LABOR LAW and RELATIONS

Things to Remember about the Labor Code 3. Managerial 11. In case of LOC, prinicipal and contractor shall both be
By: Atty. Jennifer T. Lam-Saludo considered as ERs of the EEs.
19-20 August 2020 5. All employees enjoy security of tenure. Yes, even a
probationary EE has a security of tenure but only 12. Labor Standars apply to all employees.
insofar as his contract is concerned.
1. Labor laws are generally resolved in favor of labor.
XCPT:
This means that if there is a doubt in the
6. Discriminatory Acts against Women: prohibition on 1. Government employees
interpretation of labor laws, the court will usually
marriage, or; upon marriage, EE shall be separated 2. Field personnel
decide it favoring the employee (EE).
from service. 3. Managerial employees (includes supervisors)
4. Officers and members of the family of the
2. While labor laws are always resolved in favor of
7. No Spouse Employment Policy – not allowed Managerial Staff
labor, the labor code is NOT a license for employees
5. Members of the family of the Employer who are
to abuse these rights accorded to them by law.
XCPT: dependent on him for support
Hence, employers (ER) have what we call
A. If the relationship might compromise the 6. Workers paid by result (i.e. pakyao or piece-rate)
“management prerogative.”
interests of the company. 7. Domestic helpers or persons in the personal
B. Reasonable business necessity service of another
3. Management Prerogative can be summed up into
two: the right to HIRE and the right to FIRE;
8. BOQR - When the job itself necessarily requires a 13. Compressed Work Week (CWW) – allowed but under
particular question qualification, then job applicant or certain conditions.
4. There are several types of employees, according to
worker who does not possess it may be disqualified
tenure and according to rank.
on that basis. 14. Burden of Proof:
- This is not considered as undue discrimination.
ACCORDING TO TENURE:
ER – Normal Working Hours (8 hours)
1. Probationary
9. Contracting & SubContracting EE – OT, Holiday Pay & Premiums
2. Regular
Three Parties:
3. Fixed Term
a. Principal 15. Telecommuting Act (RA 11165)
4. Casual
b. Contractor/Subcontractor Conditions:
5. Contractual
c. Workers a. Non-diminution of benefits;
6. Project
b. Notificiation to DOLE;
ACCORDING TO RANK: 10. Labor-Only Contracting (LOC) – prohibited; no c. Accomplishment & Submission of
1. Rank-and-File substantial capital or equipment Report to DOLE Field Ofc.
2. Supervisory

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 LABOR LAW and RELATIONS

a. Serious misconduct or willful

16. In terminating the services of an employee, due
process must ALWAYS be observed. Due process
simply means the right to be heard.
17. Special Working Days for 2021 under Presidential
Proclamation No. 1107 – November 02, December
24 & 31
Note: No Premium Pay
18.
19. There are two kinds of due process:
a. Substantial – answers the “WHY” should
the EE be terminated from service;
b. Procedural – answers the “HOW” should
he be terminated from service.
23. AUTHORIZED CAUSES
20. TWO-NOTICE RULE
a. Notice to Explain – given to EE for him to
air his side;
b. Written Decision – informing the EE of
the management’s decision regarding
charges against EE
24. OTHER MEANS TO TERMINATE EMPLOYMENT
21. What are the bases of EE’s termination from
service?
a. JUST CAUSES – EE’s fault
b. AUTHORIZED CAUSES – ER’s fault
22. JUST CAUSES
disobedience by the EE of the lawful
orders of his employer or representative
in connection with his work;
b. Gross and habitual neglect by the EE of
his duties;
c. Fraud or willful breach by EE of the trust
reposed in him by his ER 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;
e. Other causes analogous to the
foregoing.
a. Automation;
b. Redundancy;
c. Retrenchment;
d. Closure of Business;
e. Disease (exception to the rule that this is
ER’s fault)
a. Resignation – 30-day notice is for the
benefit of the ER but this can be waived.
b. Retirement – 60 ir 65 y/o
c. Floating Status – should be temporary
i. If beyond 6 months, considered
as constructive dismissal.
25. Illegal Dismissal – takes place when EE has been
dismissed without substantial due process;
26. If EE is dismissed with substantial due process but
WITHOUT obeserving procedural due process, EE is
awarded indemnity ranging from P10K to P30K;
27. If EE is dismissed without substantial due process but
with procedural due process, he is considered to
have been illegally dismissed;
28. Constructive Dismissal = Illegal Dismissal
29. Forced Resignation is the best example of
constructive dismissal.
30. Twin Remedies in case of illegal dismissal
a. Reinstatement (Actual or constructive)
b. Full Backwages (as opposed to
Separation Pay)
c. Separation Pay in lieu of reinstatement
31. Preventive Suspension – not a penalty; must NOT
exceed 30 calendar days. Otherwise, it will be
considered as constructive dismissal.
32. Important NLRC Rules of Procedure
a. Reinstatement pending Appeal;
b. Motion for Reconsideration is NOT
allowed from LA to NLRC Proper;

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c. Payment of cash bond or appeal bond is
A MUST to perfect the appeal;
d. Complainant can move for the execution
to claim the monetary award even the
Respondent Company filed a Petition for
Certiorari (Rule 65) with the Court of
Appeals except if the latter issues an
TRO or Injunction.
FAQs related to labor during the ECQ, MECQ and GCQ
33. Can an ER oblige EE to work during the pandemic?
34. Should ER provide transpo services to EEs for them
to be able to report to work?
35. What happens to EEs who can’t report to work due
to lack of transportation?
36. ER wants to be sure that before EE reports to work,
he is COVID-free. Who shall pay for the test?
37. Is COVID-testing mandatory?
38. While COVID-testing is NOT mandatory, can the ER
compel the EE to undergo testing even if the ER shall
pay for the cost? What if the EE refuses?
39. What will the ER do if one of his EEs tested positive?
40. Will the ER pay for COVID-positive employees?
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LABOR LAW and RELATIONS
41. Can the ER reduce EE’s salary as a form of cost-
cutting measure during the pandemic?
42. What help shall the ER extend if one of its EEs
becomes COVID Positive due to the ER’s fault?
-KEEP SAFE and GOD BLESS-
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Copyright August 2020