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Labor legislation is divided broadly into:
   LABOR STANDARDS – refers to the
    minimum terms and conditions of employment
    which employees are legally entitled to and
    employers must comply with.
   LABOR RELATIONS – refers to the
    interactions between employer and employees
    or their representatives and the mechanism
    by which the employment standards are
    negotiated, adjusted and enforced.
   Books I to IV of the Labor Code deal with
    Standards
   Books V to VII deal with Relations.
Social Legislation are laws which provide
    social security benefits through:
1.   Income substitutes in case they suffer
     contingencies resulting in temporary or
     permanent loss of earning capacity;
2.   Rehabilitation assistance for work-related
     disability
3.   Financial assistance or allowance for death
     or sickness
4.   Old age pensions in case of retirement
5.   Credit access for social needs
Social Security benefits are sourced from a
 common fund sustained by contributions both
 from employers and employees. These are:
1.   The EMPLOYEES COMPENSATION PROGRAM,
     which provides employees and dependents with
     tax-exempt income and medical benefits in case
     of work-connected disability or death;
2.   The SOCIAL SECURITY PROGRAM, which
     provides tax-exempt benefits for employees and
     their families in case of disability, sickness, old
     age or death;
3.   The HOUSING PROGRAM, which provides
     employees who are members of SSS and
     PAGIBIG PROGRAM with housing loans.
Also a part of Social Legislation is the
 RETIREMENT LAW, which provides
 retirement benefits equivalent to 22.5
 days salary for every year of service
 for optional retirement at 60 under
 R.A. 7641 or under applicable
 agreement or for compulsory
 retirement at age 65.
For underground mine employees,
 optional retirement at 50 under R.A.
 7641 as amended by R.A. 8558;
 compulsory at 60.
WORKER’S
STATUTORY
 BENEFITS
1. MINIMUM WAGE

REPUBLIC ACT No. 6727 (also known as the
  “Wage Rationalization Act”) mandates the
  fixing of the statutory minimum wages
  applicable to different industrial sectors,
  namely, Non-Agricultural, Agricultural
  Plantation and Non-Plantation,
  Cottage/Handicraft, and Retail/Service,
  depending on the number of workers or
  capitalization or annual gross sales in some
  sectors.
The said law rationalized wage determination by
  establishing the mechanism and proper standards
  through the creation of Regional Tripartite Wages
  and Productivity Boards authorized to determine the
  wage rates in the different regions based on
  established criteria.
Existing Regional Wage Orders prescribe the daily
  minimum basic wage rates per industry per locality
  within the region, in some instances depending on the
  number of workers and the capitalization of
  enterprises. The Wage Orders likewise provide the
  basis and procedure for exemption from compliance.
  Some Wage Orders grant allowances instead of wage
  increases.
A. Coverage
The wage increases prescribed under Wage Orders apply to all
    private sector workers and employees regardless of their
    position, designation or status and irrespective of the method
    by which their wages are paid, except the following:

1.   Househelpers, including family drivers and workers in the
     personal service of another whose conditions of work are
     prescribed in R.A. 7655.
2.   Workers and employees in: a) retail/service establishments
     regularly employing not more than ten (10); b) of distressed
     establishments; and c) of other firms or employers as
     determined by the Board, when specifically exempted from
     compliance for a period fixed by the Board.
3.   Workers of registered Barangay Micro Business Enterprises
     (BMBEs) with Certificates of Authority issued by the Office
     of the Municipal or City Treasurer.
2. HOLIDAY PAY (Art. 94)
Holiday Pay refers to the payment of the regular
     daily wage for any unworked regular holiday.
COVERAGE:
This benefit applies to all employees except:
1.   Government employees, whether employed by the
     National Government or any of its political
     subdivisions, including those employed in
     government-owned and/or controlled corporations
     with original charters or created under special
     laws.
2.   Those of retail and service establishments regularly
     employing less than ten (10) workers.
HOLIDAY PAY - Coverage          cont…..
3. Househelpers and persons in the personal service of
   another.
4. Managerial employees, if they meet all the following
   conditions:
   4.1 Their primary duty is to manage the
   establishment in which they are employed or of a
   department or subdivision thereat.
   4.2 They customarily and regularly direct the work
   of two or more employee therein.
   4.3 They have the authority to hire or fire other
   employees of lower rank; or their suggestions and
   recommendations as to hiring, firing and promotion or
   any other change of status of other employees are
   given particular weight.
HOLIDAY PAY - Coverage                cont…..
5.   Officers or members of a managerial staff, if they perform
     the ff. duties and responsibilities:
     5.1 Primarily perform work directly related to management
     policies of their employer;
     5.2 Customarily and regularly exercise discretion and
     independent judgment.
     5.3. (a) Regularly and directly assist a proprietor or
     managerial employee in the management of the establishment
     or subdivision thereof in which he/she is employed; (b)
     execute, under general supervision, work along specialized or
     technical lines requiring special training, experience or
     knowledge; or (c) execute, under general supervision, special
     assignments and tasks; and
     5.4 Do not devote more than twenty percent (20%) of their
     hours worked in workweek to activities which are not directly
     and closely related to the performance of the work described
     in par. 5.1, 5.2, and 5.3 above.
HOLIDAY PAY - Coverage   cont…..


6. Field personnel and other employees
  whose time and performance is
  unsupervised by the employer, including
  those who are engaged on task or
  contract basis, purely commission basis
  or those who are paid a fixed amount
  for performing work irrespective of the
  time consumed in the performance
  thereof.
REGULAR HOLIDAYS
Every employee covered by the Holiday Pay Rule
  is entitled to his/her daily basic wage and
  ECOLA. This means that the employee is
  entitled to at least 100% of his/her basic
  wage even if he/she did not report for work.
  Provided he/she is present or is on leave of
  absence with pay on the work day immediately
  preceding the holiday.
When a Regular Holiday falls on a Sunday, the
  following Monday shall not be a holiday, unless
  a proclamation is issued declaring it a special
  day.
There are eleven (11) Regular Holidays in a year
under Executive Order No. 203, as amended by
          Republic Act 9177, namely:

   New Year’s Day      January 1
   Maundy Thursday     Movable date
   Good Friday         Movable date
   Araw ng Kagitingan  April 9
   Labor Day           May 1
   Independence Day     June 12
   National Heroes Day Last Sunday of
                         August
   Eidl Fitr            Movable date
   Bonifacio Day        November 30
   Christmas Day       December 25
   Rizal Day            December 30
MUSLIM HOLIDAYS
              Presidential Decree 1083
   Amun Jadid (New Year), which falls on the first day
    of the lunar month of Muharram;
   Maulid-un-Nabi (Birthday of the Prophet Muhammad),
    which falls on the twelfth day of the third lunar
    month of Rabi-ul-Awwal;
   Lailatul Isra Wal Miraj (Nocturnal Journey and
    Ascension of the Prophet Muhammad), which falls on
    the twenty-seventh day of the seventh lunar month
    of Rajab;
   Id-ul-Adha (Hari Raha Haji), which falls on the tenth
    day of the twelfth lunar month of Dhu’l-Hijja.
   The dates of Muslim Holidays shall be determined by
    the Office of the President of the Philippines in
    accordance with the Muslim Lunar Calendar (Hijra).
PRESIDENTIAL PROCLAMATION NO.
      1198 (26 October 1973)
“All private corporations, offices, agencies
  and entities or establishments operating
  within the provinces and cities enumerated
  herein shall observe the legal holidays as
  proclaimed, provided, however, that all
  Muslim employees working outside of the
  Muslim provinces and cities shall be excused
  from work during the observance of the
  Muslim Holidays as recognized by law
  without diminution or loss of wages during
  the said period . . . .”
3. PREMIUM PAY
           (Articles 91-93 – Labor Code)


PREMIUM PAY refers to the additional compensation
  for work performed within eight (8) hours on non-
  work days, such as rest days and special days.
SPECIAL DAYS – Executive Order No. 203, as amended
  by R.A. 9256, lists down three (3) Special Days that
  shall be observed in the Philippines:
      Ninoy Aquino Day           August 21
      All Saints Day             November 1
      Last Day of the Year       December 31
4. OVERTIME PAY
                 (Article 87)

OVERTIME PAY refers to the additional
 compensation for work performed beyond eight (8)
 hours a day.
WORK DAY refers to any day which an employee is
 regularly required to work.
HOURS OF WORK refer to all the time an employee
 renders actual work, or is required to be on duty
 or to be at a prescribed workplace. The normal
 hours of work in a day is 8 hours. This includes
 breaks or rest period of less than one hour, but
 excludes meal periods which shall not beless than
 one hour.
OVERTIME PAY . . .    Cont.


An employee may not be compelled to work
  overtime except:
 during war, emergencies, disasters or

  calamities;
 when urgent repairs need to be undertaken;

 when work is necessary to preserve

  perishable goods, avoid serious obstruction
  or prejudice to the employer’s business; or
 take advantage of favorable weather

  conditions.
OVERTIME PAY . . .    Cont.


An employee may not be compelled to work
  overtime except:
 during war, emergencies, disasters or

  calamities;
 when urgent repairs need to be undertaken;

 when work is necessary to preserve

  perishable goods, avoid serious obstruction
  or prejudice to the employer’s business; or
 take advantage of favorable weather

  conditions.
5. NIGHT SHIFT
         DIFFERENTIAL
             (Article 86)


Night Shift Differential (NSD) refers
 to the additional compensation of ten
 percent (10%) of an employee’s regular
 wage for each hour of work performed
 between 10pm and 6am.
6. SERVICE CHARGES
                    (Article 96)
   SHARING        – All rank-and-file employees of
    employers collecting service charges are entitled to
    an equal share in the eighty-five percent (85%) of
    the total of such charges. The remaining fifteen
    percent (15%) of the charges may be retained by
    management to answer for losses and breakages
    and for distribution to managerial employees, at
    the discretion of the management in the latter
    case. Service Charges are collected by most hotels
    and some restaurants, night clubs, cocktail
    lounges, among others.
7. SERVICE INCENTIVE LEAVE
                (Article 95)

Every employee who has rendered at least one
  (1) year of service is entitled to Service
  Incentive Leave (SIL) of five (5) days with
  pay. The phrase “one year of service” of the
  employee means service within twelve (12)
  months, whether continuous or broken,
  reckoned from the date the employee started
  working.
8. MATERNITY LEAVE
      (R.A. 1161, as amended by R.A. 8282)

This benefit applies to all female employees, whether
  married or unmarried and is entitled to sixty (60)
  days leave benefit in case of normal delivery or
  miscarriage and seventy-eight (78) days in case of
  Caesarian section delivery with benefits equivalent
  to one hundred percent (100%) of the average
  daily salary credit of the employee as defined
  under the law. The female employee should be an
  SSS member employed at the time of her delivery
  and have paid at least three monthly contributions
  to the SSS within the twelve-month period
  immediately before the date of the contingency.
  This benefit is granted by the Social Security
  System in lieu of wages.
9. PATERNITY LEAVE
                    (R.A. 8187)
Paternity Leave is granted to all married male
  employees in the private sector, regardless of their
  employment status (e.g. probationary, regular,
  contractual, project basis). The purpose of this
  benefit is to allow the husband to lend support to his
  wife during her period of recovery and/or in nursing
  her newborn child.
Government employees are also entitled to the paternity
  leave benefit. They shall be governed by the Civil
  Service rules.
The Paternity Leave shall be for seven (7) calendar
  days, with full pay, consisting of basic salary and
  mandatory allowances fixed by the Regional Wage
  Board, if any, provided that his pay shall not be less
  than the mandated minimum wage. Said benefit shall
  apply to the first four(4) deliveries of the employee’s
  lawful wife with whom he is cohabiting.
11. LEAVE FOR VICTIMS OF VIOLENCE
    AGAINST WOMEN AND THEIR
             CHILDREN
                      (R.A. 9262)
“Violence against women and their children” as used in
  Republic Act 9262 (the “Anti-Violence Against
  Women and Their Children Act of 2004”), refers to
  any act or a series of acts committed by any person
  against a woman who is his wife, former wife, or
  against a woman with whom the person has or had a
  sexual or dating relationship, or with whom he has a
  common child, or against her child whether legitimate
  or illegitimate, within or without the family abode,
  which will result in or is likely to result in physical,
  sexual, psychological harm or suffering, or economic
  abuse including threats of such acts, battery assault,
  coercion, harassment or arbitrary deprivation of
  liberty.
10. PARENTAL LEAVE FOR SOLO
        PARENTS (R.A. 8972)

“PARENTAL LEAVE” shall mean leave benefits
 granted to a solo parent to enable him/her to
 perform duties and responsibilities where physical
 presence is required. This benefit is granted to
 any solo parent or individual who is left alone with
 the responsibility of parenthood. This is in addition
 to leave privileges under existing laws and shall be
 for seven (7) work days every year, with full pay,
 consisting of basic salary and mandatory allowances
 fixed by the Regional Wage Board, if any,
 provided that his/her pay shall not be less than
 the mandated minimum wage.
This benefit is in addition to other paid leaves
  under existing labor laws, company policies,
  and/or collective bargaining agreements. The
  qualified victim-employees shall be entitled to
  a leave of up to ten (10) days with full pay,
  consisting of basic salary and mandatory
  allowances fixed by the Regional Wage
  Board., if any. Said leave shall be extended
  when the need arises, as specified in the
  protection order issued by the barangay or
  the court. The leave benefit shall cover the
  days that the woman employee has to attend
  to medical and legal concerns.
12. THIRTEENTH-MONTH PAY
            (Presidential Decree 851)

All employers are required to pay their rank-and-file
  employees Thirteenth-Month Pay, regardless of
  the nature of their employment and irrespective of
  the methods by which their wages are paid,
  provided they worked for at least one (1) month
  during a calendar year. The Thirteenth-Month
  Pay should be given to the employees not later
  than December 24 every year. Said pay shall not
  be less than one-twelfth (1/12) of the total basic
  salary earned by an employee in a calendar year.
  The mandated pay need not be credited as part of
  the regular wage of employees for purposes of
  determining overtime and premium payments, fringe
  benefits, as well as contributions to the State
  Insurance Funds, Social Security System,
  Medicare and private retirement plans.
13. SEPARATION PAY
            (Articles 283-84 Labor Code)


Separation Pay is given to employees in instances
  covered by Articles 283 and 284 of the Labor Code .
  An employee’s entitlement to Separation Pay
  depends on the reason or ground for the termination
  of his/her services. An employee may be terminated
  for just cause and other similar causes as enumerated
  under Article 282 of the Labor Code and, generally,
  may not be entitled to Separation Pay. On the other
  hand, where the termination is for authorized causes,
  Separation Pay is due. Computation of Separation
  Pay shall be based on his/her latest salary rate.
14. RETIREMENT PAY
   (Article 287, as amended by RA 7641)
Employees shall be retired upon reaching the
 age sixty (60) or more but not beyond
 sixty-five (65) years old. It provides
 retirement benefits equivalent to 22.5 days
 salary for every year of service, optional
 or compulsory. This benefit applies to all
 employees except:
     1. government employees;
     2. employees of retail, service and
 agricultural establishments/operations
 regularly employing not more than ten (10)
 employees.
15. BENEFITS UNDER THE
       EMPLOYEES’ COMPENSATION
         PROGRAM (Pres. Decree 626)

The Employees’ Compensation Program (ECP) is a
  government program designed to provide a package
  of benefits for public and private sector employees
  and their dependents in the event of work-related
  contingencies such as sickness, injury, disability or
  death. This covers all workers in the formal
  sector. Coverage in the ECP starts on the first
  day of employment. Employees in the private
  sector who are registered members of the SSS,
  except self-employed workers and voluntary
  members of the SSS.
16. PHILHEALTH BENEFITS
     (R.A. 7875, as amended by R.A. 9241)

The National Health Insurance Program
 (NHIP), formerly known as Medicare, is a
 health insurance program for SSS members
 and their dependents whereby the health
 insurance subsidize the sick who may find
 themselves in need of financial assistance
 when they get hospitalized.
The Philippine Health Insurance Corporation or
 PhilHealth is the mandated administrator of
 the Medicare program under the National
 Health Insurance Act of 1995 (R.A. 7875)
17. SOCIAL SECURITY BENEFITS
        (RA 1161, as amended by RA 8282)


The Social Security Program provides a
  package of benefits in the event of death,
  disability, sickness, maternity and old age.
  Basically, the SSS provides for a replacement
  of income lost on account of the
  aforementioned contingencies. This covers a
  private employee, whether permanent,
  temporary or provisional; a household helper
  earning at least P1,000 a month subject to
  compulsory coverage starting Sept. 1, 1993.
OVERVIEW
 OF LABOR
RELATIONS
  IN THE
PHILIPPINES
SOURCES OF LABOR RIGHTS
  1. Constitution
  2. Labor Code and its
     Implementing Rules and
     Regulations
  3. Civil Code of the Philippines
  4. Special Laws/Orders
      a. Wage Order
      b. Productivity Incentives Act
      c. Retirement
      d. Paternity
      e. Sexual Harassment
SOURCES OF LABOR RIGHTS
       f. Prohibition on Discrimination Act
       g. Child Abuse, Exploitation and
          Discrimination Act
       h. Solo Parents’ Welfare Act
       i. Others

  5. Employment Contracts
  6. Company Personnel Policy (CPP)
  7. Company Rules and Regulations
     (CRR)
  8. Collective Bargaining Agreement
     (CBA)
RELEVANT PROVISIONS OF THE
           CONSTITUTION
ARTICLE II, SECTION 18
 –     The State:
       Affirms Labor as a Primary Social
         Economic Force;
       Shall Protect the Rights and Promote the
         Welfare of Workers
 –     The Workers:
       Shall be entitled to security of tenure,
         humane conditions of work, and living
         wage
       Shall participate in policy and decision-
         making processes affecting their rights and
         benefits as may be provided by law.
ARTICLE XIII, SECTION 3
–    The State:
     Shall afford full protection to labor, local and
       overseas, organized and unorganized;
     Shall promote full employment and equality of
       employment opportunities for all;
     shall guarantee the rights of workers to:
        Self-organization, collective bargaining and
          negotiations
        Peaceful concerted activities, including the
          right to strike in accordance with law.
     Shall promote principle of shared
       responsibility between workers and employers
State Policies on Labor Relations

Article 211, Labor Code
   Primacy of collective bargaining
   Provision of an adequate administrative
    machinery for the expeditious settlement
    of labor or industrial disputes
   Ensuring a stable but dynamic and just
    industrial peace
   Ensuring the participation of workers in
    decision and policy-making processes
    affecting their rights, duties and welfare
MANAGEMENT
            PREROGATIVES
1.   PREROGATIVE TO REGULATE ALL ASPECTS OF
     EMPLOYMENT ACCORDING TO ITS DISCRETION AND
     JUDGMENT.
2.   MANAGEMENT CANNOT BE DEPRIVED OF ITS
     PREROGATIVE TO DISCIPLINE ITS EMPLOYEES.
3.   MANAGEMENT PREROGATIVE TO TRANSFER OR
     REASSIGN.
4.   SECURITY OF TENURE DOES NOT MEAN PERMANENCY
     IN ONE’S POSITION.
5.   MANAGEMENT PREROGATIVE TO DOWNSIZE,
     RIGHTSIZE OR CLOSE OPERATIONS.
6.   MANAGEMENT PREROGATIVES ARE NOT ABSOLUTE.
7.   MANAGEMENT PREROGATIVES SHOULD BE EXERCISED
     IN GOOD FAITH.
Statutory Right   Constitutional Right




 Management           Security of
 Prerogative           Tenure

   Right to             Right to
   Property               Life
BILL OF RIGHTS
[Article III, Section I, Constitution]

  “No person shall be deprived of
  life, liberty, or property without
  due process of law, nor shall any
      person be denied the equal
        protection of the laws.”
SOCIAL JUSTICE & HUMAN
         RIGHTS
        Article XIII, Section 3
              Constitution


  “The State shall afford full
  protection to labor, local and
     overseas, organized and
  unorganized and promote full
   employment and equality of
employment opportunities for all.”
RIGHTS - are those which an
 individual has a rightful claim as a
 person I relation to his/her workplace
 by law.

PRIVILEGES – are those benefits given
 by the company to a worker and
 which may be taken away at any time.
 However, it should be emphasized
 that once those privileges are
 incorporated in the contract, they
 automatically become rights of the
 worker.
CLASSIFICATION OF RIGHTS
INDIVIDUAL RIGHTS - are rights which
  are inherent as a person in relation to his
  workplace. These rights exist independently
  of any worker’s organization.
COLLECTIVE RIGHTS – pertains to rights
  exercised by employees as a group including
  the right to form unions, bargain
  collectively with management and to engage
  in collective action or concerted activities
  within the limits prescribed by law and to
  participate in decision-making processes.
  These are in addition to the worker’s
  individual rights.
BASIC INDIVIDUAL RIGHTS
     in accordance to the Labor Code
1. The right to join or not to join
   unions/organizations.
2. Right to Security of Tenure
3. Right to just and humane Conditions of Work.
     Right to rest.
     Right to overtime pay for work in excess of
     eight (8) hours
     Right to a meal period (one (1) hour.
     Right to rest day premium.
     Right to holiday pay and premium.
4. Right to Service Incentive Leave
BASIC INDIVIDUAL RIGHTS
 in accordance to the Labor Code
5.    Right to statutory minimum wage with COLA
      integration.
6.    Right to 13th Month Pay.
7.    Right to Service Charge
        85% for employees
        15% for management
8.    Right to Night Shift Differential.
9.    Right to protection of wages.
10.   Right of labor to its just share in the fruits of
      production.
11.   Right to Maternity and Paternity Leave
12.   Right to certain facilities.
Legal Framework of Labor
  Relations In the Philippines
                          I          II      III
                      Workers’      Law/ Management
                       Rights       CBA Prerogatives

Workers’ Rights              Law/CBA              Management Prerogatives
  1. Security of Tenure      A. Compensation         1. Hire
  2. Self Organization       B. Benefits             2. Fire
  3. Collective Bargaining   C. Labor Relations      3. Transfer
  4. Just and Humane            a. Grievance         4. Promote/Demote
     Conditions of Work         b. Dialogue          5. Lay Off
  5. Strikes/Concerted          c. Strike            6. Lay Down Policies
     Actions                    d. Voluntary         7. Discipline
  6. Participation in             Arbitration        8. Working Hours
     Decision Making         D. Employment/          9. Working
  7. Just Share in the           Termination of         Procedures
     Fruits of Production        Employment
  8. Labor Standards
  9. CBA Rights
Objectives of CPP and
              CRR

1.   To ensure that the people in the
     company undertake their tasks
     as effectively as possible.

2.   To promote efficiency, well-
     being and well-disciplined
     conduct and behavior of the
     employees.
COMPANY POLICIES
Two of the most elastic terms in the vocabulary
  of industry are ‘COMPANY POLICY’ and
  ‘CORPORATE OBJECTIVE’. The first is often
  a cloak to hide the behind; and, the second is a
  managerial haven for generalities.

POLICY is merely the outgrowth of practice. In
  any operation, there is a customary way of
  doing things. This is what we call the practice.
  When the performance of a single task is
  standardized, a method is established. A series
  of interrelated steps performed in sequence
  becomes a procedure. While a system is a
  network of related procedures. All of these
  activities are accomplished within the
  framework of COMPANY POLICY . Whether
  written or unwritten.
Company Policies
• A general plan of action and/or a set of rules by
which business corporations are managed, directed
and controlled.

• A structure which specifies the distribution of
rights    and    responsibilities   among   the   different
participants in the corporation.


         •Shareholders          • Other Stakeholders
         •Board of Directors       • Customers/Dealers
         •Officers                 • Suppliers/Contractors
         •Employees                • Regulators/Government
                                   • Community
Company Personnel Policies
          (CPP)
 Company   Personnel Policies:
  guiding principles stated in broad,
  long-range terms that express the
  philosophy or beliefs of an
  organization’s top authority
  regarding personnel matters. The
  usual source of grievances are
  rules and regulations governing
  disciplinary actions.
San Miguel Corp. v. NLRC, G.R. No. 108001, 15 March
1996, 225 SCRA 133
Areas Normally Covered by the
              CPP
1.   General Provisions:
        a. Personnel Philosophy
        b. Administration and application of Policies
2.   Supervisory Role
3.   Recruitment and Selection
4.   Employment
5.   Placements, transfers, details, temporary
     assignments.
6.   Training and Development
7.   Employee benefits and services
Areas Normally Covered by the
              CPP

8.    Employee conduct and discipline
9.    Attendance and time keeping
10.   Leaves
11.   Performance standards and performance
      evaluation
12.   Complaints and grievances
13.   Retirement and separation
14.   Others
Company Rules & Regulations
              (CRR)
   Rules are more specific guides than the
    main policy itself and, as such, specify
    the means for implementing them;
    usually, with penalty provisions.
   They provide uniform methods in the
    application of the policy.
   Provide guidelines to the supervisor in
    making decisions or action plans on
    certain personnel problems within
    reasonable limits.
   Provide guidelines of compliance by
    company personnel.
Why do we need CRR?
1.   To give life and direction to the program of
     activities covering the needs of the
     organization and its human resources.
2.   To protect the rights of all personnel.
3.   To provide uniformity and consistency in the
     application of policies. (consistency and
     fairness of decision in recurring problems)
4.   To maintain organized effort in preventing
     confusion and delay in avoiding injustice to
     any employee. (serves as standards of
     performance and provides consistency in
     the treatment of employees)
Characteristics of a Good CRR

1.   Provides in clear terms the expected
     norms of behavior by employees and
     reasonable and appropriate penalties
     for violation.
2.   Following them must make a difference
     to the organization.
3.   Easy to enforce and easier to
     understand.
4.   Reasonable and necessary.
5.   Known and communicated to all.
Characteristics of a Good CRR

6.   Provides for due process – “Day in
     Court” principle as well as fair and
     objective investigation.
7.   Consistent and non-discriminatory in
     its application.
8.   Provide for increasingly serious steps
     if the problem is not resolved.
9.   Must result in the employee’s changing
     behavior to become a good performer.
Expectations in the implementation,
interpretation and enforcement of the
                  CRR

 1.   Grievances/complaints
 2.   Discipline actions
      o   Verbal warning
      o   Written warning
      o   Suspension
      o   Termination
How are CPPs and CRRs announced
        or made known?

 Employee   Handbooks
 Company    Publications
 Memoranda    or Circulars
 Company    Bulletin Boards
 Meetings   or Conferences
LAW ON
TERMINATION
NO DISMISSAL EXCEPT FOR A
  JUST AND AUTHORIZED
CAUSES, AFTER OBSERVANCE
     OF DUE PROCESS
LAWFUL GROUNDS FOR
TERMINATION
1. The so-called Just Causes under Article
     282 of the Labor Code.
2.   The Authorized Causes as enumerated in
     Articles 283, 284 and 287 of the Labor
     Code.
3.   Violation of Union Security Clauses in the
     Collective Bargaining Agreement (CBA).
4.   Those arising from the nature of
     employment.
Article 282 – Labor Code
         JUST CAUSES FOR
          TERMINATION
1. Serious misconduct or willful disobedience by
     the employee of the lawful orders of his
     employer or representative in connection with
     his work;
2.   Gross and habitual neglect by the employee of
     his duties;
3.   Fraud or willful breach by the employee of the
     trust reposed in him by his employer or duly
     authorized representative;
Article 282 – Labor Code
       JUST CAUSES FOR
        TERMINATION
4. Commission of a crime or offense of
   the employee against the person of
   his employer or any immediate
   member of his family or his duly
   authorized representative;
5. Other causes analogous to the
   foregoing.
The separation from work of an
 employee for a just cause does not
  entitle him to the termination pay
provided in the Labor Code. Without
   prejudice, however, to whatever
  rights, benefits and privileges he
    may have under the applicable
  individual or collective agreement
    with the employer or voluntary
          employer practice.
   (Sec. 7, Rule I, Book IV, Rules
    Implementing the Labor Code)
AUTHORIZED CAUSES FOR
    TERMINATION
     (Articles 283, 284, & 287)
1. Installation of labor-saving devices or
   redundancy.
2. Retrenchment to prevent losses.
3. Closure or cessation of operation.
       (Article 283, Labor Code)
4. Disease or medical termination.
       (Article 284, Labor Code)
5. Retirement (Article 287, Labor Code)
Termination due to the above
causes entitles the employees to
TERMINATION PAY, as follows:

No. 1 - At least one (1) month pay for
every year of service.

No. 2, 3 & 4 - At least one (1) month
pay or one-half (1/2) month for every
year of service, whichever is higher
DUE PROCESS IN TERMINATION
• Notice to Explain
 a) in writing
 b) with specific charge or offense
 c) must be received by the employee. If
 employee is not available to receive, it must
 be sent to the employee’s last known address.

• Notice to dismiss must be in writing
 and sent to the employee’s last known
 address.
Decision of reinstatement on illegal
   dismissals by Labor Arbiter or
       Voluntary Arbitrator is
  immediately executory, pending
                 appeal.
This does not apply to payment of
   backwages, damages or other
  money claims as a result of the
         illegal termination.
Pending investigation, employee can be
put under preventive suspension,
provided:
a) Continued employment poses serious and
     imminent threat to life or property of the
     employer or of his co-workers;
b)   Suspension must not be longer than thirty
     (30) days;
c)   After 30 days, while investigation is still
     pending:
         -actual physical reinstatement to former or
     substantially equivalent position; or
          -payroll reinstatement
DISMISSALS based on Union Security
Clauses:

• Elements:
        - CBA provision must be specific
        - Bargaining union must demand for it
        - Due process must be observed
•   Does not apply to:
        - Non-union members in the bargaining
    unit, but are members of another union
        - During the freedom period
RULES & REGULATIONS ON
DISCIPLNE:

• Rules and Regulations must be spelled
  out in detail the offenses as broadly
  defined by law. It should be an
  improvement of the law in favor of
  the workers.
• The Law shall be applied when no
  rules and regulations are being
  utilized.
For the Rules to be valid, the
following Principles shall be applied:


• It must be known to all the
  employees.
• It must be    reasonable and not
  oppressive.
• It must be    uniform in application.
• It must be    progressive in application
DELAYED
 IMPLEMENTATION OF
THE PENALTIES, ERODES
 THE CREDIBILITY AND
   VALIDITY OF THE
       PENALTY
THANK
   YOU
VERY MUCH!

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Labor laws governing cooperatives

  • 1. Labor legislation is divided broadly into:  LABOR STANDARDS – refers to the minimum terms and conditions of employment which employees are legally entitled to and employers must comply with.  LABOR RELATIONS – refers to the interactions between employer and employees or their representatives and the mechanism by which the employment standards are negotiated, adjusted and enforced.  Books I to IV of the Labor Code deal with Standards  Books V to VII deal with Relations.
  • 2. Social Legislation are laws which provide social security benefits through: 1. Income substitutes in case they suffer contingencies resulting in temporary or permanent loss of earning capacity; 2. Rehabilitation assistance for work-related disability 3. Financial assistance or allowance for death or sickness 4. Old age pensions in case of retirement 5. Credit access for social needs
  • 3. Social Security benefits are sourced from a common fund sustained by contributions both from employers and employees. These are: 1. The EMPLOYEES COMPENSATION PROGRAM, which provides employees and dependents with tax-exempt income and medical benefits in case of work-connected disability or death; 2. The SOCIAL SECURITY PROGRAM, which provides tax-exempt benefits for employees and their families in case of disability, sickness, old age or death; 3. The HOUSING PROGRAM, which provides employees who are members of SSS and PAGIBIG PROGRAM with housing loans.
  • 4. Also a part of Social Legislation is the RETIREMENT LAW, which provides retirement benefits equivalent to 22.5 days salary for every year of service for optional retirement at 60 under R.A. 7641 or under applicable agreement or for compulsory retirement at age 65. For underground mine employees, optional retirement at 50 under R.A. 7641 as amended by R.A. 8558; compulsory at 60.
  • 6. 1. MINIMUM WAGE REPUBLIC ACT No. 6727 (also known as the “Wage Rationalization Act”) mandates the fixing of the statutory minimum wages applicable to different industrial sectors, namely, Non-Agricultural, Agricultural Plantation and Non-Plantation, Cottage/Handicraft, and Retail/Service, depending on the number of workers or capitalization or annual gross sales in some sectors.
  • 7. The said law rationalized wage determination by establishing the mechanism and proper standards through the creation of Regional Tripartite Wages and Productivity Boards authorized to determine the wage rates in the different regions based on established criteria. Existing Regional Wage Orders prescribe the daily minimum basic wage rates per industry per locality within the region, in some instances depending on the number of workers and the capitalization of enterprises. The Wage Orders likewise provide the basis and procedure for exemption from compliance. Some Wage Orders grant allowances instead of wage increases.
  • 8. A. Coverage The wage increases prescribed under Wage Orders apply to all private sector workers and employees regardless of their position, designation or status and irrespective of the method by which their wages are paid, except the following: 1. Househelpers, including family drivers and workers in the personal service of another whose conditions of work are prescribed in R.A. 7655. 2. Workers and employees in: a) retail/service establishments regularly employing not more than ten (10); b) of distressed establishments; and c) of other firms or employers as determined by the Board, when specifically exempted from compliance for a period fixed by the Board. 3. Workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority issued by the Office of the Municipal or City Treasurer.
  • 9. 2. HOLIDAY PAY (Art. 94) Holiday Pay refers to the payment of the regular daily wage for any unworked regular holiday. COVERAGE: This benefit applies to all employees except: 1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws. 2. Those of retail and service establishments regularly employing less than ten (10) workers.
  • 10. HOLIDAY PAY - Coverage cont….. 3. Househelpers and persons in the personal service of another. 4. Managerial employees, if they meet all the following conditions: 4.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereat. 4.2 They customarily and regularly direct the work of two or more employee therein. 4.3 They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing and promotion or any other change of status of other employees are given particular weight.
  • 11. HOLIDAY PAY - Coverage cont….. 5. Officers or members of a managerial staff, if they perform the ff. duties and responsibilities: 5.1 Primarily perform work directly related to management policies of their employer; 5.2 Customarily and regularly exercise discretion and independent judgment. 5.3. (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he/she is employed; (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience or knowledge; or (c) execute, under general supervision, special assignments and tasks; and 5.4 Do not devote more than twenty percent (20%) of their hours worked in workweek to activities which are not directly and closely related to the performance of the work described in par. 5.1, 5.2, and 5.3 above.
  • 12. HOLIDAY PAY - Coverage cont….. 6. Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.
  • 13. REGULAR HOLIDAYS Every employee covered by the Holiday Pay Rule is entitled to his/her daily basic wage and ECOLA. This means that the employee is entitled to at least 100% of his/her basic wage even if he/she did not report for work. Provided he/she is present or is on leave of absence with pay on the work day immediately preceding the holiday. When a Regular Holiday falls on a Sunday, the following Monday shall not be a holiday, unless a proclamation is issued declaring it a special day.
  • 14. There are eleven (11) Regular Holidays in a year under Executive Order No. 203, as amended by Republic Act 9177, namely: New Year’s Day January 1 Maundy Thursday Movable date Good Friday Movable date Araw ng Kagitingan April 9 Labor Day May 1 Independence Day June 12 National Heroes Day Last Sunday of August Eidl Fitr Movable date Bonifacio Day November 30 Christmas Day December 25 Rizal Day December 30
  • 15. MUSLIM HOLIDAYS Presidential Decree 1083  Amun Jadid (New Year), which falls on the first day of the lunar month of Muharram;  Maulid-un-Nabi (Birthday of the Prophet Muhammad), which falls on the twelfth day of the third lunar month of Rabi-ul-Awwal;  Lailatul Isra Wal Miraj (Nocturnal Journey and Ascension of the Prophet Muhammad), which falls on the twenty-seventh day of the seventh lunar month of Rajab;  Id-ul-Adha (Hari Raha Haji), which falls on the tenth day of the twelfth lunar month of Dhu’l-Hijja.  The dates of Muslim Holidays shall be determined by the Office of the President of the Philippines in accordance with the Muslim Lunar Calendar (Hijra).
  • 16. PRESIDENTIAL PROCLAMATION NO. 1198 (26 October 1973) “All private corporations, offices, agencies and entities or establishments operating within the provinces and cities enumerated herein shall observe the legal holidays as proclaimed, provided, however, that all Muslim employees working outside of the Muslim provinces and cities shall be excused from work during the observance of the Muslim Holidays as recognized by law without diminution or loss of wages during the said period . . . .”
  • 17. 3. PREMIUM PAY (Articles 91-93 – Labor Code) PREMIUM PAY refers to the additional compensation for work performed within eight (8) hours on non- work days, such as rest days and special days. SPECIAL DAYS – Executive Order No. 203, as amended by R.A. 9256, lists down three (3) Special Days that shall be observed in the Philippines: Ninoy Aquino Day August 21 All Saints Day November 1 Last Day of the Year December 31
  • 18. 4. OVERTIME PAY (Article 87) OVERTIME PAY refers to the additional compensation for work performed beyond eight (8) hours a day. WORK DAY refers to any day which an employee is regularly required to work. HOURS OF WORK refer to all the time an employee renders actual work, or is required to be on duty or to be at a prescribed workplace. The normal hours of work in a day is 8 hours. This includes breaks or rest period of less than one hour, but excludes meal periods which shall not beless than one hour.
  • 19. OVERTIME PAY . . . Cont. An employee may not be compelled to work overtime except:  during war, emergencies, disasters or calamities;  when urgent repairs need to be undertaken;  when work is necessary to preserve perishable goods, avoid serious obstruction or prejudice to the employer’s business; or  take advantage of favorable weather conditions.
  • 20. OVERTIME PAY . . . Cont. An employee may not be compelled to work overtime except:  during war, emergencies, disasters or calamities;  when urgent repairs need to be undertaken;  when work is necessary to preserve perishable goods, avoid serious obstruction or prejudice to the employer’s business; or  take advantage of favorable weather conditions.
  • 21. 5. NIGHT SHIFT DIFFERENTIAL (Article 86) Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10pm and 6am.
  • 22. 6. SERVICE CHARGES (Article 96)  SHARING – All rank-and-file employees of employers collecting service charges are entitled to an equal share in the eighty-five percent (85%) of the total of such charges. The remaining fifteen percent (15%) of the charges may be retained by management to answer for losses and breakages and for distribution to managerial employees, at the discretion of the management in the latter case. Service Charges are collected by most hotels and some restaurants, night clubs, cocktail lounges, among others.
  • 23. 7. SERVICE INCENTIVE LEAVE (Article 95) Every employee who has rendered at least one (1) year of service is entitled to Service Incentive Leave (SIL) of five (5) days with pay. The phrase “one year of service” of the employee means service within twelve (12) months, whether continuous or broken, reckoned from the date the employee started working.
  • 24. 8. MATERNITY LEAVE (R.A. 1161, as amended by R.A. 8282) This benefit applies to all female employees, whether married or unmarried and is entitled to sixty (60) days leave benefit in case of normal delivery or miscarriage and seventy-eight (78) days in case of Caesarian section delivery with benefits equivalent to one hundred percent (100%) of the average daily salary credit of the employee as defined under the law. The female employee should be an SSS member employed at the time of her delivery and have paid at least three monthly contributions to the SSS within the twelve-month period immediately before the date of the contingency. This benefit is granted by the Social Security System in lieu of wages.
  • 25. 9. PATERNITY LEAVE (R.A. 8187) Paternity Leave is granted to all married male employees in the private sector, regardless of their employment status (e.g. probationary, regular, contractual, project basis). The purpose of this benefit is to allow the husband to lend support to his wife during her period of recovery and/or in nursing her newborn child. Government employees are also entitled to the paternity leave benefit. They shall be governed by the Civil Service rules. The Paternity Leave shall be for seven (7) calendar days, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his pay shall not be less than the mandated minimum wage. Said benefit shall apply to the first four(4) deliveries of the employee’s lawful wife with whom he is cohabiting.
  • 26. 11. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND THEIR CHILDREN (R.A. 9262) “Violence against women and their children” as used in Republic Act 9262 (the “Anti-Violence Against Women and Their Children Act of 2004”), refers to any act or a series of acts committed by any person against a woman who is his wife, former wife, or against a woman with whom the person has or had a sexual or dating relationship, or with whom he has a common child, or against her child whether legitimate or illegitimate, within or without the family abode, which will result in or is likely to result in physical, sexual, psychological harm or suffering, or economic abuse including threats of such acts, battery assault, coercion, harassment or arbitrary deprivation of liberty.
  • 27. 10. PARENTAL LEAVE FOR SOLO PARENTS (R.A. 8972) “PARENTAL LEAVE” shall mean leave benefits granted to a solo parent to enable him/her to perform duties and responsibilities where physical presence is required. This benefit is granted to any solo parent or individual who is left alone with the responsibility of parenthood. This is in addition to leave privileges under existing laws and shall be for seven (7) work days every year, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his/her pay shall not be less than the mandated minimum wage.
  • 28. This benefit is in addition to other paid leaves under existing labor laws, company policies, and/or collective bargaining agreements. The qualified victim-employees shall be entitled to a leave of up to ten (10) days with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board., if any. Said leave shall be extended when the need arises, as specified in the protection order issued by the barangay or the court. The leave benefit shall cover the days that the woman employee has to attend to medical and legal concerns.
  • 29. 12. THIRTEENTH-MONTH PAY (Presidential Decree 851) All employers are required to pay their rank-and-file employees Thirteenth-Month Pay, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one (1) month during a calendar year. The Thirteenth-Month Pay should be given to the employees not later than December 24 every year. Said pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee in a calendar year. The mandated pay need not be credited as part of the regular wage of employees for purposes of determining overtime and premium payments, fringe benefits, as well as contributions to the State Insurance Funds, Social Security System, Medicare and private retirement plans.
  • 30. 13. SEPARATION PAY (Articles 283-84 Labor Code) Separation Pay is given to employees in instances covered by Articles 283 and 284 of the Labor Code . An employee’s entitlement to Separation Pay depends on the reason or ground for the termination of his/her services. An employee may be terminated for just cause and other similar causes as enumerated under Article 282 of the Labor Code and, generally, may not be entitled to Separation Pay. On the other hand, where the termination is for authorized causes, Separation Pay is due. Computation of Separation Pay shall be based on his/her latest salary rate.
  • 31. 14. RETIREMENT PAY (Article 287, as amended by RA 7641) Employees shall be retired upon reaching the age sixty (60) or more but not beyond sixty-five (65) years old. It provides retirement benefits equivalent to 22.5 days salary for every year of service, optional or compulsory. This benefit applies to all employees except: 1. government employees; 2. employees of retail, service and agricultural establishments/operations regularly employing not more than ten (10) employees.
  • 32. 15. BENEFITS UNDER THE EMPLOYEES’ COMPENSATION PROGRAM (Pres. Decree 626) The Employees’ Compensation Program (ECP) is a government program designed to provide a package of benefits for public and private sector employees and their dependents in the event of work-related contingencies such as sickness, injury, disability or death. This covers all workers in the formal sector. Coverage in the ECP starts on the first day of employment. Employees in the private sector who are registered members of the SSS, except self-employed workers and voluntary members of the SSS.
  • 33. 16. PHILHEALTH BENEFITS (R.A. 7875, as amended by R.A. 9241) The National Health Insurance Program (NHIP), formerly known as Medicare, is a health insurance program for SSS members and their dependents whereby the health insurance subsidize the sick who may find themselves in need of financial assistance when they get hospitalized. The Philippine Health Insurance Corporation or PhilHealth is the mandated administrator of the Medicare program under the National Health Insurance Act of 1995 (R.A. 7875)
  • 34. 17. SOCIAL SECURITY BENEFITS (RA 1161, as amended by RA 8282) The Social Security Program provides a package of benefits in the event of death, disability, sickness, maternity and old age. Basically, the SSS provides for a replacement of income lost on account of the aforementioned contingencies. This covers a private employee, whether permanent, temporary or provisional; a household helper earning at least P1,000 a month subject to compulsory coverage starting Sept. 1, 1993.
  • 35. OVERVIEW OF LABOR RELATIONS IN THE PHILIPPINES
  • 36. SOURCES OF LABOR RIGHTS 1. Constitution 2. Labor Code and its Implementing Rules and Regulations 3. Civil Code of the Philippines 4. Special Laws/Orders a. Wage Order b. Productivity Incentives Act c. Retirement d. Paternity e. Sexual Harassment
  • 37. SOURCES OF LABOR RIGHTS f. Prohibition on Discrimination Act g. Child Abuse, Exploitation and Discrimination Act h. Solo Parents’ Welfare Act i. Others 5. Employment Contracts 6. Company Personnel Policy (CPP) 7. Company Rules and Regulations (CRR) 8. Collective Bargaining Agreement (CBA)
  • 38. RELEVANT PROVISIONS OF THE CONSTITUTION ARTICLE II, SECTION 18 – The State:  Affirms Labor as a Primary Social Economic Force;  Shall Protect the Rights and Promote the Welfare of Workers – The Workers:  Shall be entitled to security of tenure, humane conditions of work, and living wage  Shall participate in policy and decision- making processes affecting their rights and benefits as may be provided by law.
  • 39. ARTICLE XIII, SECTION 3 – The State:  Shall afford full protection to labor, local and overseas, organized and unorganized;  Shall promote full employment and equality of employment opportunities for all;  shall guarantee the rights of workers to:  Self-organization, collective bargaining and negotiations  Peaceful concerted activities, including the right to strike in accordance with law.  Shall promote principle of shared responsibility between workers and employers
  • 40. State Policies on Labor Relations Article 211, Labor Code  Primacy of collective bargaining  Provision of an adequate administrative machinery for the expeditious settlement of labor or industrial disputes  Ensuring a stable but dynamic and just industrial peace  Ensuring the participation of workers in decision and policy-making processes affecting their rights, duties and welfare
  • 41. MANAGEMENT PREROGATIVES 1. PREROGATIVE TO REGULATE ALL ASPECTS OF EMPLOYMENT ACCORDING TO ITS DISCRETION AND JUDGMENT. 2. MANAGEMENT CANNOT BE DEPRIVED OF ITS PREROGATIVE TO DISCIPLINE ITS EMPLOYEES. 3. MANAGEMENT PREROGATIVE TO TRANSFER OR REASSIGN. 4. SECURITY OF TENURE DOES NOT MEAN PERMANENCY IN ONE’S POSITION. 5. MANAGEMENT PREROGATIVE TO DOWNSIZE, RIGHTSIZE OR CLOSE OPERATIONS. 6. MANAGEMENT PREROGATIVES ARE NOT ABSOLUTE. 7. MANAGEMENT PREROGATIVES SHOULD BE EXERCISED IN GOOD FAITH.
  • 42. Statutory Right Constitutional Right Management Security of Prerogative Tenure Right to Right to Property Life
  • 43. BILL OF RIGHTS [Article III, Section I, Constitution] “No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.”
  • 44. SOCIAL JUSTICE & HUMAN RIGHTS Article XIII, Section 3 Constitution “The State shall afford full protection to labor, local and overseas, organized and unorganized and promote full employment and equality of employment opportunities for all.”
  • 45. RIGHTS - are those which an individual has a rightful claim as a person I relation to his/her workplace by law. PRIVILEGES – are those benefits given by the company to a worker and which may be taken away at any time. However, it should be emphasized that once those privileges are incorporated in the contract, they automatically become rights of the worker.
  • 46. CLASSIFICATION OF RIGHTS INDIVIDUAL RIGHTS - are rights which are inherent as a person in relation to his workplace. These rights exist independently of any worker’s organization. COLLECTIVE RIGHTS – pertains to rights exercised by employees as a group including the right to form unions, bargain collectively with management and to engage in collective action or concerted activities within the limits prescribed by law and to participate in decision-making processes. These are in addition to the worker’s individual rights.
  • 47. BASIC INDIVIDUAL RIGHTS in accordance to the Labor Code 1. The right to join or not to join unions/organizations. 2. Right to Security of Tenure 3. Right to just and humane Conditions of Work. Right to rest. Right to overtime pay for work in excess of eight (8) hours Right to a meal period (one (1) hour. Right to rest day premium. Right to holiday pay and premium. 4. Right to Service Incentive Leave
  • 48. BASIC INDIVIDUAL RIGHTS in accordance to the Labor Code 5. Right to statutory minimum wage with COLA integration. 6. Right to 13th Month Pay. 7. Right to Service Charge 85% for employees 15% for management 8. Right to Night Shift Differential. 9. Right to protection of wages. 10. Right of labor to its just share in the fruits of production. 11. Right to Maternity and Paternity Leave 12. Right to certain facilities.
  • 49. Legal Framework of Labor Relations In the Philippines I II III Workers’ Law/ Management Rights CBA Prerogatives Workers’ Rights Law/CBA Management Prerogatives 1. Security of Tenure A. Compensation 1. Hire 2. Self Organization B. Benefits 2. Fire 3. Collective Bargaining C. Labor Relations 3. Transfer 4. Just and Humane a. Grievance 4. Promote/Demote Conditions of Work b. Dialogue 5. Lay Off 5. Strikes/Concerted c. Strike 6. Lay Down Policies Actions d. Voluntary 7. Discipline 6. Participation in Arbitration 8. Working Hours Decision Making D. Employment/ 9. Working 7. Just Share in the Termination of Procedures Fruits of Production Employment 8. Labor Standards 9. CBA Rights
  • 50. Objectives of CPP and CRR 1. To ensure that the people in the company undertake their tasks as effectively as possible. 2. To promote efficiency, well- being and well-disciplined conduct and behavior of the employees.
  • 51. COMPANY POLICIES Two of the most elastic terms in the vocabulary of industry are ‘COMPANY POLICY’ and ‘CORPORATE OBJECTIVE’. The first is often a cloak to hide the behind; and, the second is a managerial haven for generalities. POLICY is merely the outgrowth of practice. In any operation, there is a customary way of doing things. This is what we call the practice. When the performance of a single task is standardized, a method is established. A series of interrelated steps performed in sequence becomes a procedure. While a system is a network of related procedures. All of these activities are accomplished within the framework of COMPANY POLICY . Whether written or unwritten.
  • 52. Company Policies • A general plan of action and/or a set of rules by which business corporations are managed, directed and controlled. • A structure which specifies the distribution of rights and responsibilities among the different participants in the corporation. •Shareholders • Other Stakeholders •Board of Directors • Customers/Dealers •Officers • Suppliers/Contractors •Employees • Regulators/Government • Community
  • 53. Company Personnel Policies (CPP)  Company Personnel Policies: guiding principles stated in broad, long-range terms that express the philosophy or beliefs of an organization’s top authority regarding personnel matters. The usual source of grievances are rules and regulations governing disciplinary actions. San Miguel Corp. v. NLRC, G.R. No. 108001, 15 March 1996, 225 SCRA 133
  • 54. Areas Normally Covered by the CPP 1. General Provisions: a. Personnel Philosophy b. Administration and application of Policies 2. Supervisory Role 3. Recruitment and Selection 4. Employment 5. Placements, transfers, details, temporary assignments. 6. Training and Development 7. Employee benefits and services
  • 55. Areas Normally Covered by the CPP 8. Employee conduct and discipline 9. Attendance and time keeping 10. Leaves 11. Performance standards and performance evaluation 12. Complaints and grievances 13. Retirement and separation 14. Others
  • 56. Company Rules & Regulations (CRR)  Rules are more specific guides than the main policy itself and, as such, specify the means for implementing them; usually, with penalty provisions.  They provide uniform methods in the application of the policy.  Provide guidelines to the supervisor in making decisions or action plans on certain personnel problems within reasonable limits.  Provide guidelines of compliance by company personnel.
  • 57. Why do we need CRR? 1. To give life and direction to the program of activities covering the needs of the organization and its human resources. 2. To protect the rights of all personnel. 3. To provide uniformity and consistency in the application of policies. (consistency and fairness of decision in recurring problems) 4. To maintain organized effort in preventing confusion and delay in avoiding injustice to any employee. (serves as standards of performance and provides consistency in the treatment of employees)
  • 58. Characteristics of a Good CRR 1. Provides in clear terms the expected norms of behavior by employees and reasonable and appropriate penalties for violation. 2. Following them must make a difference to the organization. 3. Easy to enforce and easier to understand. 4. Reasonable and necessary. 5. Known and communicated to all.
  • 59. Characteristics of a Good CRR 6. Provides for due process – “Day in Court” principle as well as fair and objective investigation. 7. Consistent and non-discriminatory in its application. 8. Provide for increasingly serious steps if the problem is not resolved. 9. Must result in the employee’s changing behavior to become a good performer.
  • 60. Expectations in the implementation, interpretation and enforcement of the CRR 1. Grievances/complaints 2. Discipline actions o Verbal warning o Written warning o Suspension o Termination
  • 61. How are CPPs and CRRs announced or made known?  Employee Handbooks  Company Publications  Memoranda or Circulars  Company Bulletin Boards  Meetings or Conferences
  • 63. NO DISMISSAL EXCEPT FOR A JUST AND AUTHORIZED CAUSES, AFTER OBSERVANCE OF DUE PROCESS
  • 64. LAWFUL GROUNDS FOR TERMINATION 1. The so-called Just Causes under Article 282 of the Labor Code. 2. The Authorized Causes as enumerated in Articles 283, 284 and 287 of the Labor Code. 3. Violation of Union Security Clauses in the Collective Bargaining Agreement (CBA). 4. Those arising from the nature of employment.
  • 65. Article 282 – Labor Code JUST CAUSES FOR TERMINATION 1. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; 2. Gross and habitual neglect by the employee of his duties; 3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
  • 66. Article 282 – Labor Code JUST CAUSES FOR TERMINATION 4. Commission of a crime or offense of the employee against the person of his employer or any immediate member of his family or his duly authorized representative; 5. Other causes analogous to the foregoing.
  • 67. The separation from work of an employee for a just cause does not entitle him to the termination pay provided in the Labor Code. Without prejudice, however, to whatever rights, benefits and privileges he may have under the applicable individual or collective agreement with the employer or voluntary employer practice. (Sec. 7, Rule I, Book IV, Rules Implementing the Labor Code)
  • 68. AUTHORIZED CAUSES FOR TERMINATION (Articles 283, 284, & 287) 1. Installation of labor-saving devices or redundancy. 2. Retrenchment to prevent losses. 3. Closure or cessation of operation. (Article 283, Labor Code) 4. Disease or medical termination. (Article 284, Labor Code) 5. Retirement (Article 287, Labor Code)
  • 69. Termination due to the above causes entitles the employees to TERMINATION PAY, as follows: No. 1 - At least one (1) month pay for every year of service. No. 2, 3 & 4 - At least one (1) month pay or one-half (1/2) month for every year of service, whichever is higher
  • 70. DUE PROCESS IN TERMINATION • Notice to Explain a) in writing b) with specific charge or offense c) must be received by the employee. If employee is not available to receive, it must be sent to the employee’s last known address. • Notice to dismiss must be in writing and sent to the employee’s last known address.
  • 71. Decision of reinstatement on illegal dismissals by Labor Arbiter or Voluntary Arbitrator is immediately executory, pending appeal. This does not apply to payment of backwages, damages or other money claims as a result of the illegal termination.
  • 72. Pending investigation, employee can be put under preventive suspension, provided: a) Continued employment poses serious and imminent threat to life or property of the employer or of his co-workers; b) Suspension must not be longer than thirty (30) days; c) After 30 days, while investigation is still pending: -actual physical reinstatement to former or substantially equivalent position; or -payroll reinstatement
  • 73. DISMISSALS based on Union Security Clauses: • Elements: - CBA provision must be specific - Bargaining union must demand for it - Due process must be observed • Does not apply to: - Non-union members in the bargaining unit, but are members of another union - During the freedom period
  • 74. RULES & REGULATIONS ON DISCIPLNE: • Rules and Regulations must be spelled out in detail the offenses as broadly defined by law. It should be an improvement of the law in favor of the workers. • The Law shall be applied when no rules and regulations are being utilized.
  • 75. For the Rules to be valid, the following Principles shall be applied: • It must be known to all the employees. • It must be reasonable and not oppressive. • It must be uniform in application. • It must be progressive in application
  • 76. DELAYED IMPLEMENTATION OF THE PENALTIES, ERODES THE CREDIBILITY AND VALIDITY OF THE PENALTY
  • 77. THANK YOU VERY MUCH!