LABOR LAW AND LEGISLATION

• Labor standards and labor relations.

• Law applied in employment such as conditions of works and industrial relations.

Labor Law
•Includes all the rules of law governing the conditions under which persons may work under the
control of other persons called employers.
• It may also pertain to the labor standards and labor relations laws governing hours of work,
weekly rest periods, minimum wage rates, unfair labor practices, strikes and lockouts.
• Labor Code of the Philippines

Labor Standards
• Prescribe the terms and conditions of employment as affecting wages or monetary benefits,
hours of work, cost of living allowances, occupational health, safety and welfare of the workers.
• It provides the requirements and specification, guidelines

Labor Relations
•relationships between the employees on one hand and the management on the other hand or
the relationship between management and labor unions.

Protective Legislation
•it is designed to protect the weaker party to the employment contract.

Welfare or Social Legislation

•It is intended to remove or reduce the insecurity of the workers while the latter are not at work
due to hazards arising from employment

Diplomatic Legislation
•Those designed to settle labor disputes through pacific modes.

Administrative Legislation
•those laws creating labor bodies or agencies for administrative purposes.

Labor Relations Legislations

• those passed prescribing all matters arising out of employer-employee relationship involving
the concerted action on the part of the workers which is usually related to collective bargaining
and negotiation process.

Article XIII Section 3 of the 1987 Constitution

"The state shall afford full protection to labor, local, and overseas, organized and unorganized,
and to promote full employment and equality of employment opportunities for all."

Unemployment
•when there is an involuntary idleness on the part of an employee who is able and willing to
work but could hardly find one

Underemployment
•when a person is presently employed in a work experience that does not make use of his
previous training, education and acquired expertise

Classification of employees
• Special Workers - can be classified as apprentices, learners and handicapped
Apprentice - a person should be at least 14 years of age, possesses vocational aptitude and
capacity for appropriate tests, and possesses the ability to comprehend and follow oral and
written instructions.
Leearners - Trainees
Handicapped - those who are impaired either by age, physical or mental deficiency, or injury.

• Casual Employees - those who perform activities which are not usually necessary or desirable
in the usual trade or business of the employer.
- The obligation of the employer over the employees terminate as soon as the contract expires.

• Specific Project or Seasonal Employees - persons who perform work or services which are
seasonal in nature. It must be noted that there are two seasons in the tourism industry: Peak
and Lean Season. Demands for workers increase during peak season and it decrease during
Lean Season.

• Probationary - those who are employed on a trial basis. A probationary employment does not
exceed six months from the date the employee started working.

• Regular - persons who perform activities, which are usually necessary or desirable in the usual
business or trade of the employer.
Any employee who has rendered at least one year of service, whether such service is
continuous or broken, will be considered a regular employee with respect to the activity in which
he is employed and his employment will continue while such activity exists.

• Managerial - their primary duty consists of the management of the establishment in which they
are employed or of department or subdivision thereof
- They customarily and regularly direct the work of two or more employees. They have the
authority to hire and fire other employees of lower rank.

Domestic Servant
•persons in the personal service of another and perform services in the employer's home which
are usually necessary or desirable for the maintenance and employment thereof, or minister to
the personal comfort, convenience or safety of the employer as well as the members of his
employer's household.

Field Personnel-non-agricultural
• employees who regularly perform their duties away from principal place of business or branch
office of the employer and whose actual hours of work in the field cannot be determined with
reasonable certainty.

Constitutional Rights of Workers

• Security of tenure
• Self-organization
• Collectivebargaining
• Just and humane conditions of work
• Strike/concertedaction
• Participate in decision making
• Just share in the fruits of production
• Labor rights
• CBA rights

MANAGEMENT PREROGATIVES
• Hire
• Fire
• Transfer
• Promote/demote
• Layoff
• Lay down policies
• Discipline
• Working hours
• Working structures

Just Causes for Termination

• These are modes of termination of employment contract imputable to the employees own acts
or omission
• Two elements for just causes: GRAVENESS AND SERIOUSNESS

Authorized Causes
• The termination of employment contract is allowed by law since it recognizes the right of
employers to legitimately decrease labor costs and other circumstances inevitable in the
management of business.

1. Redundancy
it exists when the services of an employee are in excess of what is reasonably demanded by
the actual requirements of the enterprise.

2. Retrenchment
it means reduction in the workforce to forestall business losses or stop the hemorrhaging of
capital

3. Installation of Labor Saving Device-

putting of machines in any business establishments could help the management save more
time, energy and money.

4. Closure or Cessation of operation of the establishment or undertaking due to financial losses.

Article 83
Normal hours of work. Shall not
exceed eight hours a day.

Article 84
Hours Worked. It shall include at all times during which an employee is required to be on duty or
be at a prescribed workplace, and at all times during which an employee is suffered or permitted
to work. Rest period of short duration working hours shall be counted as hours worked

Article 85
It is the duty of every employer to give his employees regardless of sex, not less than 60
minutes time off for their regular meals.

Article 86
Night Shift Differential. Every employee shall be paid a night shift differential or not less than
10% of his regular wage for each hour or work performed between 10PM and 6AM.

Article 87
Overtime Work. Work may be performed beyond 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 25% thereof.
• Work performed on a holiday or rest day shall be paid an additional compensation equivalent
to the rate of the first 8 hours or rest day plus at least 30% thereof.

Article 96
Service Charges. All service charge collected by hotels, restaurants and similar establishment
shall be distributed at the rate of 85% for all covered employees and 15% for the management.
• The share of the employees must be equally distributed among them.

RA 7877
Act declaring Sexual Harassment Unlawful

RA 7877 Section 3
This is committed by an employee, manager, supervisor, agent of the employer, teacher,
instructor, professor, coach, trainor, or any person who, having authority, influence or moral
ascendancy over another in a work or training or education environment, demands, request or
otherwise requires any sexual favor from the other, regardless of whether the demand, request,
or requirement for submission is accepted by the object of the said Act.

Law on Discrimination Art 3

The State shall afford protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed, and regulate the relations between workers and
employers.