6th and 7th Week - Labor Law
They shall be entitled to security of
• What is labor law?
- Labor law involves the relationships
between the union, the employer, and
the employee.
• What is the main source of
Philippine labor law?
- In the Philippines, the primary source
of labor laws is Presidential Decree No.
442, otherwise known as the Labor
Code of the Philippines. The Labor
Code was enacted on May 1, 1974,
Labor Day, by Ferdinand Marcos
exercising legislative power.
• What is the purpose of the Labor
Code?
- Labor laws are there only to protect the
rights of labor against unscrupulous
employers as well as to protect
employers from abusive employees.
The protection, it should be noted goes
both ways.
• Memorize and discuss Section 3 of
Article XIII of the Labor Code
- Section 3. The State shall afford full
protection to labor, local and overseas,
organized and unorganized (established
union of employees), and promote full
employment and equality of employment
opportunities for all.
It shall guarantee the rights of all
workers to self-organization, collective
bargaining and negotiations, and
peaceful concerted activities, including
the right to strike in accordance with
law.
tenure, humane conditions of work, and
a living wage. They shall also participate
in policy and decision-making processes
affecting their rights and benefits as may
be provided by law.
The State shall promote the principle of
shared responsibility between workers
and employers and the preferential use
of voluntary modes in settling disputes,
including conciliation, and shall enforce
their mutual compliance therewith to
foster industrial peace.
The State shall regulate the relations
between workers and employers,
recognizing the right of labor to its just
share in the fruits of production and the
right of enterprises to reasonable
returns to investments, and to
expansion and growth.
• Define labor standards
- Labor standards refers to the
provisions in the Labor Code and in
other pertinent laws that provide for the
minimum standards as regard working
conditions, hours of work, wages and
other similar aspects of employment.
- This is a matter of right on the part of
the laborer and non-compliance by an
employer of said minimum standards
would be met with the punitive force of
the law
• Define labor relations
- Labor relations refers to the provisions
in the Labor Code and other laws that
govern the relationship between laborer
and management more particularly in
collective bargaining and other union-
related activities.
• Who is an Employer?
- Includes any person acting in the
interest of an employer, directly or
indirectly. The term shall not include any
labor organization or any of its officers
or agents except when acting as
employer.
• Who is an Employee?
- Includes any person in the employ of
an employer. The term shall not be
limited to the employees of a particular
employer, unless the Code so explicitly
states. It shall include any individual
whose work has ceased as a result of or
in connection with any current labor
dispute or because of any unfair labor
practice if he has not obtained any other
substantially equivalent and regular
employment.
• What are the four elements to
determine the employer-employee
relationship?
1) Selection and engagement of the
employee
2) Payment of wages
3) Power of dismissal
4) Power to control employees as to the
means and methods the work is to be
accomplished.
• What is the control test?
- “control test” is the most important
indicator that there exists an employer-
employee relationship.
- It should be noted that control by the
employer need not to be actually
exercised in order to be determinative of
an employer-employee relationship.
• Give examples of management
rights
1) Right to selection of employee
2) Right to discipline employees
3) Right to prescribe company rules
4) Right to transfer or re-assign
employees
5) Right to determine company policy
• What are the kinds of employment?
a) Regular - if the employee has been
engaged to perform activities, which are
usually necessary or desirable in the
usual business or trade of the employer.
b) Casual - if the employment has been
fixed for a specific project or undertaking
the completion or termination of which
has been determined at the time of
engagement of the employee or where
the work or services to be performed is
seasonal in nature and the employment
is for the duration of the season.
c) Contractual - refers to any type of
employment not covered by the above
definitions.
*if an employee who has rendered at
least one year of service, whether the
same has been continuous or broken,
he shall be considered a regular
employee with respect to the activity in
which he is employed and his
employment shall continue while such
activity exists.
• What is probationary employment?
- Probationary employment shall not
exceed six (6) months from the date the
employee started working, unless it is
covered by an apprenticeship
agreement stipulating a longer period.
The services of an employee who has
been engaged on a probationary basis
may be terminated for a just cause or
when he fails to qualify as a regular
employee in accordance with
reasonable standards made known by
the employer to the employee at the
time of his engagement. An employee
who is allowed to work after a
probationary period shall be considered
a regular employee.
*example of probationary employment of
more than 6 months are teachers
• What are the terms and conditions
of employment covered under labor
standards? Discuss each.
- Hours of Work
- Meal Periods
- Minimum Wage
- Payment of Wages
- Overtime
- Night Differential
- Weekly Rest Period
- Holiday Pay
- 13th Month Pay
- Employment of Minors
• What are the standard pay for the
following?
a) Overtime work - Work may be
performed beyond eight (8) hours a day
provided that the employee is paid for
the overtime work, an additional
compensation equivalent to his regular
wage plus at least twenty-five percent
(25%) thereof. Work performed beyond
eight hours on a holiday or rest day shall
be paid an additional compensation
equivalent to the rate of the first eight
hours on a holiday or rest day plus at
least thirty percent (30%) thereof.
b) Night-differential - Every employee
shall be paid a night shift differential of
not less than ten percent (10%) of his
regular wage for each hour of work
performed between ten o’clock in the
evening and six o’clock in the morning.
c) Work during regular holidays -
(a) Every worker shall be paid his
regular daily wage during regular
holidays, except in retail and service
establishments regularly employing less
than ten (10) workers;
(b) The employer may require an
employee to work on any holiday but
such employee shall be paid a
compensation equivalent to twice his
regular rate.
d) Work during special non-working
holidays (suspend instead of declare a
non-working holiday) - Work performed
on any special holiday shall be paid an
additional compensation of at least thirty
percent (30%) of the regular wage of the
employee. Where such holiday work
falls on the employees scheduled rest
day, he shall be entitled to an additional
compensation of at least fifty percent
(50%) of his regular wage.
e) work during rest day - Work during
rest day - The employer may require his
employees to work on any day:
(a) In case of actual or impending
emergencies caused by serious
accident, fire, flood, typhoon,
earthquake, epidemic or other disaster
or calamity to prevent loss of life and
property, or imminent danger to public
safety;
(b) In cases of urgent work to be
performed on the machinery,
equipment, or installation, to avoid
serious loss which the employer would
otherwise suffer;
(c) In the event of abnormal pressure of
work due to special circumstances,
where the employer cannot ordinarily be
expected to resort to other measures;
(d) To prevent loss or damage to
perishable goods;
(e) Where the nature of the work
requires continuous operations and the
stoppage of work may result in
irreparable injury or loss to the
employer; and
(f) Under other circumstances
analogous or similar to the foregoing as
determined by the Secretary of Labor
and Employment.
Where an employee is made or
permitted to work on his scheduled rest
day, he shall be paid an additional
compensation of at least thirty percent
(30%) of his regular wage. An employee
shall be entitled to such additional
compensation for work performed on
Sunday only when it is his established
rest day.
• Who are entitled to the items
mentioned above?
- Those who are regular employees
• Read and discuss Republic Act No.
9492 regarding flexible holidays
- Regular Holidays
New Year’s Day - Jan 1
Holy week (Maundy thursday & Good
friday)
Eidul fitr - movable date
Araw ng Kagitingan - April 9
Labor day - May 1
Independence day - Aug 12
National Heroes day - Last monday of
August
Bonifacio Day - Nov 30
Christmas Day - Dec 25
Rizal Day - Dec 30
- Special (Non-working) Holidays in the
PH
Chinese New Year - Feb 16
Ninoy Aquino Day - Aug 21
All saints day - Nov 1
Immaculate Conception (St. Anne) - Dec
8
Last Day of the Year - Dec 31
• Discuss the provisions of Republic
Act No. 10151 on women night-
workers in relation to Article 130 and
131 of the Labor Code
- Article 130&131 is no longer available
• Who is a managerial employee?
- "Managerial employee" is one who is
vested with the powers or prerogatives
to lay down and execute management
policies and/or to hire, transfer,
suspend, lay-off, recall, discharge,
assign or discipline employees.
• Who is a supervisory employee?
- "Supervisory employees" are those
who, in the interest of the employer,
effectively recommend such managerial
actions if the exercise of such authority
is not merely routinary or clerical in
nature but requires the use of
independent judgment.
• Who is a rank-and-file employee?
- All employees not falling within any of
the above definitions are considered
rank-and-file employees for purposes of
this Book.
*Follows the manager and the
supervisor
• Define termination of employment
- Termination of employment refers to
the cessation of the services of the
employee by management either
through authorized or just causes.
-or voluntary resignation of an employee
• What are the just causes for
dismissal of an employee?
- Article 282 -. Termination by an
employer. An employer may terminate
an employment for any of the following
causes:
a. Serious misconduct (bad attitude) or
willful disobedience by the employee of
the lawful orders (not following rules) of
his employer or representative in
connection with his work;
b. Gross and habitual neglect by the
employee of his duties;
(security guard caught sleeping)
c. Fraud or willful breach by the
employee of the trust reposed in him by
his employer or duly authorized
representative;
d. Commission of a crime or offense by
the employee against the person of his
employer or any immediate member of
his family or his duly authorized
representatives (manager); and
*does not require conviction and court
decision
e. Other causes analogous to the
foregoing.
• What are the authorized causes for
dismissal of an employee?
ARTICLE 298. [283] Closure of
Establishment and Reduction of
Personnel. — The employer may also
terminate the employment of any
employee due to the installation of
labor-saving devices, redundancy,
retrenchment to prevent losses or the
closing or cessation of operation of the
establishment or undertaking unless the
closing is for the purpose of
circumventing the provisions of this
Title, by serving a written notice on the
workers and the Ministry of Labor and
Employment at least one (1) month
before the intended date thereof. In
case of termination due to the
installation of labor-saving devices or
redundancy, the worker affected thereby
shall be entitled to a separation pay
equivalent to at least his one (1) month
pay or to at least one (1) month pay for
every year of service, whichever is
higher. In case of retrenchment to
prevent losses and in cases of closures
or cessation of operations of
establishment or undertaking not due to
serious business losses or financial
reverses, the separation pay shall be
equivalent to one (1) month pay or at
least one-half (1/2) month pay for every
year of service, whichever is higher. A
fraction of at least six (6) months shall
be considered one (1) whole year.
*Retrenchment – reduction of personnel
to save on operation expenses because
the employer is experiencing serious
financial issues
*Redundancy – overlapping of
employees, no need for excess
employees
*The owner has the right to close his
business
ARTICLE 299. [284] Disease as
Ground for Termination. — An employer
may terminate the services of an
employee who has been found to be
suffering from any disease and whose
continued employment is prohibited by
law or is prejudicial to his health as well
as to the health of his co-employees:
Provided, That he is paid separation pay
equivalent to at least one (1) month
salary or to one-half (1/2) month salary
for every year of service, whichever is
greater, a fraction of at least six (6)
months being considered as one (1)
whole year.
• What is due process in Labor Law?
- Due process means the right of an
employee to be notified of the reason for
his or her dismissal and in case of just
causes, to be provided the opportunity
to defend his or herself.
- Due process is the legal requirement
which mandates respect for all the legal
rights that are owed to a person. Due
process balances the power of the law
and protects individuals from it. An
employer cannot harm or inflict damage
to a worker without following the exact
course prescribed by the law, for this
constitutes due process violation.
*Twin Notice Requirement in Dismissal
of Employees. It is a cardinal rule in law
that due process must always be
observed. In labor cases, employers
have often lost cases because they
have not complied with procedural due
process in the dismissal of their
employees.
*The twin requirements of notice and
hearing constitute the essential
elements of due process. This simply
means that the employer shall afford the
worker ample opportunity to be heard
and to defend himself with the
assistance of his representative, if he so
desires. Ample opportunity connotes
every kind of assistance that
management must accord the employee
to enable him to prepare adequately for
his defense including legal
representation.
*“The law requires that the employer
must furnish the worker sought to be
dismissed with two (2) written notices
before termination of employment can
be legally effected: (1) notice which
apprises the employee of the particular
acts or omissions for which his dismissal
is sought; and (2) the subsequent notice
which informs the employee of the
employer’s decision to dismiss him.”
• Distinguish between substantive
due process and procedural
process?
a) Substantive due process - the valid
and authorized causes of termination of
employment under the Labor Code.
- The valid and authorized causes of
termination of employment under the
Labor Code.
- Prohibits the government from
infringing on fundamental constitutional
liberties.
*Provision of the law as basis
b) Procedural process - the manner of
dismissal.
- placed on the manner in which a law is
administered, applied, and enforced.
• Discuss the labor code on
resignation
- ART. 285. Termination by employee. -
(a) An employee may terminate without
just cause the employee-employer
relationship by serving a written notice
on the employer at least one (1) month
in advance. The employer upon whom
no such notice was served may hold the
employee liable for damages.
(b) An employee may put an end to the
relationship without serving any notice
on the employer for any of the following
just causes:
1. Serious insult by the employer or his
representative on the honor and person
of the employee;
2. Inhuman and unbearable treatment
accorded the employee by the employer
or his representative;
3. Commission of a crime or offense by
the employer or his representative
against the person of the employee or
any of the immediate members of his
family; and
4. Other causes analogous to any of the
foregoing.
• Discuss the labor code on
retirement
- ARTICLE 302. [287] Retirement. —
Any employee 229 may be retired upon
reaching the retirement age established
in the collective bargaining agreement
or other applicable employment
contract. In case of retirement, the
employee shall be entitled to receive
such retirement benefits as he may
have earned under existing laws and
any collective bargaining agreement and
other agreements: Provided, however,
That an employee's retirement benefits
under any collective bargaining and
other agreements shall not be less than
those provided herein. In the absence of
a retirement plan or agreement
providing for retirement benefits of
employees in the establishment, an
employee upon reaching the age of sixty
(60) years or more, but not beyond
sixty-five (65) years which is hereby
declared the compulsory retirement age,
who has served at least five (5) years in
the said establishment, may retire and
shall be entitled to retirement pay
equivalent to at least one-half (1/2)
month salary for every year of service, a
fraction of at least six (6) months being
considered as one (1) whole year.