LABOR LEGISLATION AND NEGOTIATION

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Branch of law that governs and regulates the relationship between employers and employees.

LABOR LAW

Branch of labor law that prescribes the minimum requirements for hours of work, wages, monetary benefits, welfare benefits, and occupational health and safety.

LABOR STANDARDS

The branch of labor law that regulates the activities of labor organizations and prescribes the modes and machinery for the settlement of labor disputes, including collective bargaining, and the modes and procedure for terminating an employment.

LABOR RELATIONS

Statutes intended to provide protection to the employee and his beneficiaries in case of disability, sickness, old age, death, and other contingencies that results in loss of income or financial burden.

WELFARE LAWS

It covers labor laws, agrarian laws, and welfare laws. Essentially, these are laws or statutes enacted pursuant to the social justice clause of the Constitution. The emphasis is more on the aspect of general public good and social welfare.

SOCIAL LEGISLATION

Labor law is about employer-employee relationship. Therefore, the applicability of the Labor Code is dependent upon the existence of employer-employee relationship.1 If the relationship is something else other than "employer-employee," the principles of ordinary civil law will apply.

THE ESSENCE OF LABOR LAWS

Under this criterion, the relationship of employer-employee is created by the act of hiring a person as an employee. Hiring may be express or implied. A written contract is not necessary.

SELECTION AND ENGAGEMENT

Under this criterion, the relationship of employer-employee is deemed to exist if the person hired is compensated in terms of "wages." It should be emphasized, however, that the mere designation of the compensation as "salaries" will not per se indicate the existence of employer-employee relationship.

PAYMENT OF WAGES

Under this criterion, the relationship of employer-employee is deemed to exist if the person hired is subjected to the rules of discipline of the employer. Prohibiting a person hired from competing with the firm under pain of dismissal, and subjecting the person hired to disciplinary action are indications that the employer wields the power of dismissal.

POWER OF DISMISSAL

It refers to the authority of the employer to manage the employee on both the result of the work to be done and the means by which the work is to be accomplished.

POWER TO CONTROL THE EMPLOYEES CONDUCT

This employees are those vested with powers or prerogatives to lay down and execute management policies and/or hire, transfer, suspend, lay-off, recall, discharge, assign, or discipline employees.

MANAGERIAL EMPLOYEES

This employees are those who, in the interest of the employer, effectively recommend managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.

SUPERVISORY EMPLOYEES

This employees are those who are neither managerial nor supervisory. They can either be daily paid or monthly-paid. Daily-paid employees are those who are paid only on the days they actually worked and on unworked regular holidays. Monthly paid employees are those who are paid every day of the month, including unworked rest days, special holidays, and regular holidays.

RANK-AND-FILE EMPLOYEES

A job where the employee was engaged to perform activities necessary or desirable in the usual business or trade of the employer.

REGULAR EMPLOYMENT

A job where the employee was engaged for a specific period or undertaking, for a particular season, for a trial period, or for an activity that is not usually necessary or desirable to the business or trade.

NON-REGULAR EMPLOYMENT

A job where the employee was engaged for a specific undertaking, the completion or termination of which has been determined at the time of the engagement.

PROJECT EMPLOYMENT

A job where the employee was engaged to work during a particular season.

SEASONAL EMPLOYMENT

A job where the parties by free choice have assigned a specific date of termination.

FIXED-TERM EMPLOYMENT

A job where the activities performed by the employee are not usually necessary or desirable in the usual business or trade of the employer.

CASUAL EMPLOYMENT

A job where the employee upon his engagement, is made to undergo a trial period to enable the employer to determine his fitness for regular employment on the basis of reasonable standards made known to him at the time of engagement.

PROBATIONARY EMPLOYMENT

There shall be a National Labor Relations Commission which shall be attached to the Department of Labor and Employment solely for program and policy coordination only, composed of a Chairman and twenty-three (23) Members.

ART. 220. NATIONAL LABOR RELATIONS COMMISSION

The Commission and its first, second, third, fourth, fifth and sixth divisions shall have their main offices in Metropolitan Manila, and the seventh and eighth divisions in the Cities of Cebu and Cagayan de Oro, respectively. The Commission shall establish as many regional branches as there are regional offices of the Department of Labor and Employment, sub-regional branches or provincial extension ,nits. There shall be as many labor arbiters as may be necessary for the effective and efficient operation of the Commission. Each regional branch shall be headed by an Executive Labor Arbiter.

ART. 221. HEADQUARTERS, BRANCHES, AND PROVINCIAL EXTENSION UNITS

The Chairman and other Commissioners shall be members of the Philippine Bar and must have been engaged in the practice of law in the Philippines for at least fifteen (15) years with at least five (5) years’ experience or exposure in the field of labor-management relations, and shall preferably be residents of the region where they shall hold office. The Labor Arbiters shall likewise be members of the Philippine Bar and must have been engaged in the practice of law in the Philippines for at least ten (10) years, with at least five (5) years experience or exposure in the field of labor-management relations.

ART. 222. APPOINTMENT AND QUALIFICATIONS

THE GENERAL CLASSIFICATION OF LABOR LAWS

  1. LABOR STANDARDS
  2. LABOR RELATIONS
  3. WELFARE LAWS

Under this test, when a worker possesses some attributes of an employee and others of an independent contractor which make him fall within an intermediate area, he may be classified under the category of an employee when the economic facts of the relation make it more nearly one of employment than one of independent business enterprise with respect to the ends sought to be accomplished.

THE ECONOMIC REALITY TEST

The relationship of employer-employee will be deemed to exist where the person for whom the services are performed reserves the right to control not only the end to be achieved but also the means to be used in reaching such end.

THE CONTROL TEST

ELEMENTS OF EMPLOYER-EMPLOYEE RELATIONSHIP

  1. SELECTION AND ENGAGEMENT OF THE EMPLOYEE
  2. PAYMENT OF WAGES
  3. POWER OF DISMISSAL
  4. POWER TO CONTROL THE EMPLOYEES' CONDUCT

WHAT IS THE MOST IMPORTANT ELEMENT OF EMPLOYER-EMPLOYEE RELATIONSHIP?

Power to control the employees conduct because To fall within the ambit of employer-employee relationship, control should be on both the means and the end. If control is limited only to the result of the work, employer-employee relationship does not exist.

STATUTORY CLASSIFICATION OF EMPLOYEES

  1. MANAGERIAL EMPLOYEES
  2. SUPERVISORY EMPLOYEES
  3. RANK-AND-FILE EMPLOYEES

STATUTORY CLASSIFICATION OF EMPLOYMENT

  1. REGULAR EMPLOYMENT
  2. NON-REGULAR EMPLOYMENT
  3. CASUAL EMPLOYMENT

NON-REGULAR EMPLOYMENT CLASSIFIED INTO:

  1. PROJECT EMPLOYMENT
  2. SEASONAL EMPLOYMENT
  3. FIXED-TERM EMPLOYMENT
  4. PROBATIONARY EMPLOYMENT
  5. CASUAL EMPLOYMENT

THE RIGHTS OF WORKERS

  1. RIGHT TO SECURITY OF TENURE
  2. RIGHT TO A LIVING WAGE
  3. RIGHT TO HUMANE CONDITION OF WORK
  4. RIGHT OF SELF-ORGANIZATION
  5. RIGHT TO ENGAGE IN CONCERTED ACTIVITIES
  6. RIGHT TO COLLECTIVELY BARGAIN
  7. RIGHT TO PRESENT GRIEVANCES TO THE EMPLOYER
  8. RIGHT TO PARTICIPATE IN POLICY AND DECISION-MAKING PROCESSES

Those who are paid only on the days they actually worked and on unworked regular holidays.

DAILY PAID EMPLOYEES

Those who are paid every day of the month, including unworked rest days, special holidays, and regular holidays.

MONTHLY PAID EMPLOYEES

independent Philippine Republic, the Industrial Peace Act, was enacted

MAGNA CARTA OF LABOR (RA NO.875)

It will apply if the relationship is something else other than "employer-employee,"

CIVIL LAW

This simply means that employees cannot be dismissed without valid cause.

RIGHT TO SECURITY OF TENURE

The living (minimum) wage shall be as nearly as adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the employees within the framework of the national and social development program.

RIGHT TO A LIVING WAGE

Employees of commercial, industrial, agricultural enterprises, or those employed in religious, charitable, medical, or educational institutions, whether operating for profit or not, have the right to form or join an organization for purposes of collective bargaining or for their mutual aid and protection

RIGHT TO SELF ORGANIZATION

24-man tripartite body composed of representatives from the public sector, workers' sector, and employers' sector. It has eight (8) divisions, each composed of three (3) members. Of the eight (8) divisions, the 1st, 2nd, 3rd, 4th, 5th, and 6th divisions handle cases coming from the National Capital Region and other parts of Luzon, while the 7th division handles cases from Visayas and the 8th division handles cases from Mindanao.

NATIONAL LABOR RELATIONS AND COMMISSION (NLRC)

The Presiding Commissioner of the First Division. He presides over the en banc sessions and exercises administrative supervision over the NLRC, the Regional Arbitration Branches and all its personnel. In case of his effective absence or incapacity, the Presiding Commissioner of the Second Division shall be the Acting Chairman.

NLRC CHAIRMAN

The Chairman and members of the Commission shall have the same rank, receive an annual salary equivalent to, and be entitled to the same allowances, retirement and benefits as those of the Presiding Justice and Associate Justices of the Court of Appeals, respectively. Labor Arbiters shall have the same rank, receive an annual salary equivalent to and be entitled to the same allowances, retirement and other benefits and privileges as those of judges of the Regional Trial Courts. In no case, however, shall the provision of this Article result in the diminution of existing salaries, allowances and benefits of the aforementioned officials.

ART. 223. SALARIES, BENEFITS AND OTHER EMOLUMENTS

The Commissioners of the NLRC and the Labor Arbiters shall hold office until the age of sixty-five (65) years, unless sooner removed for cause or become incapacitated to discharge their duties. The President of the Philippines may extend the services of the Commissioners and Labor Arbiters up to the maximum age of seventy (70) upon the recommendation of the Commission en banc.

TERM OF OFFICE

It assist the NLRC in its appellate and adjudicatory functions. The term of office of Commission Attorneys is co-terminus with the Commissioner with whom they are assigned. Commission Attorneys must be members of the Philippine Bar and must have experience or exposure in the field of labor relations for at least one (1) year.

COMMISSION ATTORNEY

QUALIFICATIONS OF NLRC COMMISSIONERS

(1) Must be a member of the Philippine Bar; (2) Must have been engaged in the practice of law for at least fifteen (15) years; (3) Must have experience in the field of labor-management relations for at least five (5) years; (4) Preferably a resident of the region where they shall hold office.

QUALIFICATIONS OF LABOR ARBITER

(1) Must be members of the Philippine Bar; (2) Must have been engaged in the practice of law at least ten (10) years; (3) Must have experience in the field of labor-management relations for at least five (5) years.

Test your knowledge of the branch of law that governs the relationship between employers and employees, including regulations on hours of work, wages, occupational health, labor organizations, and dispute settlement. Explore statutes providing protection to employees in case of disability, sickness, old age, and other contingencies. This quiz covers labor laws, agrarian laws, and welfare laws.

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