company PoliciesPolicies

• A general plan of action and/or a set of

rules by which business corporations are

managed, directed and controlled.

• A structure which specifies the distribution

of rights and responsibilities among the

different participants in the corporation.

•Shareholders • Other Stakeholders •Board of Directors • Customers/Dealers•Officers • Suppliers/Contractors•Employees • Regulators/Government

• Community

Company Personnel Company Personnel Policies (CPP)Policies (CPP)

Company Personnel Policies: Company Personnel Policies: guiding principles stated in guiding principles stated in broad, long-range terms that broad, long-range terms that express the philosophy or express the philosophy or beliefs of an organization’s beliefs of an organization’s top authority regarding top authority regarding personnel matters. The usual personnel matters. The usual source of grievances are rules source of grievances are rules and regulations governing and regulations governing disciplinary actions.disciplinary actions.San Miguel Corp. v. NLRC, G.R. No. 108001, 15 March San Miguel Corp. v. NLRC, G.R. No. 108001, 15 March

1996, 225 SCRA 1331996, 225 SCRA 133

Areas Normally Covered by Areas Normally Covered by the CPPthe CPP

1.1. General Provisions:General Provisions:a.a. Personnel PhilosophyPersonnel Philosophyb.b. Administration and application of Administration and application of

PoliciesPolicies2.2. Supervisory RoleSupervisory Role3.3. Recruitment and SelectionRecruitment and Selection4.4. EmploymentEmployment5.5. Placements, transfers, details, Placements, transfers, details,

temporary assignments.temporary assignments.6.6. Training and DevelopmentTraining and Development7.7. Employee benefits and servicesEmployee benefits and services

8.8. Employee conduct and disciplineEmployee conduct and discipline

9.9. Attendance and time keepingAttendance and time keeping

10.10. LeavesLeaves

11.11. Performance standards and Performance standards and performance evaluationperformance evaluation

12.12. Complaints and grievancesComplaints and grievances

13.13. Retirement and separationRetirement and separation

14.14. OthersOthers

Areas Normally Covered by Areas Normally Covered by the CPPthe CPP

Company Rules & Company Rules & Regulations (CRR)Regulations (CRR)

Rules are more specific guides Rules are more specific guides than the main policy itself and, as than the main policy itself and, as such, specify the means for such, specify the means for implementing them; usually, with implementing them; usually, with penalty provisions.penalty provisions.

They provide uniform methods in They provide uniform methods in the application of the policy.the application of the policy.

Provide guidelines to the Provide guidelines to the supervisor in making decisions or supervisor in making decisions or action plans on certain personnel action plans on certain personnel problems within reasonable limits.problems within reasonable limits.

Provide guidelines of compliance Provide guidelines of compliance by company personnel.by company personnel.

Why do we need CRR?Why do we need CRR?

1.1. To give life and direction to the program To give life and direction to the program of activities covering the needs of the of activities covering the needs of the organization and its human resources.organization and its human resources.

2.2. To protect the rights of all personnel.To protect the rights of all personnel.

3.3. To provide uniformity and consistency in To provide uniformity and consistency in the application of policies.the application of policies. (consistency (consistency and fairness of decision in recurring and fairness of decision in recurring problems)problems)

4.4. To maintain organized effort in preventing To maintain organized effort in preventing confusion and delay in avoiding injustice confusion and delay in avoiding injustice to any employee.to any employee. (serves as standards (serves as standards of performance and provides of performance and provides consistency in the treatment of consistency in the treatment of employees)employees)

Characteristics of a Good Characteristics of a Good CRRCRR

1.1. Provides in clear terms the Provides in clear terms the expected norms of behavior by expected norms of behavior by employees and reasonable and employees and reasonable and appropriate penalties for appropriate penalties for violation.violation.

2.2. Following them must make a Following them must make a difference to the organization.difference to the organization.

3.3. Easy to enforce and easier to Easy to enforce and easier to understand.understand.

4.4. Reasonable and necessary.Reasonable and necessary.

5.5. Known and communicated to all.Known and communicated to all.

Characteristics of a Good Characteristics of a Good CRRCRR

6.6. Provides for due process – Provides for due process – “Day “Day inin Court”Court” principle as well as fair principle as well as fair and objective investigation.and objective investigation.

7.7. Consistent and non-Consistent and non-discriminatory in its application.discriminatory in its application.

8.8. Provide for increasingly serious Provide for increasingly serious steps if the problem is not steps if the problem is not resolved.resolved.

9.9. Must result in the employee’s Must result in the employee’s changing behavior to become a changing behavior to become a good performer.good performer.

Expectations in the Expectations in the implementation, interpretation implementation, interpretation

and enforcement of the CRRand enforcement of the CRR

1.1. Grievances/complaintsGrievances/complaints

2.2. Discipline actionsDiscipline actions

o Verbal warningVerbal warningo Written warningWritten warningo SuspensionSuspensiono TerminationTermination

How are CPPs and CRRs How are CPPs and CRRs announced or made known?announced or made known?

Employee HandbooksEmployee Handbooks

Company PublicationsCompany Publications

Memoranda or CircularsMemoranda or Circulars

Company Bulletin BoardsCompany Bulletin Boards

Meetings or ConferencesMeetings or Conferences

LAW ON LAW ON TERMINATIONTERMINATION

NO DISMISSAL EXCEPT FOR A NO DISMISSAL EXCEPT FOR A JUSTJUST AND AND AUTHORIZEDAUTHORIZED

CAUSES, AFTER OBSERVANCE CAUSES, AFTER OBSERVANCE OF DUE PROCESSOF DUE PROCESS

LAWFUL GROUNDS FOR LAWFUL GROUNDS FOR TERMINATIONTERMINATION

1.1. The so-called Just Causes under The so-called Just Causes under Article 282 of the Labor Code.Article 282 of the Labor Code.

2.2. The Authorized Causes as The Authorized Causes as enumerated in Articles 283, 284 and enumerated in Articles 283, 284 and 287 of the Labor Code.287 of the Labor Code.

3.3. Violation of Union Security Clauses Violation of Union Security Clauses in the Collective Bargaining in the Collective Bargaining Agreement (CBA).Agreement (CBA).

4.4. Those arising from the nature of Those arising from the nature of employment.employment.

Article 282 – Labor CodeArticle 282 – Labor CodeJUST CAUSES FOR JUST CAUSES FOR

TERMINATIONTERMINATION

1.1. Serious misconduct or willful Serious misconduct or willful disobedience by the employee of the disobedience by the employee of the lawful orders of his employer or lawful orders of his employer or representative in connection with his representative in connection with his work;work;

2.2. Gross and habitual neglect by the Gross and habitual neglect by the employee of his duties;employee of his duties;

3.3. Fraud or willful breach by the employee Fraud or willful breach by the employee of the trust reposed in him by his of the trust reposed in him by his employer or duly authorized employer or duly authorized representative; representative;

Article 282 – Labor CodeArticle 282 – Labor CodeJUST CAUSES FOR JUST CAUSES FOR

TERMINATIONTERMINATION4. Commission of a crime or offense 4. Commission of a crime or offense

of the employee against the of the employee against the person of his employer or any person of his employer or any immediate member of his family immediate member of his family or his duly authorized or his duly authorized representative;representative;

5. Other causes analogous to the 5. Other causes analogous to the foregoing.foregoing.

The separation from work of an The separation from work of an employee for a employee for a just causejust cause does does

not entitle him to the not entitle him to the termination pay provided in the termination pay provided in the Labor Code. Without prejudice, Labor Code. Without prejudice, however, to whatever rights, however, to whatever rights,

benefits and privileges he may benefits and privileges he may have under the applicable have under the applicable

individual or collective individual or collective agreement with the employer or agreement with the employer or

voluntary employer practice.voluntary employer practice.(Sec. 7, Rule I, Book IV, Rules (Sec. 7, Rule I, Book IV, Rules Implementing the Labor Code)Implementing the Labor Code)

AUTHORIZED CAUSES FOR AUTHORIZED CAUSES FOR TERMINATIONTERMINATION

(Articles 283, 284, & 287)(Articles 283, 284, & 287)

1.1. Installation of labor-saving Installation of labor-saving devices or redundancy.devices or redundancy.

2.2. Retrenchment to prevent losses.Retrenchment to prevent losses.

3.3. Closure or cessation of Closure or cessation of operation.operation.

(Article 283, Labor Code)(Article 283, Labor Code)

4.4. Disease or medical termination. Disease or medical termination.

(Article 284, Labor Code)(Article 284, Labor Code)

5.5. Retirement (Article 287, Labor Retirement (Article 287, Labor Code)Code)

Termination due to the Termination due to the above causes entitles the above causes entitles the

employees to TERMINATION employees to TERMINATION PAY, as follows:PAY, as follows:

No. 1 - At least one (1) month pay No. 1 - At least one (1) month pay for every year of service.for every year of service.

No. 2, 3 & 4 - At least one (1) month No. 2, 3 & 4 - At least one (1) month pay or one-half (1/2) month for every pay or one-half (1/2) month for every year of service, whichever is higheryear of service, whichever is higher

DUE PROCESS IN DUE PROCESS IN TERMINATIONTERMINATION• Notice to ExplainNotice to Explain

a) in writinga) in writingb) with specific charge or offenseb) with specific charge or offensec) must be received by the employee. If c) must be received by the employee. If employee is not available to receive, it must employee is not available to receive, it must be sent to the employee’s last known be sent to the employee’s last known address.address.

• Notice toNotice to dismiss must be in dismiss must be in writing and sent to the writing and sent to the employee’s last known address.employee’s last known address.

Decision of reinstatement on Decision of reinstatement on illegal dismissals by Labor illegal dismissals by Labor

Arbiter or Voluntary Arbiter or Voluntary Arbitrator is Arbitrator is immediatelyimmediately

executoryexecutory, pending appeal., pending appeal.This does not apply to This does not apply to payment of backwages, payment of backwages,

damages or other money damages or other money claims as a result of the claims as a result of the

illegal termination. illegal termination.

Pending investigation, employee Pending investigation, employee can be put under preventive can be put under preventive suspension, provided:suspension, provided:

a)a) Continued employment poses serious Continued employment poses serious and imminent threat to life or and imminent threat to life or property of the employer or of his co-property of the employer or of his co-workers;workers;

b)b) Suspension must not be longer than Suspension must not be longer than thirty (30) days;thirty (30) days;

c)c) After 30 days, while investigation is After 30 days, while investigation is still pending:still pending:

--actual physical reinstatement to former actual physical reinstatement to former or substantially equivalent position; oror substantially equivalent position; or

-payroll reinstatement-payroll reinstatement

DISMISSALS based on Union DISMISSALS based on Union Security Clauses:Security Clauses:

• Elements:Elements:

- - CBA provision must be specificCBA provision must be specific

- - Bargaining union must demand for itBargaining union must demand for it

- - Due process must be observedDue process must be observed

• Does not apply to:Does not apply to:

- - Non-union members in the Non-union members in the bargaining unit, but are members of bargaining unit, but are members of another unionanother union

- - During the freedom periodDuring the freedom period

RULES & REGULATIONS ON RULES & REGULATIONS ON DISCIPLNE:DISCIPLNE:

• Rules and Regulations must be Rules and Regulations must be spelled out in detail the offenses spelled out in detail the offenses as broadly defined by law. It as broadly defined by law. It should be an improvement of the should be an improvement of the law in favor of the workers.law in favor of the workers.

• The Law shall be applied when The Law shall be applied when no rules and regulations are no rules and regulations are being utilized.being utilized.

For the Rules to be valid, the For the Rules to be valid, the following Principles shall be following Principles shall be applied:applied:

• It must be known to all the It must be known to all the employees.employees.

• It must be reasonable and not It must be reasonable and not oppressive.oppressive.

• It must be uniform in application.It must be uniform in application.

• It must be progressive in It must be progressive in applicationapplication

DELAYED DELAYED IMPLEMENTATION OF IMPLEMENTATION OF

THE PENALTIES, ERODES THE PENALTIES, ERODES THE CREDIBILITY AND THE CREDIBILITY AND

VALIDITY OF THE VALIDITY OF THE PENALTYPENALTY

THANKTHANK

YOUYOU

VERY MUCH!VERY MUCH!