TOPIC 2: BASIC PRINCIPLES - Improves the working conditions

of the working man by disallowing

Rights of the workers in relation to labor from regulating the worker to
standards. work beyond the allowed
 PH Constitution provides for the minimum hours of work, unless
rights of workers in general. there is a valid and justifiable
cause or reasons to do so.
CONSTITUTIONAL RIGHTS OF - Provides for compensation on
WORKERS IN GENERAL rest days, holidays, additional
1. Right of workers to just and compensation
humane conditions of work Essence: It will bring about social,
2. Security of tenure economic, and political consequences.
3. Collective bargaining and Without LABOR STANDARDS, families
negotiation will be broken because of poverty
4. Self-organization because they will no longer have the
5. Living wage means of livelihood income for day to
6. Peaceful/lawful concerted day sustenance.
activities
7. Participate in policy and decision- CONSEQUENCES
making process SOCIAL  Promote unity in
a. JMM: Check which are the the family
rights of workers in relation  Promote
to labor standards togetherness in
the family
RIGHTS OF WORKERS IN RELATION because it will
TO LABOR STANDARDS ARE: have means to
1. Human conditions support
2. Living wage POLITICAL  Stability of the
3. Just share in the fruits of society will
production depend upon the
citizen’s jobs
whether they
2 ASPECTS OF LABOR STANDARDS could get
themselves
1. Protective – protect health, safety employed.
and well-being of the workers  Chaos in the
2. Meliorative – expands the flow of society because
income of the
Purpose: Remedial and Humanitarian commission of
Support crimes
ECONOMI  Financial stability
- Provide minimal conditions of the C encourages
employee income
Impact: Improve the condition of the
workers and their families. SOURCES OF LABOR STANDARDS
1. LAW ITSELF – Labor Code PD employer’s conduct
442 or behavior covered
o It’s the law that provides it in a period of
Labor standards time. NOT simply
2. ADMINISTRATIVE ORDERS just a 1 time grant
o Issued by DOLE to constitue
o Source of protective and company practice.
meliorative rights Dapat matagal and
o Various department customarily
orders, it prescribes provided by the
guidelines which protects employer even
workers because without though not written.
such it would be an o Implied acceptance – if
invitation for abuse. employee continues to
3. EMPLOYMENT CONTRACTS work
o Provides for monthly 5. COMPANY PRACTICES
compensation, benefits, o Refers to customary or
allowances established mode or
o Meliorative standards in conduct of the employee
form of employee benefits fixing the benefits of the
4. COMPANY POLICY employee
o Statements or declarations o Unlike practices, this is a
made by employer usually non-verbal pattern of
in written form conduct of an employer
o May be found in company over a period of time
memos, handbooks, o Repeated practices by the
announced unilaterally and employer
forms part, even if there is  Ex. Worker got sick
no express consent from and still got paid by
the worker. the employer, such
 May be found in that, this has been
written manuals. done already by the
Ex. There is a employer over a
written policy that long period of time.
every December PERFECTION OF AN EMPLOYMENT
the worker will be CONTRACT
entitled to 1 sack of
rice. Employer makes an offer of
 IF there is no employment. The offer is accepted by
written policy, it will the employee unconditionally then
be company there is a meeting of minds and
practice. But essential elements of a contract is
remember for it to perfected. Because the contract is
constitute a consensual in nature. Perfected by
practice, there must mere consent. There is no need for
be a proof that an written contract if deemed perfected
by the consent. In some cases,
contract of employment is done orally
or verbally. There is nothing wrong
with that as long as there is a meeting
of minds and the essential elements
of the contract, it is deemed perfected.
Of course, in an employment contract,
once the offer is accepted then the
terms and conditions of employment
are placed in writing. Just need
formality because perfection of the
contract will arise even before the
formalization of the contract of
employment or before putting it in
writing.
IS A CONTRACT OF EMPLOYMENT
CONSIDERED A CONTRACT OF
ADHESION?
 There have been cases that is
how the contract of employment
is described by the SC. As I have
said, the offer of employment
comes from the employer. And,
only thing an employee has to do
is to: agree, accept and affix the
signature.
 Similar to an insurance policy
contract, for example, a contract
of employment is a contract of
adhesion.
 In case of doubt – apply the LC
provision that it should be
decided in favor of the employee.
Notwithstanding, that the labor
code says doubt in the
interpretation and employment
and doubt in the implementation
of the law and the IRR, this
principle shall also apply with
regards to the interpretation and
implementation of a contract of
employment. APPLY BY
ANALOGY
 Rule on the construction of the
labor law – applicable to:
o Contracts or agreements
of employment
o Collective bargaining
o Evidences presented in
the labor proceeding
 BACK TO THE
RULE: IN FAVOR
OF WORKER
BECAUSE
CAPITAL AND
LABOR DO NOT
STAND IN EQUAL
FOOTING.
DOES THE PERFECTION OF A
CONTRACT OF EMPLOYMENT GIVES
RISE TO THE E-E RELATIONSHIP?
 NO. It does not give rise. In
perfection of the employment
contract, we apply the civil law. In
determining the E-E relationship
we have the 4-fold test.
Perfection of an employment
contract is not the same to the
commencement of the E-E
relationship. The E-E relationship
shall commence once there is a
fulfillment of the 4-FOLD TEST.
Perfection of the contract only
precedes to the E-E relationship.
 FOUR-FOLD TEST includes:
o Selection and engagement
o Payment of wages
o Power of discipline
o Power of control
IS IT POSSIBLE THAT UPON
PERFECTION THE E-E
RELATIONSHIP WILL COMMENCE?
 There is a possibility if it happens
simultaneously. Wherein you are
offered a job, right then and there
you started working and then get
 paid compensation. And you are
subject to control and at the
same time you are subjected to
discipline then in this situation
you could say that there is a
perfection of an employment
contract which coincides with the
employer-employee relationship.
POINT: They are not the same.
FOUR-FOLD TEST
 Not found in the Labor Code.
 Initiated by SC in various cases.
Selection and engagement
- Know who exercises it. Employer
or employee?
- In selecting and engaging, does
the employer have the power to
prescribe the qualifications for a
job? Is that a management
prerogative? Can that be
exercise by the employer
absolutely? Or are there
limitations provided by the Labor
Code and other laws
Payment of wages
- When you speak of wages are
you referring to a salary? Are
they one or the same? Is that for
services rendered or for labor
rendered or payment of results of
one’s own labor?
Power of discipline/dismissal
- Who exercises? Is it absolute or
regulated by law? Is it not you
must comply with substantive and
procedural due process before
you can terminate employment?
Does that constitute a regulation
or prerogative to discipline or
dismiss orders?
Power of control
- Is that the most conclusive test in
determining that an employer-
employee relationship exists?
And the power of exercising
control is that the means and
manner of performing once job or
service or is that in the results?
Or is it both?
TN: in those cases as when there is no
written contract, and several positions –
what would be the better tests? The
four-fold test or the economic-reality
test.
What is the so called economic test?
What evidence is needed to establish
that the E-E exists?
WHY IS IT IMPORTANT?
because in LS, it will apply only in an
employment relationship. (Read each of
the assigned cases on this topic
because its very important). LABOR
STANDARDS CANNOT APPLY WHEN
THERE IS AN ABSENCE OF E-E
RELATIONSHIP
Very popular topic in the BAR:
 There is a basketball court, a
referee and a player. When the
referee says foul. Is there an E-E
Relationship between basketball
association and referee?
 In an insurance company?
Insurance agents paid by way of
commission. Real estate agents?
Doctors? Doctor specialists?
Also determine the characteristics of
employer-employee relationship to
distinguish it from contractorship. You
go to a clinic in ayala – look for a dentist
– u selected the dentist – pay the
dentists – is there an E-E relationship?
Or independent contractorship?
You go to a law office to consult matters
or notarized is there an E-E
relationship? Or independent
contractorship?
What are the characteristics of
employment? Is that economic
dependence by one over the other? Is
there a subordination in a work
relationship? Is that the one who offers
services? Is that subject to control with
regards to the means and manner of
performing his job? Is it independent
RS? Or E-E RS?
A professional, to whom does it offer his
services? Is it to a particular person like
an employment relationship? Or does it
offer its services to the public? In an
employment relationship does the
worker possess any skills, experience or
is it more in an ICRS? What payment of
services do you pay for an ICRS?
MAKE YOUR OWN OUTLINE ON THE
CHARACTERISTICS OF AN ICRS AND
EERS
TN: DO on Talents with regards to
working conditions of television industry
because the workers are different from
talents. If this is the case will the EERS
exists? Or will it be governed by the Civil
Law and nor Labor Code.
-In some cases employer deny
relationship because the EERS carries
more duties and responsibilities as well
as obligations in the labor laws.
BTW-also determine or distinguished
the principal agent relationship.