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Labor legislation consists of statutes, regulations, and jurisprudence governing the relations between capital and labor, by providing

for certain employment standards and a legal framework for negotiating, adjusting and administering those standards and other incidents of employment. This definition provides the divisions of labor legislation i.e. labor standards and labor relations. These two are not mutually exclusive but rather, they complement each other. For academic purposes though, distinction should be made between labor standards and labor relations. But in actuality, they overlap each other such that the grievance machinery is a labor relations matter but very often the subject of the complaint is labor standards such as unpaid overtime work or a disciplinary action.

Art. 1. Name of Decree. This Decree shall be known as the"Labor Code of the Philippines".Presidential Decree No. 442 – o t h e r w i s e k n o w n a s t h e “Labor Code of the Philippines. Social legislation – include laws that provide particular kindsof protection or benefits to society or segments thereof infurtherance of social justice. Labor Legislation – consists of statutes, regulations and jurisprudence governing the relations between capital andlabor,by providing for employment standards and a legalframework for negotiating, adjusting and administering thosestandards and other incidents of employment.

442 was signed into law. 1974 – PD No. nor atomism nor anarchy. P r o t e c t i o n t o l a b o r .As defined more specifically by jurisprudence. 2. Social justice means the promotion of the welfare of all the people. 78909. ensure equalwork opportunities regardless of sex. Special Laws Art.” (Maternity Children's Hospital vs. GR No.Labor relations law – defines the status. 1974 – effectivity date of the Labor Code. .Labor standards law – is that which sets out theminimum terms.May 1. Date of effectivity. “are theminimum requirements prescribed by existing laws. the exercise ofpowers underlying theexistence of all governments on the timehonored principle of salus populi est suprema lex. 3. morals and general welfare of society. and the institutional mechanisms. hours of work. 70 Phil. 2.Ensure equal work opportunities regardless of sex. This Code shall take effect six (6)months after its promulgation. through the maintenance of a proper economic and social equilibrium in the interrelations of the members of the community. conditions and benefits of employment that employers must provide or complywith and to which employees are entitled as a matter of legal right. Art. Secretary of Labor. Related Laws: Civil Code. their basis or foundation is the police power of the State.) Whilesocial justice is the raison d'etre of labor laws. constitutionally. 3. collective bargaining. safety. cost-of-living allowance. Williams. thus there isskilled and unskilled labor.-are social legislation-not all SL are Labor Laws Social Justice – is “neither communism. Declaration of basic policy. and other monetary welfare benefits. employees or their the adoption by the Governmentof measures calculated to insure economic stability of all thecomponent elements of society. rulesand regulations relating to wages. TheState shall assure the rights of workers to self-organization. Labor . rights andduties. and4 .within constitutional limits. Distinction: Labor law and social legislation Labor laws-directly affect employment Social legislation -governs effects of Employment. race or creed andregulate the relations between workers and employers.Classifications of Labor Legislation 1. RPC. security of tenure. that governthe individual and collective interactions of employers. Police Power – is the power of the government to enact laws. or extraconstitutionally. nor despotism.They are interdependent –one is inutile without the other. promote full employment.race or creed. and health understood as physical toil although it does notnecessarily exclude the application of skill. but the humanization of laws and theequalization of social and economic forces by the State so that justice inits rational and objectively secular conception may atleast be approximated.including occupational safety. to promote the order. R e g u l a t e t h e r e l a t i o n s b e t w e e n w o r k e r s a n d employersBoth sectors (employees and employers) need each other.”(Calalang vs.) 2. and just and humane conditions of work.The basic policy is to balance or to coordinate the rightsand interests of both workers and employers. 1989. November 01. through theadoption of measures legally justifiable.Promote full e m p l o y m e n t .The Basic Policy of the Labor Code (social economic goals) 1 . 726. June 30. The State shall affordprotection to labor.It is settled that state legislatures may enact laws for the protection of the safety and health of employees as an exerciseof police power.

a n d 4. (2)collective bargaining and negotiations. IX-B. including the rightto strike in accordance with law. 2. or regulation of privatecorporations Art.. includingGOCCs with original charters. Sec. and promotefull employment and equality of employmentopportunities for all Art. economic and politicalirregularities. XIII. par.Just and humane conditions of work Constitutional Basis of the Labor Code Art. 1 – C S C e m b r a c e s a l l branches. XII. (5) humane conditions of work.( 6 ) l i v i n g w a g e . 2 –guaranteethe rights of allworkers: ( 1 ) s e l f .3. Sec. XII. XIII. XIII. Sec. and remove cultural inequalities byequitably diffusing wealth and political power for thecommon good Art. 1 – protection to labor. XIII. par. IX-B. recognizing theright of labor to its just share in the fruits of production and the right of enterprises to reasonablereturns on investments and to expansion and growth. Sec. Sec.Collective bargaining. 3. par. IX-B. reduce social. 6 – t h e r i g h t t o o w n .5 – standardization of compensationof government officials and employees. 2 – practice of all professionsshall be limited to Filipinos Art..Rights of Workers Under Art. Par. par. XII. XIII. localand overseas. 3 – No officer or employeeshall be removed or suspended except for cause provided by law Art. Sec. par. 2 – promotion of social justice shallinclude the commitment to create economicopportunities Art. 3. 14. 3 of the Labor Code 1. 18 -the 1987 Constitution declares as astate policy: “The State affirms labor as a primarysocial economic force. Art. (Constitutional balance between the rights of workers and employers) .o r g a n i z a t i o n . 3. 1 – protect and enhance right tohuman dignity.Self-organization. Sec.( 4 ) s e c u r i t y o f t e n u r e . Sec.(3)peaceful concerted activities. 12 – preferential use of Filipino labor Art. 16 –Congress shall not provide for theformation.2. Sec. organized and organized. 18. par. Sec. agencies of government. organization. It shall protect the rights of workers and promote their welfare. III. 4 – r e g u l a t e t h e r e l a t i o n s between workers and employers.Security of tenure. XII. Sec.” Art. par. Sec. Sec. Sec. II. Sec. XIII. (7)participate in policy and decision-making processes affecting their rights and benefits Art. 3. 2. 2 – no involuntary servitude Art. e s t a b l i s h economic enterprises subject to the duty of the Stateto promote distributive justice Art. Art. 3 – s h a r e d r e s p o n s i b i l i t y : voluntary modes in settling disputes Art.

. in protecting the rights of the laborer. and even toclose the business. reduce or lay off personnel in order to minimize expenses andto insure the stability of the business.All doubts in the implementation andinterpretation of the provisions of this Code.including its implementing rules and regulations.enter the service.The labor law is liberally construed in favor of the workersand strictly construed against the employers. with knowledge of an established rule. The State has no right to interfere in a private employment.Through distributive justice. ART. and whenemployees. Construction in favor of labor. The Supreme Court adopts the liberal approach which favorsthe exercise of labor rights. Reason for according greater protection to employees In the matter of employement bargaining. 1974).The law. and to expansion and growth.Job is a property. and no person shall be deprived of life. and the right of enterprises to reasonablereturns on investments. authorizesneither oppression nor selfdestruction of the employer. Applicability.shall be resolved in favor of labor. Management Rights It should not be supposed that every labor dispute will beautomatically decided in favor of labor. . Management has alsoits own rights which are entitled to respect and enforcement inthe interest of simple fair play.Those who have less in life should have more in law. The Constitution provides that theState shall regulate the relations between workers andemployers. 4. whetheragricultural or non-agricultural. except as may otherwise beprovided herein. (As amended by Presidential Decree No. 5 vests the Department of Labor and Employment with rule-making powers in the enforcementthereof. Right to Transfer or Discharge Employees – theemployer has the perfect right to transfer. there is no doubtthat the employer stands on higher footing than the employee. Such rules and regulations shall becomeeffective fifteen (15) days after announcement of theiradoption in newspapers of general circulation. 5. provided the transfer or dismissalis not abused but is done in good faith and is due tocauses beyond control. apply alike to all workers. the rule becomes part of thecontract of employment. Rules and regulations. -All rights and benefits granted toworkers under this Code shall. Art. Right to Return of Investments (ROI) – theemployer has the right to recover his investments andto make profit.. this is oppression. 570-A. November 1. To hold otherwise would beoppressive and inhuman.liberty. The Department of Laborand other government agencies charged with theadministration and enforcement of this Code or any of itsparts shall promulgate the necessary implementing rulesand regulations. labor must receive what is duethem for the return of investment. The Labor Code itself in Art. The Right to Select Employees – an employer has aright to select his employees and to decide when toengage them. The Right to Prescribe Rules – employers have theright to make reasonable rules and regulations for thegovernment of their employees. Art. and property without due process.this is servitude. If the employee can compel theemployer to give him work against the employer'swill. recognizing the right of labor to its justshare. If the employer cancompel the employee to work against the latter's will. it cannot interfere with theliberty of contract with respect to labor except in theexercise of the police power.6.

Who decides the hours of work? .Does the master have the right of suspension or dismissal? . by the person contracting the services being performed is not necessarily conclusive.Employee Relationship By: LawInfo What may determine whether or not a person is an employee? Historically. . a court will examine the evidence of the relationship in determining.Who owns the business of the services being provided? .Is there payment of wages or other remuneration? . employer and employee were termed "master and servant.Under the present state of the law.whilethose incorporated under the general Corporation Law are covered by the Labor Code. to hire others to perform the work? What type of person may not be considered an employee? An independent contractor.Is the person subject to company policy? .The Code is applicable to all employees in private sector andgovernment corporations without original charter. whether or not a person is an employee.Does the person providing the services have the power to assign or delegate the services performed? Some Distinctions: . unemployment insurance. often. The degree of investment by the person in such tools or equipment and their amount or nature would be considered relevant. In determining issues such as wrongful dismissal. Government corporations created by special (original charter) from Congress are subject to Civil Service rules. but often does not preclude the provider of services from being an employee. in a particular case. the test in determiningwhether a government-owned or controlled corporation issubject to the Civil Service Law is the manner of its creation. or lack of control.Is the person subject to discipline? . without authority. One of the main tests has been that of the employer's right of control over the person being paid to perform.Does the worker have power.Does the master (employer) have the right to select the servant (employee)? .Who decides to whom the person can or cannot sell goods? . health tax or Canada Pension Plan? This is an indicator. . This is a situation where control. Whether an employer-employee relationship exists under the law will usually depend upon the respective rights and duties of the parties. especially in law. regardless.Who owns the tools or equipment being used? This alone may not be enough to qualify a person as an independent contractor. . Some questions a court might ask in determining whether or not a person is an employee are: .The government-owned-and-controlled corporations “withoriginal charter” refer to corporations chartered by special lawas distinguished from corporation organized under our generalincorporation statute. The absence or presence of some of these factors may indicate a person is or is not an employee in an area of law where changing times and circumstances may change such decisions. The rules of determining such status have evolved by judicial precedent in the common law through history. the Corporation Code Employer . consultant or "entrepreneur". vicarious liability and statutory liability. of the intentions of the parties.Does the person or organization paying for the services refrain from making deductions for income tax.Who decides where the work is to be performed? . among other things.Who controls the chance for profit or the risk of loss? .Does the master have right to control the method of doing the work? .

But an independent actor may or may not be considered an employee. For example. a chauffeur or a newspaper's staff reporters may all be employees under a contract for services. Courts have often (not always) found that commission sales people are either employees or in an "intermediate class" and therefore entitled to notice of termination of their services. who may be under a great deal of control by the franchisor. A franchisee. Prisoners. Members of the Canadian Forces have no contractual relationship with the Crown. but there are many of those who may be considered employees. although the driver of a taxi had the vehicle registered in his name. This is very close to the operation of a business by a franchisee. medical practitioner or other professional . It has been held that being a prisoner does not necessarily prevent a person from also being an employee of a correctional institution. sell only at prescribed prices. congregation or synagogue and its priest. A partner. minister or rabbi and a court may intervene. Commission Sales Representatives. columnists and correspondent's who contribute articles to newspapers and are not employees. it has been held that many of the elements of an employer . Clergy. so there is not usually an employee relationship between such person and the corporation. For example. to consider such things as required notice of termination and severance payment. purposes. such as the closeness of the relationship and the nature of the business and the duties and obligations of those in it. However. but serve "at the pleasure of the Crown". A different view might be held if such person did not have control over the corporation.A motion picture studio's actors. Particularly when considering a question of dismissal. Family members can be considered employees of one another. and the employee relationship would be considered a separate matter from any position of directorship in the corporation.employee relationship exist between a church. The power of this franchisor has wiped out all the assets of many franchisees who may not have any redress. as this owner-driver was paid only a percentage of the gross sales and had no interest in the general profits of the business. but he or she can be one. Simply owning the shares of a corporation does not create an employer employee relationship. but still has the greater interest in the profit and loss area of the business. Shareholder of a corporation. one large franchisor has forced the closure of about 25% of its donut shops that were not making enough profit. The one position is usually exclusive of the other for most. A director of a corporation may not be an employee of the corporation. One person operated a store for another. merchant ship's captain. hired and terminated his employees on his own authority. He fixed his own hours of work. All factors would be considered. In Ontario very recently. which presumption may be challenged by other evidence which shows the true intention of the parties. Military Personnel. Personal Corporation. a ship's pilot who controls the handling of a ship in a harbour would not usually be an employee of the shipowner and may be a completely independent contractor. ran the risk of loss and was not supervised in the way he discharged his duties . have a joint or common interest in the property used to produce income and share management of the business it will be presumed a partnership. Family Members. in addition to being a director. even if the clergy person is not considered an employee.however. pay the proceeds to the other person and keep the store open during prescribed hours. he was expected to devote all of his time and effort to this store and no other business. If the "partners" share profits and losses. he was found to be the employee of the person who managed the business. if not all. Any claims or grievances a member of the forces may have would be dealt with under the grievance procedures found in the National Defence Act. a taxiowner is an independent contractor and there are many independent writers. The court found that the person was an employee and the business was not his own. A person who sets up a personal corporation usually does so for tax advantages. many employees own shares in the employing corporation. Director of a corporation.

In contract situations.) Power of control Of the above four powers. A person may require the advice of a knowledgeable specialist in employment law.) Power to hire 2. consider all the circumstances and find that sufficient lack of control of an aggrieved party in a situation may entitle such party to relief as an employee. There is no employer-employee relationship if the following are present: 1.) He is paid according to the results of his work There is no employer-employee relationship if the above are present because there is no power of control.A legal entity that controls and directs a servant or worker under an express or implied contract of employment and pays (or is obligated to pay) him or her salary or wages in compensation. so is the application of the law in this area. Note that even in many cases where the parties have not considered themselves in an employer employee relationship.) He decides for himself what is to be done 4. the fourth one is the most important because it can negate the other three. .) He has no set time for work 3. a court may.person who is serving a sentence may be employed to provide certain services in the prison. Employer. Also called worker.) The person works at his own pleasure 2. express or implied.) Payment of salaries/wages 4. Without it. as society is complex and changing.) Power to fire 3. a labor dispute will be dismissed. The employer-employee relationship forms the basis of a valid legal dispute. The following elements must be present in order to determine the existence of an employer-employee relationship: 1. and has recognized rights and duties. employee-An individual who works part-time or full-time under a contract of employment. Other prisoners may be given compensable work in the institution. whether oral or written. at the instance of an aggrieved party.