Labor Law Reviewer PDF

Labor Law Reviewer Labor Law Table of Contents Book One: Pre-Employment Book Two: Human Resource Development Program Book Three: Conditions of Employment Book Four: Health, Safety, and Social Welfare Benefits Book Fiv...

Labor Law Reviewer Labor Law Table of Contents Book One: Pre-Employment Book Two: Human Resource Development Program Book Three: Conditions of Employment Book Four: Health, Safety, and Social Welfare Benefits Book Five: Labor Relations Book Six: Post-Employment Book Seven: Transitory and Final Provisions Module Units and Topics Module 1: The State Policies on Labor with Some Key Labor Concepts Module 2: Preliminaries on the Labor Code with Pre-employment Concerns Module 3: The Terms and Conditions of Employment Module 4: The Classifications of Employment Module 5: The Termination of Employment Module 6: Labor Relations with Social Welfare Legislations and Miscellaneous Matters Principles in Labor 1. Principle of Respect for Human Dignity 2. Principle of Self-Organization 3. Principle of Security of Tenure 4. Principle to Share the Fruits of Labor Rights of Employer 1. Right to Terminate Employment 2. Right to Management Rights of Worker 1. Minimum Wage 2. Collective Bargaining Agreement 3. Security of Tenure 4. Equal Employment Opportunity 5. Reasonable Working Hours  Module 1: The State Policies on Labor with Some Key Labor Concepts Part 1 Why Study Labor Law? Employment in the Philippines is highly regulated Necessary to know your rights, duties, as well as obligations either as an owner of the capital (employer) or labor (employee) Labor Law Field of law that defines the relationship between employer and their employees, as well as certain third parties in connection with employment Establishes the rights of each party and determines their duties and obligations Defines the role of government in relation to capital and labor Social Legislation Field of law governing the employer-employee relationships while the employee is not at work due to hazards arising from employment Designed to uplift and protect the welfare of the worker and the worker’s family from hazards beyond the control of the employee, which immobilize the laborer from working Labor Law vs. Social Legislation Labor Law Social Legislation More direct in its application as it directly affects actual Governs the effects of employment, such as compensation employment, such as wages for injuries Designed to meet the daily needs of a worker Involves long-range benefits Covers employment for profit or gain May cover employment for gain or non-profit Affects the work of the employees Affects the life of the employee Benefits are paid by the worker’s employer Benefits are paid by government agencies administering the programs such as the Employees Compensation Commission Where to find Labor Law? 1987 Philippine Constitution Decisions of the Supreme Court of the Philippines (Jurisprudence) relative to Labor Labor Code Civil Code and Revised Penal Code Special statutes that are not yet codified Rules and Regulations issued by the Department of Labor and Employment (DOLE) American jurisprudence supplementing the above when needed Article 19 of the Civil Code – The Most Basic Principle of Human Relations Principle of Abuse of Right - Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith Part 2 Classifications of Labor Law Labor Relations – part of Labor law which regulates the relations between employers and workers Ex: Book V of the Labor Code which deals with: Labor organizations Conciliation and Mediation Collective bargaining Unfair Labor Practices Grievance machinery Strikes Voluntary arbitration Picketing and Lockout Labor Standards – part of Labor law that prescribes minimum terms and conditions of employment which the employer is required to grant to its employees Ex: Book I to Book IV, and Book VI of the Labor Code deals with: Working conditions Medical and dental services Wages Occupational health and safety Hours of work Termination of employment Holiday pay and other benefits Retirement Conditions of employment of women, minors, house helpers, and homeworkers Constitutional Provisions on Labor 1. Sec 18, Art. II – The state recognizes “labor as a primary social, economic force,” and it endeavors to “protect the rights of workers and promote their welfare.” 2. Sec. 8 Art. III – the State recognizes the “right of (workers) xxx in the public and private sectors to form unions 3. Sec 2, Art. XIII – The State pronounces “the promotion of social justice” as one of its main goals Social Justice – the humanization of laws and the equalization of social and economic forces of the State (Calalang v. Williams) 4. Specific labor-related provisions in Sec 3, Art XIII: The State shall: a. Full protection to labor; local and overseas; organized and unorganized b. Promote full employment c. Equality of employment opportunities for all d. Right of all workers to: Self-organization Collective bargaining and negotiations Peaceful concerted activities Right to Strike e. Security of Tenure f. Humane conditions of work  g. A living wage h. Participate in policy and decision-making processes affecting the rights and benefits may be provided by law i. Shared responsibility j. Preferential use of voluntary modes in settling disputes k. Regulate the relations between workers and employers l. Right of labor to its just share in the fruits of production m. Right of enterprises to reasonable returns on investments and to expansion and growth Laws Prohibiting Discrimination or Harassment in Employment Discrimination against women on account of their gender, and against children on account of their age Magna Carta of Women (RA 9710) – prohibits discrimination against women and expressly imposes liability for damages on the person directly responsible for such discrimination Anti-Age Discrimination in Employment Act (RA 10911) – prohibits discrimination on account of age, and imposes penalties for violation of the Act Magna Carta for Persons with Disability (RA 7277) – provides that a qualifies employee with a disability shall be subject to the same terms and conditions of employment as a qualified able- bodies person Solo Parents’ Welfare Act (RA 8972) – prohibits an employer from discriminating against solo parent employee with respect to the terms and conditions of employment on account of the employee being a solo parent Indigenous Peoples’ Rights Act (RA 8371) – prohibits discrimination against Indigenous Cultural Communities or Indigenous People with respect to recruitment and conditions of employment on account of their descent Anti-Sexual Harassment Act (RA 7877) – prohibits sexual harassment in the workplace. Mental Health Act (RA 11036) – requires employers to develop appropriate policies and programmes on mental health in the workplace designed to, among others, raise awareness on mental health issues, correct the stigma and discrimination associated with mental health conditions, identify and provide support for individuals at risk and facilitate access of individuals with mental health conditions to treatment and psychological support Philippine HIV and AIDS Policy Act (RA 11166) – prohibits the rejection of job applications, termination of employment, or other discriminatory policies in hiring, provisions of employment and other related benefits, promotion or assignment of an individual solely or partially or the basis of perceived or actual HIV status, sex, gender, sexual orientation, gender identity, and expression, age, economic status, disability, and ethnicity are deemed inimical to national interest Safe Spaces Act (RA 11313) – prohibits gender-based sexual harassment in streets, public spaces, online, workplaces, and educational or training institutions. Primary Government Agencies or other Responsible for the Enforcement of Employment Statutes and Regulations Department of Labor and Employment (DOLE) – primary policy-making programming, coordinating, and administrative entity in the field of labor and employment - Has primary responsibility for the full promotion of gainful employment opportunities, the advancement of worker’s welfare and promoting harmonious equitable and stable employment relations. Bureau of Labor Relations – sets policies, standards, and procedures or the registration and supervision of labor unions and their activities National Conciliation and Mediation Board – handles conciliation, mediation, and voluntary arbitration of labor disputes. National Labor Relations Commissions – a quasi-judicial agency that has original jurisdiction to adjudicate specific claims and disputes. Part 3 Karl Marx on Alienation Work What makes us “human” Fulfills our species essence Allows us to live To be creative To flourish Labor When work is commodified Using the body for the service to be made Nothing to sell but their labor 19th Century Europe Work destroyed workers People who have nothing to sell but their labor Capitalism Worker is an abstract idea; with a stomach that needs to be filled Workers toil for wage Their labor alienated them Alienation When work is commodified Disorienting sense of exclusion and separation Alienated workers from the product to their labor They made stuff they couldn’t afford, which disappeared to shops in far-off places to make money for people who paid them next to nothing Production Line Split jobs into meaningless tasks that made working hours tedious, empty, and bleak Workers became cogs in a gigantic machine Workers live for a few hours at home where they can eat, sleep, and relax The rest of the time, they weren’t fully alive This work also alienated them from each other. The Way Out, according to Marx Workers must organize and revolt Seize the means of production “Workers of the world unite; You have nothing to lose but your chains.” Module 2 Parts of Labor Code Book One: Pre-Employment Book Two: Human Resource Development Program Book Three: Conditions of Employment Book Four: Health, Safety, and Social Welfare Benefits Book Five: Labor Relations Book Six: Post-Employment Book Seven: Transitory and Final Provisions Construction Favor of Labor The Labor Code provides that all doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor. The philosophy behind the provision of the Law The owner as compared to the owner of the capital exercises less power in the means of production and, hence, prone to abuse Coverage of Labor Law Labor law applies only if an employer-employee relationship exists It applies to employers and their employees as well as to certain third parties Third Parties (RPU): a. Recruitment agencies in case of overseas contract workers (OCWs or OFWs) b. Principals or indirect employers in job contracting arrangements c. Unions and other workers’ associations Exemptions from Labor Law When there is No employer-employee relationship: (2P2C) a. The Principal and his Agent b. The Capitalist Partner and his Industrial Partner c. The Project Owner and his Contractor d. The Corporation and the Corporate Officers Rule: Labor Law applies only when there is or was an employer-employee relationship Test of Employment Four-Fold Test (3PS) 1. The selection and engagement of the employee 2. The payment of wages 3. The power of dismissal 4. The power to control the employee’s conduct, or the so-called “control test” Management Prerogative The employer has the prerogative to: (PPA) Prescribe rules and regulations necessary for the proper conduct of its business Provide certain disciplinary measures to implement said rules Provide certain measures to ensure the rules are complied with An employer enjoys: A wide latitude of discretion in the promulgation of policies, rules, and regulations on work- related activities of the employees It is axiomatic that: Appropriate disciplinary sanction is within the purview of management imposition Thus, in the implementation of its rules and policies, the employer has the choice to do so strictly or not Right: inherent in its right to control and manage its business effectively Exemption/But: The same must be done within the bounds of the law and must not be done arbitrarily, capriciously, and whimsically Control Test Power of Control o The power of one party to determine: a. The end result of the work b. Manner of doing the work Rule: Only an employer has the power of control over his employees Exemption: The power of control need not be actually exercised What Evidence is Needed to Establish Employer-Employee Relationship? Substantial Evidence That amount of relevant evidence which a reasonable mind might accept as adequate to justify a conclusion is sufficient Note: Although no form of evidence is required to prove the existence of the relationship and any competent and relevant evidence to prove the relationship may be admitted, a finding that the relationship exists must nonetheless rest on substantial evidence. Take Note: a case involving an employer-employee relationship involves an administrative case, hence substantial evidence is required. As opposed to a civil case which demands a higher degree of proof called preponderance of evidence. Principles of Employment Contracts An employment contract is an agreement whereby an employee would render services in exchange for compensation to be paid by the employer: (CPRBL3I) 1. Employment contracts are consensual 2. Principle of Autonomy applies to employment contracts  3. Employment contracts are imbued with public interest 4. Regular employment is the default status of an employee 5. Burden of proof is on the employer to prove that an employee is a non-regular 6. The law determines the nature of employment and not the parties 7. Involuntary servitude is prohibited 8. When in doubt, employment contracts are interpreted in favor of the employee Consensual Contract An employment contract is consensual Mere consent by the employer and the employee will form an employment relationship The law does not require a written employment contract to prove an employer-employee relationship Exception: DOLE Department Order No. 174, series of 2017, requires that contractors provide a written employment contract to their deployed personnel. The Law determines the Nature of Employment, not the Parties Under the Labor Code Law determines the nature of the employment Regardless of any agreement expressing otherwise Thus, even if the parties stipulate to a casual employment contract to hide the fact that the employee is doing the work of a regular employee, the Law will consider such arrangement as a regular employment contract from the beginning Universita Robina Sugar Milling v. Aeibo Clearly, therefore, the nature of the employment does not depend solely on the will or word of the employer or on the procedure for hiring and the manner of designating the employee Rather, the nature of the employment depends on the nature of the activities performed by the employee Considering the: o Nature of the employer’s business o Duration and scope to be done o In some cases, even the length of time of the performance and its continued existence GMA Network v. Pabriga At the outset, we should note that the nature of employment is determined by law, regardless of any contract expressing otherwise The supremacy of the law over the nomenclature of the contract and the stipulations contained is to bring to life the policy enshrined in the Constitution to afford full protection to Labor Labor contracts, being imbued with public interest, are placed on a higher plane than ordinary contracts and are subject to the police power of the State Principle of Autonomy applies: The principle of autonomy in contracts states that parties may freely stipulate on whatever term and condition they would agree on provided they are not contrary to laws, morals, good customs, or public policy This principle is applicable in employment contracts as well Accordingly, the employer and the employee may freely stipulate on terms of employment provided they are not contrary to laws, morals, good customs, or public policy For instance, the employer and the employee cannot stipulate that there shall be no overtime pay or holiday pay when these are required by the Labor Code. Imbued with Public Interest Article 1701, Civil Code The relations between capital and labor are not merely contractual They are so impressed with public interest that labor contracts must yield to the common good Therefore, such contracts are subject to special laws on labor unions, collective bargaining, strikes and lockouts, closed shops, wages, working conditions, hours of labor, and similar subjects. Innodata Knowledge Services, Inc. v. Inting The supremacy of the law over the nomenclature of the full contract and its pacts and conditions is to bring life to the policy enshrined in the Constitution to afford full protection to Labor. Thus, Labor contracts are placed on a higher plane than ordinary contracts since these are imbued with public interest and, therefore, subject to the police power of the State. Default Status of Employment Regular employment is the default employment status unless proven otherwise by the employer Otherwise stated, it is the employer who has the burden of proof that the employee is not a regular employee This is done by showing of documentation, such as the employment contract No Involuntary Servitude Article 1703, Civil Code – No contract which practically amounts to involuntary servitude, under any guise whatsoever, shall be valid. When in Doubt, Interpreted in favor of the Employee Article 1702, Civil Code – In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer To ensure workers are dignified in their work premises and their persons as individuals are respected Background Information of Applicants There is no law prohibiting background checks on applicants, whether conducted by the employer or a third party But specific laws apply with respect to application and background checks Examples: Anti-Age Discrimination in Employment Act (RA 10911) – specifically prohibits requiring the declaration of age or birth date during the application process Data Privacy Act (RA 10173) – also provides that the applicant or data subject has a right to be informed if personal data is being collected for purposes of profiling or for other forms of data processing o Under this law, “profiling” includes the automated processing of personal data (defined as information from which the identity of an individual is apparent and can be ascertained) consisting of the use of such personal data to evaluate certain personal aspects relating to a natural person The Philippine HIV and AIDS Policy Act – prohibits the rejection of a job application solely or partially on the basis of actual, perceived, or suspected HIV status Medical Examinations The Philippine HIV and AIDS Policy Act – prohibits the rejection of a job application solely or partially on the basis of actual, perceived, or suspected HIV status DOLE Department Advisory: Access to personal data relating to an employee’s Hepatitis B status is bound by the rules of confidentiality and is strictly limited to medical personnel or if legally required In addition to the foregoing, medical examination results should not be used to deny employment when the denial of employment would constitute discrimination under the laws applicable For Example: Discrimination under the Magna Carta for Persons with Disability includes using qualification standards, employment tests, or other selection criteria that screen out or tend to screen out a disabled person unless such standards, tests, or other selection criteria are shown to be job-related for the position in question and are consistent with business necessity Drug and Alcohol Testing No restriction against drug and alcohol testing, and there is no law prohibiting an employer from refusing to hire an applicant who refuses to submit a test But: DOLE has issued the Guidelines for the Implementation of Drug-Free Workplace Policies and Programs for the Private Sector (DOLE Department Order No. 053-03), which states that only drug testing centers accredited by the Department of Health shall be utilized for drug testing.