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

228
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)

Page 1: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Atty. Apollo X.C.S. SangalangBusiness Lawyer & Legal Coach

April 29-30, 2015

Cebu City, Philippines

Page 2: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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. 200857

October 22, 2014

Supreme Court of the Philippines

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LABOR ARBITER

-WINNERS-

SKILLEX et. al.

-AWARDS-

Valid Dismissal.*

BUT workers were awarded money

claims worth at least PhP100,000.

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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+

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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!!!

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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!!!

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Hi! I’m

PoL

Sangalang

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LAWYER

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OFFICER OF THE COURT

and

MEMBER OF THE BAR

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COUNSELOR

and

ATTORNEY

-AT-

LAW

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OWNER and PARTNER

of a LAW FIRM

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ARNIS

ENTHUSIAST

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BROADCASTER

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FACILITATOR and TRAINER

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Former

STUDENT

LEADER

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University Legal Counsel

University of the Philippines

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Executive Director

National Labor Relations

Commission

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Chief Legislative Officer

Senate of the Philippines

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Labor Law

LABOR LAW is HARD!!!

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Labor Law Made

EasyPoL Sangalang’s

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Page 26: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

https://www.facebook.com/legalcoach

- Free consultation!

- Free learning!

- Free links!

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Labor Law made easy?

Really? How?

D.O.C.U.M.E.N.T. © 2013

GOOD

FAITH

Page 28: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

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Disclaimers

No lawyer-client relationship.

Consult your own legal counsel.

Remember: Legal opinions differ.

Respect the sub judice rule.

Avoid conflicts of interest.

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This seminar is INTERACTIVE.

And yes, I mean it!

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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.

Page 32: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Omni Hauling Services Inc., Lolita Franco

and Aniceto Franco

-versus-

Bernardo Bon, et. al. (and 17 other workers)

G.R. No. 199388

September 3, 2014

Supreme Court of the Philippines

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-WINNERS-

Bernardo Bon and 17 other workers

-AWARDS-

1. Regularization.

2. Reinstatement

(or Separation Pay in lieu of Reinstatement).

3. Backwages.

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Documentation X 3

Pre-Employment.

Employment (Proper).

Pre-Termination and Post-

Employment.

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Open-Mindedness

Be tolerant with your workers.

Be receptive to new ideas and

possibilities.

Be accepting of the outcome.

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Philippine Spring Water Resources Inc.,

and Danilo Y. Lua

-versus-

Court of Appeals

and Juvenstein B. Mahilum

G.R. No. 205278

June 11, 2014

Supreme Court of the Philippines

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-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.

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Clarity

…in written communication.

…in talk and action.

…in purpose and objective.

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Dionarto Q. Noblejas

-versus-

Italian Maritime Academy Phils., Inc.,

Capt. Nicolo S. Terrei, Raceli B. Ferrez,

and Ma. Teresa R. Mendoza

G.R. No. 207888

June 9, 2014

Supreme Court of the Philippines

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“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

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-WINNER-

Dionarto Q. Noblejas

-AWARDS-

1. Regularization.

2. Reinstatement BUT WITHOUT

Backwages.

3. Proportionate 13th month pay.

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Understand Labor Law

Principles

1. Labor Law is a “Game”.

2. Rules of the Game.

3. Goals of the Game.

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Win-Win Lose-Win

Win-Lose Lose-Lose

Game Results Scenarios

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It all starts with a…?

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Hiring Process

Firing Process

Employee

Employee

Employee

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Master HR

LR/ ER is essentially HR.

HR is exemplified by MR.

MR is enhanced by GR.

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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.”

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Takata (Philippines) Corporation

-versus-

Bureau of Labor Relations and

Samahang Lakas Manggagawa ng Takata

(SALAMAT)

G.R. No. 196276

June 4, 2014

Supreme Court of the Philippines

Page 49: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Embrace Best Practices

Good Practices.

Better Practices.

Best Practices

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Nancy S. Montinola

-versus-

Philippine Airlines

G.R. No. 198656

September 8, 2014

Supreme Court of the Philippines

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-WINNER-

Nancy S. Montinola

-AWARDS-

1. Reinstatement.

2. Backwages.

3. Moral Damages.

4. Exemplary Damages.

5. Attorney’s Fees.

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Negotiate X 3

…before a labor dispute.

…during a labor dispute.

…after a labor dispute.

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Roy D. Pasos

-versus-

Philippine National Construction Corporation

G.R. No. 192394

July 3, 2013

Supreme Court of the Philippines

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Take advice only from experts

Licensed or seasoned experts.

Local labor law experts.

Practical and trust-worthy experts.

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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.

Page 56: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Labor Law made easy?

Really? How?

D.O.C.U.M.E.N.T. © 2013

GOOD

FAITH

Page 57: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Did you know that…?

Page 58: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Slavery

Tribal

Serfdom

Feudal

Employment

Contractual

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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)

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Slavery

Labor

Serfdom

Land

Employment

Capital

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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).

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Employer Power Equation

Ownership Contracts Power

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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)

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Slavery

Might is Right

Serfdom

Divine Right

Employment

Constitutional Right

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Management Prerogative

1. Right to hire;

1. Right to fire;

1. Right to fix compensation & benefits; and

1. Right to control.

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What’s the problem?

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…Why?

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Limitation No. 1

Article 291 paragraph 2, Labor Code

(Formerly Article 277)

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Limitation No. 2

Article 4, Labor Code

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Burden of

Proof

All Doubts E.A.P.G.

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Slavery

Masters

Serfdom

Lords

Employment

HR Managers

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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.

Page 74: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Master HR

LR/ ER is essentially HR.

HR is exemplified by MR.

MR is enhanced by GR.

Page 75: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Did you know that…?

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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!!!

Page 77: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Pre-Employment

Employment

Post Employment

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Courtship + Engagement

Marriage

Separation + Annulment

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Placement

Selection

Recruitment

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Marriage

Engagement

Courtship

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Job Analysis

Job Description

Advertise Vacancies

Receive Job Applications

Job Interview

Background Checks

Testing

Short-Listing

Job Offer & Acceptance

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Happy

Ending

•Golden Anniversary

Tragic

Ending

•Separation

•Law suit

MARRIAGE

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Happy

Ending

• Retirement

• Cordial Resignation

Tragic

Ending

• Termination

• Labor case

• Other law suits

EMPLOYMENT

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Anatomy of a Labor Dispute

Capitalist Worker

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Win-Win Lose-Win

Win-Lose Lose-Lose

Conflict Resolution Scenarios

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Labor Relations Game

Unionism and Right to Strike

Labor Standard

Social Justice

Security of Tenure

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Rule of Law

Constitution

Laws (including Labor Laws)

Rules & Regulations

JurisprudencePublic Policies and Principles

of Equity

Contracts

Company Policies

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Shared Responsibility Model

Business

Labor

Progress and

Development

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Tripartite Model

Government

BusinessLabor

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What is Social Justice?

Business Labor

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Elements of Labor Law

Labor Law

Shared Responsibility

Social Justice

Rule of Law

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Did you know that…

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Labor Law

Employment Law

Page 94: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Did you know that…?

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Employee•Labor Law

•Control

Independent Contractor

•Civil Law

•No Control

Hiring Process

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Labor Law

Control

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Labor Law

1. Full protection

2. Living wage

3. Humane conditions of work

4. Security of tenure

5. Participation in policy and decision-making

6. Just share in the fruits of production

1. Self-organization and collective bargaining;

2. Freedom of expression; and

3. Strike and other peaceful concerted activities

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Monetary Benefits

Minimum 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*

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2014 Handbook

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Non-Diminution of Benefits

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Test of Employment

Hire Fire

Pay Control

4-Fold Test

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What’s Control?

End

Means

Control

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Control Test

CONTROL 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.

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Non-employment Options

Independent Contractors Job Contractors

Consultants Freelancers

Agents Industrial Partners

Corporate Officers Cooperative Members

Volunteers Academic Interns

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Private Recruitment

and Placement

Agency

•Outsource HIRING

Independent Contractor

•Outsource CONTROL

Hiring Process

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Bilateral Relationship

Vendee

EmployeeVendorContract of Labor

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Trilateral Relationship

User Enterprise

EmployeeContractorContract of Labor

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Job Contracting

Client

EmployeeContractorCONTROL

NO CONTROLNO CONTROL

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Labor ONLY Contracting

Principal

EmployeeAgentNO CONTROL

CONTROLNO CONTROL

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Test of Employment

Hire Fire

Pay Control

4-Fold Test

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What’s Control?

End

Means

Control

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Manpower Cooperative

Client

EmployeeCooperativeCONTROL

NO CONTROLNO CONTROL

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Self-Employed Cooperative

Client

Self-Employed

Cooperative

NO CONTROL

NO CONTROLNO CONTROL

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Labor ONLY Cooperative

Principal

WorkerCooperativeNO CONTROL

CONTROLNO CONTROL

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Direct Contracting

Employer

Employee

Fixed-term5-5-5

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Did you know that…?

Page 117: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Labor Law made easy?

Really? How?

D.O.C.U.M.E.N.T. © 2013

GOOD

FAITH

Page 118: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 119: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Job Analysis

Job Description

Advertise Vacancies

Receive Job Applications

Job Interview

Background Checks

Testing

Short-Listing

Job Offer & Acceptance

Page 120: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Types of Employment

Private 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

Page 121: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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

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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

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What’s Security of Tenure?

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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; and

6. Crime against person of the employer or

his immediate family or representatives.

Page 125: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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;

and

5. Unfit for continued employment based

on the “Totality of Infraction” doctrine.

Page 126: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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; and

6. Compulsory retirement.

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What’s a Regularized Casual?

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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

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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.

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Contractual Employment

Employer

Employee

Fixed-term5-5-5

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Job Contracting

Client

EmployeeContractorCONTROL

NO CONTROLNO CONTROL

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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

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Page 134: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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

Page 135: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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

Page 136: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Job Contracting

Client

EmployeeContractorCONTROL

NO CONTROLNO CONTROL

Page 137: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 138: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Hiring Process

Firing Process

Employee

Employee

Employee

Page 139: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)
Page 140: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

How SHOULD we fire?

D.O.C.U.M.E.N.T. © 2013

GOOD

FAITH

Page 141: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 142: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Model Employment Contract Written, dated, and signed

Pre-employment & probation clauses

Regular or other employment status

Obedience to company policies

Starting wages & specific benefits

Reference to job offer, handbook, etc.

Page 143: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Model Employee Handbook Written, dated, and signed receipt

Code of discipline

Code of ethics & performance criteria

Resignation & clearance process

Address changes & notification

Only common benefits are listed

Page 144: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Model 201 File Employment contract

Job description and job offer sheet

Pre-employment documentation

Job application and bio-data sheet

Acknowledgment receipts

Certifications and test results

Page 145: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

What’s the purpose?

Page 146: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 147: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

What’s the problem?

Page 148: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Limitation No. 1

Article 291 paragraph 2, Labor Code

(Formerly Article 277)

Page 149: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Limitation No. 2

Article 4, Labor Code

Page 150: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Burden of Proof

All Doubts

E.A.P.G.

Full Protection Equation

Page 151: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Ways to Investigate,

Discipline and Terminate (IDT)

Efficient but NOT necessarily legal.

Legal but NOT necessarily effective.

Effective (which is more than legal).

Page 152: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Reasons to Avoid ILLEGAL

Dismissal Cases

Monetary and Business Costs.

Emotional, Mental, Physical and Spiritual Costs.

Social and Macro-Economic Costs.

Page 153: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Most Fearsome Monetary

and Business COSTS

Reinstatement.

Backwages.

Damages.

Page 154: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Hidden Monetary and

Business COSTS

Direct Costs of Litigation.

Indirect Costs of Litigation.

Business Losses and Closure.

Page 155: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Kinds of Workers to

I.D.T.

Employees guilty of JUST CAUSE.

Employees NOT guilty of just cause.

Workers who are NOT employees.

Page 156: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Kinds of Employees who

are Guilty of Just Cause

Guilty under Article 296 Labor Code.

Guilty under Causes Analogous.

Guilty under Company Policy.

Page 157: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Article 296*, Labor Code

1. Serious misconduct;

2. Willful disobedience (or insubordination);

3. Gross and habitual neglect of duties;

4. Fraud;

5. Willful breach of trust; and

6. Crime against person of the employer or his

immediate family or representatives.

Page 158: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Causes Analogous

1. Loss of trust and confidence;

2. Gross negligence coupled with grave

consequence;

3. Incompetence without improvement;

4. Habitual commission of minor offenses; and

5. Unfit for continued employment based on

the “Totality of Infraction” doctrine.

Page 159: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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).

Page 160: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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;

Page 161: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Ways to I.D.T.

Efficient but not necessarily legal.

Legal but not necessarily effective.

Effective (which should be legal).

Page 162: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Legal Way To I.D.T.

Substantive Due Process.

Procedural Due Process.

Substantial Evidence.

Page 163: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Substantive Due Process

• Just Cause

• Reasonableness

• Good Faith

Procedural Due Process

• Notice to Explain

• Notice of Hearing

• Notice of Termination

Substantial Evidence

• Proof of Substantive Due Process

• Proof of Procedural Due Process

• Proof of Good Faith

LEGAL WAY

Page 164: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Substantive Due Process

Just Cause.

Reasonableness.

Good Faith.

Page 165: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Substantive Due Process

JUST CAUSE:

based on Article 296*, Labor Code.

based on “Causes Analogous”.

must overcome:

“Security of Tenure.”

Page 166: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Article 296*, Labor Code

1. Serious misconduct;

2. Willful disobedience (or insubordination);

3. Gross and habitual neglect of duties;

4. Fraud;

5. Willful breach of trust; and

6. Crime against person of the employer or his

immediate family or representatives.

Page 167: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Causes Analogous

1. Loss of trust and confidence;

2. Gross negligence coupled with a grave

consequence;

3. Incompetence without improvement;

4. Habitual commission of minor offenses; and

5. Unfit for continued employment based on

the “Totality of Infraction” doctrine.

Page 168: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Substantive Due Process

REASONABLENESS:

Penalty is proportionate to the

offense.

Offense is NOT against Law or

Public Policy.

Offense is business-related or

employment-connected.

Page 169: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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!

Page 170: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Procedural Due Process

Notice to Explain.

Notice of Hearing.

Notice of Termination.

Page 171: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Procedural Due Process

NOTICE 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.

Page 172: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 173: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 174: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Substantial Evidence

Proof of substantive due process.

Proof of procedural due process.

Proof of good faith.

Page 175: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 176: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Substantial Evidence

PROOF OF PROCEDURAL DUE PROCESS:

Notices are written and served.

Personal service.

Substituted service.

Hearings are recorded.

Attendance.

Minutes.

Page 177: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 178: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Substantive Due Process

• Just Cause

• Reasonableness

• Good Faith

Procedural Due

Process

• Notice to Explain

• Notice of Hearing

• Notice of Termination

Substantial Evidence

• Proof of Substantive Due Process

• Proof of Procedural Due Process

• Proof of Good Faith

LEGAL WAY

Page 179: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 180: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 181: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 182: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Effective Way

Legal 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.

Page 183: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

What’s the Effective Way?

D.O.C.U.M.E.N.T. © 2013

GOOD

FAITH

Page 184: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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 Discipline

N egotiate, negotiate, negotiate!!!

T ake advice only from experts.

Page 185: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Anatomy of a Labor Dispute

Capitalist Worker

Page 186: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Evolution of Work Arrangement

Slavery

Serfdom

Contractual

Page 187: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Capitalism

Page 188: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Capitalist Model

Social Benefits

Free Market

Competition

Page 189: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Communism

Page 190: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Capitalist Exploitation

Profit, Expansion and Growth

Workers’ Compensation and Benefits

Page 191: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Revolution!!!

SocialistDemocratic

Page 192: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Socialist Model

People’s Ownership

Management’s Stewardship

Party’s Guardianship

Page 193: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Democratic Model

Elite Class

Middle Class

Working Class

Page 194: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Labor Law Revolution!

Unionism + Strike

Labor Standards

Social Justice

Security of Tenure

Page 195: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Shared Responsibility Model

Business

Labor

Progress and Development

Page 196: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Tripartite Model

Government

BusinessLabor

Page 197: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

What is Social Justice?

Business Labor

Page 198: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Rule of Law

Constitution

Laws (including Labor Laws)

Rules & Regulations

JurisprudencePublic Policies and Principles

of Equity

Contracts

Company Policies

Page 199: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Elements of Labor Law

Labor Law

Shared Responsibility

Social Justice

Rule of Law

Page 200: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Anatomy of a Labor Dispute

Capitalist Worker

Page 201: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Win-Win Lose-Win

Win-Lose Lose-Lose

Conflict Resolution Scenarios

Page 202: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

3 Kinds of Win Scenarios

Win – Lose

Compromise (or Half-baked Win)

Win – Win (Mindset)

“Think Win-Win” by Stephen Covey

Page 203: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 204: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 205: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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)

Page 206: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

What’s the Win-Win Way?

D.O.C.U.M.E.N.T. © 2013

GOOD

FAITH

Page 207: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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 Discipline

N egotiate, negotiate, negotiate!!!

T ake advice only from experts.

Page 208: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 209: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

What’s Progressive

Discipline?

System

Documentation

Mindset

Page 210: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Progressive Discipline Mindset

1. Do no harm.

2. Make things better.

3. Respect others.

4. Be fair.

5. Be compassionate.

Page 211: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Progressive Discipline

Advantages:

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.

Page 212: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 213: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Progressive Discipline

Requirements:

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.

Page 214: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

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.

Page 215: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Progressive Discipline Cycle

Pre-Investigation

Feedback

PA/ PIP

Investigation

1st Notice

Investigation

2nd Notice

Post-Investigation

Page 216: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

ER Best Practices

Probationary Employment.

Code of Discipline.

Code of Ethics.

Page 217: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

HR Best Practices

Performance Appraisal.

Performance Improvement Plan.

Performance-based Rewards.

Page 218: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

LR Best Practices

Walk-in Compromise Settlement.

SEnA (Single Entry Approach).

“The Cordial Resignation Letter.”

Page 219: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

WHAT IS GOOD FAITH?

Page 220: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)
Page 221: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)
Page 222: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

Spiritual Best Practice

The Bible:

“Do not seek revenge or bear a

grudge against a fellow Israelite,

but love your neighbor as

yourself.”

(Leviticus 19:18)

Page 223: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

WHAT IS GOOD FAITH?

Page 224: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

WHAT IS “G.R.”?

Page 225: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

This Golden Rule?

Page 226: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

This Golden Rule?

Page 227: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

How to love your workers?

1. Do no harm.

2. Make things better.

3. Respect others.

4. Be fair.

5. Be compassionate.

Page 228: Win-WIN Labor Relations and HR Law (version April 29-30, 2015)

4-Way Test Think

Say

Do