service, involving an amount exceeding five thousand

pesos (P5,000.00), whether or not accompanied with a

claim for reinstatement;

7.

Monetary claims of overseas contract workers arising

from Employer-Employee relations under Migrant

Workers Act of 1995; (Article 217, Labor Code)

8.

Wage distortion disputes in unorganized establishments

not voluntarily settled by the parties pursuant to

Republic Act No. 6727 (Rationalizing Wage Policy

Determination);

9. Enforcement of compromise agreements when there

is non-compliance by any of the parties pursuant to

Article 227 of the Labor Code, as amended; and

10. Other cases as may be provided by law.

Except as otherwise provided under the Labor Code, the

Labor Arbiters shall have original and exclusive jurisdiction to hear

and decide, WITHIN 30 CALENDAR DAYS, after submission of

the case by the parties for decision without extension, even in the

absence of stenographic notes.

Cases arising from the interpretation or implementation

of collective bargaining agreements and those arising from the

interpretation or enforcement of company personnel policies

shall be disposed of by the Labor Arbiter by referring the same

to the grievance machinery and voluntary arbitration as may be

provided in said agreements.25

Although the provision speaks of exclusive and original

jurisdiction of Labor Arbiters, the parties, in the cases afore-

quoted, are not precluded from submitting their case to a voluntary

arbitrator instead.

TERMINATION OF EMPLOYMENT

Termination of employment refers to the cessation of

the services of the employee by management either through

authorized or just causes.

The supreme Court ruled that the Constitutional right more

commonly known as Security of Tenure, granted to an employee,

wherein the employer cannot terminate his services without

just or authorized cause, applies even to regular or non-regular

employees. (Kiamco v. NLRC, GR No. 129449, June 29, 1999)

AUTHORIZED CAUSES

An employer

is authorized under the Labor Code,

particularly Articles 283 and 284 to terminate the employment of

an employee on grounds extraneous to the employee's conduct

or performance.

The pertinent provisions are reproduced below:

"Art.

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 Department 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 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.

"Art. 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 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."

Installation of labor-saving devices is also known as

'"'Automation/Robotics." In the case of Cajucom VIl v. TPI

Philippines Cement Corporation, et al., GR No. 149090,

February 11, 2005, the Supreme Court ruled that the phrase

"to prevent losses" means that retrenchment or termination from

the service of some employees is authorized to be undertaken

by the employer even before the losses anticipated are actually

sustained.

Other authorized causes are the following:

1.

Disability of employee (permanent)

2.

Valid union security clause application

3.

Term expiration in contract of employment

4.

In cases of project employment, completion of said

project

5.

Failure to meet standards of probation

6.

Relocation of business

7.

Failure to follow "return-to-work order"

8.

Perpetrating illegal acts during a strike

9.
Retirement

JUST CAUSES

Under Article 282 of the Labor Code, the employer may

terminate the services of the employee under the following just

causes:

1.

Serious misconduct or willful disobedience by the

employee of the lawful orders of his employer or

representative in connection with his work;

2.

Gross and habitual neglect by the employee of his

duties;

3.

Fraud or willful breach by the employee of the trust

reposed in him by his employer or duly authorized

representative;

4.

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 repre-

sentative; and

5.

Other causes analogous to the foregoing.

When an employee has done something that is contrary

or incompatible with the faithful performance of his duties,

the employer has a just cause for terminating his employ-

ment. (Manila Chauffeurs League V.

Bachrach Motor Co.,

GR No. L-47138, June 17, 1940)

DUE PROCESS IN LABOR LAW

Due process is the legal requirement which mandates

respect for all of 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 a due process violation

The Twin-Notice Rule is the standard of due process that

must be substantially observed for termination of employment

based on just causes in Labor Code. This means that the

employer should give a written notice on the employee at least

one (1) month in advance the notice of termination. For better

understanding, see Article 285 of the Labor Code.

DISTINCTION BETWEEN SUBSTANTIVE AND PROCEDURAL

DUE PROCESS

Substantive due process mandates that an employee can

only be dismissed based on just or authorized causes. On the

other hand, procedural due process requires further that he can

only be dismissed after he has given an opportunity to be heard.

The import of due process necessitates the compliance with the

two (2) aspects. (Maneja vs. NLRC, G.R. No. 124013, June 5,

1998)

SOCIAL LEGISLATION

The nature of social legislation is best illustrated in the

Supreme Court decision in Calalang v. Williams,2 promulgated

on 2 December 1940 as follows:

"Social justice is neither communism, nor despo-

tism, nor atomism, nor anarchy, but the humanization

of laws and the equalization of social and economic

forces by the State so that justice in its rational and

objectively secular conception may at least be approxi-

mated.

"Social justice means the promotion of the welfare

of all the people, the adoption by the Government of

On

measures calculated to insure

economic stability

of all the competent elements of society, through

the maintenance of a proper economic and social

equilibrium in the interrelations of the members of the

community, constitutionally, through the adoption of

measures legally justifiable, or extra-constitutionally,

through the exercise of powers underlying the existence

of all governments on the time-honored principle of

salus populi est suprema lex.

"Social justice, therefore, must be founded on

the recognition of the necessity of interdependence

among divers and diverse units of a society and of the

protection that should be equally and evenly extended

to all groups as a combined force in our social and

economic life, consistent with the fundamental and

paramount objective of the state of promoting the

health, comfort, and quiet of all persons, and of bringing

about the greatest good to the greatest number!

Examples of Social Legislations:

1.
Republic Act 8282, "The Social Security System Lay

Republic Act 8291,

"Government Service Insurance

System Law".

3.

RA 7875 National Health Income Act 1995;

4.

RA9257 Expanded Senior Citizens Act 2003; and

5.

RA 7727 Magna Carta for Disabled Person

SOCIAL LEGISLATION MEASURES

Pursuant to the policy of the State to protect the citizenry,

several legislative measures were put into effect with the end in

view of providing for welfare benefits such as salary loans, death

assistance benefits, housing loans, emergency loans, medical

assistance and insurance coverage and the like.

Employees from the private sector are covered under the

Social Security System (SSS) while public servants are covered

under the Government Service Insurance System (GSIS).

Aside from the administration of welfare funds, the

government has also put into place certain statutory mechanisms

that regulate office practice such as the Anti-Sexual Harassment

Act, the law on the employment of minors, as well as laws affecting

certain groups of workers like the Migrant Overseas Workers Act.

To carry out the thrust of the government on social legislation,

Congress has enacted, among others, law that deal with the

myriad concerns of laborers and workers such as social security,

minimum wage for house helpers, protection of children from

abuse and exploitation, grant of benefits, overseas employment.

illegal recruitment, and the like.

Examples of social legislation are as follows:

1.

Republic Act No. 8187 (Paternity Act);

2. Republic Act No. 7610 (Special Protection of Children);

3. Republic Act No. 7877 (Anti-Sexual Harassment Act);

4.

Republic Act No. 7655 (Minimum Wage for House

helpers);

5. Republic Act No. 8042 (Migrant Workers Act);

6.

Republic Act No. 8282 (Social Security System Law of

1997);

Republic Act No. 8291 (Government Service Insurance

System Act of 1997); and

Republic Act No. 7875 (PhilHealth Act).

9.

RepublicAct No. 7641 (Retirement Pay Law) (Amending

Art. 287 of the L.C. now "Art. 285 of L.C.")

10. Republic Act No. 9231 (Act Against Child Labor)

11. Presidential Decree No. 851 (13th Month Pay Law)