Atty. Harve B. Abella, Esq.Psych 30 MWF 6:30 – 7:30PM

Psych 30 TTh 7:00 – 8:30PM

MODULE 1

FUNDAMENTAL PRINCIPLES & POLICIES

Overview of the Labor CodeBook 1 – On Pre-EmploymentBook 2 – On Human Resources DevelopmentBook 3 – On Conditions of EmploymentBook 4 – On Health, Safety and Social

Welfare BenefitsBook 5 – On Labor RelationsBook 6 – On Post EmploymentBook 7 – On Transitory & Final Provisions

IntroductionLABOR

Exertion by human beings of physical or mental efforts, or both, towards the production of goods and services

Sector or group in society which derives its livelihood chiefly from the rendition of work or services in exchange for compensation under managerial direction

Importance of studying the LCPHuman ResourcesOrganizational Development

a conceptual, organization-wide effort to increase an organization's effectiveness and viability.

People ManagersBusiness owners

Ignorantia juris non excusat or ignorantia legis neminem excusat Ignorance of the law excuses no one from compliance

therewithAwareness of employees’ rights under Philippine

Laws

ART. 1, Name of DecreeThis Decree shall be known as the “LABOR

CODE OF THE PHILIPPINES.”

Codifies in ONE volume some 60 pieces of law which were in force when codification began in 1968Eight-hour labor law, Minimum wage law,

termination pay law, etc.

Knowing the Labor Code is knowing the MAJOR COMPONENT of our labor laws

Distinctions LABOR LAW

It is that branch of law which governs employment, wage, laborer, labor union, and labor-management relations

SOCIAL LEGISLATION Is an act of the legislature and other promulgation of competent legal

authorities designed to promote the general welfare of the society

LABOR LEGISLATION

Labor Standards Sets out the minimum terms, conditions & benefits of employment that

employers must comply & which employees are entitled as a matter of right

Labor Relations Defines the status, rights and duties, as well as institutional mechanisms, that

govern the individual & collective interactions between EE & ER & their representatives.

LABOR LEGISLATION

SOCIAL LEGISLATION

1. Directly affects employment

1. Governs the effects of employment

2. Designed to meet the daily needs of the workers

2. Involves a long range of benefits

3. Covers employment for profit or gain

3. Covers employment, profit & non-profit

4. Affects work of the employee

4. Affects the life of the employee

How to understand the LCP

Interlocking Mechanisms of Philippine Labor Laws / Social Legislation

Constitutional Provisions

Sec. 9, ART. IIThe State shall promote a just and dynamic

social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all.

Constitutional ProvisionsSec. 10, ART. II

The State shall promote social justice in all phases of national development.

Sec. 18, ART. IIThe State affirms labor as a primary social

economic force. It shall protect the rights of workers and promote their welfare.

Sec. 8, ART IIIThe right of the people, including those

employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged.

Sec. 18, par. 2, ART III(2) No involuntary servitude in any form shall

exist except as a punishment for a crime whereof the party shall have been duly convicted.

Constitutional Provisions

Sec. 12 ART. XIIThe State shall promote the preferential use of Filipino

labor, domestic materials and locally produced goods, and adopt measures that help make them competitive.

Sec. 14, ART. XIIThe sustained development of a reservoir of national

talents consisting of Filipino scientists, entrepreneurs, professionals, managers, high-level technical manpower and skilled workers and craftsmen in all fields shall be promoted by the State. The State shall encourage appropriate technology and regulate its transfer for the national benefit.

The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases prescribed by law.

Constitutional Provisions

Sec. 3, ART XIII 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 negotiations, and peaceful concerted activities, including the right to strike in accordance with law. 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 shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, 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 to investments, and to expansion and growth.

Constitutional Provisions

Art. 3, LCPThe 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. (PEARA[jssc])

QUESTION: From the foregoing basic policy under the Labor Code,

what can be deduced?

Provisions of the New Civil Code of the PhilippinesArt. 1700 – The relations between capital and

labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects

Art. 1701 – Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of the public.

Art. 1703 – No contract which practically amounts to involuntary servitude under any guise whatsoever shall be valid.

Provisions of the New Civil Code of the Philippines

Art. 4, LCPCONSTRUCTION IN FAVOR OF LABOR

All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor.

GEN. RULE: Liberal construction in favor of labor and strictly against the employer.

EXCEPTION: Construed in favor of labor if there is a doubt as to the meaning of the legal and contractual provisions. If the provision is clear and unambiguous, it must be applied in accordance with its express terms. (MERALCO vs NLRC, GR No. 78763, July 12, 1989)

Reasons for Affording Greater Protection to EmployeesGreater supply than demand for labor

The need for employment by labor comes from vital, even desperate necessity

Management RightsExcept as limited by special laws, an employer is

FREE TO REGULATE, according to his own discretion and judgment:All aspects of employment

Hiring Work assignments Working methods, Time & place Manner of work Tools to be used Processes to be followed, Discipline, dismissal and recall of workers

(San Miguel Brewery Sales vs Ople, Feb. 8, 1989)

ER has the right to:1. Conduct business2. Prescribe Rules3. Select and hire employees4. Transfer or discharge employees5. Return of investment and expansion of

business

ART. 6, LCP on ApplicabilityGeneral Rule:

Applies to all workers, whether agricultural or non-agricultural, including employees in a GOCC incorporated under the Corporation Code who are not considered as government workers/employees.

Exceptions to Art. 6Government EmployeesEEs of GOCC’s created by special(original)

chartersJuco vs NLRC, August 18, 1987

Foreign governmentsJUSMAG-Philippines vs NLRC, December 15, 1994)

International Agencies/ees of intergovernmental or international organizationsSEAFDEC-AQD vs NLRC, Feb. 14, 1992)

Corporate officers / Intra-Corporate disputesLocal Water district

ASSIGNMENTPrepare a reflection paper on the ills of the industrial revolution and the kind of protection the constitution seeks to attain. Connect with what we have discussed today.2 Pages, 1.5 spacing, Arial font size 11. Short bond paper.DUE on NOV. 18, 2011.

End of Module 1