Law and HR Management Principles

• Managing human resources can be fraught with legal implications.
• "Fraught" means causing or having a lot of emotional stress or worry.
• Lawsuits can have implications for legal costs, the company name's reputation and management’s reputation
• Ignorance of the law excuses no one.
• An ounce of prevention is better than a pound of cure.

The Philippine Constitution:

• It laid the basis for protecting the rights and welfare of employees.
• It affirms labor as a primary socio-economic force.
• It protects the right of employees to form unions, associations, or societies for purposes not contrary to law.
• The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities to all, as per the Declaration of Principles, Article XIII, Section 3.
• The Declaration of Principles, Article XIII, Section 3 also provides: Self-organization, collective bargaining, strikes, security of tenure, humane conditions of work and living wage, participation in policy and decision making, shared responsibility between workers and employers and a just share in the fruits of production

Labor Code of the Philippines

• Was enacted during the Martial Law.
• Was approved May 1, 1974.
• Took effect on November 1, 1974.
• It contains:
  • Book 1: Pre-Employment
  • Book 2: Human Resources Development Program
  • Book 3: Conditions of Employment
  • Book 4: Health, Safety and Social Welfare Benefits
  • Book 5: Labor Relations
  • Book 6: Post-Employment

Kinds of Employees

• Employer - includes any person acting in the interest of the employer
• Employee - Includes any person in the employ of an employer
• Managerial Employee - one vested with powers to lay down and execute management policies
• Supervisory Employee - one who, in the interest of the employer, effectively recommends such managerial actions.
• Rank and File Employee - one not falling under any of the preceding definitions.

Types of Employees (in terms of tenure)

• Regular
• Project
• Casual
• Probationary
• Fixed Contract

Health, Safety & Social Welfare:

• Must have a First Aid Kit & First Aiders available
• If there are 50 + employees but not more than 200, a Registered Nurse must be available
• If there are 200 + employees but not more than 300, there must be a: Full time registered nurse, Part-Time Physician, Dentist and Emergency Clinic
• If exceeding 300 employees, there must be a : Full Time Physician, Dentist , Full Time Registered Nurse, Dental Clinic and Infirmary/Emergency Hospital
• Physicians, nurses & dentists employed shall have necessary training in industrial medicine and occupational safety and health.
• Employers have a duty to provide all necessary assistance

Labor Relations

• These refer to the relationship between employers and employees in industry, and the political decisions and laws that affect it.
• Conflicts in labor relations can be caused by: Manners by which hierarchical demands are made or executed, Clash between Management Prerogatives and Labor Rights, just share in the fruits of production and fair return in investment, expansion and growth

Unfair Labor Practice (ULP)

• Violates constitutional rights of workers to self-organization.
• Is inimical (causes damage) to the legitimate interests of both labor and management and labor's right to bargain collectively with freedom and mutual respect
• Disrupts industrial peace
• Hinders promotion of healthy labor-management relations
• Is a criminal offense

Strike

• There are 2 grounds for Strike: Deadlock in Collective Bargaining Negotiations and Unfair Labor Practice (ULP)
• Conditions for a strike: notice filed with DOLE.
  • 30 days with deadlock
  • 15 days with ULP
• Approved through secret ballot

The Law on Terminations:

• Just Causes include:
  • Serious misconduct or willful disobedience by the employee
  • Gross and habitual neglect by the employee of his duties
  • Fraud or willful breach by the employee of the trust reposed on thems
  • Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative -Other causes analogous to the foregoing
• Authorized Causes for Terminations include:
  • Installation of labor-saving devices
  • Redundancy
  • Retrenchment or downsizing
  • Closure or cessation of operation
  • Disease

Due Process Requirement:

• The "Twin Notice" consists of:
  • A notice served on the employee specifying the particular acts or omissions
  • A notice of termination served upon the employee

Explore the legal and ethical principles in HR management. Understand the liabilities of a company and the importance of labor laws. Learn about the socio-economic force of labor and the impact of lawsuits.