Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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WIN-WIN Labor Relations and HR Law Atty. Apollo X.C.S. Sangalang Business Lawyer & Legal Coach April 29-30, 2015 Cebu City, Philippines

Transcript of Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

WIN-WIN Labor Relations and

HR LawAtty. Apollo X.C.S. Sangalang

Business Lawyer & Legal CoachApril 29-30, 2015

Cebu City, Philippines

FVR Skills and Services Exponent, Inc. (SKILLEX), Fulgencio V.

Rana, and Monina R. Burgos -versus-

Jovert Seva, et. al. (and 27 other workers)

G.R. No. 200857October 22, 2014

Supreme Court of the Philippines

LABOR ARBITER-WINNERS-

SKILLEX et. al.-AWARDS-

Valid Dismissal.*BUT workers were awarded money

claims worth at least PhP100,000.

National Labor Relations Commission-WINNERS-

Jovert Seva and 27 other workers.-AWARDS-

1.Regularization.2.Separation Pay in lieu of

Reinstatement.3.Backwages.4.Money claims of PhP100,000+

Court of Appeals-WINNERS-

Jovert Seva and 27 other workers.-AWARDS-

1. Regularization.2. Separation Pay in lieu of

Reinstatement.3. Backwages.4. Money claims of PhP100,000+

5.Rana and Burgos solidarily liable!!!

Supreme Court-WINNERS-

Jovert Seva and 27 other workers.-AWARDS-

1. Regularization.2. Separation Pay in lieu of

Reinstatement.3. Backwages.4. Money claims of PhP100,000+

BUT Rana and Burgos ABSOLVED!!!

Hi! I’m PoL

Sangalang

LAWYER

OFFICER OF THE COURTand

MEMBER OF THE BAR

COUNSELORand

ATTORNEY-AT-LAW

OWNER and PARTNER of a LAW FIRM

ARNISENTHUSIAST

BROADCASTER

FACILITATOR and TRAINER

FormerSTUDENTLEADER

University Legal CounselUniversity of the

Philippines

Executive DirectorNational Labor Relations

Commission

Chief Legislative Officer

Senate of the Philippines

Labor Law made chewable

LABOR LAW is HARD!!!

Labor Law Made Easy

PoL Sangalang’s

Labor Law Made Easyhttps://www.facebook.com/legalcoach

- Free consultation!

- Free learning!

- Free links!

Labor Law made easy?Really? How?

D.O.C.U.M.E.N.T. © 2013

GOOD FAITH

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices.N egotiate, negotiate, negotiate!!!T ake advice only from experts.

DisclaimersNo lawyer-client relationship.

Consult your own legal counsel.

Remember: Legal opinions differ.

Respect the sub judice rule.

Avoid conflicts of interest.

IT’S OK TO INTERUPT ME

IF YOU HAVE QUESTIONS.

This seminar is INTERACTIVE.

And yes, I mean it!

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices.N egotiate, negotiate, negotiate!!!T ake advice only from experts.

Omni Hauling Services Inc., Lolita Franco and Aniceto Franco

-versus-Bernardo Bon, et. al. (and 17 other

workers)G.R. No. 199388

September 3, 2014Supreme Court of the Philippines

-WINNERS-Bernardo Bon and 17 other workers

-AWARDS-1. Regularization.2. Reinstatement(or Separation Pay in lieu of

Reinstatement).3. Backwages.

Documentation X 3

Pre-Employment.

Employment (Proper).

Pre-Termination and Post- Employment.

Open-MindednessBe tolerant with your workers.

Be receptive to new ideas and possibilities.

Be accepting of the outcome.

Philippine Spring Water Resources Inc., and Danilo Y. Lua

-versus-

Court of Appeals and Juvenstein B. Mahilum

G.R. No. 205278June 11, 2014

Supreme Court of the Philippines

-WINNER-Juvenstein B. Mahilum

-AWARDS-1. Regularization.2. Separation Pay in lieu of

Reinstatement.3. Backwages.4. 10% Attorney’s Fees.5. Unpaid benefits (proportionate 13th

month pay and unused leave credits)6. 6% Legal Interest until fully paid.

Clarity

…in written communication.

…in talk and action.

…in purpose and objective.

Dionarto Q. Noblejas-versus-

Italian Maritime Academy Phils., Inc., Capt. Nicolo S. Terrei, Raceli

B. Ferrez, and Ma. Teresa R. Mendoza

G.R. No. 207888June 9, 2014

Supreme Court of the Philippines

“No, you better pack up all your things now and go, you are now dismissed and you are no longer part in this office – clearly, you are terminated from this day on!”

– Raceli B. Ferrez

-WINNER-Dionarto Q. Noblejas

-AWARDS-1. Regularization.2. Reinstatement BUT WITHOUT

Backwages.3. Proportionate 13th month pay.

Understand Labor Law Principles

1. Labor Law is a “Game”.

2. Rules of the Game.

3. Goals of the Game.

It all starts with a…?

Hiring Strategy!

Hiring Process

Master HRLR/ ER is essentially HR.

HR is exemplified by MR.

MR is enhanced by GR.

HR means Human Relations

Human Relations, Civil Code: “Article 19. Every person must,

in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith.”

Takata (Philippines) Corporation-versus-

Bureau of Labor Relations andSamahang Lakas Manggagawa ng

Takata (SALAMAT)G.R. No. 196276

June 4, 2014Supreme Court of the Philippines

Embrace Best Practices

Good Practices.

Better Practices.

Best Practices

Nancy S. Montinola -versus-

Philippine AirlinesG.R. No. 198656

September 8, 2014Supreme Court of the

Philippines

-WINNER-Nancy S. Montinola

-AWARDS-1. Reinstatement. 2. Backwages.3. Moral Damages.4. Exemplary Damages.5. Attorney’s Fees.

Negotiate X 3

…before a labor dispute.

…during a labor dispute.

…after a labor dispute.

Roy D. Pasos -versus-

Philippine National Construction Corporation

G.R. No. 192394July 3, 2013

Supreme Court of the Philippines

Take advice only from experts

Licensed or seasoned experts.

Local labor law experts.

Practical and trust-worthy experts.

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices.N egotiate, negotiate, negotiate!!!T ake advice only from experts.

Labor Law made easy?Really? How?

D.O.C.U.M.E.N.T. © 2013

GOOD FAITH

Did you know that…?Employmentis aCONTRACT

The Evolution ofLabor Law

Law on Contracts “The contracting parties may

establish such stipulations, clauses, terms and conditions as may be deemed convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.” (Art. 1306, Civil Code)

The Evolution ofOwnership

Law on Ownership“The owner has the

right to enjoy and dispose of a thing, without other limitations other than those established by law.”

(Art. 428, Civil Code).

Employer Power Equation

Employer Power!“The State recognizes the indispensable role of the private sector, encourages private enterprises, and provides incentives to needed investments.” (Sec. 20, Art. II, Constitution)

“The State…x x x… recognizing the right of enterprises (1) to reasonable returns on investments, and (2) to expansion and growth.” (Sec. 3, Art. XIII, Constitution)

The Evolution ofManagement Prerogative

Management Prerogative

1.Right to hire;

2.Right to fire;

3.Right to fix compensation & benefits; and

4.Right to control.

Management Prerogative is the basis of

Company Policies

What’s the problem?

Management Prerogative is NOT Absolute!

…Why?Labor Law

limits Management Prerogative

Limitation No. 1The burden of proving that

the termination was for a valid or authorized cause shall rest on the EMPLOYER.

Article 291 paragraph 2, Labor Code

(Formerly Article 277)

Limitation No. 2All doubts in the

interpretation and implementation of the Labor Code and its implementing rules and regulations shall be resolved in favor of LABOR.

Article 4, Labor Code

TheFull Protection Equation

The Evolution of HR

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices.N egotiate, negotiate, negotiate!!!T ake advice only from experts.

Master HRLR/ ER is essentially HR.

HR is exemplified by MR.

MR is enhanced by GR.

Did you know that…?Employment

is likeMARRIAGERELATIONS

A person who surrenders when he is WRONG is HONEST.

A person who surrenders when NOT sure is WISE.

A person who surrenders even if he’s RIGHT is a HUSBAND!!!

MARRIAGE

EMPLOYMENT

Anatomy of a Labor Dispute

Labor Relations Game

Rule of Law

Shared Responsibility Model

Tripartite Model

What is Social Justice?

Elements of Labor Law

Did you know that…

Labor Law is about 90% ++

Employment Law?

Did you know that…?Not everyone who

gets hired becomes

an EMPLOYEE.

Hiring Process

Labor Law1. Full protection2. Living wage3. Humane conditions of work4. Security of tenure5. Participation in policy and decision-

making6. Just share in the fruits of production

1. Self-organization and collective bargaining;2. Freedom of expression; and3. Strike and other peaceful concerted activities

Monetary BenefitsMinimum Wage Holiday Pay

Premium Pay Overtime Pay

Night Shift Differential Service Charges

Service Incentive Leave Maternity Leave

Paternity Leave Solo Parents Leave

VAWC Leave Special Leave for Women

13th Month Pay Separation Pay

Retirement Pay Compensation Benefit* (ECC)

PhilHEALTH Benefit* Social Security Benefit*

Pag-IBIG Benefit*

2014 Handbook

Non-Diminution of Benefits

Test of Employment

What’s Control?

Control TestCONTROL is the power to

determine the end results and the means of doing the work.

Only an employer has control over his employees.

The power of control need not be actually exercised.

Non-employment Options Independent Contractors Job Contractors

Consultants Freelancers

Agents Industrial Partners

Corporate Officers Cooperative Members

Volunteers Academic Interns

Hiring Process

Bilateral Relationship

Contract of Labor

Contract

for a Piec

e of W

ork

Trilateral Relationship

DO 18-A

Contract

for a Piec

e of W

ork

Contract of Labor

Job Contracting

CONTROL

NO CONTROLNO CONTROL

Labor ONLY Contracting

NO CONTROL

CONTROLNO CONTROL

Test of Employment

What’s Control?

Manpower Cooperative

CONTROL

NO CONTROLNO CONTROL

Self-Employed Cooperative

NO CONTROL

NO CONTROLNO CONTROL

Labor ONLY Cooperative

NO CONTROL

CONTROLNO CONTROL

Direct Contracting

Fixed-term5-5-5

Did you know that…?

Job titles are NON-BINDING and

contractual disclaimers are NOT binding as

well.

Labor Law made easy?Really? How?

D.O.C.U.M.E.N.T. © 2013

GOOD FAITH

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices.N egotiate, negotiate, negotiate!!!T ake advice only from experts.

Types of EmploymentPrivate Sector vs. Government

Regular (By Nature) vs. Casual

Regular (By Tenure) vs. Non-Regular

Rank-and-file vs. Manager & Supervisor

Time-based vs. Results-based

Private Sector vs. Government

Labor Code and other labor laws

Civil Service Law

DOLE Civil Service Commission

CBA + Strike CNA + No Strike

Labor Standards Not covered by Labor Standards

Regular vs. Casual

Work is “Usually Necessary or

Desirable in the Usual Business or

Trade of the Employer”

Work is NOT “Usually Necessary or

Desirable in the Usual Business or Trade of

the Employer”

Security of Tenure No Security of Tenure

What’s Security of Tenure?

TERMINATION OF EMPLOYMENT ALLOWED ONLY ON GROUNDS OF:

1. JUST CAUSE; OR 2. AUTHORIZED CAUSE

What’s Just Cause?1. Serious misconduct;2. Willful disobedience (or

insubordination);3. Gross and habitual neglect of duties;4. Fraud;5. Willful breach of trust; and6. Crime against person of the employer

or his immediate family or representatives.

Other Just Causes?1.Loss of trust and confidence;2.Gross negligence coupled with a

grave consequence;3. Incompetence without improvement;4.Habitual commission of minor

offenses; and5.Unfit for continued employment

based on the “Totality of Infraction” doctrine.

What’s Authorized Cause?

1. Installation of labor-saving devices;2.Redundancy;3.Retrenchment to prevent losses;4.Closing or cessation of

establishment or undertaking;5.Disease prejudicial to health; and6.Compulsory retirement.

What’s a Regularized Casual?

A CASUAL EMPLOYEE WHO RENDERED AT LEAST 1

YEAR OF SERVICE, WHETHER CONTINUOUS OR BROKEN, ARE CONSIDERED

AS REGULARIZED.

Regular vs. Non-Regular

Work is “Usually Necessary or Desirable in

the Usual Business or Trade of the Employer”

Same Nature

Security of Tenure Same Security

Tenure is until the age of compulsory retirement

(65 years old).

Shorter Tenure

Non-Regular Security of Tenure (?)

Project Yes, but tenure expires upon completion of the project.

Seasonal Yes, but tenure expires upon the ending of the season.

Contractual or Fixed-term

Yes, but tenure expires upon the end of contract (“endo”).

Temporary or Emergency

Yes, but tenure expires upon the cessation of the emergency or contingency.

Contractual Employment

Fixed-term5-5-5

Job Contracting

CONTROL

NO CONTROLNO CONTROL

Regular vs. Probationary

Work is “Usually Necessary or Desirable in the Usual Business or Trade of the

Employer”

Same Nature

Security of Tenure Same Security

Tenure is until the age of compulsory retirement

(65 years old).

Same Tenure

No Trial Period With Trial Period

How you HIREdetermines how

you FIRE!

Regular vs. Casual

Work is “Usually Necessary or

Desirable in the Usual Business or

Trade of the Employer”

Work is NOT “Usually Necessary or

Desirable in the Usual Business or Trade of

the Employer”

Security of Tenure No Security of Tenure

Regular vs. Probationary

Work is “Usually Necessary or Desirable in the Usual Business or Trade of the

Employer”

Same Nature

Security of Tenure Same Security

Tenure is until the age of compulsory retirement

(65 years old).

Same Tenure

No Trial Period With Trial Period

Job Contracting

CONTROL

NO CONTROLNO CONTROL

Non-Regular Security of Tenure (?)

Project Yes, but tenure expires upon completion of the project.

Seasonal Yes, but tenure expires upon the ending of the season.

Contractual or Fixed-term

Yes, but tenure expires upon the end of contract (“endo”).

Temporary or Emergency

Yes, but tenure expires upon the cessation of the emergency or contingency.

Hiring Process

Why do we FIRE ?

Because we can!

How SHOULD we fire?

D.O.C.U.M.E.N.T. © 2013GOOD FAITH

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices.N egotiate, negotiate, negotiate!!!T ake advice only from experts.

Model Employment Contract

Written, dated, and signedPre-employment & probation clausesRegular or other employment statusObedience to company policiesStarting wages & specific benefitsReference to job offer, handbook, etc.

Model Employee Handbook

Written, dated, and signed receiptCode of disciplineCode of ethics & performance criteriaResignation & clearance processAddress changes & notificationOnly common benefits are listed

Model 201 FileEmployment contractJob description and job offer sheetPre-employment documentationJob application and bio-data sheetAcknowledgment receiptsCertifications and test results

What’s the purpose?

Administrative

Investigation

What’s the purpose?The purpose of an “Administrative

Investigation” (or “AI”) is to support a decision to impose or not to impose disciplinary action.

The goal is to impartially gather and compile all relevant evidence.

Conduct problems are the scope.

What’s the problem?

Labor Law limits Management

Prerogative to Investigate,

Discipline and Terminate.

Limitation No. 1The burden of proving that

the termination was for a valid or authorized cause shall rest on the EMPLOYER.

Article 291 paragraph 2, Labor Code

(Formerly Article 277)

Limitation No. 2All doubts in the

interpretation and implementation of the Labor Code and its implementing rules and regulations shall be resolved in favor of LABOR.

Article 4, Labor Code

Full Protection Equation

3 Ways to Investigate, Discipline and Terminate

(IDT)

Efficient but NOT necessarily legal.

Legal but NOT necessarily effective.

Effective (which is more than legal).

3 Reasons to Avoid ILLEGAL Dismissal

CasesMonetary and Business Costs.

Emotional, Mental, Physical and Spiritual Costs.

Social and Macro-Economic Costs.

3 Most Fearsome Monetary and Business

COSTSReinstatement.

Backwages.

Damages.

3 Hidden Monetary and Business COSTS

Direct Costs of Litigation.

Indirect Costs of Litigation.

Business Losses and Closure.

3 Kinds of Workers to I.D.T.

Employees guilty of JUST CAUSE.

Employees NOT guilty of just cause.

Workers who are NOT employees.

3 Kinds of Employees who are Guilty of Just

CauseGuilty under Article 296 Labor Code.

Guilty under Causes Analogous.

Guilty under Company Policy.

Article 296*, Labor Code1. Serious misconduct;2. Willful disobedience (or

insubordination);3. Gross and habitual neglect of duties;4. Fraud;5. Willful breach of trust; and6. Crime against person of the

employer or his immediate family or representatives.

Causes Analogous1. Loss of trust and confidence;2. Gross negligence coupled with grave

consequence;3. Incompetence without improvement;4. Habitual commission of minor

offenses; and5. Unfit for continued employment

based on the “Totality of Infraction” doctrine.

Company Policy Causes Analogous is the LEGAL BASIS

for employers to create new offenses penalized by termination.

Offenses created by employers must have the same gravity as the offenses listed in Article 296.

Must be written, well defined and circulated (e.g. Employee Handbook).

Other Problem Employees

1. Employee isn’t the problem (what then?);

2. Problem employee, yes; but he isn’t dismissible (yet);

3. Problem employee, yes; but he can be severed without firing him;

4. Employee who lacks motivation or skills; and

5. Non-employee worker;

3 Ways to I.D.T.Efficient but not necessarily legal.

Legal but not necessarily effective.

Effective (which should be legal).

Legal Way To I.D.T.Substantive Due Process.

Procedural Due Process.

Substantial Evidence.

LEGAL WAY

Substantive Due Process

Just Cause.

Reasonableness.

Good Faith.

Substantive Due Process

JUST CAUSE:based on Article 296*, Labor

Code.based on “Causes Analogous”.must overcome:

“Security of Tenure.”

Article 296*, Labor Code1. Serious misconduct;2. Willful disobedience (or

insubordination);3. Gross and habitual neglect of duties;4. Fraud;5. Willful breach of trust; and6. Crime against person of the employer

or his immediate family or representatives.

Causes Analogous1. Loss of trust and confidence;2. Gross negligence coupled with a

grave consequence;3. Incompetence without improvement;4. Habitual commission of minor

offenses; and5. Unfit for continued employment

based on the “Totality of Infraction” doctrine.

Substantive Due ProcessREASONABLENESS:Penalty is proportionate to the

offense.Offense is NOT against Law or

Public Policy.Offense is business-related or

employment-connected.

Substantive Due Process

GOOD FAITH:Good faith is presumed.Bad faith must be proven.But in labor law, it’s the

reverse!Because ALL DOUBTS favor employees!

Procedural Due Process

Notice to Explain.

Notice of Hearing.

Notice of Termination.

Procedural Due ProcessNOTICE TO EXPLAIN:

Describes the who, what, when, where, why and the how much or the manner the offense was committed.

Gives at least 5 DAYS to submit the written explanation.

Specifies TERMINATION as possible penalty, if found guilty.

Procedural Due Process

NOTICE OF HEARING:Gives opportunity to the employee

to verbally explain his side and present his evidence.

States that he has right to counsel or representative of his own choice.

Lays down the hearing procedure.

Procedural Due Process

NOTICE OF TERMINATION:Summarizes what happened since

the start of the disciplinary process.

Enumerates the basis of the decision.

States the verdict clearly, including monetary liability (if any); and advises employee of the next step.

Substantial Evidence

Proof of substantive due process.

Proof of procedural due process.

Proof of good faith.

Substantial Evidence

PROOF OF SUBSTANTIVE DUE PROCESS:Offense has been defined and justified.Employee committed the offense.

Affidavits and Testimonial Evidence.

Admissions.Documentary Evidence.Object Evidence.

Substantial Evidence

PROOF OF PROCEDURAL DUE PROCESS:Notices are written and served.

Personal service.Substituted service.

Hearings are recorded.Attendance.Minutes.

Substantial Evidence

PROOF OF GOOD FAITH:Show the effect of the offense on

the organization or on the business.Show that you walked the Extra

Mile. Because employers have the

BURDEN OF PROOF*.Because ALL DOUBTS favor

the employees.

LEGAL WAY

CONSTRUCTIVE DISMISSAL • A form of ILLEGAL TERMINATION;• No formal termination or disciplinary

proceeding was initiated;– No due process; – Presumably, no just or authorized cause as

well.• Employee was forced to resign because:

– Demotion or diminution of benefits; or– Impossible or unbearable for the employee to

continue with his employment; or– Directed by the employer to resign.

PREVENTIVE SUSPENSION Ground:

– Serious and imminent threat to the:• Life and/or property of the…• Employer and/or co-workers.

Maximum period: 30 days. Otherwise, it shall be CONSTRUCTIVE

DISMISSAL.CONSTRUCTION INDUSTRY: 15 DAYS

MAXIMUM.

TEMPORARY TRANSFER Requirements:

– Genuine business need or necessity; – Good faith; – No undue hardship upon employee; and– Not meant as a form of penalty.

Otherwise, the transfer will be considered as a form of CONSTRUCTIVE DISMISSAL.

If there is just cause, transfer may be resorted to as an alternative to preventive suspension; but a disciplinary proceeding must be initiated.

Effective WayLegal Way isn’t enough. Why?Because…

Filing a labor case is so easy and it’s free;

An employee who felt mistreated will try to vindicate himself or get even;

A guilty employee will try to save face;Many lawyers, paralegals, and labor

leaders accept contingency fees.

What’s the Effective Way?

D.O.C.U.M.E.N.T. © 2013

GOOD FAITH

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices: Progressive DisciplineN egotiate, negotiate, negotiate!!!T ake advice only from experts.

Anatomy of a Labor Dispute

Evolution of Work Arrangement

Capitalism

Capitalist Model

Communism

Capitalist Exploitation

Revolution!!!

Socialist Model

Democratic Model

Labor Law Revolution!

Shared Responsibility Model

Tripartite Model

What is Social Justice?

Rule of Law

Elements of Labor Law

Anatomy of a Labor Dispute

3 Kinds of Win Scenarios

Win – Lose

Compromise (or Half-baked Win)

Win – Win (Mindset)“Think Win-Win” by Stephen Covey

3 Ways To Win

By “Hook” or by “Crook”.

Out Last. Out Wit. Out Pay! (“Survivor”).

WIN with INtegrity (“WIN-wIN”). It’s more than just winning legally.

Why WIN-wIN?

I can’t compartmentalize my life.

I can’t justify the means with the end.

I reaped what I’ve sown.

I almost lost my soul.

What’s WIN-wIN?“… what king would go to war against another king without first sitting down with his counselors to discuss whether his army of 10,000 could defeat the 20,000 soldiers marching against him? And if he can’t, he will send a delegation to discuss terms of peace while the enemy is still far away.”

- Jesus Christ (Luke 14:31-32 NLT)

What’s the Win-Win Way?

D.O.C.U.M.E.N.T. © 2013

GOOD FAITH

How to D.O.C.U.M.E.N.T. © 2013

D ocumentation, documentation, documentation!!! O pen-mindedness.C larity.U nderstand Labor Law principles.M aster HR.E mbrace best practices: Progressive DisciplineN egotiate, negotiate, negotiate!!!T ake advice only from experts.

Progressive DisciplineDefinition:

It is a system of discipline where penalties increase upon repeat occurrences.

Purpose:It primarily aims to correct the negative behavior rather than to punish the erring employee.

Range of Responses:1. Counseling or coaching.2. Verbal warning.3. Written warning.4. Suspension or demotion or fine or forfeiture.5. Performance Improvement Plan (PIP). 6. Termination.

What’s Progressive Discipline?

Progressive Discipline Mindset

1. Do no harm.

2. Make things better.

3. Respect others.

4. Be fair.

5. Be compassionate.

Progressive DisciplineAdvantages:

1. It addresses the silence of the Labor Code regarding “Incompetence” as a ground for termination.

2. It helps the Employer document habitual negative behaviors, which is essential in establishing “Gross and Habitual Negligence” as a ground for termination.

3. It helps the Employer prove that he was in Good Faith in dealing with the Employee.

Advantages (continuation):

4. It helps build up a case for “Analogous Cause” as a ground for termination.

5. Since it is corrective in approach, it helps preserve the existing members of the team while improving their performance and behavior.

6. It saves the Employer costly recruitment and training expenses for new hires, as well as prevents downtime due to vacancies.

7. It promotes Employee morale.

Progressive DisciplineRequirements:

1. Employee Manual (Progressive Offenses & Penalties).2. Step-by-step Implementation Guide.3. Training for Managers and Supervisors.

a. Counseling or Coaching Skills.b. Verbal and Written Warnings.c. Performance Agreement d. Performance Improvement Plan.

4. Employee Interview Log Sheets.5. 201 File.6. Templates and Scripts.

1. Pre-Investigation Stage.a. Prepare: Company Policies and Employee Manual.b. Prepare: Employment Contracts and 201 File.c. Progressive Discipline: Train the Managers. d. Progressive Discipline: Counsel or Warn Employees.e. Preliminary: Fact-finding Activities.

2. Investigation Proper.

a. Start: Notice to Explain or Show Cause Memo.b. Progressive Discipline: Performance Improvement Plan. c. End: Notice of Decision.

3. Post-Investigation Stage.a. Review: Company Policies and Employee Manual.b. Review: Employment Contracts and 201 File.c. Progressive Discipline: Re-train the Managers.

Progressive Discipline Cycle

ER Best PracticesProbationary Employment.

Code of Discipline.

Code of Ethics.

HR Best Practices

Performance Appraisal.

Performance Improvement Plan.

Performance-based Rewards.

LR Best PracticesWalk-in Compromise Settlement.

SEnA (Single Entry Approach).

“The Cordial Resignation Letter.”

WHAT IS GOOD FAITH?GOOD FAITH

SIMPLY MEANS

GOD FAITH

Spiritual Best PracticeThe Bible:“Do not seek revenge or

bear a grudge against a fellow Israelite, but love your neighbor as yourself.”

(Leviticus 19:18)

WHAT IS GOOD FAITH?GOD FAITH

ALSO MEANS

LOVING YOUR “ENEMIES.”

WHAT IS “G.R.”?

GOLDENRULE

This Golden Rule?

HE WHO HAS THE GOLDRULES!

This Golden Rule?

FOR THE WHOLE LAW CAN BE SUMMED UP IN THIS ONE COMMAND:

“LOVE YOUR NEIGHBOR AS YOURSELF.”

(GALATIANS 5:14, THE BIBLE NLT)

How to love your workers?

1. Do no harm.2. Make things better.3. Respect others.4. Be fair.5. Be compassionate.

4-Way Test ThinkSayDo