HR Associate Reviewer PDF - Labor Law Primer - March 2024
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2024
Jon Clark G. Sumayao
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This is an HR Associate Reviewer, a primer to labor law for HR professionals. It was created by Jon Clark G. Sumayao, RPm, CHRA and provides introductions, recruitment and placement, labor standards, social welfare, labor relations, termination of employment, and management prerogative.
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JON CLARK G. SUMAYAO, RPm, CHRA A PRIMER TO LABOR LAW FOR HRAs Introduction to Labor Law | Recruitment & Placement | Labor Standards | Social Welfare Legislation | Labor Relations | Termination of Employment | Management...
JON CLARK G. SUMAYAO, RPm, CHRA A PRIMER TO LABOR LAW FOR HRAs Introduction to Labor Law | Recruitment & Placement | Labor Standards | Social Welfare Legislation | Labor Relations | Termination of Employment | Management Prerogative 1st Edition March 2024 Text Revision THE FRONTIERS PSYCHOLOGY When knowledge meets the frontiers, psychology paves a better tomorrow! LinkedIn | Facebook | Outlook UNAUTHORIZED DISTRIBUTION IS HIGHLY PROHIBITED - DO NOT ATTEMPT HRA REVIEWER SET B PAGE 0 OF 9 C.G.S., RPm, CHRA JON CLARK G. SUMAYAO, RPm, CHRA TABLE OF CONTENTS HI! I hope that this reviewer can be a helpful tool in reinforcing and easing our academic “digestion” of information. However, I highly encourage referring to the prescribed materials by certifiers or your professors whenever you find concepts you struggle with. This material is not meant to substitute any prescribed references, but only as an aid and primer to studying laws on Labor for HR Associates. The prescribed references are still the best means to gain a deeper understanding of this subject and avoid missing important details. Please note that I have proofread my work to the best of my ability, but if you do happen to come across any typographical errors, please accept my apologies – and I am very open to constructive remarks for improvement. I would really appreciate if you could please fill out this feedback form. Thanks! Godspeed! – Jon Clark G. Sumayao, RPm, CHRA (2023) Guide: CHAPTER TITLE SECTION HEADER SUBSECTION 1 SUBSECTION 2 SUBSECTION 3 Subsection 4 Maternity Leave (RA1161, 8288)........................................................ 5 table Of Contents................................................................................... 1 Expanded Maternity Leave (RA 11210, 2019)..................................... 6 C1 Introduction...................................................................................... 2 Paternity Leave (RA8187)................................................................... 6 Labor Definition............................................................................................ 2 13th Month Pay (PD851)..................................................................... 6 Labor Law..................................................................................................... 2 SepaRAtion Pay (Art. 297-8)............................................................... 6 Main Sources Of Labor Law................................................................ 2 Retirement Pay (Art. 301, RA7641, RA8558)..................................... 6 Protection-To-Labor Clause....................................................................... 2 C4 Social Welfare Legislation................................................................ 7 Section 3, Article XIII Of The 1987 Constitution................................ 2 Employees' Compensation ProgRAm.......................................................... 7 Basic Rights Of Workers GuaRAnteed By The Constitution............... 2 PD 626....................................................................................................... 7 Labor Code Of The Philippines.................................................................. 2 Philhealth Benefits........................................................................................ 7 PD 442................................................................................................. 2 RA 7875, As Amended By RA 9241 And RA 10606................................. 7 2 Classifications Of Labor............................................................................ 2 Social Security Benefits................................................................................. 7 Labor Standards......................................................................................... 2 RA 1161, As Amended By RA 11199........................................................ 7 Labor Relations.......................................................................................... 2 Pag-Ibig Benefits........................................................................................... 7 Who Is Considered An Employee?.............................................................. 2 RA 9679..................................................................................................... 7 Types Of Employees.................................................................................. 2 Private Sector....................................................................................... 2 C5 Labor Relations................................................................................ 8 Public Sector/Government................................................................... 2 Employees’ Rights......................................................................................... 8 Four-Fold Test........................................................................................... 2 TrAde Unions................................................................................................ 8 Four Factors Of The Four-Fold Test:................................................... 2 Freedom To Join And Form A Union.................................................. 8 Freedom Of Collective Bargaining...................................................... 8 C2 Recruitment And Placement Of Workers......................................... 3 Right To Strike.................................................................................... 8 Anti-Discrimination................................................................................... 3 Is Payment Of Union Dues Mandatory?.............................................. 8 Bill Of Rights...................................................................................... 3 Is Joing Unions Mandatory?................................................................ 8 Legal Limitations/ Prohibitions Prior To Hiring........................................ 3 Collective Bargaining.................................................................................... 8 Marriage.............................................................................................. 3 Collective Bargaining Agreement.............................................................. 8 Special Laws Against Child Labor...................................................... 3 Labor Union Membership.................................................................... 3 C6 Management’s Prerogative............................................................... 9 Disability............................................................................................. 3 Management’s Prerogative........................................................................... 9 Sexual Exploitation.............................................................................. 3 Concept...................................................................................................... 9 Non-Regular Personnel........................................................................ 3 A. Business Judgment Rule................................................................. 9 Health (Aids)....................................................................................... 3 B. Framework...................................................................................... 9 Anti-Age Discrimination Act............................................................... 3 Scope.......................................................................................................... 9 Limitations................................................................................................. 9 C3 Labor Standards............................................................................... 4 1. Good Faith................................................................................ 9 Compensation And Benefits......................................................................... 4 2. Employee Rights....................................................................... 9 Attributes Of Wages............................................................................ 4 3. CBA.......................................................................................... 9 No Work-No Pay Principle.................................................................. 4 Equal Pay For Equal Work.................................................................. 4 Statutory Minimum Wage.......................................................................... 4 Standards/Criteria For Minimum Wage Fixing.................................... 4 Violation Of Wage Orders................................................................... 4 Exemption From Wage Orders............................................................ 4 Forms Of Payment Of Wages.............................................................. 4 Payment Via Atm................................................................................ 4 Place Of Payment Of Wages................................................................ 4 Prohibition........................................................................................... 4 Time Of Payment Of Wages................................................................ 4 Non-Interference In Disposal Of Wages.............................................. 4 Wage Deduction.................................................................................. 4 Other Laws On Wages......................................................................... 5 Minimum Standard Benefits...................................................................... 5 Holiday Pay (Art. 94)........................................................................... 5 Caution On Long Weekends................................................................ 5 Rest Day, Day-Off (Art. 91)................................................................ 5 Premium Pay (Art. 91-93).................................................................... 5 Normal Hours Of Work (Art. 83)........................................................ 5 Hours Worked (Art. 84)....................................................................... 5 Meal Periods (Art. 85)......................................................................... 5 Overtime Pay (Art. 87)........................................................................ 5 Night Shift Differential (Art. 86)......................................................... 5 Service Incentive Leave (SIL) (Art. 95)............................................... 5 HRA REVIEWER SET B PAGE 1 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA C1 INTRODUCTION LABOR DEFINITION policies and decisions that affect their rights and working conditions. − Physical or mental effort − Work for which someone is paid LABOR CODE OF THE PHILIPPINES Labor also refers work that is done PD 442 Not slavery - both are rendered as service, but slavery is not − Presidential Decree 442, as amended. voluntary, is with threats and force, and is not paid. − Enacted: May 1, 1974; Six months thereafter (Nov. 1). − Workers considered as a group − stands as the law governing employment practices and labor relations in the Philippines, primarily in the private sector ⚫ Employer - hires and pays wages ⚫ Employee - renders service/work Involved in employer/employee relationship (focal point of 2 CLASSIFICATIONS OF LABOR 1. Standards labor) 2. Relations LABOR LAW LABOR STANDARDS Labor Law - laws governing employment and employer-employee Labor Standards - minimum terms and conditions of employment relationships which the employer is required to grant to its employees. - The HR field must be conversant and knowledgeable of the labor ○ Ex. working conditions, wages, hours of work, holiday pay law because they will be the ones protecting the welfare of and other benefits, conditions of employment of women, employees and protecting the rights of employer. minors, termination of employment, retirement, etc. MAIN SOURCES OF LABOR LAW 1. Section 3, Article XIII of the 1897 Constitution LABOR RELATIONS ○ Main provision on labor Labor Relations - Part of law which regulates the relations between 2. Labor Code of the Philippines employers and employees. ○ Main statute/legislation, codified collection of labor laws ○ Labor organizations 3. Implementing Rules and Regulations (IRR) by DOLE ○ Collective bargaining agreement (union is able to negotiate and ○ Administrative Agency: Department of Labor and bargain an equal footing with that of the employer) Employment ○ Grievance machinery (problems between of the employees to the 4. Supreme Court Decisions - (Art. 8, Civil Code) employers), voluntary arbitration, conciliation and mediation, ○ Jurisprudence form part of legal procedure unfair labor practices, strikes, picketing and lockout, etc. 5. Special Laws - (i.e., Migrant Worker’s Act, Anti-Sexual Harassment Law [expanded into Safe Spaces Act), Magna Carta Law for Private School Teachers) WHO IS CONSIDERED AN EMPLOYEE? PROTECTION-TO-LABOR CLAUSE TYPES OF EMPLOYEES SECTION 3, ARTICLE XIII OF THE 1987 CONSTITUTION PRIVATE SECTOR − The State shall afford full protection to Labor, local or overseas, Private employees - work for non-governmental organizations or organized and unorganized, and promote full employment and private companies. equality of employment and equality of employment - Hired by private companies according to their specific criteria and opportunities for all. work under terms determined by the company rather than − It shall guarantee the rights of all workers to self-organization, through collective bargaining agreements like in public sector jobs. collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. LABOR CODE They shall be entitled to security of tenure, humane conditions of ◼ Administrative agency: DOLE – Department of Labor and work, and a living wage. Employment ◼ Employment insurance: SSS – Social Security System BASIC RIGHTS OF WORKERS GUARANTEED BY THE CONSTITUTION PUBLIC SECTOR/GOVERNMENT Sec. 3, Art. XIII, 1987 Constitution Public employees - are individuals who work for governmental entities 1. Security of tenure: Employees have the right to job security and at various levels, such as national or local governments. protection against unjust dismissal. - Public employees are paid from public funds and their salaries 2. Living wage: Workers should receive a salary that covers their often come from tax revenue. basic needs and allows them to live decently. 3. Share in the fruits of production: Employees are entitled to a fair CIVIL SERVICES LAW share of the profits or benefits derived from their employer or ◼ Administrative agency: CSC – Civil Service Commission industry's success. ◼ Employment insurance: GSIS - Government Service Insurance 4. Just and humane working conditions: Workers should have a System safe and healthy work environment, reasonable working hours, ○ Labor Code only applies suppletorily fair compensation, and good occupational health and safety ◼ Different set of laws for public officials practices. 5. Self-organization: Employees can freely form or join labor organizations for collective bargaining and mutual aid and FOUR-FOLD TEST protection. Four-Fold Test - is a legal framework used to determine the existence of 6. Collective bargaining: Representatives of workers negotiate an employment relationship between two parties, typically an employment terms with employers regarding wages, benefits, employer and an employee. working hours, and other employment conditions. - It helps establish whether an individual should be classified as an 7. Collective negotiations: The process of bargaining and discussing employee or an independent contractor based on specific criteria. employment matters between management and labor - determine the legal rights and obligations between parties in labor organizations. and employment law contexts, such as entitlement to 8. Engage in peaceful concerted activities, including the right to employment benefits, protections under labor legislation, and strike: Employees have the right to engage in peaceful actions, liability for taxes and social security contributions. such as strikes, to promote their rights, but subject to legal requirements. 9. Participate in policy and decision-making processes: Employees FOUR FACTORS OF THE FOUR-FOLD TEST: have the right to be involved in formulating and implementing 1. Selection/Hiring - examines whether the employer has the authority to select and hire the individual. HRA REVIEWER SET B PAGE 2 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA 2. Payment of Wages - considers whether the employer has the ◼ Most important among the four-fold test: The control the responsibility to pay wages or remuneration to the individual. employer exercises on employees 3. Power of Dismissal and Discipline - employer's authority to ◼ Freelancers are not controlled, but are simply hired for their terminate the individual's engagement or impose disciplinary expertise. They are not covered by the labor code, but by actions. the Civil Code of the PH (under obligations and contracts) 4. Power of Control - the level of control the employer exercises over the individual's work. It includes factors such as the employer's ability to instruct and supervise the individual, determine working hours, provide tools or equipment, and set performance standards. ⚫ If any of these are absent, then there is no employer-employee relationship and the provisions of the Labor Code will not apply. C2 RECRUITMENT AND PLACEMENT OF WORKERS ANTI-DISCRIMINATION SEXUAL EXPLOITATION BILL OF RIGHTS ⚫ An employer in a work-related or employment environment, is − Bill of Rights in the 1987 Constitution guarantees equal prohibited from asking “sexual favor” as a condition in the hiring protection for every Filipino, and prohibits discrimination of or employment, re-employment or continued employment of an persons based on age, ethnicity, race, religion or belief, political individual. (RA 7877, Anti-Sexual Harassment Act of 1995) inclination, social class, sex, gender, sexual orientation, gender identity, gender expression, civil status, medical condition, or any NON-REGULAR PERSONNEL other status in the enjoyment of rights. ⚫ No bank shall employ casual or non-regular personnel or too ○ It is discriminatory when the one of the aforementioned are lengthy probationary personnel in the conduct of its business sole reasons why someone is not hired. involving deposits. (RA 8791, General Banking Laws of 2000) ○ Other reasons, such as academic achievement or academic ◼ Must be regular employee by status qualification, are reasons beyond discrimination. − Values the dignity of every human person and guarantees full HEALTH (AIDS) respect for human rights (Section 11, Article II, 1987) ⚫ Discrimination in any form from pre-employment to post − To ensure the fundamental equality before the law of women and employment, including hiring, etc., based on actual, perceived, or men (Section 14, Id.) suspected HIV status of an individual is prohibited. (RA No. 8504, Philippine AIDS Prevention and Control Act of 1998) LEGAL LIMITATIONS/ ANTI-AGE DISCRIMINATION ACT PROHIBITIONS PRIOR TO HIRING RA 10911 Discrimination in any form from pre-employment to post-employment, MARRIAGE including hiring, etc., based on age of an individual is prohibited. ⚫ An employer is prohibited from requiring as a condition of employment that a woman employee shall not get married (Art. PROHIBITIONS 136, LC) ⚫ Print or publish notice of advertisement relating to employment ◼ Ex. Zialcita, et.al. vs. Philippine Airlines, RO4-3-3398-76; Feb. 20, suggesting preferences, limitations, specifications, and 1977 discrimination based on age; ⚫ Require the declaration of age or birth date during the application SPECIAL LAWS AGAINST CHILD LABOR process; ⚫ An employer is prohibited from employing any person below ⚫ Decline any employment application because of the individual’s eighteen (18) years old in an undertaking which is hazardous and age; deleterious in nature. ⚫ Discriminate against an individual in terms of compensation, ⚫ An employer is prohibited from employing children below fifteen terms and conditions or privileges of employment on account of (15) years of age, except when he works directly under the sole such individual’s age; responsibility of his parents or guardian, and his employment ⚫ Deny any employee’s or worker’s promotion or opportunity for does not in any way interfere with his schooling. (Art. 139, LC) training because of age; ⚫ DOLE DO No. 4, Series of 1999 ⚫ Forcibly lay off an employee or worker because of old age; ⚫ Sec. 12, RA 7610, as amended by RA 7658, and further amended ⚫ Impose early retirement on the basis of such employee’s or by RA 9231 (Special Protection of Children Against Child Abuse, worker’s age Exploitation and Discrimination) ◼ An employer is prohibited from employing child models in EXCEPTIONS all commercials or advertisements, promoting alcoholic ⚫ Age is a bona fide occupational qualification beverages, intoxicating drinks, tobacco and its by-products, − Age is a bona fide occupational qualification reasonably and violence (Sec. 14, RA 7610) necessary in the normal operation of a particular business or where the differentiation is based on reasonable factors LABOR UNION MEMBERSHIP other than age; ⚫ An employer is prohibited from requiring as a condition of ⚫ Bona fide seniority system - The intent is to observe the terms of employment that a person or an employee shall not join a labor a bona fide seniority system (in good faith) that is not indicated to organization (union) or shall withdraw from one to which he evade the purpose of this Act belongs. (Art. 248 (b) LC) - Yellow Dog Contract ◼ Elders have more experience compared to younger employees DISABILITY ⚫ No entity shall discriminate against a qualified disabled person by reason of disability in regard to job application procedures. (Rep. Act No. 7277, Magna Carta for Disabled Persons) - applicable only for qualified disabled persons. HRA REVIEWER SET B PAGE 3 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA C3 LABOR STANDARDS COMPENSATION AND BENEFITS Regional Board in accordance with the applicable rules and regulations issued by the Commission. (RA6727) ATTRIBUTES OF WAGES ⚫ Farm tenancy or leasehold, domestic service and persons working A. It is the remuneration or earnings, however designated, for work in their respective homes in needle work or in any cottage done or to be done or for services rendered or to be rendered; industry duly registered in accordance with law (Art. 98, LC) B. It is capable of being expressed in terms of money, whether fixed ⚫ Barangay Micro Business Enterprises (RA9178) or ascertained on a time, task, piece, or commission basis, or other ⚫ Rules for payment of Learners and Apprentices are much lower method of calculating the same; than the statutory minimum wage C. It is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, FORMS OF PAYMENT OF WAGES or for services rendered or to be rendered; and GR: Wages shall be paid in legal tender and the use of tokens, D. It includes the fair and reasonable value of board, lodging, or promissory notes, vouchers, coupons or any other form alleged to other facilities customarily furnished by the employer to the represent legal tender is prohibited even when expressly requested by employee. the employee. (Art. 102, LC) − Payment in kind is not allowed NO WORK-NO PAY PRINCIPLE 1. Unless otherwise provided by law (i.e., Holiday Pay, Maternity EXC: Payment by check or money order Leave) 2. Unless otherwise provided by the employer (i.e., Vacation Leave) PAYMENT VIA ATM EXC: Payment thru ATM CONDITIONS 1. ATM system of payment is with written consent of the employees EQUAL PAY FOR EQUAL WORK concerned; Persons who work with substantially equal qualifications, skill, effort and responsibility, under similar conditions, should be paid similar 2. The employees are given reasonable time to withdraw their salaries. wages from the bank facility which time, if done during working o Ex. International School Alliance of Educators (ISAE), vs. Hon. Leonardo A. hours, shall be considered compensable hours worked; Quisumbing, (G.R. No. 128845. June 1, 200) 3. The system shall allow workers to receive their wages within the - Unfair benefits between foreign hires (25% more) and local hires period or frequency and in the amount prescribed under the Labor Code, as amended; STATUTORY MINIMUM WAGE 4. There is a bank or ATM facility within a radius of one (1) ⚫ refers simply to the lowest basic wage rate fixed by law that an kilometer to the place of work; employer can pay his workers. 5. Upon request of the concerned employee/s, the employer shall ⚫ The minimum wage rates for employees in every region shall be issue a record of payment of wages, benefits and deductions for a those prescribed by the Regional Tripartite Wages and particular period; Productivity Boards (RTWPB), in the form of wage orders. 6. There shall be no additional expenses and no diminution of ⚫ Wages can be increased per year only benefits and privileges as a result of the ATM system of payment; ⚫ Any party aggrieved by the Wage Order issued by the RTWPB may appeal such order to the National Wages and Productivity PLACE OF PAYMENT OF WAGES Commission (NWPC). GR: The place of payment shall be at or near the place of undertaking Except: STANDARDS/CRITERIA FOR MINIMUM WAGE FIXING a. When payment cannot be effected at or near the place of work by ⚫ The demand for living wages; reason of the deterioration of peace and order conditions, or by ⚫ Wage adjustment vis-à-vis the consumer price index; reason of actual or impending emergencies caused by fire, flood, ⚫ The cost of living and changes or increases therein; epidemic or other calamity rendering payment thereat ⚫ The needs of workers and their families; impossible; ⚫ The need to induce industries to invest in the countryside; b. When the employer provides free transportation to the employees ⚫ Improvements in standards of living; back and forth; and ⚫ The prevailing wage levels; c. Under any other analogous circumstances, provided that the time ⚫ Fair return of the capital invested and capacity to pay of spent by the employees in collecting their wages shall be employers; considered as compensable hours worked. ⚫ Effects on employment generation and family income; and ⚫ The equitable distribution of income and wealth along the PROHIBITION imperatives of economic and social development. *Payment of wages in bars, massage clinics, or nightclubs is prohibited except in the case of employees thereof. (Art. 104, LC) P537.00 P570.00 Wage Order No. 22 TIME OF PAYMENT OF WAGES Effective Nov. 22, 2018 Effective 2022 Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. - If on account of force majeure or circumstances beyond the VIOLATION OF WAGE ORDERS Section 12. “… refuses or fails to pay any of the prescribed increases or employer’s control, payment of wages on or within the time herein adjustments in the wage rates xxx shall be punished by a fine not less provided cannot be made, the employer shall pay the wages than Twenty-five thousand pesos (P25,000) nor more than One hundred immediately after such force majeure or circumstances have thousand pesos (P100,000) or imprisonment of not less than two (2) ceased. years nor more than four (4) years,…” - No employer shall make payment with less frequency than once a ⚫ "The employer concerned shall be ordered to pay an amount month. (Art. 103, LC) equivalent to double the unpaid benefits owing to the employees: Provided, that payment of indemnity shall not absolve the NON-INTERFERENCE IN DISPOSAL OF WAGES employer from the criminal liability imposable under this Act. No employer shall limit or otherwise interfere with the freedom of any (Sec. 12, RA6727, as amended by RA8188) employee to dispose of his wages. - He shall not in any manner force, compel, or oblige his employees EXEMPTION FROM WAGE ORDERS to purchase merchandise, commodities or other property from any ⚫ Household or domestic helpers and persons employed in the other person, or otherwise make use of any store or services of personal service of another, including family drivers. (RA6727, as such employer or any other person. (Art. 112, LC) amended by RA10361, Kasambahay Law) ⚫ Retail/service establishments regularly employing not more than WAGE DEDUCTION ten (10) workers may be exempted from the applicability of this GR: No employer, in his own behalf or in behalf of any person, shall Act upon application with and as determined by the appropriate make any deduction from the wages of his employees, except: HRA REVIEWER SET B PAGE 4 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA a) In cases where the worker is insured with his consent by the ◼ However, the employer shall respect the preference of employer, and the deduction is to recompense the employer for employees as to their weekly rest day when such preference the amount paid by him as premium on the insurance; is based on religious grounds. b) For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or ⚫ Special Days (such as Ninoy Aquino Day, All Saints Day, Last authorized in writing by the individual worker concerned; and Day of the Year) are same as rest days, employees are not paid c) In cases where the employer is authorized by law or regulations during special days. issued by the Secretary of Labor and Employment. (Art. 113, LC) PREMIUM PAY (ART. 91-93) OTHER LAWS ON WAGES ⚫ Premium pay - refers to the additional compensation for work ART 116. Withholding of wages and kickbacks is prohibited. performed within eight (8) hours on non-work days, such as rest ART 117. Deduction to ensure employment days and special days. ART 118. Retaliatory measures. ⚫ If worked, +30% of daily rate = 130% ART 119. False reporting. ⚫ If rest day is special day, and worked, +50% of daily rate = 150% *Prohibition against debt bondage (Kasambahay Law) ⚫ If holiday is scheduled rest day, and worked, 130% x 2 = 260% MINIMUM STANDARD BENEFITS NORMAL HOURS OF WORK (ART. 83) The normal hours of work of any employee shall not exceed eight (8) Work on: Equivalent pay: hours a day. Any more must be paid as OT. Ordinary day 1 or 100% Sunday or rest day 1.3 or 130% HOURS WORKED (ART. 84) ⚫ Hours worked shall include (a) all time during which an Special day 1.3 or 130% employee is required to be on duty or to be at a prescribed Special day falling on rest day 1.5 or 150% workplace; and (b) all time during which an employee is suffered Regular Holiday 2 or 200% or permitted to work. Regular Holiday falling on rest day 2.6 or 260% ⚫ Rest periods of short duration during working hours shall be Double holiday 3 or 300% counted as hours worked. Double holiday falling on rest day 3.9 or 390% Ordinary day, night shift 1 x 1.1 = 1.1 or 110% Note to HRD: Rest day, night shift 1.3 x 1.1 = 1.43 or 143% Attendance at lectures, meetings, training programs and similar Special day, night shift 1.3 x 1.1 = 1.43 or 143% activities need not be counted as working time if the following Special day, rest day, night shift 1.5 x 1.1 = 1.65 or 165% criteria are met: 1. Attendance is outside of the employee's regular working Regular Holiday, night shift 2 x 1.1 = 2.2 or 220% hours; Regular Holiday, rest day, night shift 2.6 x 1.1 = 2.86 or 286% 2. Attendance is in fact voluntary; Double holiday, night shift 3 x 1.1 = 3.3 or 330% 3. The employee does not perform any productive work Double holiday, rest day, night shift 3.9 x 1.1 = 4.29 or 429% during such attendance. (Sec. 6, Rule I, Book III, IRR) Ordinary day, overtime (OT) 1 x 1.25 = 1.25 or 125% Rest day, overtime 1.3 x 1.3 = 1.69 or 169% MEAL PERIODS (ART. 85) Special day, overtime 1.3 x 1.3 = 1.69 or 169% ⚫ Subject to such regulations as the Secretary of Labor may Special day, rest day, overtime 1.5 x 1.3 = 1.95 or 195% prescribe, it shall be the duty of every employer to give his Regular Holiday, overtime 2 x 1.3 = 2.6 or 260% employees not less than sixty (60) minutes time-off for their Regular Holiday, rest day, overtime 2.6 x 1.3 = 3.38 or 338% regular meals. Double holiday, overtime 3 x 1.3 = 3.9 or 390% ⚫ Lunch break is not compensable Double holiday, rest day, overtime 3.9 x 1.3 = 5.07 or 507% ⚫ During a meal period, where the laborers are required to stand by Ordinary day, night shift, overtime 1 x 1.1 x 1.25 = 1.375 or 137.5% for emergency work, or where the meal hour is not one of Rest day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 or 185.9% complete rest, such is considered overtime. Special day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 or 185.9% ◼ (Pan American World Airways System v. Pan American Employees Special day, rest day, NS, OT 1.5 x 1.1 x 1.3 = 2.145 or 214.5% Association, G.R. No. L-16275, 23 Feb. 1961) Regular Holiday, NS, OT 2 x 1.1 x 1.3 = 2.86 or 286% ⚫ Rest periods or coffee breaks running from 5 to 20 minutes shall Reg. Holiday, rest day, NS, OT 2.6 x 1.1 x 1.3 = 3.718 or 371.8% be considered as compensable working time. (Sec. 7, Rule I, Book III, IRR) Double holiday, NS, OT 3 x 1.1 x 1.3 = 4.29 or 429% ◼ Double holiday, rest day, NS, OT 3.9 x 1.1 x 1.3 = 5.577 or 557.7% OVERTIME PAY (ART. 87) Overtime Pay - refers to the additional compensation for work performed beyond eight (8) hours a day. HOLIDAY PAY (ART. 94) ⚫ OT on ordinary day, +25% of hourly rate ⚫ Holiday pay refers to the payment of the regular daily wage for ⚫ OT on rest/special day, +30% of hourly rate any unworked regular holiday ⚫ Undertime not offset by overtime (Art. 88) ⚫ If unworked, 100% of daily rate ⚫ If worked, 200% of daily rate NIGHT SHIFT DIFFERENTIAL (ART. 86) Night Shift Differential (NSD) - refers to the additional compensation CAUTION ON LONG WEEKENDS of ten percent (10%) of an employee’s regular wage for each hour of ⚫ All covered employees shall be entitled to holiday pay when they work performed between 10pm and 6am are on leave of absence with pay on the workday immediately - NOTE: Employees have the right to disconnect from work outside preceding the regular holiday. their office hours (DOLE, 2021) ⚫ Employees who are absent without pay on the day immediately preceding a regular holiday may not be paid the required holiday SERVICE INCENTIVE LEAVE (SIL) (ART. 95) pay, if they do not work on such regular holiday. ⚫ Every employee who has rendered at least one (1) year of service ◼ Ex. Thursday (Holiday) won’t be paid because of their is entitled SIL of five (5) days with pay. Friday absence. ⚫ Vacation Leave, Sick Leave, Birthday Leave, Sabbatical etc. are company-initiated benefits, and thus not legally demandable. REST DAY, DAY-OFF (ART. 91) ⚫ It shall be the duty of every employer to provide each of his MATERNITY LEAVE (RA1161, 8288) employees a rest period of not less than twenty-four (24) ⚫ Every pregnant employee in the private sector, whether married consecutive hours after every six (6) consecutive normal work or unmarried, is entitled to maternity leave benefit of sixty (60) days. days in case of normal delivery or miscarriage, or seventy-eight ⚫ An employee is not paid during rest days (78) days, in case of Caesarian section delivery, with benefits ⚫ The employer shall determine and schedule the weekly rest day equivalent to one hundred percent (100%) of the average daily of his employees. salary credit of the employee as defined under the law. HRA REVIEWER SET B PAGE 5 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA EXPANDED MATERNITY LEAVE (RA 11210, 2019) Formula and Computation: Computed by dividing the total basic ⚫ The law increases the daily maternity leave benefit from the salary earned during the year by twelve. initial 60 days for normal delivery, or 72 days for caesarian Exempted Employers: Government and its political subdivisions, delivery, to 105 days, regardless of the type of delivery. In case of certain employers already paying 13th mo. pay or more, personal miscarriage or an emergency termination of pregnancy, the service workers, and certain types of employees paid on commission or task basis are exempted from PD 851. entitlement is 60 days of paid maternity leave. The law further Time of Payment: Should be paid not later than December 24 expands maternity leave to every instance of pregnancy, miscarriage, or emergency termination, regardless of frequency, WHAT IF I RESIGNED BEFORE THE 13TH MONTH PAY? from the previous limit of the first four deliveries or miscarriage. ⚫ An employee who has resigned or whose services are This is paid at 100% of their average daily salary credit. terminated at any time before the time of payment of the ⚫ The law also provides for an additional 15 days of paid leave if thirteenth-month pay is entitled to this monetary benefit in the female worker qualifies as a solo parent under the Solo Parent proportion to the length of time he or she has worked during Welfare Act of 2000, with an option to extend for an additional 30 the year. days without pay. ⚫ Example: Let say an employee basic salary is Php15,000 per ⚫ Moreover, a female worker entitled to maternity leave may, at her month and had worked for 10 months, the 13th month option, allocate up to seven days of paid leave to the child’s computation is: father, in addition to the benefits granted to him under the (Php15,000 X 10 months) / 12 = Php12,500.00 Paternity Leave of 1996 (if applicable), whether or not he is married to the female worker. SEPARATION PAY (ART. 297-8) ⚫ An employee is entitled to separation pay where the termination PATERNITY LEAVE (RA8187) is for authorized cause. ⚫ Paternity leave - seven (7) calendar days, with full pay 1⁄2 month pay per year of 1 month pay per year of ◼ Purpose: allow husband to lend support to his wife during service service her period of recovery and/or in nursing her newborn If due to: If due to: child. Retrenchment, Closure/ Installation of labor-saving Cessation, Disease not devices, redundancy OTHER STATUTORY LEAVE BENEFITS curable for 6mos. ⚫ Parental Leave for Solo Parents (RA8972) - +7days, flexible work schedule (Upon application to DSWD) ⚫ An employee is NOT entitled to separation pay where the ⚫ Leave for Victims of Violence Against Women and Their Children termination is for just cause (fault of the employee) and for (RA9262) - Up to 10 days resignation ⚫ Special Leave for Women (RA9710) - 2 months with full pay RETIREMENT PAY (ART. 301, RA7641, RA8558) 13TH MONTH PAY (PD851) ⚫ Employees shall be retired upon reaching the age of sixty (60) All employers are required to pay thirteenth-month pay to their rank- years or more but not beyond sixty-five (65) years old [and have and-file employees, regardless of employment nature. served the establishment for at least five (5) years]. The payment should be given to employees who have worked for at ⚫ The minimum retirement pay shall be equivalent to one-half (1/2) least one month during the calendar year and should be given not later month salary for every year of service. For the purpose of than December 24 of every year. computing retirement pay, “one-half month salary” shall include Definition of Rank-and-File Employees: are those who do not all of the following: have managerial powers or prerogatives and are not involved in 1. Fifteen (15) days salary based on the latest salary rate; management decision-making. 2. Cash equivalent of five (5) days of service incentive leave; a. Managers and certain types of employees are not entitled to 3. One-twelfth (1/12) of the thirteenth-month pay. (1/12 x 13th mo. pay. 365/12 =.083 x 30.41 = 2.5) i. Unless it is included in manager’s contract Minimum Amount: should not be less than 1/12 of the total basic Thus, “one-half month salary” is equivalent to 22.5 days salary earned by an employee in a calendar year, provided they (Capitol Wireless, Inc. Vs. Hon. Sec. Ma. Nieves R. Confessor, G. R. 117174, Nov. 13, 1996). worked for at least one (1) month during a calendar year. a. It includes remunerations or earnings for services rendered but excludes certain allowances and benefits unless they are treated as part of the basic salary. HRA REVIEWER SET B PAGE 6 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA C4 SOCIAL WELFARE LEGISLATION EMPLOYEES' COMPENSATION D. Direct contributors include employees, kasambahays (domestic workers), self-earning individuals, OFWs, Filipinos living abroad, PROGRAM lifetime members, and all Filipinos aged 21 years and above with the capacity to pay. PD 626 E. The premium contribution for employed members in the A government program that provides compensation to employees or government and private sector is based on the monthly basic their dependents in case of work-related sickness, injury, or death. salary, shared equally between the employee and employer. Employers are responsible for ensuring that the premium Coverage: includes private sector workers who are members of contribution of women on maternity leave is regularly remitted to SSS, sea-based OFWs, government sector employees who are PhilHealth. members of GSIS, and self-employed SSS members. Conditions of compensability: workplace injury, performance of official functions, execution of employer's order. Compensation is SOCIAL SECURITY BENEFITS not allowed for injuries due to drunkenness, intentional self-harm, RA 1161, AS AMENDED BY RA 11199 or negligence. Covered: employees, self-employed individuals, voluntary members, Benefits include: and househelpers are entitled to a package of benefits under the Social 1. Loss of income benefits Security and Employees' Compensation Programs. Overseas Filipino a. Temporary Total Disability (TTD): applies to Workers (OFWs) are also covered, except for Filipino permanent disabilities that prevent an employee from performing migrants. work for a continuous period of up to 120 days. - daily income benefit is calculated at 90% of the Compulsory coverage: includes employers, employees, self- employee's average daily salary credit determined employed individuals, househelpers, and OFWs. by the Systems Benefits include: b. Permanent Total Disability (PTD): a monthly income 1. Sickness Benefit: daily cash allowance; paid to a member who benefit granted for disabilities such as complete loss of is unable to work due to sickness or injury. sight of both eyes, loss and function loss of both limbs, 2. Maternity Benefit: daily cash allowance; granted to female and brain injury resulting in imbecility or insanity. members for pregnancy resulting in childbirth, miscarriage, - monthly income benefit is determined by the or emergency termination, regardless of frequency or civil Systems based on the average monthly salary status. credit or average monthly compensation. 3. Retirement Benefit: monthly pension or lump sum amount; for c. Permanent Partial Disability (PPD): a monthly income members who can no longer work due to old age. benefit granted for disabilities that result in physical loss 4. Disability Benefit: monthly pension or lump sum amount; (amputation) or functional loss of a body part. members who become permanently disabled, either - Amount depends on the corresponding body part partially or totally. loss or functional loss, as specified under Article 193 of 5. Death Benefit: monthly pension or lump sum amount; PD No. 626, as amended, and the EC schedule of beneficiaries of a deceased member. Compensation 6. Funeral Benefit: cash benefit to the person who paid for the 2. Medical services - includes reimbursement of the cost of burial expenses of the deceased member or pensioner. medicines, limited to ward services DOH accredited hospitals 7. Unemployment Benefit: cash benefit to eligible employees, 3. Carers' Allowance – 1k per month including househelpers and OFWs, who were involuntarily 4. Rehabilitation Services - (Katulong at Gabay sa Manggagawang separated from employment. May Kapansanan) - Persons with work-related disabilities The contribution table for employers (ER) and employees (EE) is (PWRD) with an approved EC TTD, PPD or PTD are based on the range of compensation. The regular social security qualified contribution and mandatory provident fund contribution are 5. Death Benefit - receive an income benefit paid at the therein. beginning of the month of death of the member and will continue for as long as they are entitled thereto. 6. Funeral Benefit – 30k for both public and private PAG-IBIG BENEFITS Notification of sickness, injury, or death should be given to the RA 9679 employer within five days, while claims are filed at SSS branches Home Development Mutual Fund (HDMF), aka. Pag-IBIG Fund - is a or representative offices. mutual provident savings system for private and government Employers are responsible for paying EC contributions based on employees and other earning groups. It focuses on housing as the the employee's compensation range. primary investment. Range of Compensation Employer’s Contribution A. Mandatory coverage includes: employees who should also be 900Php to 14,749Php 10Php covered by the Social Security System (SSS), regardless of actual 14,750Php - over 30Php membership in SSS. a. It also includes household helpers, Filipino seafarers, self- employed individuals, and expatriates. PHILHEALTH BENEFITS b. Government employees covered by the GSIS, uniformed members, and Filipinos employed by foreign-based RA 7875, AS AMENDED BY RA 9241 employers are also mandatorily covered. AND RA 10606 B. Programs and benefits include: housing loans, short-term loans, and other services such as savings claims and loyalty programs. National Health Insurance Program (NHIP) - a compulsory health C. The contribution rate for all members, except for non-working insurance program established by the government to provide universal spouses of Pag-IBIG members, is based on the monthly health insurance coverage and accessible health care services for all compensation. citizens of the Philippines. a. Employee contribution rate - ranges from 1% to 2%, while A. Universal Health Care (UHC) Act: all Filipinos are now members b. Employer (if any) contributes 2% of the monthly of PhilHealth. Families not yet registered with PhilHealth will be compensation. assisted by their health care provider. i. The maximum monthly compensation for computation is ₽5,000.00. B. The benefits include inpatient benefits, outpatient benefits, Z benefits (specific packages for catastrophic illnesses), and SDG- ii. Employers contribute as the counterpart of or recover related benefits. from the employee's contribution. C. The premium contribution table for direct contributors is based on iii. See Pag-Ibig contribution table. the monthly income. HRA REVIEWER SET B PAGE 7 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA C5 LABOR RELATIONS EMPLOYEES’ RIGHTS Union, he is no longer obliged to pay his dues and assessments to said organization. 1. To self-organize Art 3, PLC ◼ Union to represent the employees in bargaining with the IS JOING UNIONS MANDATORY? employer. In case of deadlock, employees strike ⚫ Constitutional right to join the union includes the right to ◼ Right abused by many employees‟ unions, often causing abstain from joining any union (Victoriano vs Elizalde Rope Worker’s downfall of the company Union G.R. No. L-25246 | 1974-09-12) 2. To strike (Art 263-264, PLC) ⚫ RA 3350 does not violate freedom of association 3. To collective bargaining (Art 253-A, PLC) ⚫ The moment he has resigned or separated from the union, he is 4. To arbitration (Art 260, PLC) no longer obliged to pay his dues (Basa vs FOITAF, G.R. No. L-27113 Nov. 19, 1974) 5. Against unfair labor practices TRADE UNIONS COLLECTIVE BARGAINING Collective Bargaining - a process where the parties agree to fix and FREEDOM TO JOIN AND FORM A UNION administer terms and conditions of employment which must not be §8 of the Article III and Section 3 of the Article XIII of the Constitution of the Republic of the Philippines 1987; §218, 219, 253-257 of the Labour Code, as amended below the minimum standards fixed by law, and set a mechanism for 1. All workers have the right to self-organization under the resolving their grievances. Constitution. 2. 3. The Labour Code recognizes the right to form a trade union. The state must promote free trade unionism and the organization COLLECTIVE BARGAINING 4. of a strong labor movement. All employees have the right to join labor organizations, including AGREEMENT Bureau of Labor Relations ambulant workers and those without definite employers. Collective Bargaining Agreement (CBA) - It is a contract executed FREEDOM OF COLLECTIVE BARGAINING upon request of either the employer or the exclusive bargaining §3 of the Article XIII of the Constitution of the Republic of the Philippines 1987; §251, 259-272 of the Labour Code, as amended representative of the employees incorporating the agreement reached 1. The duty to bargain collectively means meeting and negotiating in after negotiations good faith about wages, working hours, and other employment - involves wages, hours of work and all other terms and conditions conditions. of employment, including proposals for adjusting any grievances 2. The Constitution guarantees the right to conduct collective or questions under such agreement. bargaining. 3. Legitimate labor organizations have the right to act as 1. Ratification of the CBA by the majority of all the workers in the representatives for collective bargaining. bargaining unit is mandatory. 4. Employees have the right to join labor organizations for collective The agreement negotiated by the employees’ bargaining agent bargaining. should be ratified or approved by the majority of all the workers 5. The process of collective bargaining includes issuing written in the bargaining unit. notices of proposals and engaging in conciliation meetings. 6. Collective bargaining agreements are valid for five years and can 2. Is there any exception to the requirement of mandatory be renegotiated after three years. ratification by the majority of all the workers in the bargaining 7. No specific provisions dictate the issues to be discussed during unit? collective bargaining. Yes. Ratification of the CBA by the employees in the bargaining 8. Violating the duty to bargain collectively or an existing collective unit is not needed when the CBA is a product of an arbitral award bargaining agreement is considered an unfair labor practice. by appropriate government authority or by a voluntary arbitrator. 3. What constitutes CBA registration? RIGHT TO STRIKE §3 of the Article XIII of the Constitution of the Republic of the Philippines 1987; §278-281 of the It is a process of determining whether the application for Labour Code, as amended registration of a Collective Bargaining Agreement complies with: 1. The Constitution guarantees the right to peaceful concerted o the Rules on CBA registration specifically Rule XVII of the activities, including striking. DO No. 40-03; or the 2. Strike is defined as a temporary stoppage of work due to an o Rules amending the Implementing Rules of Book V of the industrial or labor dispute. Labor Code of the Philippines. 3. Workers have the right to engage in collective activities for bargaining or mutual benefit and protection. 4. Effect of the CBA registration: 4. Labor organizations have the right to strike and picket. The registration of the CBA will bar a certification election except 5. Notice of strike must be filed with the Ministry 30 days before the within the last sixty days (freedom period) before the expiration intended date, or 15 days in cases of unfair labor practice. of the five-year CBA. 6. The Ministry must mediate and conciliate to achieve a voluntary settlement before a strike can proceed. 5. Lifetime of a CBA: 7. Strikes can only be declared if approved by a majority of the union With respect to representation aspect, the CBA lasts for 5 years. membership. However, not later than 3 years after the execution of the CBA, 8. The Secretary of Labour can assume jurisdiction over strikes in the economic provisions shall be renegotiated. industries important to the national interest, ending or preventing strikes. 6. Freedom period - refers to the last sixty days immediately 9. Parties can choose voluntary arbitration to settle disputes. preceding the expiration of the five-year CBA. 10. Illegal strikes include those declared without proper notice or o A petition for certification election may be filed during the strike vote, or after the Secretary of Labour takes cognizance of the freedom period. dispute. 11. No person can forcibly stop a peaceful strike, and strikers cannot 7. Filing the application for CBA registration commit acts of violence or obstruction. Where: 12. The Department of Labour can conduct a referendum to settle a At the Regional Office that issued the certificate of registration or strike with a majority vote. certificate of creation of chartered local of the labor union-party to the agreement. IS PAYMENT OF UNION DUES MANDATORY? ⚫ No, as you are not a member of their union. When: The application for registration of the CBA shall be filed within ⚫ No deductions in salary should be made unless the employee thirty (30) days from the execution of such CBA. consented. ⚫ When an employee or laborer joins a labor union, he does not 8. Requirements for CBA registration make any commitment or assume an undertaking to continue his The following are the requirements for CBA registration (original membership therein for any fixed period of time, much less and two (2) duplicate copies which must be certified under oath indefinitely. The moment he has resigned or separated from the HRA REVIEWER SET B PAGE 8 OF 9 C.G.S., RPm, CHRA. JON CLARK G. SUMAYAO, RPm, CHRA by the representative of the employer and labor union concerned): 10. Processing the CBA registration a) The Collective Bargaining Agreement; The application for CBA registration shall be processed within b) A statement that the CBA was posted in at least two (2) one day from receipt thereof. conspicuous places in the establishment concerned for at least five (5) days before its ratification; and 11. Ground for denial of the CBA registration: c) A statement that the CBA was ratified by the majority of Failure of the applicant to complete the requirements for CBA the employees in the bargaining unit of the employer registration but such denial is without prejudice for the filing of concerned. another application for registration. 9. Registration fee is required: Certificate of CBA registration shall be issued by the DOLE Regional Office only upon payment of the prescribed reg. fee. C6 MANAGEMENT’S PREROGATIVE MANAGEMENT’S PREROGATIVE d. Time, place, and manner of work - Employers have the right to determine when, where, and how work will be done. Management prerogative - refers to the inherent right of the employer e. Work supervision - Employers have the right to supervise to regulate all aspects of employment. the work done by employees to ensure productivity and - This includes hiring, work assignments, working methods, time, adherence to safety precautions. place and manner of work, work supervision, transfer of f. Transfer of employees - Employers may transfer employees employees, lay-off of workers, discipline, dismissal, and recall of to different units/departments or relocate them to different employees. workplaces for legitimate business reasons. - Two limitations to management prerogative: g. Lay-off and recall of workers - Employers may temporarily a) good faith; and lay off employees when necessary and recall them when the b) employee rights. business recovers. - In cases of serious financial losses, employers may CONCEPT exercise retrenchment or permanent lay-off. ⚫ An employer can regulate, generally without restraint, according h. Discipline and dismissal - Employers have the right to to its own discretion and judgment, every aspect of its business. discipline and dismiss employees who commit violations, (Deles, Jr. vs. NLRC, G.R. No. 121348, March 9, 2000) provided that due process is observed. ⚫ Employers have the freedom and prerogative, according to their discretion and best judgment, to regulate and control all aspects LIMITATIONS Limitations: Exercise of management prerogative is not absolute. of employment in their business organizations, from hiring to firing. (Philippine Airlines, Inc. vs. NLRC G. R. No. 115785, Aug. 4, 2000) 1. GOOD FAITH Management prerogative should be exercised in good faith. Employers should regulate all aspects of employment with A. BUSINESS JUDGMENT RULE fairness and justice. The Supreme Court recognizes and upholds the exercise of It should not be used as a tool to circumvent laws or oppress management prerogatives. employees. Labor laws discourage interference with an employer's Just cause termination based on willful disobedience may be judgment in the conduct of its business. valid if justified as a business necessity. The law must protect not only the welfare of employees but However, dismissal without justification or lack of good faith also the right of employers. may result in illegal dismissal. Pantoja v. SCA Hygiene Products Corporation, G.R. No. 163554, 23 April 2010 B. FRAMEWORK Aliling v. Feliciano, G.R. No. 185829, 24 April 2012 Management prerogative is the general rule, and labor laws/rules are the exceptions/limitations. 2. EMPLOYEE RIGHTS Labor laws and rules provide for minimum standards to be Management prerogative should be exercised with due regard to the rights of labor. observed by the employer. Labor laws, collective bargaining agreements, and general Employers have the freedom to add more requirements in principles of fair play and justice should be observed. favor of employees, but they should not go below the Employees have the right to refuse overtime work if there minimum required by law. are no grounds for compulsory overtime. Transfer of personnel should be done without grave abuse SCOPE of discretion and with basic elements of justice and fair play. The employer cannot use transfer as a subterfuge to get rid Management prerogative covers various aspects of employment of an undesirable worker. from hiring to post-employment. Last paragraph, Section 10, Rule I, Book III, Omnibus Rules Implementing the Labor Code It includes hiring, work assignments, working methods, time, Endico v. Quantum Foods Distribution Center, G.R. No. 161615, 39 January 2009 Globe Telecom, Inc. v. Lazaro, G.R. No. 150092, 27 September 2002 place and manner of work, work supervision, transfer of Julie’s Bakeshop v. Arnaiz, G.R. No. 173882, 15 February 2012 employees, lay-off of workers, discipline, dismissal, and recall. a. Hiring - Employers have complete discretion in choosing 3. CBA Limitations imposed by law or by CBA (Collective Bargaining candidates and offering contracts of employment. Agreement), employment contract, employer policy or practice b. Work assignments - Employers have the right to determine and general principles of fair play and justice. which employees are best suited for specific work (The Philippine American Life and General Insurance Co. vs. Gramaje, G. R. No. 156963, Nov. 11, 2004 assignments. c. Working methods - Employers decide the steps, processes, or methodologies to be followed in performing work. HRA REVIEWER SET B PAGE 9 OF 9 C.G.S., RPm, CHRA