Labor simply means physical toil, especially if done in ➢ Management

exchange for wages. Labor may refer to a social class ➢ Employee

comprising those who do manual work for wages. also, labor Termination of Employment by the Company
is one of the four factors of production. ➢ ACTUAL (Termination)
Labor Relations laws, on the other hand, are the laws, rules, ➢ CONSTRUCTIVE (Constructive Dismissal)
and regulations which govern the relationship between Ang “Constructive Dismissal”
employees and their employers, promote the right of the ➢ Ilegal na paraan ng pagtatanggal na kung saan
employees to self-organization and collective bargaining, ginagawang imposible ng Employer ang patuloy na
penalize unfair labor practice, and provide modes for the pamamasukan ng empleyado.
settlement of labor disputes such as conciliation, mediation, ➢ Pagbibigay ng trabaho na wala sa kapasidad ng
grievance machinery, voluntary arbitration, and compulsory empleyado.
arbitration. ➢ Pagbawas ng suweldo, ranggo o benepisyo.
Labor relations can refer. broadly to any dealings between Termination of employment by employee
management and workers about employment conditions. But 1. Resignation
these days, this has become a burning issue consisting of the ➢ Karaniwang nakasulat ngunit walang nakatakdang
relationship between workers, employers, and social porma.
environment of the organization. ➢ Puwedeng bawiin habang hindi pa tinatanggap ng
A. CONSTITUTIONAL AND Management.
STATUTORY BASES OF LABOR RELATIONS 2. Abandonment
A CONSTITUTIONAL AND STATUTORY BASES OF LABOR ➢ Dapat malinaw ang patunay na ang empleyado ay wala nang
RELATIONS balak bumalik sa trabaho.
Competing Interest
Under the 1967 Philippine Constitution, the provisions for 1. Security of Tenure
labor, particularly the protection far the working clon, ore ➢ Guaranteed by the constitution and Law (Labore Code)
numerous and explicit ➢ Employee can only be dismissed for cause.
1. The Constitution provides that the State shall afford full 2. Management Prerogative
protection to labor, local and overseas, organized and ➢ To hire and fire
unorganized, and promote full employment and equality of ➢ Must be reasonable
employment opportunities for all ➢ Must be exercised in good faith
2. It shall guarantee the rights of all workers to self- Sources of Grounds for Employee Discipline and Termination
organization, collective bargaining and negotiations, and 1. Law (Arts. 282, 283 and 284 of the Labor Code)
peaceful concerted activities, including the right to strike in 2. Contract
accordance with law. a. CBA
3. They shall be entitled to security of tenure, humane b. Employment Contract
conditions of work, and a living wage. 3. Company Rules and Regulations
4. They shall also participate in policy and decision-making Company Rules and Regulations
processes affecting their rights and benefits as may be ➢ Employee has duty to obey
provided by law ➢ Disobedience/violation of rules gives right to employer to
5. The State shall promote the principle of shared discipline the employee.
compatibility between workers and employers and the ➢ Must be reasonable
preferential use of voluntary modes in settling disputes, ➢ Employee must be notified
including conciliation, and shall enforce their mutual When an Employee is Illegally Terminated, He has the Right
compliance therewith to foster industrial peace to:
6. The State shall regulate the relations between workers and ➢ Reinstatement
employers, recognizing the right of labor to its just share in ➢ Back wages
the fruits of production and the right of enterprises to ➢ Damages
reasonable returns to investments, and to expansion and ➢ Attorney’s Fee
growth. JUST CAUSES for TERMINATION
B. HIRING AND FIRING OF EMPLOYEES ➢ Serious Misconduct
The Authority to hire and to fire or dismiss employees is part ➢ Gross and Habitual Neglect of Duty
of the management prerogatives that the employers have ➢ Fraud or Willful Breach of Trust; Loss of Confidence
under the laws and jurisprudence. ➢ Commission of a Crime or Offense by Employee
Hiring an employee the employer has a wide latitude and ➢ Other Analogous Cases
elbow room to set criteria for choosing who to hire. However, 1. SERIOUS MISCONDUCT
in hiring an employee, the employer does not and cannot ➢ Must be of grave and aggravated character
enjoy the same prerogatives because the employees has the ➢ Must be in connection with the employee’s work
right to be protected and there are laws that the employer ➢ Must show that the employee has become unfit to
should comply with. continue working.
DUE PROCESS and EMPLOYEE DISCIPLINE Example of serious misconduct
DUE PROCESS ➢ Pambabastos sa Employer
➢ Substantive Due Process - cause ➢ Pang-aaway sa kapwa empleyado o sa loob ng
➢ Procedural Due Process – Opportunity to be heard pinagtatrabahuhan
Who can terminate?
➢ Paninira ng gamit ng kumpanya
➢ Mga gawaing imoral o “scandalous” sa loob ng
pinagtatrabahuhan.
2. Gross and Habitual Neglect of Duty
➢ Negligence: “want of care”
➢ Under this provision, the neglect must be both GROSS
and HABITUAL.
3. Fraud or Willful Breach of Trust
➢ FRAUD – act, omission or concealment which involves a
breach of duty, trust or confidence and which causes
injury to another.
➢ Committed against the employer
➢ Work-related
Examples:
➢ Loss of confidence
➢ Conflict of interest
➢ Falsification offenses
4. Commission of Crime by the Employee Against:
➢ the person of his employer
➢ an immediate member of employer’s family
➢ Employer’s duly authorized representative (e.g. Manager
or supervisor)
5. “ Other Analogous Causes”
➢ A “catch –all” provision for Just Cause
➢ Must have an element similar to those found in the
specific just causes enumerated
➢ Must show fault or culpability on the part of the
employee.
Authorized Causes for Termination
➢ Redundancy employee’s position are “Superfluous”
because their work is duplicated or unnecessary (e.g.
Installation of labor saving devices, merger of two
companies, streamlining of operations.)
➢ Retrenchment Serious and imminent losses force the
employer to let some employees go.
➢ Closure/Cessation of Business the employer stops doing
business.
Kung ang dahilan ng termination ay authorized cause:
➢ Dapat magbayad ng separation pay ang Employer (year
of service x either or month (if redundancy) or ½ month
pay.
➢ Dapat magbigay ng kasulatang paunawa ang Employer
1 buwan bago gawing epektibo ang mga termination.
Principles of Administrative Due Process
1. The right to hearing, which included the right to present
one’s cause and submit evidence in support thereof
2. The tribunal must consider the evidence presentation.
3. The decision must have something to support itself.
4. The evidence must be substantial
5. The decision must be rendered on the evidence presented
at the hearing, or at least contained in the record and
disclosed to the parties affected.
6. The tribunal or body or any of its judges must act on its
or his own Independent consideration of the law and facts of
the controversy and not imply accept the view of a
subordinate in arriving at a decision.
7. The board or body should in all controversial questions,
render its decision in such a manner that the parties to the
proceeding can know the various.
Termination of Employment Process
Punishable Act Or Omission (Charge or Not to Charge or
Preventive Suspension) -> Initial Fact Finding ->
Formal Investigation -> Decision and Penalty
Termination of Employment Process
Knowledge of Cause -> “Show Cause” Memo -> Employee’s
Reply -> Formal Investigation -> Decision
30 days minimum
Attach:
:Statements
:Other evidence
Attachment:
Statements
:Other evidence
if requested
Preventive Suspension is imposed on the employee pending
formal investigation of a reported violence.
CONSIDERATIONS:
Have you conducted an initial fact finding that can be the
basis for determining the need for preventive suspension?
2. Does the continued presence of the employee being
investigated cause a threat to the
➢ Life or property of the employer?
➢ Life or property of a co-employer
3. Remember:
➢ Preventive suspension cannot exceed 30 days
➢ Must be accompanied by written notice
MANAGEMENT PREROGATIVE
The right of an employer to regulate all aspects of
employment, aptly called “management prerogative”, gives
employers the freedom the freedom to regulate, according
to their discretion and best judgement, all aspects of
employment, including work assignment, working methods,
processes to followed, working regulations, transfer of
employees, work supervisions, layoff of workers and
discipline, dismissal, and recall of workers. Among the
employers management prerogatives is the right to
prescribe reasoinable rules and regulattions necessary for
the business. disobidence of these rules may result to
diciplinary actions or dismissal of the employees.
TWO ASPECTS OF MANAGEMENT PREROGATIVES
1. Operational aspect which means the freedom of the
employer to direct the operations of its business as it sees
fit. 2. Personnel Aspect which means the freedom to
prescribe policies and rules regarding personnel actions,
discipline and organization, including the right to HIRE and
FIRE.
OPERARTIONAL ASPECTS
1. Impose reasonable conditions for hiring
2. Determine the size of the workforce.
3. Reasonable returns of investment and to expansion and
growth.
4. Contract out the performance of some of its jobs or
services.
5. Reduce his personnel or close his establishment in the
following cases:
Introduction of labor-saving devices results in redundancy:
Retrenchment is necessary to prevent losses or cessation of
operation of the establishment; and Total closure is justified
due to substantial losses in business operations. Suspend
business operations in case of natural calamities that hit the
area of operations.
PERSONNEL ASPECT
➢ Hire
➢ Fire
➢ Transfer
➢ Promote
➢ Lay-off
➢ Lay down policies
➢ Discipline
➢ Determine work assignment
➢ Determine working structures
➢ Determine time, place, manner of work
➢ Supervise workers
➢ Regulate Work
➢ Undertake other mgt actions
THE EXERCISE OF MANAGEMENT PREROGATIVES MUST BE:
1. Without abuse of discretion;
2. Tempered with compassion and understanding:
3. Exercised humanely;
4. If a penalty, it must be just and commensurate with the
offense committed by the employee
NATURE OF MANAGEMENT PREROGATIVES
Except as limited by special laws, an employer is free to
regulate, according to his own discretion and judgment, all
aspects of employment, The exercise of management
prerogatives is discretionary.
MANAGEMENT'S OBLIGATIONS/RES PONSIBILITIES
1. The policies should not be contrary to law, public order
and public policies and are not enforced with grave abuse of
discretion.
2. Pay workers according to the minimum wage law or
contract. In case of contract, it should not be below the
minimum set by law.
3. Observe labor standards laws & social legislations.
4. Provide workers with just and humane (safe and healthful)
conditions of work.
RIGHTS VS. PRIVILEGES
RIGHTS are those which an individual has a rightful claim as
a person in relation to his workplace by law.
PRIVILEGES are those benefits given by the company to a
worker which may be taken away by the company at any
time.
However, it should be emphasized that once these privileges
are incorporated in the CBA, or have been given/practiced
for a long period of time, they automatically become rights
of the worker.
EMPLOYEE-EMPLOYER RELATIONSHIP in order to establish
employee-employer relationship, the law satisfaction of
some test. requires the
1. Economic Dependency Test
ECONOMIC DEPENDENCY TEST As ruled by the SC, the
determination of the relationship between employer and
employee depends upon the circumstances of the whole
economic activity such as the following:
2.THE FOUR FOLD TEST
1. the selection and engagement of the employee.
2. the payment of wages.
3. the power of dismissal
4. the power of control
KINDS OF EMPLOYEES
Regular engaged to perform activities usually necessary or
desirable in the usual trade or business of employer,
employed for an indefinite term and cannot be dismissed
except for cause & with due process.
Probationary Hired on a trial period during which the
employer determines his fitness to qualify for regular
employment, based on reasonable standards made known to
him at the time of engagement Conditions:
1. Probationary Arrangement known by employee at the time
of engagement:
2. Reasonable Standards to qualify as regular employee
made known to employee at the time of engagement:
3. Period: As stipulated, if justified by the nature of work to
be performed: 6 mos.(180 days)* if no stipulation.
Casual Employee is engaged to perform a job, work or
service, which is merely incidental to the business of the
employer.
Project "Project" refers to a particular job or undertaking that
is within the regular or usual business of the employer, but
which is distinct and separate and identifiable from the
undertakings of the company. Such job or undertaking
begins and ends at determined or determinable times.
(Tomas Lao Construction v. NLRC) Refers to an employee
hired for: Specific project or undertaking, the termination or
completion determined at the time of engagement. Test a.
With in the regular business of employer, should be distinct
and identifiable as such, from the other undertakings of the
company, and begins and ends at determined or
determinable time, or
Seasonal Work or services are seasonal in nature and the
employment is for the duration of the season. Fixed Term-
Hired for a fixed term, and not necessarily in relation to a
specific project or undertaking ex. sales during christmas.
Sub Contractor/Agency as employee of a subcontractor
PROBATIONARY PERIOD OF EMPLOYMENT
Article 296 of the labor code pravides that probationary
employment shall not exceed 6 months from the date of
employment.
LONGER PERIOD OF PROBATION by voluntarily agreeing to
the longer period of probation this can be done how?
SECURITY OF TENURE
The right to security of tenure means that a regular
employee shall remain employed unless his/her services is
terminated for just or authorized cause and after observance
of due process of law.
Regular: Just or authorized cause+ due process.
Probationary: Just/authorized cause+due process; failure to
hurdle reasonable standards; expiration of probationary
period
Casual: Just/authorized cause+due process; expiration of
the contract; expiration of the service contract or phase
thereof
Project: Just/authorized cause+due process; completion of
the project
Seasonal Fixed Term: Just/authorized cause+due process;
end of season
Contractual: No reason required Just/authorized cause+due
process; expiration of the term.