HRM Lecture 2: Constitutional and Legal Framework - PDF

HRM LECTURE 2: CONSTITUTIONAL AND LEGAL FRAMEWORK Prepared By Elvira Briones Mercado, Ph.D. “Managing human resources is oftentimes fraught with legal implications.” ` “Managing human resources is oftentimes fraught with legal implications.” COST ACCOUNTING LABOR MATERIALS FAC...

HRM LECTURE 2: CONSTITUTIONAL AND LEGAL FRAMEWORK Prepared By Elvira Briones Mercado, Ph.D. “Managing human resources is oftentimes fraught with legal implications.” ` “Managing human resources is oftentimes fraught with legal implications.” COST ACCOUNTING LABOR MATERIALS FACTORY OVERHEAD Implication of Lawsuits Legal Costs Company Name’s Reputation Implication of Lawsuits Legal Costs Company Name’s Reputation Management’s Reputation Ignorance of the law excuses no one. An ounce of prevention is better than a pound of cure. THE CONSTITUTIONAL BASIS The Philippine Constitution - laid the basis for protecting the rights and welfare of employees - provides: “The state affirms labor as a primary socio-economic force. It shall protect the right of workers and promote their welfare.” The Philippine Constitution - protects the right of employees to form unions, association or societies for purposes not contrary to law. Declaration of Principles Article XIII, Section 3 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. Declaration of Principles Article XIII, Section 3 ❑ 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 ❑ Just Share in the Fruits of Production LABOR CODE OF THE PHILIPPINES Labor Code of the Philippines - was enacted during the Martial Law - was approved May 1, 1974 - took effect on November 1, 1974 Labor Code of the Philippines 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 Employee - Includes any person - Includes any person in acting in the interest of the employ of an the employer employer Kinds of Employees  Managerial Employee - one vested with powers or prerogatives 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 Employee (in terms of tenure) Regular Project Casual Probationary Fixed Contract HEALTH, SAFETY & SOCIAL WELFARE PROVISIONS Health, Safety & Social Welfare  First Aid Kit & First Aiders  50 employees but not more than 200  Registered Nurse  200 employees but not more than 300  Fulltime registered nurse  Part-Time Physician  Dentist  Emergency Clinic Health, Safety & Social Welfare  Exceeds 300 employees  Full Time Physician  Dentist  Full Time Registered Nurse  Dental Clinic  Infirmary/Emergency Hospital  Physicians, nurses & dentists employed shall have necessary training in industrial medicine and occupational safety and health.  Employer’s duty to provide all necessary assistance LABOR RELATIONS Labor Relations - refer to the relationship between the employers and employees in industry, and the political decisions and laws that affect it. Sources of Conflicts in Labor Relations ❑ Manners by which hierarchical demands are made or executed ❑ Clash between Management Prerogatives and Labor Rights ❑ Just share in the fruits of production ❑ Fair return in investment, expansion and growth UNFAIR LABOR PRACTICE (ULP) Concepts of Unfair Labor Practice  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 Strike  Grounds  Deadlock in Collective Bargaining Negotiations  Unfair Labor Practice (ULP) ❑ Conditions ❑ Notice filed with DOLE ❑ 30 days with deadlock ❑ 15 days with ULP ❑ Approved through secret balloting THE LAW ON TERMINATIONS Just Causes  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 him  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  Installation of labor-saving devices  Redundancy  Retrenchment or downsizing  Closure or cessation of operation  Disease Due Process Requirement “Twin Notice” ❑A notice served on the employee specifying the particular acts or omissions ❑A notice of termination served upon the employee