"All labor that uplifts humanity

has dignity and importance and

should be undertaken with
painstaking excellence.“
- Martin Luther King Jr.

LABOR LAW
EMPLOYER-EMPLOYEE
RELATIONSHIP
FOUR-FOLD TEST
A. IMPORTANT TEST
B. OTHER TEST USED TO DETERMINE RELATIONSHIP
KINDS OF
EMPLOYMENT
KINDS OF EMPLOYMENT
A. PROBATIONARY
B. REGULAR
C. PROJECT EMPLOYMENT
D. SEASONAL
E. CASUAL
F. FIXED TERM
G. APPRENTICES & TRAINEES
H. COMMISSION BASED
I. PIECE RATE
PROBATIONARY
Undergo a trial period
Employer determines his fitness to qualify for regular employment
Based on reasonable standards made known to the employee at the time of engagement
(IRR, Book VI, Rule I, Sec. 6)
It is temporary employment status prior to regular employment
It shall not exceed 6 months except when covered by an Apprenticeship or Learnership agreement
stipulating a different period or there is a voluntary agreement between the parties especially when the
nature of work requires a longer period.
May be dismissed for cause before end of the probationary period.
REGULAR
Employee has been engaged to perform activities which are usually necessary and desirable I
the usual business or trade of the employer (Art. 295 of Labor Code);
Any employee who has rendered for at least one (1) year of service, whether such service is
continuous or broken (Art. 295 of Labor Code);
The status of regular employment attaches to the casual employee on the day immediately after
the end of his first year of service.
PROJECT EMPLOYMENT
 It is a particular job or undertaking that may or may not be within the regular or usual business
of the employer. In either case, the project must be distinct, separate and identifiable from the
main business of the employer, its duration must be determined or determinable.
SEASONAL
Where the job, work or service to be performed is seasonal in nature and the employment is for
the duration of the season.
Their employment legally ends upon completion of the project or the season. The termination of
their employment cannot and should not constitute an illegal dismissal.
However, seasonal workers who are called to work from time to time and are temporarily laid
off during off-season are not separated from service in that period, but merely considered on
leave until re-employment. Hence, the employment is considered regular, but only with respect to
such activity and while such activity exists.
CASUAL EMPLOYMENT
Employee is engaged in an activity which is not usually necessary or desirable in the usual
business or trade of the employer.
Performs only an incidental job in relation to the principal activity such job, work or service is
for definite period made know to the employee at the time of engagement.
FIXED TERM EMPLOYMENT
Contract of employment for a definite period terminates by its own terms at the end of such
period.
Agreed upon by the parties knowingly and voluntarily without force, duress or improper
pressure being brought to bear upon the employee and business of employer.
APPRENTICES
Any worker who is covered a written apprenticeship agreement with an individual employer or any
of the entities recognized under the Labor Code.
Trains in a skilled or highly skilled job or in a job found only in a highly technical industry. The
training period shall not exceed six (6) months. Worker not considered as regular employee and there
is no commitment to hire.
TESDA implement and administer the apprenticeship program in accordance with existing laws,
rules and regulations. It is the TESDA who approves apprenticeable occupations.
Entitled to a compensation of not less than 75% of the statutory minimum wage for the 1 st 6 months
(except OJT); thereafter, shall be paid in full minimum wage. The exception to this is found in Art. 72
of the Labor Code where in provides that the Secretary of Labor and Employment may authorize the
hiring of apprentices without compensation whose training on the job is required by the school,
training program curriculum, a requisite for graduation or a requisite for board examination.
LEARNERS/TRAINEES
 Persons hired as trainees in semi-skilled and other industrial occupations;
 Shall not exceed three (3) months;
 The wages or salary rates shall not be less than 75% of the applicable minimum wage;
 Must be at least 15 years of age. Those below 18 years of age shall not work in hazardous
occupations;
 With commitment to employ the learner as a regular employee if he desires upon completion of
learnership;
 Considered a regular employee if pre-termination occurs after 2 months of training and the
dismissal is without fault of the learner (IRR, Book II, Rule VII, Sec. 4).
 Requires learnership agreement.
COMMISSION BASED EMPLOYEES
An employee who is engaged on a task or contract basis;
 Not every employee paid (whether wholly or partly) on
commission basis can be considered a regular employee;
Workers who are paid on commission basis to perform
activities desirable and necessary for such businesses, without
creating any kind of employer-employee relationship.
Agreement confirms the status of the commission based
employee because it is explicitly described therein as such
and the agreement permit him to perform services for the
company without being subject to the control of the latter
except only as to the result of his work.
PIECE RATE EMPLOYEES
They are workers who are paid by results or
paid on piece-work or task basis;
Determined by the results of the work
performed or the number of unit produced.
Their pay is depended on unit of product
finished or work completed and not on time spent
in working.
Payment by result is not a basis for determining
the existence or absence of employer-employee
relationship.
LEVELS OF
EMPLOYMENT
FIRST LEVEL MANAGEMENT
 The lowest level in an organization at which individuals are responsible for the work of others
is called first-line or first level management. First-line managers direct operating employees
only; they do not supervise other managers.
Examples of first-line managers are the “foreman” or production supervisor in a manufacturing
plant, the technical supervisor in a research department, and the clerical supervisor in a large
office. First-level managers are often called supervisors.
MIDDLE LEVEL MANAGEMENT
 Can refer to more than one level in an organization. Middle managers direct the activities of
other managers and sometimes also those of operating employees. Middle managers’ principal
responsibilities are to direct the activities that implement their organizations’ policies and to
balance the demands of their superiors with the capacities of their subordinates.
Example of a Middle level manager is a Plant manager in an electronics firm.
SENIOR EXECUTIVE /
TOP LEVEL MANAGEMENT/ CHIEF
Composed of a comparatively small group of executives;
Top management is responsible for the overall management of the organization. It establishes
operating policies and guides the organization’s interactions with its environment.
Typical titles of top managers are “chief executive officer,” “president,” and “senior vice-
president”. Actual titles vary from one organization to another and are not always a reliable guide
to membership in the highest management classification (United Pepsi-Cola v. Laguesma, G.R.
No. 122226, March 25, 1998