LABOR LAW

Labor Legislation - Article 1

• Encompasses statutes, regulations, and jurisprudence governing employer-employee relations
• It sets employment standards and creates a legal structure for negotiating and managing employment terms.
• It divided into labor standards which includes minimum requirements for salaries, working hours, cost of living and welfare benefits.
• Includes occupational health and safety standards
• Labor Relations Law outlines rights, defines duties, mechanisms governing interactions between employers, employees, and representatives.
• It seeks to stabilize employer-employee relations, addressing disputes through bargaining and settling disagreements through conciliation, mediation, or arbitration.

Effectivity of the Labor Code - Article 2

• Took effect on November 1, 1974
• It occurred six months after its promulgation on May 1, 1974

Basic Rights of Workers - Article 3

• Workers have seven basic rights guaranteed by the Constitution (OCESHLP):
• Right to Organize
• Right to Conduct Collective Bargaining/Negotiations
• Right to Engage in Peaceful Concerted Activities (including strikes that comply with the law)
• Right to Enjoy Security of Tenure
• Right to Work Under Humane Conditions
• Right to Receive a Living Wage
• Right to Participate in Policy & Decision-Making Processes that affect rights and benefits
• Relevant Laws include the Civil Code, Revised Penal Code, SSS Law, GSIS Law, Agrarian Reform Law, 13th Month Pay Law and the Magna Carta for Public Health Workers.
• RATIONALE: Labor laws exist under the State's police power to manage employer-employee relations.

Declaration of Basic Policy - Article 3

• The State's is responsible for affording labor with protection, promoting employment, ensuring equal opportunities, regulating employer-employee relationships and assuring rights to organization, bargaining, and just working conditions.
• An Employer is one that employs other people and pays their slaves
• An Employee is a person working for an employer for salry or wage

Construction in Favor of Labor - Article 4

• Construction in Favor of Labor Clause intends to apply the Labor Code to as many employees as possible, prioritizing worker welfare.
• This applies when there is doubt, otherwise clear provisions are applied as written.
• Laws are interpreted to improve labor conditions and promote welfare.
• Courts favor exercising labor rights, resolving doubts in labor's favor. If the law is clear, standard application applies.
• Management Rights include the right to conduct business, prescribe rules, select employees, and manage transfers or discharges.

Rules and Regulations - Article 5

• Rules issued by the Department of Labor and Employment (DOLE) take effect 15 days after publication in newspapers of general circulation.

Applicability - Article 6

• Agricultural or Farm Workers are those workers employed in an agricultural or farm enterprise performing agricultural tasks like cultivation, harvesting, and livestock raising.
• Provisions aim to encourage people to seek employment in agricultural ventures rather than migrate to overcrowded urban areas.
• The Labor Code applies to all workers, whether they are working in agricultural or non-agricultural industries including those employed by government owned corporations.

Farm Employer and worker Relationship Vs Tenant Relationship

• Farm Employer-Farm Worker relationship involves a lease agreement where agricultural workers lease their services and the employers employ them
• Agricultural worker works for money regardless of employer profits
• Tenancy relationship involves the landowner offering up land to a tenant for agricultural production
• Income is derived from crop yield or harvest.

Emancipation of Tenants - Article 7-11

• Share tenancy has been replaced by leasehold systems
• The land covered by land transfer should be private agricultural land that is tenanted, mainly for rice and/or corn, and more than seven hectares
• Retention limits are set at 5 hectares per landowner, with an additional 3 hectares allowed per child if they are over 15 and directly manage or till the land.
• Exceptions include cases covered by homestead patents and Presidential Decree No. 27
• Emancipation Patent is a title given to a tenant that represents complete emancipation from the land.

Objectives for prohibiting Alienation of Land:

• Preserve owner-tiller landholding to their heirs
• Prevent land speculation
• Prevent a few people from owning all the land

Management Prerogative

• Employers can regulate employment aspects, including hiring, assignments, methods, workload, supervision, and discipline.
• Exercised in good faith, it aims to advance the employer's interests without undermining employee rights
• It includes the right to set work standards but also requires just cause for dismissal.
• New management has no obligation to re-employ workers who willingly accepted separation pay and benefits
• Change in ownership doesn't jeopardize business concerns.

Recruitment and Placement of Workers - Article 13

• It involves actions like canvassing, enlisting, hiring, or contracting workers, including advertising for employment either locally or abroad.
• Anyone offering employment for a fee to two or more people is considered engaged in recruitment and placement
• The number of people involved isn't what dictates recruitment; the rule exists as a presumption.
• Entities authorized to do recruitment and placement include:
• Public employment offices
• Private recruitment entities and agencies
• Shipping or manning agents or representativies
• Philippine Overseas Employment Administration (POEA)
• Construction contractors, if authorized
• Diplomatic corps members who must process hirings through POEA
• Any entities authorized by the DOLE secretary
• Requirements for documentation include an individual employment contract and passport documentation approved by the POEA for workers hired through them
• The POEA has taken over the functions of the Overseas Employment Development Board (OEDB)

Adjudicatory powers of the POEA involve:

• All administrative issues like violations of recruitment rules.

Jurisdiction of the NLRC

• Jurisdiction is transferred to labor arbiters of the National Labor Relations Commission (NLRC) to including claims for financial losses, or damages
• Venue for these claims is the NLRC branch where the complainant lives or the respondent's main office is located.
• Compromise agreements are consistent with policy, RA 8042 allows settling cases with the NLRC as well.

Considerations for Terminating employement Contracts:

• Employers must pay workers the salaries corresponding to the unexpired portion of their employment agreement in cases where the worker's dismissal is found to be unlawful before the contract termination date.
• Under RA 8042, workers illegally dismissed are entitled to receive full compensation as reimbursement for full placement, salaries, and benefits.
• The basis of award for benefits is the contract stipulation.
• An employee signing a satisfaction receipt isn't a waiver, because an agreement to less compensation than is entitled will not be valid.

Minimum conditions required for hiring workers overseas

• Guaranteed rates of pay
• Free transportation
• Free medical and dental
• A just cause for termination
• Workmen's compensation
• Repatriation
• Assistance regarding the handling of the return of funds for workers
• Free room and board for living

ART 22. Mandatory Remittance of Foreign Exchange Earnings

• Mandatory remittance requirements are:
• 80% of the basic salary for seamen
• 70% of the basic salary for Filipino Contractors
• 70% of the basic salary for Doctors, Engineers, Nurses, and teachers
• 50% professionals
• 50% of the basic salary for domestic and other service workers.

Private Sector Participation in the Recruitment and Placement of Workers

• Qualifications for participation in the Overseas Employment include:
• Having 75% ownership of the capital of companies that are Filipino.
• Minimum capitalization of 1M

Disqualifications from Recruitment

• Travel agencies and sales agencies of airline companies.
• Officers or members of the board or any corporation or members in a partnership engaged in the business of a travel agency.
• Persons employed in the Department of Labor or in other government agencies directly involved in overseas employment program and their relatives within the 4th degree of consanguinity or affinity; or
• Those whose license has been previously canceled or revoked.

license transferability

• Licenses or authorizations cannot be transferred or used by anyone else.
• Activities can only occur at licensed official address

Disciplinary Procedures

• Grounds for disciplinary action:
• Commission of a felony
• Drug addiction or possession or trafficking of prohibited drugs.
• Desertion or abandonment.

Acts Considered Illegal

• Those who promise employment without a licenses
• Those who perform an act that is prohibited

Conditions for prohibited practices

• Charging fees higher than allowed
• Publishing false job information
• Making employees quit to work for a new employer
• Engage in illegal labor practices
• Preventing workers for gaining employment to hurt public safety
• Obstructing the inspection of employment records

Conditions for a syndicate being involved in Illegal recruitment:

• Carried out by a group of more than 3 people
• Committed in a large scale against more than 3 people

How Illegal Recruitment cases are processed

• Trial in the RTC province or city where the incident occurred. This is dependent on the decision of the complainant.
• The agents of a business that are not authorized by the POEA

Labor law in relation to Non-Resident Aliens includes:

• Foreign business's needing to apply for the application of employment
• Business needing to train Filipino worker's that are considered to be non-resident.
• Prohibition against the employment of Aliems from the Anti-Dummy Law involves Aliens not being able to be employed in any entity that has foreigners in its name.

Defining Manpower

• Manpower is defined as the part of the population that contributes to goods and services. This includes entrepreneurship.

Training Special Workers

• The training can be done through: Apprenticeship, Learners or through Handicap.

Defining the difference in Apprentices and Learners

• Apprenticeship is identified under a written agreement that allows them to work at an enterprise
• The enterprise must be involved in training for more than 3 months. The requirements must also be done by the apprenticeship.
• Learners involve those who are learning more in depth and must be done in less than 3 months
• Apprenticeship has a much heavy time-commitment as well as heavy training than that of learners.
• Employers may take apprentice's depending on their qualification.

Providing assistance to apprentices

• Employers can have tax deductions in case employees have apprentices. This includes that it must be recognized by the DOL

Requirements for compensating the apprentice

• This compensation would come from: the school and the training that they need for the school to graduate
• Payment comes from programs and compensation

Handicapped workers

• Those whose capacity is limited by physical or injury
• They also may be hired as equal to other workers if it does not effect the operation.

Conditions for Employment

• Elements of the employer and employee relationship:
• The selection and engagement.
• Power of control over the employee.
• The right to have control over the power to dismiss.
• The way to perform and be able to accomplish. This can be identified by identifying the control test. This test is measured and has to have evidence.
• A natural person is hired. Also depends on if the juridical person has hired the person.

Employees that are exempt from the employee relationships

• Government employers.
• Material personnel.
• Family supports.
• Persons that are on personal service to another.
• Government employees and instruments.

Factors of Work

• Field personnel must perform their jobs regularly and not base it on a principal type of business. It should be the same for both.
• Method of computing based on work and not the time spent on working.
• Domestic Helpers - Personal helpers in the house for convenience, health and well being.
• Employment is based on facts and not the contract. This is based on question of facts and supported by evidence.

The role of Management

• Excluding what is in law, an employer is free to regulate and control judgment's needed for employment
• It includes hiring, assigning work.
• Transferring and dismissing employees.
• It is a the employers right to progress the interests to prescribe standards
• If that is not met, this is considered a just cause for dismissal
• New owners do not have no obligation to re-employ voluntarily accepted workers.

Normal Hours of Work

• Shall not exceed 8 hours for work per day
• This is to protect health and wellbeing of the person.
• The work week may begin on any hour and day including the weekend.

Hours Worked

• Hours worked includes when employees are on duty on duty or required to work a certain place.
• Required to give their employer, regardless of the working and mental conditions.
• Regardless an employee stops and rests, they may go anywhere during that work time.
• Work is done if it had a direct connection to the employer
• Idle time can be put towards breaks rather than hours

Only maximum is prescribed but not minimum

• Part like work is therefore fine.
• Engaged and waiting is allowed
• Travel time is compensable. Workers will be compensated.
• Short work times considered as worked
• When preliminary activities are compensable when for the employer

Meal Periods Art 85

• Meal periods should not be less than 60 minutes
• If less than 20 minutes, it becomes rest time
• Employers must be completty relieved from duty

Additional compensation

• Employee should get pay for amount of hours worked.
• Employees could have a shorter timeline. As long as they agree. They also must be willing to pay the overtime. Additionally the work needs to be physical. Workers also need coffee breaks.

Night shift Differential and overtime

• Should not be less than 10% for work done by the worker
• If the employee works overtime, this needs to be mentioned.
• It serves as a inducement of amount

More about Overtime

• OT must be given to given due to being told to work and to agreed hours of labor

Rules for working

• The minimum normal working day and hour rules must have some part of constitutes of legal working.

Weekly rest Day Art 91

• Employee should be provided a period of rest of 24 hours
• This could be the weekly day depending for religious reasons.

Emergency Overtime Work

• When workers may need to render their time: When countries can go to war, and also when natural disasters can occur.
• Worker may even be required during other circumstances

Art 90 Regular Wage

• Cash wage with facilities provided by the employer

Regular Holiday

• Those who do not work need a pay provided to the employee
• They should not have been absent from the working day of the employee
• Must be present or authorize depending in the case

Double Holiday Pay

• Provided 200% if had work on that day
• The rules and memorandums must be meet and given out appropriately
• A employee that needs to paid for work, needs to be in attendance as required.

Right to service incentive leave

• 5 days of leave for employees with 1 year or more of service There are exceptions such not applying vacation leave with the said benefits.

Distributing service charges

• It'll be twice A month
• 85% to workers
• Distributing the rest to managers

What a wage is

• Wage or salary
• Earnings capabilities that are measured in form in money and payments.

Fair Labour day and fair labor wages

• Money only comes if employee is able. And if there wasn't any dismissal.

Wage vs Salary

• A compensation for manual

Prohibition against elimination

• Cannot reduce payments
• Voluntarily be written by employee
• At fair value
• The non diminution must be that all employees get the fair share by the policy

Forms of money payments

• The forms of money comes from forms of legal bonus for any kind of workers.
• It must also be given in form of legal tender and cannot be paid with products as that is not equalivalent

Art 101 Payment by Results

• Piece workers under the dole Work is done by those who pay base on the result

Benefits available to peace rate workers include

• The minimum rate daily.
• Incentive leave
• Holiday/Meal payments
• And service payment

Payment of Wages

• By means of promissionary noted.
• Coupons, tickets or any objected

Exceptions

• Must be in the form on money
• This is to happen if the employer doesn't provide
• They have to be at work

Requisites

• Must have a permission to give with bank account
• Must have a bank within radius to access them.

Wage payments

• Must be direted, but in special cases they may through a person provided authority or after death.

Contact work

• Not a substantial investment in the work
• A contract need the following qualifications
• Be own and independent
• Have capital investments and also assure and entitlement

Working Condition

• Working conditions refer to how employement depends on circumstances and depending on the role.

Probitation against payments

Restrictions

• Employees should be paid correctly and not by a amount. And they should not be prevented from handling their payments
• If it not needed, it is not needed to be paid out

Deposits to damage

• Should not be done, unless it is under the practice.
• The company must show that the deductions are appropriate.
• If a deduction happened, it cannot exceed 20% of the wage

How and which set minimum wage.

• With committees

Minimum Wage

• The lowest an employer can pay their employee determined by law
• When order meets the following. Then its can be put in place.
• The demand meets expectations
• Must also be fair and can be issued to increase wages.

Wage distortion

• A state where a increase that reduces the ability to separate workers.

Process to restore wages

• 1. Negotiate and correct the distortion.

2. If the dispute rises from the CBA
3. Must be at the NLC if still a dispute

• Needs to a reasonable different.

Article 128

• Through summarily proceeding is empowered which includes all legal interests. This could mean all money
• There must me a issue
• The claimant cannot seek any help.
• Cannot cross $500

Workers that were working must be

• Visitorial power
• And make an establishment
• Requires a relationship

To prevent damage employees can file

• Can request with congress
• And regional level

Prohibitions for working with women

• Is only based on specific conditions.
  • Industrial
  • Commercial

Facilities

• Provide a seat
• And they can be restricted
• Employees need to do this on their free time.

Maternity leave

• Must also meet these requirements so they can properly take care of their child.
• This can only have 4 times. And not in a period of time.

Discrimination

• Must be given payed accordingly regardless of gender

What minors can and cannot do

• Minors can do work, but it must need more requirements and checks for the welfare of the minor

Rights for house helpers

• Pay
• Access to education
• Humane treatment and indemnity

Work that can be done at home

• Industrial work

Medical and Dental

• Workers must be protected by the SIF. Depending on the damage, different rules may be applied