Chapter 12

Employee Relations and Employee

Discipline
Reporters:
Maranan, Rizzalyn B.
Melchor, Ginalyn
Manay, Mary Jean
The Importance of Labor Relations
Employee relations
• is characterized by some as a union avoidance strategy.
• objective is to provide an atmosphere in which all employees can
perform their jobs to the best of their abilities and creatively
contribute to the organization.
Employee discipline
• is an employer's actions against an employee for infraction of
company policy or rules.
Disciplinary action
• is the most appropriate avenue in which to address misconduct
directly related to the performance of assigned duties.
The goal of discipline is to correct misconduct and modify
unacceptable behavior, rather than to punish an employee.
Prevention of Employee Misconduct
Discipline is something that can only be imposed after an act
of misconduct has already occured, but managers and supervisors
can use to prevent misconduct before it occurs. Some examples of
ways in which supervisors may be able to prevent problems include:
• setting an example by their own conduct; maintaining high
professional and ethical standards as leader of the organization;
• providing a high-quality work environment that is conducive to
innovation and increased productivity;
• establishing and communicating clear guidelines concerning
their expectations for the operations of their office;
• establishing objective, undesirable, obtainable, and measurable
performance standards and communicating them clearly to
employees;
 • monitoring performance and giving frequent feedback;
• holding employees accountable for result and recognizing and
rewarding good performance;
• providing opportunities for individual growth and development
through training and seminars.
Categories of Difficult/Problem Employees
1. Ineffective employee/with unsatisfactory performance
Employees whose performance is due to factors directly
related to work are theoretically the easiest to work with and to
adjust.
2. Rule violators
Some companies have general rules that are informally
communicated to employees while others have specific rules that
prohibit such things as possession of deadly weapons, use of alcohol
or narcotics, use of abusive or threatening language,
insubordination, and sleeping on the job.
3. Illegal or dishonest acts
A serious disciplinary problem for all organizations concerns
any form of illegal or dishonest behavior such as theft,
embezzlement, misuse of company facilities or property, or falsifying
records.
4. With personal problems
Employees are normally expected to handle personal problems
on their own without letting them interfere with work performance.
5. Substance abuse
The most serious problems are alcoholism and drug abuse.
These problems are not temporary and are not solved by ignoring
them or assuming they will be corrected on their own.
Discipline or Infraction Cases
Rules and regulations governing personnel discipline may
contain the following infractions covering the following subjects:
1. Against Person
a. Physical injury
b. Assault
c. Homicide
d. Murder
2. Against Property
a. Misuse of property
b. Damage to property
c. Theft and robbery
d. Negligence in the use of property
3. Orderliness/Good Conduct
a. Fighting/quarreling
b. Violation of rules
c. Discourtesy/disrescpect
d. Intoxication while at work
e. Possession of drugs/narcotocs/alcohol drinks
f. Ilegal strike
g. Strike violations/sabotage
h. Failure of cooperate in investigations
i. Hygiene
j. Safety
k. Union activity
l. Moonlighting
m. Deportment
 n. Financial interest
o. Unauthorized outside work
p. Personal affairs
q. Disorderliness, horseplay
r. Use of foul language
4. Attendance and Punctuality
a. Timekeeping violation
b. Absenteeism
c. Tardiness
d. Undertime
e. AWOL (Absent Without Leave)
5. Morality
a. Immorality
b. Sexual harrasment
6. Conflict of Interest
7. Nonperformance
a. Insubirdination
b. Negligence of duty
c. Inefficiency
d. Malingering
e. Carelessness
f. Poor quality
8. Honest/Integrity
a. Falsity/Falsification
b. Fraud
c. Dishonesty
d. Breach of trust
e. Unfaithfulness
 f. Loss of confidence
g. Usurious transaction
h. Disclosure of information
i. Disloyalty
j. Nonpayment of debt
Addressing Employee Conduct Problems
1. Discuss any misconduct or performance problems directly with the
employee. Give an employee an opportunity to provide an
explanation, and carefully listen to and consider what the employee
has to say.
2. Clearly explain expectations to the employee and review any rules,
regulations, or policies in the area where the employee is exhibiting
problems. Provide an employee to ask any questions and offer
assistance in complying with your expectations.
3. If applicable, develop a plan with the employee directed at helping
to improve misconduct. If possible, set the time limits for
improvement and be very clear about the consequences.
4. Give the employee periodic and specific feedback. Be firm and
clear about what improvement you expect to occur. Tell the
employee you may have to take further steps if behavior does not
improve.
5. If misconduct continues, the supervisor may choose to orally
admonish the employee, providing a strong message that further
incidents of similar misconduct may lead to a more formal action. If
after all informal attempts have failed and the misconduct continues,
the supervisor, following consultation with HR, may decide to
formally discipline the employee.
Approaches to Discipline
The violation of company rules can be handled in many different
ways:
A. Hot Stove Rule by Douglas McGregor
This approach to discipline is discussed in terms of what
happens when a person touches a hot stove.
The consequences are:
1. A warning system - a good manner has, before any behavior
has occurred, communicated what the consequences are for the
undesirable behavior.
2. An immediate burn - if discipline is required, it must occur
immediately after the undesirable act is observed. The person
must see the connection between the act and the discipline.
 3. Consistency - there are no favorites; hot stove burns
everyone alike. Any employee who performs the same
undesirable act will be discipline similarly.
4. Impersonal - disciplinary action is directed against the act,
not at the person. It is meant to eliminate undesirable
behaviors.
B. Progressive Discipline - this is an approach in which a sequence of
penalties is administered, each one slightly more severe than the
previous one.
C. Positive/Corrective Discipline - the advocates of this approach
view it as future oriented, as it involves working with employees to
solve problems so that problems do not occur again.
D. Negative Approach - this approach emphasizes the punitive effects
of undesirable behavior. The purpose is to punish employees for
mistakes and it us usually severe to remind others of the consequences
of wrongdoing.
E. Preventive Discipline - this is the action taken by company to
encourage employee to follow standards and rules so that infractions
do not occur.
F. Counselling Approach - The erring employee is counseled rather
than progressively penalized for the first few branches of rules and
regulations. This approach believes that employee can be
constructively corrected without penalty.
First Offense - given a private discussion
Second Offense - entails a corrective approach
Third Offense - entails an evaluation of the whole
management schema pinpointing error perhaps on the system
itself. The focus here is fact-finding and guidance to encourage
desire behavior instead of using penalties to discourage
undesirable behavior.
Elements of a Disciplinary Program
An effective, comprehensive, and successful disciplinary program
should contain the following elements:
a. Code of Conduct - a handbook that is provided to every employee
explaining what is expected and unacceptable behavior.
b. Knowledge of disciplinary punishments - employee should know
what penalties would occur with certain offenses.
c. Appeal procedure - employee should have the opportunity to voice
their side of story.
d. Reservation of right - includes a statement that the firm has the
right to modify the policy.
e. Fair discipline - discipline must be applied consistently to all
employees in an unbiased way.
When setting up your discipline program, it should contain the
following steps in the disciplinary process.
The Disciplinary Process
The disciplinary process should follow a sequence of increasing
severe penalties for wrongdoing. The process is called progressive
discipline because the disciplinary action becomes increasingly
severe.
1. Informal talk - this may occur in cases where the misconduct is
very minor.
2. Verbal warning - a simple comment by a supervisor to warn
employees that certain acts are not acceptable.
3. Verbal reprimand - the supervisor informs the employee that the
situation is not acceptable and improvement is required.
4. Written reprimand - a written description of the problem and the
disciplinary action.
5. Suspension - if an employee fails to respond to the written
reprimand and persist in wrongdoing, suspension is applied where
an employee is not allowed to work for a period of time and his/her
compensation is reduced accordingly.
6. Demotion - this step will occur when it becomes necessary to use
against the employee before termination.
7. Discharge/ Dismissal - represents the final step in the
disciplinary process.

Art. 282. Termination By Employee (Dismissal)

An employee may terminate an employment for any of the
following just cause:
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 representatives.
5. Other causes analogous to the foregoing.
Due Process
• is the mechanism that ensures both rights of management to
employee discipline and the prerogative to dismiss employee and
the right of an employee to a security of tenure is respected.
• It is the process affording the employee of the opportunity to be
informed of his/her alleged violation(s) and to be heard or to
explain his/her side.
Two elements of Due Process
1. Substantive due process - provides the ground for disciplinary action
corrective or retributive.
2. Procedural due process - provides the procedure on how to go about
hearing the side of the employee and evaluating all facts and evidences
against the allegation. Procedural due process must follow the twin
notice rule: (1) notice to explain and (2) notice of decision.
1. A notice of intent to dismiss specifying the ground for termination,
and giving to said of the employee reasonable opportunity within which
to explain his or her side.
2. A hearing or conference where the employee is given opportunity to
respond to the charge, present evidence or rebut the evidence presented
against him or her.
3. A notice of dismissal indicating that upon due consideration of all the
circumstances, grounds have been established to justify the termination.
 In a termination for an authorized cause, due process means a
written notice of dismissal to the employee specifying the grounds
given, at least 30 days before the date of termination. A copy of the
notice shall B furnished by the Regional Office of the Department of
Labor and Employment of the Philippines (DOLE).
When due process is not observed, it will result to any or
combination of the following:
1. Illegal dismissal or suspension.
2. Illegal dismissal will result to reinstatement and payment of
back wages.
3. Illegal suspension, on the other hand, will result to payment of
lost wages.

Grounds for an Employee to Question the Dismissal

An employee may question his or her dismissal based on
substantive or procedural grounds.
 The substantive aspect pertains to the absence of a just or
authorized cause supporting the dismissal.
The procedural aspect refers to the notice of termination or the
opportunity to present an explanation.

Rights Afforded to an Unjustly Dismissed Employee

An employee who is dismissed without just cause is entitled to any
or all of the following:
1. Reinstatement without loss of seniority rights, or separation pay if
reinstatement is not possible.
2. Full black wages, inclusive of allowances and other benefits, or
their monetary equivalent from the compensation was withheld from
him or her up to the time of reinstatement.
3. Damages and attorney's fees if the dismissal was done in bad
faith.
4. Reinstatement.
 Reinstatement means restoration of the employee to the position
from which he or she has been unjustly removed.
Reinstatement without loss of seniority rights means that the
employee, upon reinstatement, should be treated in matters
involving seniority and continuity of employment as thought he or
she had not been dismissed from work.
When a labor arbiter rules for an illegal dismissal, reinstatement is
immediately executory even with pending appeal.
5. Full back wages
• refers to all compensations, including allowances and other
benefits with monetary equivalent, that should have been earned
by the employee but was not collected by him or her because of
unjust dismissal.
• is a form of penalty imposed by law on an employee who illegally
dismisses his or her employee.