Law 20033: Regulatory Framework & Legal Issues in Business
44 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are the essential components of the four-fold test used to determine the existence of an employer-employee relationship?

  • The power to sell
  • The power to dismiss (correct)
  • The power to manufacture
  • The power to buy

    • According to the Labor Code of the Philippines, what is the most crucial element in determining the employer-employee relationship?

    power of control

    The ____________ test is used to determine the existence of an employer-employee relationship.

    four-fold

    Which of the following is NOT considered a component of the four-fold test for determining the employer-employee relationship?

    <p>The power to trade</p> Signup and view all the answers

    According to the four-fold test for determining an employer-employee relationship, what is the most important element?

    <p>power of control</p> Signup and view all the answers

    Which of the following are elements in the determination of an employer-employee relationship?

    <p>All of the above</p> Signup and view all the answers

    An employer-employee relationship exists between Jay Sonza and ABS-CBN.

    <p>False</p> Signup and view all the answers

    The ___ is considered compensable hours worked even if the employee is required to be on the employer's premises.

    <p>time during which an employee is required to be on duty or to be at the employer's premises or to be at a prescribed work place</p> Signup and view all the answers

    Match the following cases with their key points:

    <p>DEALCO Farms vs.NLRC = Employer-employee relationship established Jose Sonza vs.ABS-CBN = No employer-employee relationship established</p> Signup and view all the answers

    What is the percentage of additional compensation for emergency overtime work?

    <p>30%</p> Signup and view all the answers

    According to Article 91, how many consecutive normal workdays must an employee work before being entitled to a weekly rest day?

    <p>6</p> Signup and view all the answers

    The right to holiday pay applies to all establishments, regardless of the number of workers employed.

    <p>False</p> Signup and view all the answers

    According to Article 99, how many days of Service Incentive Leave (SIL) are provided if an employee has rendered 1 year of service?

    <p>5</p> Signup and view all the answers

    Match the leaves with their descriptions:

    <p>Solo Parents' Leave = 7 working days for eligible individuals to attend to parental duties Maternity Leave = 105 days for married women who give birth Paternity Leave = 7 days full pay for married male employees Leaves under RA 9262 = Paid leave up to 10 days for women victims of violence under R.A. 9262</p> Signup and view all the answers

    Who are considered self-employed persons under SSS mandatory coverage rules?

    <p>Partners and single proprietors of businesses</p> Signup and view all the answers

    Sea-based OFWs are considered compulsory members of the SSS.

    <p>True</p> Signup and view all the answers

    What is the effective date of coverage for self-employed persons?

    <p>upon his registration with the SSS</p> Signup and view all the answers

    The monthly pension shall in no case be paid for an aggregate amount of less than _____ months.

    <p>sixty (60)</p> Signup and view all the answers

    Match the following benefits with their corresponding descriptions:

    <p>Dependents' Pension = Equivalent to ten percent (10%) of the monthly pension or Two hundred fifty pesos (₱250.00), whichever is higher Retirement Benefits = Entitlement to monthly pension after specific contribution requirements are met Funeral Benefit = Provides a grant to help defray the cost of funeral expenses Sickness Benefit = A benefit for temporary disability due to illness</p> Signup and view all the answers

    What is the daily sickness benefit percentage paid to a member confined for more than three days due to sickness or injury?

    <p>ninety percent (90%)</p> Signup and view all the answers

    How many days is the daily sickness benefit paid for in one calendar year?

    <p>120 days</p> Signup and view all the answers

    If a member is unemployed or self-employed and confined in a hospital, they do not need to notify the SSS within five days of the start of confinement. (True/False)

    <p>True</p> Signup and view all the answers

    The SSS reimburses the employer one hundred percent (100%) of the daily benefits upon receipt of satisfactory ____________.

    <p>proof of payment and legality</p> Signup and view all the answers

    How many days should simple transactions be acted on within?

    <p>3 days</p> Signup and view all the answers

    Denials of applications or requests for government service should be fully explained in writing.

    <p>True</p> Signup and view all the answers

    The new law mandates the use of a single form that incorporates past separate forms on local taxes, sanitary permit, zoning clearance, building clearance, fire clearance, and other usual local government unit (LGU) requirements. There will be a unified form for business permits and business __________.

    <p>renewals</p> Signup and view all the answers

    Match the following terminologies with their definitions:

    <p>Electronic Data Message = Information generated, sent, received, or stored by electronic, optical, or similar means. Electronic Document = Information or the representation of information, data, figures, symbols or other modes of written expression that establishes a right, extinguishes an obligation or proves a fact. Electronic Signature = A distinctive mark, characteristic, or sound in electronic form representing the identity of a person attached to electronic data messages or documents. i = n</p> Signup and view all the answers

    What is the main purpose behind the establishment of the Philippine Deposit Insurance Corporation (PDIC)?

    <p>To provide bank depositors protection and financial stability by offering permanent and continuing deposit insurance.</p> Signup and view all the answers

    What are the three basic functions of the Philippine Deposit Insurance Corporation (PDIC)?

    <ol> <li>Deposit insurer. 2. Act as co-regulator of banks. 3. Receiver and liquidator of closed banks.</li> </ol> Signup and view all the answers

    What is the Maximum Deposit Insurance Coverage (MDIC) per depositor per bank?

    <p>P500,000</p> Signup and view all the answers

    What types of deposits are covered by PDIC Deposit Insurance?

    <p>Savings, Special Savings, Demand / Checking, Negotiable Order of Withdrawal (NOW), Time Deposits</p> Signup and view all the answers

    Which of the following are covered by the PDIC Deposit Insurance? (Select all that apply)

    <p>Demand / Checking account</p> Signup and view all the answers

    Depositors need to pay an insurance premium to the PDIC for coverage.

    <p>False</p> Signup and view all the answers

    Are bank losses due to theft or fire covered by the PDIC Deposit Insurance?

    <p>No</p> Signup and view all the answers

    Who are covered under the Truth in Lending Act?

    <p>Any creditor engaged in the business of extending credit</p> Signup and view all the answers

    In the definition provided, what is meant by 'credit'?

    <p>Loan, mortgage, deed of trust, advance, or discount; Conditional sales contract; Contract to sell property; Rental-purchase contract; Hire, bailment, or leasing of property; or other transactions having a similar purpose</p> Signup and view all the answers

    What is meant by a 'finance charge' in the definition?

    <p>Interest, fees, service charges, discounts, and other charges related to the credit extension</p> Signup and view all the answers

    What information must be furnished to the debtor or borrower?

    <ol> <li>Cash or delivered price of the property or service. 2. Down payment and/or trade-in amounts. 3. Total amount to be financed. 4. Finance charge. 5. Itemized charges not related to credit. 6. Total amount financed. 7. Finance charge percentage.</li> </ol> Signup and view all the answers

    When should the information be furnished to the debtor or borrower?

    <p>Prior to the consummation of the transaction</p> Signup and view all the answers

    What is the effect on the obligation in case of violations to the Truth in Lending Act?

    <p>The contract or transaction remains valid or enforceable</p> Signup and view all the answers

    What are the penalties in case of violation of the Truth in Lending Act?

    <ol> <li>Liabilitity of P100 or twice the finance charge, up to P2,000. 2. Attorneys' fees and court costs. 3. Fine or imprisonment for willful violations.</li> </ol> Signup and view all the answers

    What does the Bank Secrecy Law protect?

    <p>Deposits in banks or banking institutions, investments in government bonds</p> Signup and view all the answers

    What are the exceptions to the Bank Secrecy Law?

    <ol> <li>Written permission from the depositor. 2. Cases of impeachment. 3. Court order in cases of bribery or dereliction of duty. 4. Court order in case of litigation. 5. Subpoena by the Ombudsman. 6. BIR application for tax compromise. 7. AMLC examination for unlawful activities.</li> </ol> Signup and view all the answers

    What are the penal provisions for violating the Bank Secrecy Law?

    <p>Imprisonment up to 5 years or a fine up to P20,000.00, or both</p> Signup and view all the answers

    Study Notes

    Labor Code of the Philippines

    • The Labor Code of the Philippines is a comprehensive law that safeguards the welfare of workingmen and defines the responsibilities of every employee to better serve the capital.
    • The law covers the employer-employee relationship, working conditions, and rest periods.

    Employer-Employee Relationship

    • The four-fold test is used to determine if an employer-employee relationship exists:
      • The power to hire
      • The payment of wages
      • The power to dismiss
      • The power to control the employees' conduct (the "control test")
    • The power of control is the most important element in determining the existence of an employer-employee relationship.

    Working Conditions and Rest Periods

    • Normal hours of work: 8 hours a day, 6 days a week, or 48 hours a week
    • Hours worked: all time during which an employee is required to be on duty, at the employer's premises, or at a prescribed work place
    • Principles in determining hours worked:
      • All hours are hours worked if the employee is required to give them to the employer
      • Hours worked include time spent on productive labor, physical or mental exertion

    Illustrative Cases

    • DEALCO Farms vs. NLRC (2009): respondents were hired as escorts or "comboys" for the transit of live cattle; the Supreme Court held that an employer-employee relationship existed between the parties.
    • Jose Sonza vs. ABS-CBN (2004): the Supreme Court held that there was no employer-employee relationship between the parties, as Sonza was a talent with a unique skill and celebrity status, and the agreement was the result of negotiations.

    Social Security System (SSS) Law

    • The SSS law provides for the compulsory coverage of all employers, which gives ample benefits to employees when they are no longer able to work due to disability, sickness, separation, or retirement.

    Ease of Doing Business in the Philippines

    • The law aims to expedite business transactions with the government and obviate corruption.
    • Essential features of the law:
      • Zero-Contact Policy
      • Bigger accountability for receiving officers
      • Shorter processing times
      • Limiting the number of signatories to three people
      • Single unified business application form
      • Environmental and agricultural clearances, sanitary permits, and other local permits will be issued along with the business permit, which is valid for one year

    Electronic and E-Commerce Act

    • The law recognizes the legal effect of electronic data messages and electronic documents.
    • Definitions:
      • "Electronic Data Message" refers to information generated, sent, received, or stored by electronic means
      • "Electronic Document" refers to information or data that is in a form usable for subsequent reference
      • "Electronic Signature" refers to any distinctive mark, characteristic, or sound attached to or logically associated with an electronic data message or electronic document

    Philippine Deposit Insurance Corporation (PDIC) Law

    • The PDIC is a government-owned and -controlled corporation that provides deposit insurance coverage to depositors.
    • Deposit insurance coverage: up to ₱500,000 per depositor per bank
    • Deposits covered by PDIC deposit insurance:
      • Demand deposits
      • Savings deposits
      • Time deposits
      • Certificates of deposit

    Truth in Lending Act

    • The law requires lenders to disclose the true interest rate and other terms of the loan to the borrower.
    • Information required to be furnished to the borrower:
      • The rate of interest or finance charge
      • The total amount of the loan
      • The total amount of the interest or finance charge
      • The total amount of the payments

    Bank Secrecy Law

    • The law prohibits the disclosure of or inquiry into deposits with any banking institution.
    • Exceptions to the bank secrecy law:
      • Deposits of public officials
      • Deposits relating to a crime
      • Deposits of a person who has given written permission to disclose the deposit

    Anti-Money Laundering Act

    • The law prohibits the laundering of money or other properties derived from unlawful activities.
    • Covered transactions:
      • Cash transactions involving ₱5 million or more
      • Transactions involving the sale of real property or goods worth ₱5 million or more
      • Transactions involving the transfer of ₱5 million or more

    Intellectual Property Code of the Philippines

    • The law governs the rights and obligations of creators and owners of intellectual property.
    • Types of intellectual property:
      • Copyright and related rights
      • Trademarks and service marks
      • Industrial designs and layout designs of integrated circuits
      • Patents

    Data Privacy Act

    • The law regulates the processing of personal data and ensures that the rights of data subjects are protected.
    • Types of information:
      • Personal information
      • Sensitive personal information
      • Privileged information
    • Principles in the processing of data:
      • Transparency
      • Legitimate purpose
      • Proportionality
    • Rights of data subjects:
      • Right to be informed
      • Right to object
      • Right to access
      • Right to correct
      • Right to erase### Rest Periods and Overtime
    • An employee's rest period shall not be counted if they stop working, rest completely, and leave their workplace, whether within or outside the premises.
    • If the work performed was necessary, benefited the employer, or the employee could not abandon their work at the end of their normal working hours, all time spent for such work shall be considered as hours worked.
    • Time spent inactive due to interruptions in work beyond the employee's control shall be considered working time if:
      • The employee's presence is required at the workplace.
      • The interval is too brief to be utilized effectively and gainfully in the employee's own interest.

    Meal and Rest Periods

    • Meal periods: at least 60 minutes of time-off
    • Night shift differential: 10% (between 10pm to 6:00am)

    Overtime Work

    • Overtime work: 25% of regular wage
    • Overtime work on a holiday or rest day: 30% of regular wage

    Weekly Rest Periods

    • Right to weekly rest day: 24 consecutive hours after every 6 consecutive normal workdays
    • When an employer may require work on a rest day: in case of actual or impending emergencies or in the event of abnormal pressure of work due to special circumstances, such as force majeure or unforeseen events.

    Holidays

    • Right to holiday pay: 100% of daily wage
    • Service incentive leave (SIL): 5 days if 1 year of service

    Service Charges

    • Service charges: 85% to employees, 15% to management

    Leaves

    • Leaves are days when employees may still be paid despite their absence from work
    • Types of leaves:
      • Service Incentive Leave (SIL)
      • Solo Parents' Leave
      • Maternity Leave (R.A. 11210)
      • Paternity Leave (R.A. 8187)
      • Leaves under RA 9262 and RA 9710

    Post-Employment and Termination of Employment

    • Security of tenure: regular and casual employment
    • Probationary employment: not to exceed 6 months
    • Termination by employer:
      • Just causes: serious misconduct, willful disobedience, gross and habitual neglect, fraud, or commission of a crime
      • Authorized causes: closure of establishment, reduction of personnel, disease, or other causes analogous to the foregoing
    • Termination by employee:
      • Without just cause: written notice to the employer at least 1 month in advance
      • With just cause: no notice required

    Social Security Act of 2018 (R.A. 11199)

    • Coverage:
      • Compulsory for all employees, including kasambahays or domestic workers, and their employers
      • Compulsory for self-employed persons, including professionals, partners, and single proprietors of businesses
      • Compulsory for overseas Filipino workers (OFWs)
    • Effective date of coverage: first day of employment or operation
    • Effect of separation from employment: continued coverage on a voluntary basis### Social Security Act of 2018
    • Compulsory coverage:
      • Employer's contribution and obligation to pay contributions cease at the end of the month of separation.
      • Employee is credited with all contributions paid on their behalf and entitled to benefits.
      • Employee may continue to pay total contributions to maintain right to full benefit.

    Benefits Available

    • Monthly Pension:
      • Calculated based on the highest of three options:
        • ₱300.00 + 20% of average monthly salary credit + 2% of average monthly salary credit for each credited year of service in excess of 10 years.
        • 40% of average monthly salary credit.
        • ₱1,000.00.
      • Minimum pension: ₱1,200.00 for members with at least 10 credited years of service and ₱2,400.00 for those with at least 20 credited years of service.

    Death Benefits

    • Upon death of a member, primary beneficiaries shall be entitled to:
      • Monthly pension if the member has paid at least 36 monthly contributions prior to the semester of death.
      • Lump sum benefit equivalent to 36 times the monthly pension if the member has not paid the required 36 monthly contributions.

    Permanent Disability Benefits

    • Upon permanent total disability, a member shall be entitled to:
      • Monthly pension if the member has paid at least 36 monthly contributions prior to the semester of disability.
      • Lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or 12 times the monthly pension, whichever is higher.

    Funeral Benefit

    • A funeral grant of ₱12,000.00 shall be paid to help defray funeral expenses upon the death of a member.

    Sickness Benefit

    • A member who has paid at least 3 monthly contributions in the 12-month period immediately preceding the semester of sickness or injury shall be entitled to:
      • Daily sickness benefit equivalent to 90% of average daily salary credit.
      • Payment of daily sickness benefit shall not be paid longer than 120 days in one calendar year.

    Unemployment Insurance or Involuntary Separation Benefits

    • A member who is not over 60 years of age and has paid at least 36 months of contributions, 12 months of which should be in the 18-month period immediately preceding the involuntary unemployment or separation, shall be entitled to:
      • Monthly cash payments equivalent to 50% of the average monthly salary credit for a maximum of 2 months.

    Non-Transferability of Benefits

    • Benefits are not transferable, and no power of attorney or other document executed by those entitled thereto shall be recognized.

    Republic Act No. 11032 (The Ease of Doing Business and Efficient Government Service Delivery Act of 2018)

    • Coverage: All government offices and agencies, including local government units, government-owned or controlled corporations, and other government instrumentalities, whether located in the Philippines or abroad.
    • Key Features:
      • Streamline procedure for issuance of local business permits, licenses, or clearances.
      • Citizen's charter, coverage of the law, automatic approval or extension of permits and licenses.
      • Accountability of heads of offices and agencies, including those located abroad.
      • Zero-Contact Policy to prevent "under-the-table" transactions.
      • Bigger accountability for receiving officers, who will be required to inform applicants of any deficiencies in requirements, assign a unique identification number, and provide a reference number for the transaction.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Regulatory Framework & Legal Issues in Business (LAW-20033) PDF

    Description

    This instructional material covers labor laws, SSS Law, Ease of Doing Business, and other legal issues in the Philippines. It is compiled by Atty. Ritche I. Eponilla for the College of Accountancy and Finance. The material provides an overview of the regulatory framework and legal issues in business.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser