Atty. Apollo X.C.S.

Sangalang

PoL

Business Lawyer & Legal Coach

 Dionarto Q. Noblejas
-versus-
Italian Maritime Academy Phils., Inc.,
Capt. Nicolo S. Terrei, Raceli B.
Fernandez, and Ma. Teresa R. Mendoza
G.R. No. 207888
June 9, 2014
Supreme Court of the Philippines
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
 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
 Disclaimers
•  No lawyer-client relationship.
•  Consult your own legal counsel.
•  Legal opinions differ.
•  Respect the sub judice rule.
•  Avoid conflict of interest.
This seminar is INTERACTIVE
LABOR LAW MADE EASY
1.  Learn something new DAILY
about Labor Law.
2.  Links to RESOURCES, SITES,
and EVENTS.
3.  Quick consultation for FREE
(thru private message).
 LABOR LAW MADE EASY
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 Evolution of
Management Prerogative

Employment
Serfdom

Slavery
Evolution of Ownership

Employment

Serfdom Capital
Land
Slavery
Labor
 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).
Evolution of Labor Law

Employment

Serfdom Contractual
Feudal
Slavery
Tribal
 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)
Did you know that…?
 Evolution of HR

Employment

Serfdom Managers
Lords
Slavery
Masters
 Employer Power Equation

Ownership Contracts Power

 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)
 Management Prerogative
1. Right to hire;
2. Right to fire;
3. Right to fix compensation &
benefits; and
4. Right to control.
What’s the problem?
What’s the problem?
 Limitation No. 1

•  Article 291 paragraph 2, Labor Code

•  (Formerly Article 277)
 Limitation No. 2

•  Article 4, Labor Code

 Full Protection Equation

Burden All E.A.P.G.

of Proof Doubts
Did you know that…?
Pre-Employment

Employment

Post Employment
Courtship +
Engagement

Marriage

Separation +
Annulment
Recruitment

Selection

Placement
 Courtship

Engagement

Marriage
 Background
Job Analysis Testing
Checks

Job Job Short-

Description Interview Listing

Advertise Receive Job Job Offer &

Vacancies Applications Acceptance
 Happy • Golden
Ending Anniversary

MARRIAGE

Tragic• Separation
Ending• Law suits
 Happy • Retirement
Ending • Resignation

EMPLOYMENT
• Termination
Tragic
• Labor case
Ending
• Other law suits
It all starts with a…?
Did you know that…?
 Employee
• L abor Law
• Control
Hiring Process

• Civil Law
Independent
Contractor
• No Control
 Labor
Law

Control
 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
 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*
2014 Handbook
Non-Diminution of Benefits
 What’s Control?

End

Control

Means
Test of Employment

Hire Fire

4-Fold Test

Pay* Control
 Control Test
•  The power to determine the end
results and the means of doing
the work is CONTROL.
•  Only an employer has the power
of 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 Interns
Did you know that…?
 Background
Job Analysis Testing
Checks

Job Job Short-

Description Interview Listing

Advertise Receive Job Job Offer &

Vacancies Applications Acceptance
 Types of Employment
Private Sector Government

Regular (Nature) Casual

Regular (Term) Non-Regular

Rank-and-file Manager & Supervisor

Time-based Results-based
Private Sector Government
Labor Code and Civil Service Law
other labor laws
Department of Labor Civil Service
and Employment Commission

CBA + Strike CNA + No Strike

Labor Standards Exempted from

Labor Standards
Regular Casual
Work is “Usually Work is NOT “Usually
Necessary or Desirable Necessary or Desirable
in the Usual Business in the Usual Business
or Trade of the or Trade of the
Employer” Employer”

Security of Tenure No Security of Tenure

What’s Security of Tenure?
 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.
 What’s other Just Cause?
1.  Loss of trust;
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.
 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.
What’s a Regularized Casual?
Regular Non-Regular
Work is “Usually Necessary Same
or Desirable in the Usual
Business or Trade of the
Employer”
Security of Tenure Same

Tenure is until the age of Tenure is until completion of

compulsory retirement the project, ending of the
season, expiration of the
fixed-term or contract, or
cessation of the emergency
or temporary contingency
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 Yes, but tenure expires upon the

Fixed-term end of contract.

Temporary or Yes, but tenure expires upon the

Emergency cessation of the emergency or
contingency.
Regular Probationary
Work is “Usually Necessary Same
or Desirable in the Usual
Business or Trade of the
Employer”

Security of Tenure Same

No Probationary Period Probationary Period of 6

months or less

Regular from Day 1 Regularized upon qualifying,

or if allowed to work beyond 6
months (whichever comes
earlier)
Hiring Process

Employee
Employee

Employee

Firing Process
 • Outsource
P.R.P.A. Hiring
Process
Hiring Process

Job • Outsource
Contractor
Work
 Job Contracting

Principal

NO CONTROL NO CONTROL

Contractor Employee
CONTROL
 Labor ONLY Contracting
Principal

NO CONTROL CONTROL

Agent Employee
NO CONTROL
Test of Employment

Hire Fire

4-Fold Test

Pay* Control
 What’s Control?

End

Control

Means
 Manpower Cooperative
Principal

NO CONTROL NO CONTROL

Cooperative Employee
CONTROL
 Self-Employed Cooperative
Principal

NO CONTROL NO CONTROL

Cooperative Self-
Employed
NO CONTROL
 Direct Contracting

Employer

5-5-5 Fixed-term

Employee
 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
 Labor-Management
Cooperation
• Workers’ right
• Participate
• Policy & decision making processes
• Rights, benefits and welfare
• According to law
 Unions and
Certification Elections
• Workers’ right
• Self-organization
• Peaceful Concerted Activities
• Strike
• According to law
 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
 Unfair Labor Practice
• Violation of workers’ right
• Self-organization & CBA
• Committed by employer or by union
• Defined in Labor Code
• Criminal, Civil or Administrative
 Collective Bargaining
Agreement
• Negotiated contract
• Exclusive bargaining agent and
• Employer
• Terms and conditions of employment
• Grievance and Arbitration provisions
 Level or Rank
•  Corporate officer
•  Manager
•  Managerial staff
•  Supervisor
•  Rank-and-file
•  Confidential
 Mode of Payment
•  Time-based
•  Results-based
•  Commission-based
•  Piece-rate
•  Pakyaw
•  Mixed
 Other Types of Employee
•  Field personnel
•  Personal assistant
•  Domestic worker
•  Home worker
•  Working children
•  Alien
 Other Work Arrangements
•  Apprentice and learner
•  Intern and trainee
•  Self-employed worker or freelancer
•  Virtual assistant
•  Partner
•  Agent
•  Consultant and professional
 Illegal Discrimination
• Women and pregnant women
• Marriage and married women
• Handicapped workers
• Single parents or solo parents
• HIV/AIDS positive workers
 Other Hiring Practices
•  Sexual harassment in the workplace
•  Yellow dog contract
•  Drug-testing
•  Non-competition agreement
•  Non-disclosure agreement
•  Non-solicitation agreement
 What’s the Essentials of
HR & Labor Law?

D.O.C.U.M.E.N.T. © 2013
 How to D.O.C.U.M.E.N.T. © 2013
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.
 Documentation X 3
• Pre-Employment Documentation.

• Employment Documentation.

• Pre-Termination & Post

Employment Documentation.
 Model Employment Contract
•  Written, dated, and signed
•  Pre-employment & probation clauses
•  Regular or non-regular status
•  Obedience to company policies
•  Starting wages & specific benefits
•  Reference to job offer, handbook, etc.
 Model Employee Handbook
•  Written, dated, and signed receipt
•  Code of discipline
•  Code of ethics & performance criteria
•  Resignation & clearance process
•  Address changes & other policies
•  Benefits common to all employees
 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
 How to D.O.C.U.M.E.N.T. © 2013
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.
 Open-Mindedness
• Be tolerant with your employees.

• Be receptive to new ideas and

possibilities.

• Be accepting of the outcome.

 Clarity
• Clarity in written communication.

• Clarity in oral communication and

action.

• Clarity in purpose and objective.

 Understand ER/LR
• Understand that:
1.  ER/LR is a “Game”.
2.  the “Rules of the Game”.
3.  the “Goals of the Game”.
Labor Relations Game

Unionism
and Right
to Strike
Social
Justice
Labor Security of
Standard Tenure
Shared Responsibility Model

Business

Progress
and
Development

Labor
 Tripartite Model

Government

Labor Business
What is Social Justice?
Business Labor

Law
Law Law
Law Law
 Rule of Law

Constitution
Laws (including Labor Laws)
Contracts
Rules & Regulations

Public Policies
Company
Jurisprudence and Principles
Policies
of Equity
Elements of Labor Law
Social
Justice

Shared Rule of
Responsibility Law

Labor
Law
Anatomy of a Labor Dispute

Capitalist Worker
Win-Win Lose-Win

Conflict
Resolution
Scenarios

Win-Lose Lose-Lose
 What’s the Essentials of
HR & Labor Law?

D.O.C.U.M.E.N.T. © 2013
 How to D.O.C.U.M.E.N.T. © 2013
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.
 Master HR
• ER/LR is essentially HR.

• HR is exemplified by MR.

• MR is enhanced by GR.

Embrace Best Practices
•  Good Practices.

• Better Practices.
• Best Practices:
PROGRESSIVE
DISCIPLINE
 Negotiate X 3
• Negotiate before a labor dispute.

• Negotiate during a labor dispute.

• Negotiate after a labor dispute.

 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 LR.
M aster HR.
E mbrace best practices: Progressive Discipline
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.
 Ethical Best Practices
•  Rotary Code of Conduct:
– “Be fair in all dealings with others and treat
them with the respect due to them as fellow
human being.”

•  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.”
 Rotary’s 4-Way Test

Truth

Beneficial How? Fair

Goodwill and
Better Friendships
 Good Faith Test
1.  Do no harm.
2.  Make things better.
3.  Respect others.
4.  Be fair.
5.  Be compassionate.
 LABOR LAW MADE EASY
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