Labor Code of the Philippines Overview

The state protects and promotes worker welfare, ensuring their rights are respected.

Workers are entitled to self-organization, collective bargaining, and peaceful actions, along with security of tenure and a living wage.

An employer's right to manage aspects of employment, like assigning tasks, supervising work, and disciplinary actions.

Employer control is not absolute; it cannot violate the law or be arbitrary.

Legally binding agreement outlining employment terms and conditions, forming the basis of the relationship between employer and employee.

The right of workers to job security and protection from unjust dismissal.

Negotiating terms of employment between workers and employers.

A wage sufficient to meet basic needs.

An employer can dismiss an employee for specific reasons related to their misconduct or performance, such as serious misconduct, willful disobedience, or fraud.

An employer can dismiss an employee due to reasons related to the company's financial situation or changes in its operations, such as redundancy, retrenchment, or cessation of operations.

If an employee is terminated unjustly, they have the right to be reinstated to their job without losing any seniority, back wages, or benefits.

When terminating an employee, the employer must provide a written explanation of the reasons for termination and give the employee a chance to defend themselves.

Most employees, except those on probation, are considered regular employees with job security, even if they work seasonally or on projects.

An employee can retire at the age specified in their contract or collective bargaining agreement, ending their employment relationship.

Just cause termination requires specific reasons related to the employee's actions, such as: serious misconduct, willful disobedience, gross negligence, fraud or breach of trust, commission of a crime against the employer or their representatives.

The age at which an employee is required to retire, typically 65 years old in the Philippines, with an exception of 60 years old for underground miners.

A legal requirement for employers in the Philippines to provide employees with two separate notices when terminating employment for just cause. The first notice is a 'show cause' letter explaining the reason for potential termination, while the second notice is the final decision to terminate.

The legal relationship between an employer and employee governed by the Labor Code of the Philippines, outlining rights and responsibilities.

A set of four criteria used to determine if an employer-employee relationship legally exists: selection and engagement, payment of wages, power of dismissal, and power to control the employee's conduct.

The process of hiring an employee, including sourcing candidates, conducting interviews, and signing an employment contract.

The employer's legal right to terminate an employee's employment for just cause, meaning a legitimate and valid reason.

The employer's authority to direct an employee's work, including setting tasks, supervising performance, and imposing disciplinary actions.

The employer's obligation to provide an employee with a regular salary or wages, documented through a payroll system or pay slip.

Legitimate reasons for terminating an employee, including misconduct, poor performance, or redundancy.

Compensation given to employees terminated due to valid company reasons, such as downsizing.

Examining the extent of supervision and control an employer exercises over an employee's work, including tasks, methods, and tools.

While employers set rules, excessive control over the means and methods of accomplishing work signifies an employer-employee relationship.

Assessing if a worker relies financially on a specific employer for continued employment in their field.

A worker's financial reliance on a single employer for their livelihood, a key factor in determining employment status.

Freelancers are independent contractors with limited control from the hiring party, while employees are subject to employer supervision.

An employee hired for a specific project with a defined start and end date.

An employee hired during specific seasons or periods of increased business activity.

An employee hired for occasional, short-term work that isn't part of the employer's regular business activities.

An employee hired for a specific period of time, typically outlined in a contract.

An employee who has worked for at least a year, whether continuously or intermittently, becomes a regular employee in their specific job activity.

When an employee is unjustly fired without a valid reason or process, causing harm to their employment rights.

An employee illegally dismissed is entitled to get their job back and receive all missed wages from the time of dismissal until they are back in the job.

A trial period for new employees to prove their skills and suitability for the job, during which they have limited job security.

A legal principle requiring fair treatment and a chance to be heard before termination of employment, even if the employee has committed a violation.

The legal requirement for employers in the Philippines to provide two written notices before dismissing an employee, explaining the reasons and giving them a chance to respond.

The first notice given to an employee before potential termination, detailing the specific acts or omissions that led to the proposed dismissal.

The first notice must direct the employee to submit a written explanation within a reasonable period, allowing them to defend themselves against the allegations.

A minimum of five calendar days is provided for the employee to explain themselves, allowing time to gather evidence and consult with legal or union representatives.