LABOR LAW

EMPLOYER-EMPLOYEE
RELATIONSHIP
 FOUR-FOLD TEST

 Hiring
 Firing
 Payment of wages
 Control
WHY IS THERE A NEED FOR
LABOR LAW?
 What are the interests of the employee?

 What are the interests of the employer?

Interest of the EMPLOYER VS Interest of the EMPLOYEE
 MANAGEMENT
PREROGATIVE
 Business judgment rule
 The courts cannot look into unless it is contrary to
law, public policy or morals
 RIGHTS OF THE
EMPLOYEE
 Security of tenure
 Work days and work hours
 Weekly rest day
 Payment of wages
 Wage-related benefits
 RIGHTS OF THE
EMPLOYEE
 Right to self-organization & collective bargaining
 Safe working conditions
 Non-employment of children
 Female employees
 Equal opportunities for all
CLASSIFICATIONS OF
EMPLOYEES
 CLASSIFICATIONS OF
EMPLOYEES
 Probationary employment
 Regular employment
 Casual Employment
 Project Employment
 Seasonal Employment
 Fixed-term employment
 PROBATIONARY
EMPLOYMENT
 Not exceeding 6 months
 Standards for regularization must be made known to
the employee at the time of the engagement
 Security of tenure during probationary period
 REGULAR
EMPLOYMENT
 2 KINDS:

a) Nature of work (UNOD-UTOB)

b) Length of service (1 year)
 Security of tenure
 CASUAL
EMPLOYMENT
 Not a regular, project or seasonal employee
 Work or service that is merely incidental to the
business of the employer
 PROJECT
EMPLOYMENT
 Specific undertaking
 Duration of employment: fixed term or day certain
 Duration must be made known to the employee at
the time of the engagement
 Termination notice to employee need not needed
 SEASONAL
EMPLOYMENT
 Hired for 1 season only
 Termination at the end of the season
 Exception: REGULAR SEASONAL EMPLOYMENT
a. Reasonable connection between work and business

b. Engaged for more than 1 season

c. Off season: EE-ER relationship is NOT severed (merely on leave without pay)
 FIXED-TERM
EMPLOYMENT
 Period is voluntarily agreed upon without force,
duress, or pressure
 Employee and employer dealt with each other on
more or less equal terms, with no moral dominance
exerted
TERMINATION OF
EMPLOYMENT
 RESIGNATION

 VOLUNTARY severance of EE-ER relationship by the EMPLOYEE

 Must be UNCONDITIONAL
 Clear INTENT to severe the EE-ER relationship or to relinquish the position
 (typically held as) inconsistent with the filing of an illegal dismissal
complaint
 GR: No separation fee
 TERMINATION BY
EMPLOYEE: JUST CAUSES

 SERIOUS INSULT by the employer or his representative on the honor and

person of the employee
 INHUMAN and UNBEARABLE TREATMENT accorded to the employee by the
employer or his representative
 COMMISSION OF A CRIME/OFFENSE by the employer or his representative
to the employee or any of his/her immediate family
 Other analogous cases
 TERMINATION BY
EMPLOYEE: NO JUST
CAUSE
 Serve written notice 1 month in advance
 Without notice: employee ma be held liable for
damages
 CONSTRUCTIVE
DISMISSAL
 No formal dismissal
 Employee is placed in a situation where continued
employment becomes unbearable
 Clear discrimination
 SECURITY OF TENURE

ARTICLE 294:
“In cases of regular employment, the employer shall NOT TERMINATE the services of
an employee except for a just cause or when authorized by this Title. An employee
who is unjustly dismissed from work shall be entitled to reinstatement without loss of
seniority rights and other privileges and to his full backwages, inclusive of allowances,
and to his other benefits or their monetary equivalent computed from the time his
compensation was withheld from him up to the time of his actual reinstatement.”
 VALID TERMINATION

 SUBSTANTIVE due process

 PROCEDURAL due process
 VALID TERMINATION

 SUBSTANTIVE due process

 PROCEDURAL due process
JUST CAUSES FOR
TERMINATION
 SERIOUS MISCONDUCT

[MGRU]
a. Misconduct
b. Grave and aggravated character
c. Related to the performance of employee’s duties
d. Shows that EE is unfit to continue working for the ER
 WILLFUL DISOBEDIENCE
OR INSUBORDINATION

[DWOORR]
a. Disobedience or insubordination
b. Willful or intentional, characterized by a wrongful or perverse
attitude
c. Order violated was reasonable, lawful and made known to EE
d. Order relates to the EE’S duties
 GROSS AND HABITUAL
NEGLECT OF DUTIES

a. Gross – there is absence of diligence or prudence of

an ordinary person

b. Habitual – repeated failure to discharge duties

c. Thoughtless disregard of consequences without
effort to avoid the same
 GROSS AND HABITUAL
NEGLECT OF DUTIES

a. Gross – there is absence of diligence or prudence of

an ordinary person

b. Habitual – repeated failure to discharge duties

c. Thoughtless disregard of consequences without
effort to avoid the same
 FRAUD OR WILLFUL
BREACH OF TRUST

[ABEC]
a. Act, omission, concealment
b. Involves a breach of a legal duty, trust or confidence justly
reposed(on the employee)
c. Committed against the employer (or his / her representative)
d. Connected with employee’s work
 LOSS OF CONFIDENCE

a. Act, omission or concealment

b. Justifies loss of trust and confidence

c. Employee holds a position of trust and confidence or a managerial position

d. Genuine and not a mere afterthought to justify an earlier action taken in bad faith
e. Not used as a subterfuge for causes for improper, illegal or unjustified causes

f. Loss of trust and confidence is not simulated

 COMMISSION OF A CRIME
OR OFFENSE

a. Act or omission punishable by law

b. Committed against employer (family/representative)

c. Filing of a case, prosecution or conviction is NOT
necessary for the termination of the case.
 ANALOGOUS
CAUSES
a. Act or omission similar to just causes
b. Act or omission must be voluntary/willful on the
part of the employee
AUTHORIZED CAUSES
 INSTALLATION OF LABOR-
SAVING DEVICES

 Introduction of machinery, equipment, or devices

 Done in good faith
 Purpose: save on cost, enhance efficiency, other justifiable reasons
 No other option available to employer
 Fair and reasonable criteria in terminating
 REDUNDANCY

 Superfluous positions or services

 Positions or services in excess of what is reasonably demanded by
the actual requirements of an enterprise
 Good faith in abolishing positions
 Fair and reasonable criteria in terminating
 Adequate proof of redundancy
 RETRENCHMENT

 Reasonably necessary and likely to prevent losses

 Losses: substantial
 Proven by sufficient and convincing evidence
 Done in good faith and not to defeat security of tenure
 Fair and reasonable criteria in terminating
 CLOSURE OR CESSATION
OF OPERATION

 Decision to cease operation

 Done in good faith
 No other option except to close or cease operations
 DISEASE

 Employee suffering from disease

 Continued employment is prohibited by law or prejudicial to

his/her health as well as to the health of co-employees
 Certification from a competent public health authority—disease
is incurable within 6 months even with medical treatment
 VALID TERMINATION

 SUBSTANTIVE due process

 PROCEDURAL due process
 JUST CAUSES

 Twin Notice Rule

 Show Cause/ Notice to Explain
 Termination Notice

 Ample Opportunity to be Heard

 Formal hearing not required
 Exceptions: Company practice/rules; Upon request of employee
 AUTHORIZED
CAUSES
 1-month notice to employee
 1-month notice to DOLE
 VALIDITY OF
DISMISSAL
SUBSTANTIVE DUE PROCEDURAL DUE
PROCESS PROCESS
VALID dismissal

ILLEGAL dismissal

ILLEGAL dismissal

VALID dismissal, but employer

must pay for nominal damages
 -END-
Thank you!