Memory Aid - LABOR
Memory Aid - LABOR
PRELIMINARY TITLE
CHAPTER I GENERAL PROVISIONS
ART 1. NAME OF DECREE LABOR LEGISLATION - Consists of
statutes, regulations and jurisprudence governing the relations between capital and labor, by providing for certain standards of terms and conditions of employment or providing a legal framework within which these terms and conditions and the employment relationship may be negotiated, adjusted and administered. It is divided into labor standards and labor relations. LABOR STANDARDS - Are the minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost-of-living allowance, and other monetary and welfare benefits, including occupational safety, and health standards. LABOR RELATIONS LAW - defines the status, rights, and duties and the institutional mechanisms that govern the individual and collective interactions of employers, employees or their representatives. - The law which seeks to stabilize the relation between employer and employee, to forestall and thresh out their differences through the encouragement of collective bargaining and the settlement of labor disputes through conciliation, mediation, and arbitration. 7.Right to Participate in Policy & Decision-Making Processes affecting their rights and benefits as may be provided by law
RELATED LAWS:
1. CIVIL CODE: see Arts. 1700, 1701and 1703 2. REVISED PENAL CODE: Art. 289 3. OTHERS: SSS Law, GSIS Law, Agrarian Reform Law, the 13th month pay law, the Magna Carta for Public Health Workers, etc.
RATIONALE :
- The raison d etre of labor laws is the POLICE POWER of the State ART 3. DECLARATION OF BASIC
POLICY
The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, age or creed, and regulate the relations between workers and employers. The State shall assure the right of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work.
ART 4. CONSTRUCTION IN FAVOR OF LABOR CONSTRUCTION IN FAVOR OF LABOR CLAUSE -this is with a view to apply
the Code to the greater number of employees to enable them to avail of the benefits under the law (Abella vs. NLRC). The working mans welfare should be the primordial consideration. This rule is applicable if there is a doubt as to the meaning of the legal or contractual provision. If the provision is clear and unambiguous, it must be applied in accordance with its express terms. These laws should be interpreted with a view to the fact that they are remedial in nature, they are enacted to better the lot
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva, Joy Mejia, Howard Arzadon
and promote the welfare of the members of the laboring class. Reservation of essential attributes of sovereign power is read into contracts as a postulate of the legal order. Courts adopt a liberal approach that favors the exercise of labor rights. The mandate under Art. 4 is simply to resolve doubt, if any, in favor of labor. If there is no doubt in implementing and interpreting the law, labor will enjoy no built-in advantage and the law will have to be applied as it is.
ART 6. APPLICABILITY AGRICULTURAL OR FARM WORKER one employed in an agricultural or farm enterprise and assigned to perform tasks which are directly related to the agricultural activities of the employer, such as cultivation and tillage of the soil, dairying, growing and harvesting of any agricultural and horticultural commodities, the raising of livestock or poultry, and any activities performed by a farmer as an incident to or in conjunction with such farming operations. There may be in one employer both agricultural as well as industrial workers. PURPOSE of the provision: intended to encourage workers to seek employment in agricultural enterprises instead of migrating to already overcrowded urban areas to find work in industrial establishments
MANAGEMENT PREROGATIVE
Except as limited by special laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of employment, including: HIRING, WORK ASSIGNMENTS, WORKING METHODS, TIME PLACE AND MANNER OF WORK, TOOLS TO BE USED, PROCESSES TO BE FOLLOWED, SUPERVISION OF WORKERS, WORKING REGULATIONS, TRANSFER OF EMPLOYEES, WORK SUPERVISION, LAY-OFF OF WORKERS, AND DISCIPLINE, DISMISSAL AND RECALL OF WORKERS. (HW5T2PLSD)
- The LC applies to all workers, whether agricultural or non-agricultural, including employees in a government corporation incorporated under the Corporation Code.
TENANCY RELATIONSHIP
Thus, so long as management prerogatives are exercised in good faith for the advancement of the employers interest and not for the purpose of defeating or circumventing the rights of employees under special law or under valid agreements, it shall be upheld. ART 5. RULES AND REGULATIONS
- The rules and regulations issued by the DOLE shall become effective 15 days after announcement of their adoption in newspapers of general circulation.
- It is the landowner who is the lessor and the tenant the lessee of agricultural land
- The tenant derives his income from the agricultural produce or harvest
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva, Joy Mejia, Howard Arzadon
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WORKER -any member of the labor force, whether employed or unemployed RECRUITMENT AND PLACEMENT - any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not; PROVIDED, that any person or entity which, in any manner, offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement. (CEC-TUCP) (RCPA) -The number of persons dealt with is not an essential ingredient of the act of recruitment and placement of workers. The proviso merely creates the presumption.
ART 7-11
Share tenancy has been abolished placing in its stead leasehold system. Under Art. 8, the land covered by operation land transfer must be private agricultural land, tenanted, primarily devoted to rice and/or corn, and more than seven hectares in are. 5 hectares per landowner and 3 hectares per child provided the child is:
1. Is at least 15 years of age; and 2. Actually tilling the land or directly managing the farm
EXCEPTIONS:
those covered by homestead patents those covered by PD 27
EMANCIPATION PATENT - is the title issued to the tenant upon compliance with all the requirements of the government. It represents the full emancipation pf the tenant from the bondage of the soil.
DOCUMENTATION OF WORKERS:
1. Contract Processing workers hired thru the POEA shall be issued the individual employment contract and such other documents as may be necessary for travel 2. Passport Documentation 3. Visa Arrangement
BOOK ONE PRE-EMPLOYMENT TITLE I RECRUITMENT AND PLACEMENT OF WORKERS CHAPTER I GENERAL PROVISIONS
ART 13. DEFINITIONS
valid any agreement to receive less compensation than what the worker is entitled to recover. (MR Yard Crew Union vs. PNR)
2. 3. 4. 5. 6.
Claims for death and burial benefits involving seamen OCWs which the POEA has jurisdiction are not the same as the claims against the State Insurance Fund of the LC.
- The basis for the award of backwages is the parties employment contract, stipulating the wages and benefits. The fact that the employee has signed a satisfaction receipt does not result in waiver; the law does not consider as
7. 8.
ART 22. MANDATORY REMITTANCE OF FOREIGN EXCHANGE EARNINGS MANDATORY REMITTANCE REQUIREMENTS:
1. Seamen or mariners: 80% of the basic salary; 2. Workers for Filipino Contractors and Construction Companies: 70% of the basic salary; 3. Doctors, engineers, teachers, nurses, and other professionals whose employment contract provide for lodging facilities: same as #2 4. All other professionals without board and lodging: 50% of the basic salary; 5. Domestic and other service of workers; 50% of the basic salary.
program and their relatives within the 4th degree of consanguinity or affinity; or 6. Those whose license has been previously canceled or revoked.
ART 25. PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT AND PLACEMENT OF WORKERS QUALIFICATIONS FOR PARTICIPATION IN THE OVERSEAS EMPLOYMENT PROGRAM:
1. Filipino citizens, partnerships or corporations at least 75% of the authorized and voting capital stock of which is owned and controlled by Filipino citizens; 2. Minimum capitalization of 1M in case of single proprietorship or partnership and a minimum of 1M paid-up capital for corporations; 3. Those not otherwise disqualified by law or these guidelines to engage in the recruitment and placement of workers for overseas employment DISQUALIFICATIONS: 1. Travel agencies and sales agencies of airline companies; 2. Officers or members of the board of any corporation or members in a partnership engaged in the business of a travel agency; 3. Corporations and partnerships, when any of its officers, members of the board or partners, is also an officer, member of the board or partner of a corporation engaged in the business of a travel agency. 4. Persons, partnerships, or corporations which have derogatory records; 5. Persons employed in the Department of Labor or in other government agencies directly involved in overseas employment
12. Gunrunning or possession of deadly weapons; 13. Unjust refusal to depart for the worksite after all employment and travel documents have been duly approved by the appropriate government agency; and 14. Violation of the laws and sacred practices of the host country and unjustified breach of government approved employment contract by a worker.
MISCELLANEOUS PROVISIONS
ART 38. ILLEGAL RECRUITMENT (as per RA 8042 otherwise known as the Migrant Workers Act of 1995)
ILLEGAL RECRUITMENT - Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers and includes referring contract services, promising or advertising for employment abroad, whether for profit or not when undertaken by a non-licensee or non-holder of authority. PROVIDED that any such non-licensee or non-holder of authority who in any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. It shall likewise include the commission of prohibited acts whether committed by a non-licensee or non-holder of authority or a licensee or holder of authority.
O F S B W
CHAPTER III
Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment does not actually take place without the workers fault
THE QUALIFYING CIRCUMSTANCES THAT WOULD MAKE ILLEGAL RECRUITMENT AS A CRIME INVOLVING ECONOMIC SABOTAGE ARE :
When committed by a SYNDICATE i.e., if it is carried out by a group of three (3) or more persons conspiring and confederating with one another; or (a) When committed in a LARGE SCALE i.e., if it is committed against three (3) or more persons
- a non-resident alien worker and the employer shall bind themselves to train at least 2 Filipino understudies.
AGAINST
Section 2-A of the Anti-Dummy Law prohibits the employment of aliens in establishment or entities which have under their name or control a right, franchise, privilege, property or business the exercise or enjoyment of which property or business the exercise or enjoyment of which is expressly reserved by the Constitution or the laws to citizens of the Philippines or to corporations or associations at least 60% of the capital of which is owned by such citizens.
EXCEPTIONS PROHIBITION:
a. b.
TO
THE
ART. 38 ( c ) declared unconstitutional since only a judge may issue search warrant/ warrant of arrest. The Sec. Of Labor may only recommend not issue. However, Closure of establishments of illegal recruiters may still be ordered by Secretary of Labor, same being essentially administrative and regulatory in nature.(Salazar vs. Achacoso and Marquez)
where the Secretary of Justice specifically authorizes the employment of technical personnel; or where the aliens are elected members of the board of directors or governing body of corporations or association in proportion to their allowable participation in the capital of such entities.
PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall prescribe in five (5) years Provided, however, That illegal recruitment cases involving economic sabotage shall prescribe in twenty (20) years.
BOOK TWO
HUMAN RESOURCES DEVELOPMENT TITLE I NATIONAL MANPOWER DEVELOPMENT PROGRAM CHAPTER I NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLELENTATION
ART 45. DEFINITIONS
MANPOWER - that portion of the nations population which has actual or potential capability to contribute directly to the production of goods and services. ENTREPRENEURSHIP - training for selfemployment or assisting individual or small industries within the purview of this the LC.
binds himself to train the apprentice and the apprentice in turn accepts the terms of training ON-THE-JOB TRAINING the practical work experience through actual participation in productive activities given to or acquired by an apprentice HIGHLY TECHNICAL INDUSTRIES trade, business, enterprise, industry or other activity, which is engaged in the application of advanced technology
APPRENTICES
Only employers in highly technical industries may hire apprentices and only in apprenticeable occupations as determined by the Sec. Of Labor
Requisites APPRENTICESHIP
for
VALID
1. QUALIFICATIONS OF THE APPRENTICE 2. APPRENTICESHIP AGREEMENT DULY EXECUTED AND SIGNED PROVIDING FOR COMPENSATION NOT LESS THAN 75% OF THE APPLICABLE MINIMUM WAGE, EXCEPT ON-THE-JOB TRAINING (OJT) 3.APPRENTICESHIP PROGRAM DULY APPROVED BY DOLE 4. PERIOD OF APPRENTICESHIP SHALL NOT EXCEED 6 MONTHS.
learner as regular employee if he desires upon completion of learnership 4. In case of pretermination of the apprenticeship agreement, the worker is not considered as a regular employee 4. Learner is considered as a regular employee in case of pretermination of contract after 2 mos. of training and the dismissal is without fault of learner 5. Semi-skilled / industrial occupations
ART 72. APPRENTICES WITHOUT COMPENSATION Apprentices who may be hired without compensation:
1.those whose training on the job is required by the school; 2.Training Program Curriculum; 3.Requisite for Graduation; or 4.A requisite for Board Examination
CHAPTER II LEARNERS
ART 73. LEARNERS DEFINED
LEARNERS - persons hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable and which may be learned thru practical training on the job in a relatively short period of time which shall not exceed 3 mos.
Learners in piecework/ incentive - rate jobs are to be paid in full for the work done.
APPRENTICESHIP
1. Practical training on the job supplemented by related theoretical instruction.
LEARNERSHIP
1. Hiring of persons as trainees in semi-skilled and other industrial occupations which are nonapprenticeable and which may be learned thru practical training on the job in a relatively short period of time. 2. Practical training on the job not to exceed 3 mos.
2. Not less than 3 months practical training on the job but not more than 6 months 3. No Commitment to hire
Duration of employment - no minimum, no maximum. Dependent on agreement but is necessary that there is a specific duration
MANAGERIAL EMPLOYEES - Refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof and to other members of the managerial staff Note: Definition applies only to the 8hour Labor law FIELD PERSONNEL - Refer to nonagricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty. WORKERS PAID BY RESULTS - Method of computing compensation based on the work completed and not on the time spent in working. PIECE-RATE METHOD - Where pay is dependent on unit of product finished, preferred where the work process is repetitive and the out put is standardized and easily countable. DOMESTIC HELPERS/ PERSONS RENDERING PERSONAL SERVICES - Perform services in the employers home which are usually necessary and desirable for the maintenance or enjoyment thereof, or ministers to the personal comfort, convenience or safety of the employer, as well as the members of the employers household. The existence of employment relationship is determined by law and not by contract. Whether or not an employer-employee relationship exists between the parties is a question of fact. The findings of the NLRC are accorded not only respect but finality if supported by substantial evidence.
1. selection and engagement of the employee 2. the payment of wages 3. the power of dismissal 4. the employers power to control the employee (with respect to the means and methods by which the work is to be accomplished) The last element as mentioned above is what is known as the CONTROL TEST whether the employer controls or has reserved the right to control the employee not only as to the result of the work to be done but also as to the means and methods by which the same is to be accomplished. This last element is the most important index of the existence of the relationship.
EMPLOYEE - A natural person who is hired, directly or indirectly, by a natural or juridical person to perform activities related to the business of the hirer who, directly or through an agent, supervises or controls the work performance and pays the salary or wage of the hire.
MANAGEMENT PREROGATIVE - except as otherwise limited by special laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place, and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers and discipline, dismissal and recall of workers. Management prerogative recognizes the right of the employer to advance its interest to prescribe standards of work and impose reasonable quotas or work
assignments, and failure on the part of the employees to meet the requirement, impose in good faith, constitutes a just cause for his dismissal. New owner/management group has no obligation to re-employ workers who freely and voluntarily accepted their separation pay and other benefits. A change of ownership in a business concern is not proscribed by law.
work is with the knowledge of his employer or immediate supervisor 4. The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered time either if the imminence of the resumption of work requires the employees presence at the place of work or if the interval is too brief to be utilized effectively and gainfully in the employees own interest. - Only the maximum is prescribed, not minimum. Part- time work is therefore not prohibited.
ENGAGED TO WAIT - when waiting is an integral part of the job, it is compensable WAITING TO BE ENGAGED - idle time is not working time, not compensable
PURPOSE
to safeguard the health and welfare of the laborer and in a way to minimize unemployment by utilizing different shifts
REGULAR WORKING DAYS: The regular working days of covered employees shall not be more than five days in a workweek. The workweek may begin at any hour and on any day, including Saturday or Sunday, designated by the employer. ART 84. HOURS WORKED
WHEN COMPENSABLE:
TRAVEL
TIME
SHALL INCLUDE:
1. All time during which an employee is required to be on duty or to be at a prescribed workplace; and 2. All time during which an employee is suffered or permitted to work
1. Travel from home to work- refers to ordinary work travel but where the worker is made to work on an emergency call and travel is necessary in proceeding to the workplace, the time spent on travel is compensable 2. Travel that is all in a days work- time spent by an employee in travel as part of his principal activity, such as travel from jobsite to jobsite during the workday, must be counted as hours worked. 3. Travel away from home- travel that keeps an employee away from home overnight. Work hours of seamen are governed by the same rules as land based employees. Thus, they must show sufficient proof that said work is actually performed. Rest Periods of short duration during working hours shall be considered as hours worked. Preliminary activities compensable when controlled or required by employer and are pursued necessarily and primarily for the employers benefit,
MEAL PERIODS
1. Should not be less than sixty (60) minutes, and is time-off/non-compensable 2. Under specified cases, may be less than sixty (60) minutes, but should not be less
than twenty (20) minutes an must be with full pay. 3. If less than twenty(20) minutes, it becomes only a rest period and is thus considered as work time NOTE: Employee must be completely relieved from duty. Otherwise, it is compensable as hours worked. Mealtime is not compensable EXCEPT in cases where the lunch period or meal time is predominantly spent for the employers benefit or where it is less than 60 minutes. Employees may request that their meal period be shortened so that they can leave work earlier that the previously established schedule.
RATIONALE
- employee is given OT pay because he is made to work longer than what is commensurate with his agreed compensation for the statutorily fixed or voluntarily agreed hours of labor he is supposed to do. As a rule, cannot be waived, as it is intended to benefit laborers and employees. But when the waiver is made in consideration of benefits and privileges which may even exceed the overtime pay, the waiver may be permitted.
REQUISITES : 1. The employees voluntarily agree in writing to a shortened meal period and are willing to waive the overtime pay for such shortened meal period; 2. No diminution whatsoever in the salary and other fringe benefits of the employees existing before the effectivity of the shortened meal period; 3. Work does not involve strenuous physical exertion and they are provided with adequate coffee breaks; 4. The value of benefits is equal with the compensation due them for the shortened meal period 5. OT pay will become due and demandable after the new time schedule; and 6. The arrangement is of temporary duration. ART 86. NIGHT SHIFT DIFFERENTIAL NIGHT SHIFT DIFFERENTIAL -Additional compensation of not less than ten percent (10%) of an employees regular wage for every hour of work done between 10:00 PM and 6:00 AM, whether or not this period is part of the workers regular shift. If work done between 10 PM and 6 AM is overtime work, then the 10% night shift differential should be based on his overtime rate.
NOTE: OT pay will not preclude payment of night shift differential pay. Meal periods during overtime work is not given to workers performing overtime for the reason that OT work is usually for a short period ranging from one to three hours and to deduct from the same one full hour as meal period would reduce to nothing the employees OT work.
WORK DAY - the 24-hour period which commences from the time the employee regularly starts to work. e.g., if the worker starts to work 8 am today, the workday is from 8am today up to 8 am tom. The minimum normal working hours fixed by the Act need not be continuous to constitute the legal working day Express approval by a superior is not a prerequisite to make overtime work compensable. HOWEVER, written authority after office hours during rest days and holidays are required for entitlement to compensation. The right to OT pay cannot be waived. Such waiver is contrary to law and public policy.
RATIONALE
- it serves as an inducement of employment
EXCEPTIONS:
1. When the waiver stipulates higher payment or rate of OT pay; or 2. Where the contract of employment requires work for more than eight hours of work at specified wage per day providing for a fixed hourly rate or that the daily wages include overtime pay. COMPRESSED WORKWEEK -allowable under the following conditions: 1. It is voluntary on the part of the worker 2. There will be no diminution of the weekly or monthly take-home pay and fringe benefits of the employees; 3. The value of the benefits that will accrue to the employees under the proposed schedule is more than or at least commensurate with the one-hour OT pay that is due them during weekdays based on the employees quantification 4. The one-hour OT pay will become due and payable if they are made or permitted to work on a day not scheduled for work on the compressed work week 5. The work does not involve strenuous physical exertion and employees must have adequate rest periods 5. The arrangement is of temporary duration.
N U
N C
1. Country is at war or any other national/local emergency has been declared by the Chief Executive/Congress 2. Necessary to prevent loss of life/property/ in case of actual/impending emergency in the locality 3. There is urgent work to be performed on machines, installations, or equipment in order to avoid serious loss/damage to the employer or some other causes of similar nature 4. Work is necessary to prevent loss/damage to perishable goods; and 5. where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer. 6. when it is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon
RATIONALE
An employees regular pay rate is lower than the overtime rate. Offsetting the undertime hours against the overtime hours would result in undue deprivation of the employees extra pay for overtime work. -
ART 89. EMERGENCY OVERTIME WORK WHEN WORKER MAY BE REQUIRED TO RENDER OT:
(WNUNCN)
ART 92. WHEN EMPLOYER MAY REQUIRE WORK ON A REST DAY WHEN EMPLOYEE MAY BE REQUIRED TO RENDER WORK ON A REST DAY:
1. In case of actual or impending emergencies caused by serious accident, fire, flood typhoon, earthquake epidemic or other disaster or calamity, to prevent loss of life or property or in cases of force majeure or imminent danger to public safety 2. urgent work to be performed on the machinery, equipment or installation to avoid serious loss which the employer would otherwise suffer 3. abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures 4. prevent serious loss of perishable goods 5. nature of work requires continuous operation for seven days a week 6. work is necessary to avail of favorable weather or environmental conditions where performance or quality of work depends upon them
REGULAR HOLIDAYS:
1. 2. 3. 4. 5. 6. 7. New Years Day -January 1 Maundy Thursday -Movable date Good FridayMovable date Araw ng Kagitingan -April 9 Labor Day -May 1 Independence Day -June 12 National Heroes Day`-Last Sunday August 8. Bonifacio Day-November 30 9. Christmas Day-December 25 10. Rizal Day-December 30 Note: Compensable unworked. whether worked
of
SPECIAL HOLIDAYS
1. All Saints Day -November 1 2. Last Day of the Year-December 31 3. And all other days declared by law or ordinances to be a special holiday or nonworking day NOTE: worked = regular wage plus 30% premium pay not worked = none
or
REGULAR HOLIDAY
- compensable even
SPECIAL HOLIDAY
- not compensable if
if unworked subject to certain conditions - limited to the 10 enumerated by the LC - rate is twice the regular rate if worked
unworked - not exclusive since law may provide for other special holidays - rate is 130% if worked
considered integrated in their wages on the basis of the average monthly share of each employee for the past 12 months immediately preceding the abolition.
TO
SERVICE
SERVICE INCENTIVE LEAVE (SIL) - Five (5) days leave with pay for every employee who has rendered at least one (1) year of service.
WAGE
- compensation manual labor Not subject execution for
SALARY
- denotes higher degree of employment - subject to execution (Gaa vs. CA)
to
1. 85% for all covered employees to be equally distributed among them 2. 15% for management (may answer for losses and breakages or distributed to management) If collection of service charges is abolished, the share of covered employees shall be
FACILITIES
SUPPLEMENTS
- Are items of expense necessary for the laborers and his familys existence and subsistence
- Constitute extra remuneration or special privileges or benefits given to or received by the laborers over and above their ordinary earnings wages - independent of the wage - not wage deductible
3. It is not due to an error in the construction /application of a doubtful or difficult question of law. But even in cases of error, it should be shown that the correction is being done soon after the discovery of the error. benefit given under certain conditions, such as success of the business or greater production or output. As a rule, it is an amount granted voluntarily to an employee for his industry and loyalty which contributed to the success and realization of profits of the employers business. Therefore, from a legal point of view, it is not a demandable and enforceable obligation. Unless, it was promised to be given without any conditions imposed for its payment, as such, it is deemed part of the wage. 13TH MONTH PAY (OR ITS EQUIVALENT) -additional income based on wage required by P.D. 851 which is equivalent to 1/12 of the total basic salary earned by an employee within a calendar year. - may be given anytime but not later than Dec. 24
ART. 98. APPLICATION OF TITLE This Title shall not apply to the following:
1. household or domestic helpers 2. homeworkers engaged in needle-work 3. workers employed in any establishment duly registered with the National Cottage Industry 4. Workers in any duly registered cooperatives
COVERAGE:
- All rank-and-file employees regardless of their designation or employment status and irrespective of the method by which their wages are paid, are entitled to this benefit, provided, that they have worked for at least one (1) month during the calendar year.
FORMS:
1. 2. 3. 4. Christmas bonus midyear bonus profit sharing payments; and other cash bonuses amounting to not less than 1/12 of its basic salary. Difference of opinion on how to compute the 13th month pay does not justify a strike It must always be in the form of legal tender . Free rice, electricity cash and stock dividends, COLA not equivalent
The rule is applicable if it is shown that the grant of the benefit is:
1. based on an express policy, or 2. has ripened into practice over a long period of time, and the practice is consistent and deliberate.
EXCEPTIONS:
1. When payment cannot be effected at or near the place of work by reason of deterioration of peace and security 2. When the employer provides for free transportation to the employees back and forth; 3. And under analogous circumstances payment of wages in bars, night or day clubs, massage clinics or similar establishments are prohibited except for the workers therein.
GENERAL RULE:
EXCEPTIONS: - checks or money orders may be paid if: 1. the same is customary on the date of effectivity of the LC; 2. necessary because of special circumstances; or 3. as stipulated in the CBA
TO WHOM PAID
wages shall be paid directly to the workers to whom they are due.
standards, free exercise of the right to selforganization, security of tenure and social and welfare benefits. Substantial capital need not be coupled with investment in tools or equipment. This is clear from the use of the conjunction or. JOB C O NT R A CT IN G 1. No E- E relationship exist between employer and the contractors employee except when the contractor or subcontractor fails to pay the wages of his employees 2. liability is limited to unpaid wages and other labor standards violations LABOR ONLY CONTRACTING
EXCEPTIONS:
a. in case of force majeure/special circumstances, payment may be made through another person under written authority where the worker has died, the b. employer may pay the wages of the deceased worker to the heirs of the latter, through the Secretary of Labor or his representative, without the necessity of intestate proceedings, after the heirs have executed an affidavit attesting to their relationship to the deceased and the fact that they are his heirs to the exclusion of all others
2. liable to all rights duties and liabilities under labor standards laws including the right to self- organization 3. Prohibited by law 4. Contractor has no substantial capital/ investment
WORKING CONDITIONS - Refers to the terms and circumstances affecting the employment of an employee, including policies, programs and regulations governing his employment status, work, and work relationships. They are, as a rule, determined by the employer.
scheme of the Civil Code to tax claims of the government. just a preference, must yield to special preferred credit, e.g. secured creditors The formal declaration of insolvency or bankruptcy or a judicial liquidation of the employers business is a condition sine qua non to the operation of the preference accorded to workers under Art. 110.
REQUISITES FOR DEDUCTION FOR LOSS OR DAMAGE : 1. employee clearly shown responsible 2. opportunity to show cause to show why
deduction should not be made
1. Regional Tripartite Wages and Productivity Board 2. Congress MINIMUM WAGE - The lowest wage rate fixed by law that an employer can pay his employees.
distinctions embodied in such wage structure based on skills, length of service or other logical bases of differentiation. CORRECTING WAGE DISTORTION
Unionized Establishment
1. Negotiate to correct the distortion. 2. Any dispute arising therefrom should be resolved through grievance procedure under their CBA. 3. If the dispute remains unresolved, through voluntary arbitration. Establishments without Unions 1. The employers and workers shall endeavor to correct the distortion. 2. Any dispute arising therefrom shall be settled through the NCMB and 3. If it remains unresolved after 10 days of conciliation, it shall be referred to the NLRC. Wage distortion is non- strikeable.
ART 124. STANDARDS/CRITERIA FOR MINIMUM WAGE FIXING FACTORS FOR DETERMINING REGIONAL MINIMUM WAGE RATES (DACNNIPFEE)
1. Demand for living wages; 2. Wage Adjustment vis-a vis the consumer price index; 3. Cost of living and changes or increases therein; 4. Needs of workers and their families; 5. Need to induce industries to invest in the countryside; 6. Improvements in standards of living; 7. Prevailing wage levels; 8. Fair Return of the capital invested and capacity to pay of employers; 9. Effects on Employment Generation and Family Income; 10. Equitable Distribution of Income & Wealth along the imperatives of economic and social development WAGE DISTORTION - situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the
ENFORCEMENT POWER ART. 129. RECOVERY OF WAGES, SIMPLE MONEY CLAIMS AND OTHER BENEFITS
Under Art. 129, the Regional Director is empowered through summary proceeding and after due notice, to hear and decide cases involving recovery of wages and other monetary claims and benefits, including legal interests.
REQUISITES :
1. The claim is presented by an employee or person employed in domestic or household service or househelper; 2. The claim arises from employer-employee relations; 3. The claimant does not seek reinstatement; and 4. The aggregate money claim of each employee or househelper does not exceed P5, 000.00 Access to employers records and premises the day/night whenever work is being undertaken therein includes the right to copy therefrom, to question any employee & investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of the Code and of any labor law, wage order, or rules and regulations Issue Compliance Orders (ART. 128) based on the findings of labor employment and enforcement officers or industrial safety engineers made in the course of inspection Issue Writs of Execution (ART. 128) for the enforcement of orders except in cases where the employer contests the findings of the said labor officers and raises issues supported by documentary proofs which were not considered in the course of inspection. Order Work Stoppage/Suspension of Operations when non-compliance with the law or implementing rules and regulations poses grave & imminent danger to the health and safety of the workers in the workplace. Conduct Hearings within 24 hours to determine whether an order for stoppage of work/suspension of operations shall be lifted or not. employer shall pay the employees concerned their salaries in case the violation is attributable to his fault Require employers to keep and maintain Employment Records - as may be necessary in aid of his visitorial and enforcement powers
1. Visitorial and enforcement power of the Secretary of Labor /his duly authorized representatives exercised through routine inspections of establishments 2. requires the existence of E-E Relationship
1. Power of the Regional Director or any duly authorized hearing officers to hear and decide matters involving the recovery of wages, upon complaint of any interested party 2. E-E relationship not necessary since it should not include a claim for reinstatement 3. Aggregate claim of each complainant does not exceed P5,000 4. Appeal with NLRC; period of appeal is 5 calendar days
4. Appeal is with Sec.of Labor ; period of appeal is 10 calendar days 5. Person exercising the power is the Sec. Of Labor or any of his duly authorized representatives who may or may not be a regional director
5. The power is vested upon a regional director or any duly authorized hearing officer of the DOLE.
TITLE III WORKING CONDITIONS FOR SPECIAL GROUP OF EMPLOYEES CHAPTER I EMPLOYMENT OF WOMEN
ART 130. NIGHTWORK PROHIBITION
No woman , regardless of age, shall be employed or permitted or suffered to work, with or without compensation in any :
ART 128
ART 129
1. Industrial undertaking between 10PM-6AM 2. Commercial/Non-Industrial undertaking between 12 MN-6AM 3. Agricultural undertaking at nighttime unless, she is given a period of rest of not less than 9 consecutive hours
ART 131. EXCEPTIONS 1. Actual/Impending Emergencies caused by serious accident, flood, typhoon, epidemic or other disasters or calamity, to prevent loss of life or property, or in cases of force majeure or imminent danger to public safety 2. Urgent work to be performed on machineries, equipment or installation, to avoid serious loss 3. Work is necessary to prevent serious loss of perishable goods 4. Where she holds a responsible position of managerial/technical nature/engaged to provide health and welfare service 5. Nature of the work requires the manual skill and dexterity of women workers & cannot be performed with equal efficiency by male workers 6. Where women workers are immediate family members of the family operating the establishment or undertaking 7. Analogous cases ART 132. FACILITIES FOR WOMEN The Secretary of Labor may require employers to: 1. Provide seats proper for women and permit them to use the seats when they are free from work or during office hours provided the quality of the work will not be compromised; 2. To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women; 3. To establish a nursery in the establishment; 4. To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those of flight attendants and the like 1. Employee notified her employer of her pregnancy of the probable date of her childbirth 2. Full payment be advanced by the employer within 30 days from the filing of the maternity leave application 3. That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits 4. That the maternity benefits shall be paid only for the first four (4) deliveries or miscarriages 5. That the SSS shall immediately reimburse the employer of 100% of the amount of maternity benefits advanced to the employee by the employer 6. That if an employee member should give birth or suffer a miscarriage without the required contributions having been remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee member would otherwise have been entitled to. ART 133 (b) subsists, i.e., the maternity leave shall be extended without pay on account of illness medically certified to arise out of the pregnancy, delivery, abortion, or miscarriage, which renders the woman unfit for work , unless she has earned unused leave credits from which such extended leave may be charged.
LIMIT OF THE BENEFIT: Applies only for the first four deliveries irrespective of who is the father of the children, and may not be availed of in addition to sickness benefit under the Social Security program. RA 8187 (PATERNITY LEAVE)
ART. BENEFITS
133
MATERNITY
LEAVE
MATERNITY LEAVE UNDER THE SSS LAW A female member, who need not be legally married, who has paid for at least three (3) monthly contributions in the 12-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to 100% of her average daily salary credit for 60 days or 78 days, in case of caesarian delivery.
This law grants paternity leave of seven day with full pay to all married male employees in the private and public sectors.
- It is available only for the first four deliveries of the legitimate spouse with whom the husband is cohabiting.
DELIVERY includes childbirth, miscarriage, or abortion. Purpose: to enable the husband to lend support to his wife during the period of recovery and/or in the nursing of the newly born child.
REQUISITES :
CONDITIONS :
1. he is an employee at he time of the delivery of his child; 2. he is cohabiting with his spouse at the time she gives birth or suffers a miscarriage; 3. he has applied for paternity leave ; and 4. his wife has given birth or suffered a miscarriage Paternity leave, if not availed of, is not convertible to cash.
2. 3.
the above acts would impair the employees rights or privileges under existing labor laws or The above acts would result in an intimidating, hostile, or offensive environment (Sec. 3[a], RA No. 7877)
WIFE - refers to the lawful wife which means the woman who is legally married to the male employee concerned. Where the male employee is already enjoying the paternity leave by reason of any law, decree, executive orders or any contract, agreement or policy between employer and employee and the existing paternity benefit is greater, the greater benefit shall prevail; if lesser, the existing benefit shall be adjusted to the extent of the difference.
OF
DISCRIMINATION
It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex.
Any woman who is permitted to work or suffered to work, with or without compensation, in any night club, cocktail lounge, massage clinic, bar or similar establishment, under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor, shall be considered as an employee of such establishment for purposes of labor and social legislation.
2. Where the childs employment or participation in public entertainment or information through cinema, theater, radio, or television is essential, provided that: a. employment does not involve advertisements or commercials promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts or exhibiting violence; There is a written contract approved by the DOLE; and The conditions prescribed for the employment of minors {above stated} are met.
sufficient means in the place where the head of the family lives. 12. at least elementary education 13. employment certification
b. c.
NONHAZARDOUS WORK OR UNDERTAKING one where the employee is not exposed to any risk which constitutes an imminent danger to his safety and health.
BOOK FOUR HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS TITLE I MEDICAL, DENTAL AND OCCUPATIONAL SAFETY CHAPTER I MEDICAL AND DENTAL SERVICES
ART 156. FIRST-AID TREATMENT
FIRST-AID TREATMENT adequate, immediate, and necessary medical and dental attention or remedy given in case of injury or illness suffered by a worker during employment, irrespective of whether or not such injury or illness is work-connected, before a more extensive medical and/or dental treatment can be secured. FIRST AIDER any person trained and duly certified as qualified to administer first aid by the Phil. National Red Cross or by any other organization accredited by the former.
HAZARDOUS WORKPLACES:
1. Where the nature of the work exposes the workers to dangerous environmental elements, contaminants or work conditions; 2. Where the workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock work, deep-sea fishing, and mechanized farming; 3. Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic products; 4. Where the workers use or are exposed to heavy or power-driven machinery or equipment; and 5. Where the workers use or are exposed to power-driven tools,
WORKMENS COMPENSATION ACT 1. There is a presumption of compensability 2. there is a presumption of aggravation 3. there is a need for the employer to controvert the claim within 14 days otherwise he is deemed to have waived the right 4. payment of compensation made by the employer
EMPLOYEES COMPENSATION LAW 1. no presumption of compensability 2. no presumption of aggravation 3. no need for the employer to controvert
Conditions for an occupational disease and the resulting disability or death to be compensable :
1. The employees work must involve the risk described therein 2. The disease was contracted as a result of the employees exposure to the described risks; 3. The disease was contracted within a period of exposure and under such other factors necessary to contract it; 4. There was no notorious negligence on the part of the employee DEATH or sickness Loss of life resulting from injury
DISABILITY -Loss or impairment of a physical or mental function resulting from injury or sickness. 4. payment of compensation made by SSS/GSIS through the State Insurance Fund DIRECT PREMISES RULE as a general rule, the accident should have occurred at the place of work to be compensable
2.
4. SPECIAL
ERRAND RULE injury sustained outside the company premises is compensable if his being out is covered by
2. 3. 4.
Willful intention to injure or kill himself or another; Notorious negligence; or Unless otherwise provided by the LC
NOTORIOUS NEGLIGENCE deliberate act of the employee to disregard his own personal safety. Is death through suicide compensable ? As a rule NO. However as held in NAESS vs. NLRC, the supreme court ruled that a self inflicted death could be compensable if : 1. by agreement of the parties 2. The suicide/death is caused by a work related or compensable illness or disease.
7. POSITIONAL
AND LOCAL RISKS DOCTRINE If an employee by reason of his duties is exposed to a special or peculiar danger from the elements, that is, one greater than that to which other persons in the community are exposed and an unexpected injury occurs, the injury is compensable when one in the course of his employment is reasonably required to be at a particular place at a particular time and there meets an accident although one which any other person then and there present would have met irrespective of his employment.
STATE INSURANCE FUND: all covered employers are required to remit to a common fund a monthly contribution equivalent to one percent of the monthly salary credit of every covered employee. The employee pays no contribution to the fund. Any agreement to the contrary is prohibited.
EFFECTIVE
DATE
OF
The employer is covered compulsorily from first day of operation and the employee from the first day of employment
1.
DEATH BENEFITS
The System shall pay to the primary beneficiaries upon the death of the covered employee an amount equal to his monthly income benefit, plus ten percent thereof for each dependent child, but not exceeding five, beginning with the youngest and without substitution. The income benefit shall be guaranteed for five years.
LABOR RELATIONS LAW - Concerned with the stabilization of relations of employer and employees and seeks to forestall and adjust grievances through - the encouragement of collective bargaining and the settlement of labor disputes through conciliation, mediation and arbitration. Absent an employer-employee relation, there is no labor relations to speak of.
DEPENDENTS:
1. the legitimate, legitimated, legally adopted or acknowledged natural child who is unmarried, not gainfully employed and not over 21 years of age or over 21 years of age provided that he is incapable of selfsupport due to a physical or mental defect which is congenital or acquired during minority 2. legitimate spouse living with the employee 3. the parents of said employee wholly dependent upon him for regular support
The public is always to be considered in disputes between labor and capital, and it ahas been held that the rights of the general public are paramount. Labor relations policy under the LC is embodied in Section 3 Article XIII of the 1987 Constitution which guarantees to all workers their right among others to selforganization, collective bargaining and negotiations, peaceful land concerted activities including the right to strike in accordance with law, and to participate in policy and decision making processes affecting their rights and benefits as may be provided by law.
BENEFITS
1. for life to the primary beneficiaries, guaranteed for five years 2. for not more than 60 months to the secondary beneficiaries in case there are no primary beneficiaries 3. in no case shall the total benefit be less that P 15, 000.00
SECONDARY BENEFICIARIES
a. Illegitimate children and legitimate descendants b. parents, grandparents, grandchildren
If he has not obtained any other: 1. Substantially equivalent and 2. Permanent employment
MANAGERIAL EMPLOYEE - is one who is vested with powers or prerogatives to lay down and execute management policies and /or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. SUPERVISORY EMPLOYEES are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. WORKERS ASSOCIATION any association of workers organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining. INDEPENDENT UNION - any labor organization operating at the enterprise level whose legal personality is derived through an independent action for registration prescribed under Art. 234. It may be affiliated with a federation, national or industry union, in which case it may also be referred to as an affiliate. NATIONAL UNION/FEDERATION - any labor organization with at least 10 locals/chapters or affiliates each of which must be a dully certified or recognized collective bargaining agent. LEGITIMATE WORKERS ASSOCIATION any workers association as defined herein which is duly registered with the Department of Labor. LABOR ORGANIZATIONS - Any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employees concerning terms and conditions of employment.
a) organizational right dispute/unfair labor practice (coercion, restraint or interference in unionization efforts) b) representation disputes c) bargaining disputes ( refusal to bargain ) d) contract administration or personnel policy disputes (noncompliance with CBA provisions) e) employment tenure disputes f) ( non regularization of employees)
PARTIES TO A DISPUTE:
1. Primary Parties employer, employees, union 2. Secondary Parties voluntary arbitrator, agencies of DOLE (BLR, NLRC, VAC, Sec. Of Labor, Office of the President)
1. the last say is still with the management 2. it is still the management prerogative that prevails - If there is no labor union, then consultation should be made with the labor management council. - If the employees were not given the right to participate, then they could file with the NLRC a grievance.
1. Choice of the Sec. Of Labor coming from the public sector 2. labor 3. employer and management sector
2. Cases decided by the Regional Offices of DOLE in the exercise of its adjudicatory function under Art 129 of the Labor Code
The Commission may only sit en banc for the determination of policies and NOT for purposes of adjudication. Petitions for certiorari against decisions of the NLRC should henceforth be initially filed with the Court of Appeals in strict observance of the doctrine on the hierarchy of courts as the appropriate forum for the relief desired. The SC noted that the CA is procedurally equipped to resolve unclear or ambiguous factual finding, aside from the increased number of its component divisions. (St. Martin Funeral Homes vs. NLRC G.R. No. 130866) Findings of facts of a labor tribunal are accorded the utmost respect by the courts and are well-nigh conclusive if supported by substantial evidence. Labor cases are not subject to Barangay Conciliation since ordinary rules on procedure are merely suppletory in character vis-a- vis labor disputes which are primarily governed by labor laws. The failure of the petitioner to file a motion for reconsideration of the decision of NLRC before filing a petition for certiorari has in certain instances been held not to be a fatal omission.
absence of stenographic notes, the following cases involving all workers, whether agricultural or non-agricultural: 1, Unfair labor practice cases; 2. Termination disputes; 3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment; 4. Claims for actual, moral, exemplary and other forms of damages arising from employeremployee relations; 5. Cases arising from any violation of Art 264 of this Code, including questions involving the legality of strikes and lockouts; and 6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other claims arising from employer-employee relations, including those of persons in domestic or household service, involving an amount exceeding P5,000.00 regardless of whether accompanies with a claim for reinstatement. 7.Monetary claims of overseas contract workers under the Migrant Workers Act of 1995. b. The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters. c. Cases arising from the interpretation or implementation of CBA and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration. The labor arbiter has jurisdiction over the claims of employees against GOCCs if the latter does not have an original charter and has been incorporated under the Corporation Code. The labor arbiter and the NLRC have no jurisdiction over claims filed by employees against international agencies such as IRRI, WHO etc.
a. Rule-making power b. Power to issue compulsory processes c. Power to investigate matters and hear disputes within its jurisdiction d. Contempt power e. Power to issue injunctions and Restraining Orders
1. The complainant shall allege that, unless a TRO shall be issued without notice, a substantial and irreparable injury to complaints property will be unavoidable; 2. There is testimony under oath, sufficient, is sustained, to justify the Commission in issuing a temporary injunction upon hearing after notice ; 3. The complainant shall first file an undertaking with adequate security in an amount to be fixed by the Commission sufficient to recompense those enjoined for any loss, expenses or damage caused by the improvident or erroneous issuance of such order or injunction, including all reasonable costs, together with a reasonable attorneys fee, and expense of defense against the granting of any injunctive relief sought in the same proceeding and subsequently denied by the Commission; and 4. The TRO shall be effective no longer than 20 days and shall become void at the expiration of said 20 days counted from the date of the posting of the bond. In the absence of service of summons or a valid waiver thereof, the hearings and judgment rendered by the labor arbiter are null and void. The procedural and substantial requirements of Art 218 (e) must be strictly complied with before an injunction may issue in a labor dispute.
for any information or date concerning any matter or question relative to the object of the investigation
ART. 221. TECHNICAL RULES NOT BINDING AND PRIOR RESORT TO AMICABLE SETTLEMENT An amicable settlement of a labor dispute should be approved by the labor arbiter before whom the case is pending after being satisfied that it was voluntarily entered by the parties and after having explained to them the terms and consequences thereof.
PURPOSE: for the employees protection for the labor arbiter before whom the case is pending would be in a better position than just any labor arbiter to personally determine the voluntariness of the agreement and certify its validity.
ART 222. APPEARANCES AND FEES APPEARANCE OF NON-LAWYERS BEFORE THE COMMISSION:
GENERAL RULE: ONLY lawyers can appear before the NLRC, or any Labor Arbiter, EXCEPTIONS : Non-Lawyers can appear ONLY in the following instances: 1. if they represent themselves; or 2. if they represent their organization or members thereof; or 3. if he is a duly-accredited member of the legal aid office duly recognized by the DOJ of IBP in cases referred thereto by the latter. ATTORNEYS FEES: The maximum amount to be given a lawyer is 10% of the monetary benefits awarded to the employees excluding the award for moral and exemplary damages shall not be included. Moral and exemplary damages and other benefits that employee receives when he is working are excluded. This article prohibits the payment of attorneys fees only where the same is effected through forced contributions from the workers form their own funds as distinguished from the union funds.
Where the employer failed to post a bond to perfect its appeal, the remedy of the employee is not a petition for mandamus by a motion to dismiss appeal. The intention of the lawmakers is to make the bond an indispensable requisite for the perfection of an appeal by the employer. Tardiness of an appeal form the decision of the labor arbiter may be considered as a mere procedural lapse. the decision of the labor arbiter ordering the reinstatement of a dismissed or separated employee shall immediately executory insofar as the reinstatement aspect is concerned and the posting of an appeal bond by the employer shall not stay such execution. There is no need for the arbiter to issue a writ of execution on the reinstatement order as it is self-executory (Pioneer Texturizing Case).
OPTIONS OF THE EMPLOYER TO IN COMPLYING WITH AN ORDER OF REINSTATEMENT WHICH IS IMMEDIATELY EXECUTORY:
1. He can admit the dismissed employee back to work under the same terms and conditions prevailing prior to his dismissal or separation or to a substantially equivalent position if the former position is already filled up. 2. He can reinstate the employee merely in the payroll. Failing to exercise any option may be compelled under pain of contempt and the employer may be made to pay instead the salary of the employee.
A petition for relief from the decision of the labor arbiter must strictly comply with 2 reglementary periods:
1. The petition must be filed within 60 days from knowledge of the judgment; and 2. Within a fixed period of 6 months from entry of such judgment. - petitions filed beyond said period will no longer be entertained.
INTER- UNION DISPUTES - refers to questions involving or arising out of a representation disputes between or among the different unions. It also includes all other conflicts which legitimate labor, organizations may have against each other based on any violation of their rights as labor organizations.
TITLE III
BUREAU OF LABOR RELATIONS ART. 226 BUREAU OF LABOR RELATIONS EXCLUSIVE AND ORIGINAL JURISDICTION OF THE BLR:
1. inter- union conflicts 2. intra- union conflicts 3. all disputes, grievances or problems arising from or affecting labor- management relations in all workplaces whether agricultural or non- agricultural.
INTRA- UNION DISPUTES - includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by-laws of a union. It also includes any violation of the rights and conditions of union membership provided for in the Labor Code.
AND
has absorbed the conciliation, mediation and voluntary arbitration functions of the BLR (E.O. 126)
REQUIREMENTS BEFORE A LABOR ORGANIZATION CAN BE REGISTERED WITH THE BUREAU OF LABOR RELATIONS:
1. Written application verified by the Secretary/Treasurer, attested to by the President; 2. Names of members comprising at least 20% of the employees in the bargaining unit where it seeks to operate; 3. Non-existence of CBA, otherwise, if one exist, state in the application that it is filed within the freedom period. It shall be accompanied by the following attachments : a. Registration fee in the amount of P50.00; b. Names of the officers and their addresses; c. Minutes of the organizational meetings; d. List of workers who participated in the organizational meetings; e. Names of all the members and the number of employees in the bargaining unit; f. Annual Financial Report ( if the applicant has been in the existence for at least one year); g. Four (4) copies of the constitution and by-laws; h. Minutes of the resolution of the constitution and by-laws and the list of members who participated in the bargaining unit concerned; and i. If there is an existing collective bargaining agreement duly submitted to the DOLE, a sworn statement that the
application for registration is filed during the last 60 days of the agreement. MANDAMUS is the proper remedy for the unjustified refusal of the Bureau in approving the application and the corresponding issuance of a certificate of registration, it being a ministerial duty. REASON FOR REQUIREMENT OF REGISTRATION it is a condition sine qua non for the acquisition of legal personality by labor organizations, associations or unions, and the possession or the rights and privileges granted by law to legitimate labor organizations FEDERATION is an association of national unions.
2. Statement of the set of officers and books of accounts, all of which must be certified by the Secretary/Treasurer and attested to by the President.
Can a union of supervisory employees affiliate with a national federation of labor organizations of rank and file employees ?
YES, provided that: a. The federation is not actively involved in union affairs in the company and b. The rank and file employees are not directly under the control of the supervisors
A A
Aside from the application, which must be accompanied with the requirements for registration of a labor registration, the application should also be accompanied by the following: 1. Proof of affiliation of at least 10 locals or chapters, each of which must be : a. a duly recognized collective bargaining agent in the establishment of b. supporting the registration of such applicant federation or national union; 2. The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved.
On the other hand, if the labor union is not independently registered, then union dues may no longer be collected as there would no longer any labor union who is allowed to collect such union dues from the employees. A union can affiliate anytime but disaffiliation can be done only during the freedom period. If not within the freedom period, can be done only with the consent of the majority of the workers. Provided it is independently registered otherwise it loses its personality. The exception will only apply if it is not prohibited by the constitution and by-laws of the federation of national union.
3.
4.
5. 6.
OF
7. 8.
The certificate of registration of any legitimate labor organization shall be cancelled by the BLR if it has reason to believe, after due hearing, that the said labor organization no longer meets one or more of the requirements herein prescribed.
9. 10.
Appeal may be filed within 15 days from receipt of the decision to the Secretary of Labor.
within 30 days from adoption or ratification of the constitution and by-laws or amendments thereto. Misrepresentation, false statement or fraud in connection with the: - election of officers, - minutes of the election of officer and the list of voters, or failure to submit these documents together with - the list of the newly elected/appointed officers and their postal addresses - within 30 days from election Failure to submit the annual financial report to the Bureau - within 30 days after the closing of every fiscal year and misrepresentation, false entries and fraud - in the preparation of the financial report itself; Acting as a labor contractor or engaging in the cabo system, or otherwise engaging in any activity prohibited by law; Entering into collective bargaining agreements which provide terms and conditions of employment below minimum standard established by law; Asking for or accepting attorneys fees or negotiation fees from the employers; Other than for mandatory activities under this Code, checking off special assessment or any other fees without duly signed individual written authorization of the members; Failure to submit a list of individual members of the Bureau once a year or whenever required by the Bureau; and Failure to comply with the requirements under Articles 237 and 238. -
REMEDY IN CASE THE BUREAU SHOULD CANCEL THE REGISTRATION OF THE UNION:
- to appeal to the Secretary of Labor within 10 calendar days on the grounds of: 1. grave abuse of discretion or 2. gross incompetence on the part of the Bureau Should the office of the Secretary affirm the decision of the Bureau, the final remedy is a petition for certiorari to the SC under Rule 65, Rules of Court.
ART. 241. RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR ORGANIZATION REQUIREMENTS IN MAKING SPECIAL ASSESSMENT
Art. 241(n). No special assessment or other
The law does not require individual written authorizations from the employees when it comes to fees for mandatory activities under the Labor Code.
CHECK-OFF is a method of deducting from an employees pay at prescribed period, the amounts due to the union for fees, fines or assessment. In Special Assessment, there must be a written resolution authorized by a majority of the members at a general meeting called for the purpose. Check-off there must be individual written authorization of the members.
extraordinary fees may be levied upon the members of a labor organization: UNLESS authorized by a written resolution of a majority of all the members at a general membership meetings duly called for the purpose. The secretary of the organization shall record the minutes of the meeting including: the list of all members present, the votes cast, the purpose of the assessment or fees, The record President. shall be attested by the
PERSONS WHO ARE PROHIBITED FROM BECOMING MEMBERS OF A LABOR ORGANIZATION UNDER THE LABOR CODE:
1. Those who have been convicted of a crime involving moral turpitude. (Art. 241(f)); 2. Subversives or those engaged in subversive Activities. In general, a union is free to select its own members, and no person has an absolute right to membership in a trade union. The implementing rules require that the remedies be exhausted within the union before a complaint for any violation of the unions constitution and by-laws may be filed.
Therefore, the REQUIREMENTS when it comes to special assessment are as follows: 1. there must be a written resolution 2. the resolution must have been approved by a majority of all the members 3. the approval must be at a general membership meeting duly called for the purpose
REQUIREMENTS OF THE LAW WITH REGARDS TO CHECK-OFFS Art. 241(o). Other than MANDATORY ACTIVITIES under Code.
-
for the
NO special assessment, attorneys fees, registration fees or any other extraordinary fees may be checked off from any amount due an employee. WITHOUT an individual written authorization duly signed by the employee. The authorization should specifically state the: a. amount b. purpose and c. beneficiary of the deduction.
EXCEPTIONS :
1. For mandatory activities provided under the Code; and 2. When non-members of the union avail of the benefits of the CBA. - said non-members may be assessed union dues equivalent to that paid by members - only by a Board Resolution approved by majority of the members in a general meeting called for the purpose
to facilitate the collection of dues necessary for the unions life and sustenance.
GENERAL GROUPINGS OF THE RIGHTS OF THE UNION MEMBERS: (Under Art. 241)
1. Political right is the right of the members to vote and be voted for, subject to lawful provisions on qualifications and disqualifications. Deliberative and Decision-Making Right is the members right to participate in deliberations on major policy questions and decide them by secret ballot. Rights Over Money Matters is the right of the members: a. against excessive fees b. against unauthorized collection of contributions or unauthorized disbursements c. to require adequate records of income and expenses to access financial records to vote on officers compensation to vote on special assessment to be deducted a special assessment only with the members written authorization. Right to Information is the members right to be informed about: a. the organizations constitution and by- laws b. the collective bargaining agreement c. about labor laws d. e. f. g.
2.
3.
TITLE V COVERAGE
ART. 243. COVERAGE AND EMPLOYEES RIGHT TO SELF ORGANIZATION
4.
2. The GOCC is created under Corporation Code, being governed by the Labor Code, they can bargain with the government concerning the terms
However, they can negotiate with the government on those terms and conditions of employment which are not fixed by law. Thus, they have a limited bargaining rights.
and conditions of their employment. Thus, they have an unlimited bargaining rights.
appointments - promotion - assignments/details - reclassification/upgrading of position - revision of compensation structure - penalties imposed as a result of disciplinary actions - selections of personnel to attain seminar, trainings. Study grants - distribution of work load - external communication linkages Government employees and employees of government-owned and controlled corporations with original charters may bargain, however, such bargaining power is limited.
3. Can only form, join or assist labor organization for purposes not contrary to law.
3. Can form, join or Assisi labor organization for purposes of CBA, etc.
RATIONALE : GOCCs INCORPORATED UNDER THE CORP. CODE ALLOWED TO ORGANIZE: 1. they are not involved in public service
2. terms of employment are not fixed by law 3. they are governed by the provisions of the Labor Code not by the Civil Service Law
THE
3. 4. 5. 6. -
whose functions are normally considered as policy-making or managerial whose duties are of a highly confidential or highly technical in nature ( EO 180, sections 3-4) Government employees occupying high positions Employees of international organizations with immunities Confidential employees Cooperative members who are also employees Foreigners validly working in the Philippines can form labor organizations, provided, the same right to form, join or assist in the formation of labor unions is also given to Filipinos in their country of origin. This embodies the principle of reciprocity.
Any act intended to weaken or defeat the right is regarded by law as an offense, which is technically called unfair labor practice.
TITLE VI UNFAIR LABOR PRACTICES CHAPTER I CONCEPT ART. 247 UNFAIR LABOR PRACTICES
NATURE PRACTICES: OF UNFAIR LABOR
ART 245. INELIGIBILITY OF MANAGERIAL EMPLOYEES TO JOIN ANY LABOR ORGANIZATION; RIGHT OF SUPERVISORY EMPLOYEES.
Reason for ineligibility in the collective bargaining process, managerial employees are supposed to be on the side of the employer, to act as its representatives, and to see to it that its interests are well protected. The employer is not assured of such protection if these employees themselves are union members.
1. violate the constitutional right of workers and employees to self-organization, 2. are inimical to the legitimate interests of both labor and management, including their right to bargain collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect, 3. disrupt industrial peace and 4. hinder the promotion of healthy and stable labor-management relations.
PRESCRIPTIVE PERIOD FOR FILING CRIMINAL AND CIVIL CASES FOR ULP: The prescriptive period of filing ULP cases whether it be civil or criminal is one year from the accrual of the ULP act. The prescriptive period for the criminal case is suspended once the administrative case has been filed and would only continue running once the administrative case has attained finality. HOWEVER: Final judgment in administrative proceedings shall not binding in the criminal case nor shall considered as an evidence of guilt merely as a proof of compliance of requirements prescribed by the Code. the be be but the
OF EMPLOYERS
ART 248. ULP THAT MAY BE
COMMITTED BY AN EMPLOYER 1. To interfere with, restrain or coerce employees - in the exercise of their right to selforganization; 2. To require as a condition for employment that a person or an employee - shall not join a labor organization or - shall withdraw from one to which he belongs; 3. To contract out services or functions being performed by union members when such will interfere with, restrain or coerce employees in the exercise of their right to selforganization; 4. To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organization, including the giving of financial or other support to it or its organizers or officers; 5. To discriminate in regard to wages, hours of work, and other terms and conditions of employment in order to encourage or discourage membership in any labor organization . -
YELLOW DOG CONTRACT: A promise exacted from workers as a condition employment that they are not to belong to, or attempt to foster, a union during their period of employment. It is contrary to public policy for it is tantamount to involuntary servitude. It is entered into without consideration for employees waive their right to selforganization Employees are coerced to sign contracts disadvantageous to their family.
Does Art. 248 (c ) mean that an employer cannot contract out work?
NO. Contracting out services is not ULP per se. It is only ULP when the following conditions exist: 1. the service contracted- out are being performed by union members; and 2. such contracting-out interferes with, restrains, or coerce employees in the exercise of their right to selforganization.
HOWEVER, when the contractingout is being done to minimize expenses, then it is a valid exercise of management prerogative.
TEST OF DISCRIMINATION:
a. whenever benefits or privileges given to one is not given to the other under similar or identical conditions b. when directed to encourage or discourage union membership 6. To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code; 7. To violate the duty to bargain collectively as prescribed by this Code; 8. To pay negotiation or attorneys fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other disputes; or 9. To violate a collective bargaining agreement. NOTE: violation must be gross and with respect to the economic provision of the CBA
2.
3.
to the union in the form of union dues and special assessment. Self-preservation. It strengthens the union through selective acceptance of new members on the basis of commitment and loyalty.
union activities without contributing to union support to prevent a situation of non-union members enriching themselves at the expense of union members.
UNION
CLOSED- SHOP AGREEMENT - the employer undertakes not to employ any individual who is not a member of the contracting union and the said individual once employer must, for the duration of the agreement, remain a member of the union in good standing as a condition for continued employment. UNION SHOP AGREEMENT -stipulation whereby any person can be employed by the employer but once employed such employee must, within a specific period, become a member of the contracting union and remain as such in good standing for continued employment for the duration of the CBA. MAINTENANCE OF MEMBERSHIP CLAUSE - the agreement DOES NOT require non-members to join the contracting union BUT provides that those who are members thereof at the time of the execution of the CBA and those may thereafter on their own volition become members must for the duration of the agreement maintain their membership in good standing as a condition for continued employment in the company for the duration of the CBA. PREFERENTIAL SHOP AGREEMENT The employer agrees to give preference to the members of the bargaining union in hiring or filing vacancies and retention in case of lay-off. But the employer has the right to hire in open market if union members are not available. Usually, descendants (children) are also given preference in employment. AGENCY SHOP AGREEMENT - An agreement whereby employees must either join the union or pay to the union as exclusive bargaining agent a sum equal to that paid by the members. This is directed against FREE RIDER employees who benefit from
THE REQUIREMENTS FOR A VALID UNION OR CLOSE SHOP AGREEMENT (SO THAT THE EMPLOYER CAN TERMINATE THE EMPLOYEE FOR VIOLATION OF SAID AGREEMENT):
1. It must be expressed in a clear and unequivocal way so as not to leave room for interpretation because it is a limitation to the exercise of the right to self-organization. - Any doubt must be resolved against closeshop. 2. It can only have prospective application and cannot be applied retroactively. 3. Can only be exercised by giving the employee his right to due process. The employer has the right to satisfy itself that there are sufficient bases for the request of the union. The termination of the employee is not automatic upon the request of the union. 4. Cannot be applied to employees who are already employees of the rival union nor to the employees based on their religious beliefs.
2.
3.
4.
5.
not performed or not to be performed, including the demand for a fee for union negotiations; e. To ask for a accept negotiation or attorneys fees from employers as part of the settlement of any issue in collective bargaining or any other dispute; or f. To violate a collective bargaining agreement. NOTE: Violation must be gross with respect to economic provisions of the CBA.
4. If not settled NCMB may intervene and encourage the parties to submit the dispute to a voluntary arbitrator 5. If not resolved, the parties may go to where they want and resort to any other lawful means.
In addition, the Bureau requires that the CBA should include a clear statement of the terms of the CBA.
ART 253. DUTY TO BARGAIN COLLECTIVELY WHEN THERE EXISTS A COLLECTIVE BARGAINING AGREEMENT
BARGAINING UNIT- a group of employees of a given employer, comprised of all or less that all the entire body of the employees, consistent with equity to the employer, - indicate to be best suited to serve the reciprocal rights and duties of the parties under the collective bargaining provision of the law.
COLLECTIVE BARGAINING negotiation by an organization or group of workmen, in behalf of its members, with the employer, concerning wages, hours of work and other terms and conditions of employment and the settlement of disputes by negotiation between an employer, and the representative of his employees.
Interest
showing that the labor organization is supported by at least a majority of the employees in the bargaining unit.
IN OF CERTIFICATION ELECTION
1. aimed at determining the sole and exclusive bargaining agent of all the employees in an appropriate bargaining unit for the purpose of collective bargaining; 2. separate and distinct from a consent election
1. similarity in the scale and manner of determining earnings 2. similarity in employment benefits, hours of work and other terms and conditions of employment 3. similarity in the kinds of work performed 4. similarity in the qualifications, skills and training of the employees 5. frequency of contract or interchange among the employees 6. common supervision and determination of labor-relations policy 7. history of previous collective bargaining 8. desires of the affected employees 9. extent of union organization AUTOMATIC RENEWAL CLAUSE - this is under the present Article which establishes an automatic renewal clause the CBA is effective and enforceable even after the expiration of the period fixed by the parties as long as no new agreement is reached by them.
CONSENT ELECTION
1. an agreed one, its purpose being merely to determine the issue of majority representation of all the workers in the appropriate collective bargaining unit
THE
2. from the very nature of consent election, it is a separate and distinct process and has nothing to do with the import and effect of a certification election
CERTIFICATION ELECTION - process of determining by secret ballot the sole and exclusive bargaining agent of the employees in an appropriate bargaining unit, for purposes of collective bargaining. DIRECT CERTIFICATION - process whereby the Med-Arbiter directly certifies a labor organization of an appropriate bargaining unit of a company after a showing that such petition is supported by at least a majority of the employees in the bargaining unit. It is no longer allowed. (EO 111)
WHEN IS THE CONDUCT OF A CERTIFICATION ELECTION MANDATORY ON THE PART OF THE BLR?
1. In an unorganized company a. upon the filing of a verified petition by a legitimate labor organization; or b. upon the filing of a petition by the employer when such employer is requested by the employees to bargain collectively. In an organized company upon the filing of a verified petition by a legitimate labor organization questioning the majority status of the incumbent bargaining agent within the 60-day freedom period before the expiration of a CBA.
VOLUNTARILY RECOGNITION
process whereby the employer recognizes a labor organization as the exclusive bargaining representative of the employees in the appropriate bargaining unit after a
2.
The petition must be supported by the written consent of at least 25% of all the employees in the appropriate bargaining unit.
b. The election results in none of the choices received the majority votes(50%+1) of the valid votes cast
NOTE: In case the establishment is organized, the employer cannot file a petition for certification election; only a legitimate labor organization can file such petition.
Run-off shall be conducted: a. Between the labor union receiving the two highest number of votes b. Provided that the total number of votes for all the contending unions is at least 50% of the total votes cast
2.
DEADLOCK BAR RULE, a petition for certification election can only can only be entertained if there is no pending bargaining deadlock submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout.
MAJORITY RULE :
1. In determining valid votes, eliminate spoiled ballots but include challenged votes 2. In determining the eligible votes cast, include spoiled ballots RUN-OFF ELECTIONS This happens when: a. The election provides for at least 3 choices(no union is always a choice)
TO
1. Agreement is in writing, signed by all contracting parties. 2. It must contain the terms and conditions of employment. 3. Covered employees in an appropriate bargaining unit. 4. It is for a reasonable period or duration. 5. It must be ratified. 6. It must be registered with the Bureau.
7. The violation of the contract bar rule or the existence of a duly registered CBA must be specifically impleaded as a defense.
for the purpose of negotiating an agreement with the respect to - wages, - hours of work and - all other terms and conditions of employment, including - proposals for adjusting any grievances or questions arising under such agreement and - executing a contract incorporating such agreements if requested by either party. When there is a collective bargaining agreement, the DUTY TO BARGAIN COLECTIVELY shall mean that neither party shall terminate or modify such agreement during its lifetime. - However, either party can serve a written notice to terminate or modify the agreement at least 60 days prior to its expiration period.
NOTE: Registration of CBA only puts into effect the contract-rule bar rule but the CBA itself is valid and binding even if unregistered. SUBSTITUTIONARY DOCTRINE-- It means that where there occurs a shift in the employees union allegiance after the execution of a collective bargaining contract with the employer, the employees can change their agent the labor union, but the collective bargaining contract which is still subsisting, continues to bind the employees up to its expiration date. They, may, however, bargain for the shortening of said expiration date. DEADLOCK arises when there is an impasse which presupposes reasonable effort at good faith bargaining which, despite noble intentions, did not conclude in agreement between the parties.
Does the Duty to Bargain Collectively carry with it the duty to agree to a proposal or to make a concession?
NO. The duty to bargain collectively does not compel any party - to agree to a proposal or - to make a concession
DUTY TO BARGAIN COLLECTIVELYThe performance of a mutual obligation to meet and convene - promptly and expeditiously and in good faith,
No temporary or permanent injunction pr restraining order in any case involving or growing out of labor disputes shall be issued by any court or other entity, except as otherwise provided in Articles 218 and 264 of this Code.
ART 255. EXCLUSIVE BARGAINING REPRESENTATION AND WORKERS PARTICIPATION IN POLICY AND DECISION-MAKING
IN DETERMINING THE APPROPRIATE BARGAINING UNIT THE FF. MUST BE CONSIDERED: 1. 2. 3. 4. Will of employees Affinity and unity of employees interest Prior collective bargaining history Employment status, such as temporary, seasonal and probationary employees.
ONE-UNION, ONE-COMPANY POLICY- the proliferation of unions in an employer unit is discouraged as a matter of policy unless there are compelling reasons which would deny a certain class of employees the right to selforganization for purposes of collective bargaining. EXCEPTIONS: supervisory employees who are allowed to form their own unions apart from the rank-and-file employees LABOR MANAGEMENT COUNCILS deal with the employer on matters affecting employees rights, benefits and welfare. They may be formed even if there is already a union in the company.
TAKE NOTE: Article 253-A on retroaction does not apply if the provisions were imposed by the Secretary of Labor by virtue of arbitration. It applies only if the agreement was voluntarily made by the parties. SUCCESSOR-IN-INTEREST DOCTRINE occurs when an employer is succeeded by another employer, the successor-in-interest who is a buyer in good faith has no liability to employees in continuing employment and collectively bargain because they are contracts in personam, as well as for cases of unfair labor practice. EXCEPTIONS TO THE SUCCESSOR-ININTEREST DOCTRINE: 1. If the transfer is done in bad faith; 2. If it was done to circumvent the obligation of the seller; 3. If the successor expressly assumes the obligations of the seller BARGAINING IMPASSE exists when good faith bargaining on the part of the parties filed to resolve the issue and there are no definite plans for further efforts to break the deadlock
TITLE VII- A (as incorporated by RA 6715) GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
ART 260. GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
GRIEVANCE MACHINERY - Mechanism for the adjustment of controversies or disputes arising from the interpretation or implementation of the CBA and the interpretation or enforcement of personnel policies GRIEVANCE ARISES: when a dispute or controversy arises over the implementation or interpretation of a CBA or from the implementation or enforcement of company personnel policies, and either the union or the
employer invokes the grievance machinery provision for the adjustment or resolution of such dispute or controversy. both parties must resort to grievance machinery
it is the most effective weapon of labor in protecting the rights of employees to improve the stems and conditions of their employment.
ART 261. JURISDICTION OF VOLUNTARY ARBITRATORS OR PANEL OF VOLUNTARY ARBITRATORS JURISDICTION OF VOLUNTARY ARBITRATORS:
EXCLUSIVE ORIGINAL JURISDICTION CONFERRED BY LAW a) interpretation or implementation of the CBA b) interpretation or enforcement of company personnel polices - It is the labor arbiter and not the grievance machinery which has jurisdiction over dismissal pursuant to the union security clause. 1. JURISDICTION BY AGREEMENT OF THE PARTIES - voluntary arbitrators shall also hear and decide all other disputes including ULP and bargaining deadlocks.
STRIKE-BREAKER- any person who obstructs, impedes or interferes by force, violence, coercion, threats or intimidation with any peaceful picketing by employees during any labor controversy affecting wages, hour or conditions of work or in the exercise of the right to self organization or collective bargaining STRIKE AREA the establishment, warehouse, depots, plants or offices, including the sites or premises used as runaway shops of the employer struck against, as well as the immediate vicinity actually used by picketing strikers in moving to an fro before all points of entrance to and exit front said establishment LOCKOUT - means the temporary refusal of an employer to furnish work as a result of an industrial or labor dispute.
TITLE VIII STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES
CHAPTER I STRIKES AND LOCKOUTS ART. 263. STRIKES, PICKETING AND LOCKOUTS
STRIKE - Any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute.
IMPORTANCE
where the existence of the union is threatened, the 15-day cooling-off period shall NOT apply AND the union may take action immediately.
the cooling off periods and seven-day strike ban is mandatory otherwise the purposes for which they have been imposed would not be achieved
EXCEPTION TO THE COOLING-OFF PERIOD: In case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may constitute union busting where the existence of the union is threatened, he 15-day cooling-off period shall NOT apply AND the union may take action immediately but they must still observe the mandatory 7 day period before they can stage a valid strike.
ECONOMIC STRIKE
1. Voluntary strike because the employee will declare strike to compel management to grant its demands.
ULP STRIKE
1. Involuntary : labor organization is forced to go on strike because the ULP committed against them by the employer. It is an act of selfdefense since the employees are being pushed to the wall and their only remedy is to strike.
STRIKE VOTE - is a requirement wherein the decision to declare a strike must be: 1. approved by a majority of the total union membership in the bargaining unit concerned, 2. obtained by secret ballot 3. in meetings or referenda called for the purpose. PURPOSE OF A STRIKE VOTE - is to ensure that the intended strike is a majority decision.
COOLING OFF PERIOD - that period of time given the NCMB to mediate and conciliate the parties. It is that span of time allotted by law for the parties to settle their disputes in a peaceful manner, before staging a strike or lockout.
NUMBER OF DAYS IN THE COOLING OFF PERIOD: 1. If the ground for the intended strike or
lockout is DEADLOCK IN COLLECTIVE BARGAINING, the cooling-off period is 30 days from the filing of the notice of strike. 2. If the ground for the intended strikes is UNFAIR LABOR PRACTICE, the coolingoff period is 15 days from the filing of the notice of strike. Therefore: HOWEVER, in case of dismissal from employment of union officers duly in accordance with the union constitution and by-laws, which may constitute union busting
TESTS FOR THE LEGALITY OF A STRIKE: 1. Whether or not is has a lawful PURPOSE. 2. Whether or not is complies with the
PROCEDURAL REQUIREMENTS OF THE LAW, to wit notice of strike 30/15-day cooling-off period strike vote 7-day strike ban 3. Whether or not it is executed through LAWFUL MEANS. NOTE: The 3 tests must concur.
-the history of the particular employers labor relations of anti-union bias or -because of their connection with an established collateral plan of coercion or interference. (Rothenberg) ISSUES THAT THE SECRETARY OF LABOR CAN RESOLVE WHEN HE ASSUMES JURISDICTION OVER A LABOR DISPUTE:
EFFECTS OF THE ASSUMPTION OF JURISDICTION OF THE SECRETARY 1. automatically enjoining the intended or
impending strike or lockout as specified in the assumption or certification order. 2. if one has already taken place at the time of assumption or certification, all striking or locked out employees shall immediately return to work and 3. the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. 4. A motion for reconsideration does not suspend the effects as the assumption order is immediately executory.
TESTS TO DETERMINE VALIDITY OF STRIKES. 1. PURPOSE TEST - The strike must be due
to either and/or -unfair labor practice. -bargaining deadlock
TOTALITY DOCTRINE:
the culpability of an employers remarks were to be evaluated not only on the basis of their implicit implications, but were to be appraised against the background of and in conjunction with collateral circumstances.
In Case the strike is declared legal, are the strikers entitled to strike duration pay?
IT DEPENDS.
Under this doctrine expressions of opinion by an employer which, though innocent in themselves, frequently were held to be culpable because of the circumstances under which they were uttered,
1. If it is an Economic Strike
NO, the strikers are NOT entitled to strike duration pay since the employer should get the equivalent days work for what the pays his employees.
2. If it is a ULP Strike
b. AFTER certification or submission of the dispute to compulsory or voluntary arbitration or -DURING the pendency of cases involving the same grounds for the strike or lockout. b) NO person all obstruct, impede or interfere with OII by force, violence, coercion, threats or intimidation FVCTI - any peaceful picketing by employees - during any labor controversy or in the exercise of the right of selforganization or collective bargaining or shall aid or abet such obstruction or interference. c) NO employer shall use or employ any STRIKE-BREAKER - nor shall any person be employed as a strike-breaker. d) NO public official or employee, including officers and personnel of the New Armed Forces of the Philippines of the Integrated National Police, or armed persons, - shall bring in, introduce or escort in any manner, - any individual who seeks to replace strikes in entering or leaving the premises of a strike area, or work in place of the strikers. - The police force shall keep out of the picket lines unless actual violence or other criminal acts occur therein: Provided, That nothing herein shall be interpreted to prevent any public officers from taking any measure necessary to: - maintain peace and order, - protect life and property, and/or - enforce the law and legal order. e) NO person engaged in picketing shall - commit any act of violence, coercion or intimidation or - obstruct the free ingress to or egress from the employers premises for lawful purposes, or - obstruct public thoroughfares.
EXCEPTIONS:
1. Where the strikers voluntarily and unconditionally offered to return to work, but the employer refused to accept the offer. -They are entitled to backwages from the date the offer was made -e.g. of Unconditioned offer: we will return tomorrow and NOT willing to return provided
2. Where there is return-to-work and the employees are discriminated against. - -They are entitled to backwages from the date of discrimination. RULES IN STRIKES IN HOSPITALS 1. It shall be the duty of striking employees or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel for the duration of the strike or lock-out. 2. Secretary of Labor may immediately assume jurisdiction within 24 hours from knowledge of the occurrence of such strike or lock-out or certify it to the Commission for compulsory arbitration GOCCs organized under the Corporation Code with no original charter of its own can declare a strike.
REASON: because while out of strike, the strikers are not considered to have abandoned their employment, but rather have only ceased from their labor. - -The declaration of a strike is NOT a renunciation of employment relation. EXCEPTIONS: The following strikers are NOT entitled to reinstatement: 1. union officers who knowingly participates in an illegal strike; and 2. any striker/union member who knowingly participate in the commission of illegal acts during the strike.
IMPROVED
OFFER
IMPROVED OFFER BALLOTING: a referendum conducted by the NCMB on or before the 30th day of the strike, for the purpose of determining whether or not the improved offer of the union is acceptable to the union members. applies only to economic strikes (bargaining deadlock) PURPOSE: to ascertain the real sentiment of the silent majority of the union members on strike. REDUCED OFFER BALLOTTING a referendum conducted by the NCMB, for the purpose of determining whether or not the reduced offer of the union is acceptable to the board of directors, trustees or partners. applies only to economic strike
PROBATIONARY
PERIOD OF EMPLOYMENT - the period needed to determine the fitness for the job, i .e., the time needed to learn the job. It is period during which the employer may determine if the employee is qualified for possible inclusion in the regular force. NOTE: The standard which the probationary employee is to meet must be made known by the employer to the employee at the time of the engagement. Probationary employees may be terminated for the same causes as a regular employee, except that there is an additional ground failure to meet the standard.
Is it necessary that probationary employment be for a period of 6 months? No. Provided that the following requisites concur: 1. it is done before the lapse of 6 months; 2.employee must be advised of such extension; 3. employee must agree. EFFECT IF PROBATIONARY EMPLOYEE IS ALLOWED TO WORK BEYOND 6 MONTHS: If the probationary employee is allowed to work beyond the period of 6 months or the agreed probationary period, said employee become a regular employee by operation of law. Under the Labor Code, an employee who is allowed to work after a probationary period shall be considered a regular employee. (Art. 281.)
b. deleterious to his health or his coemployees. c. certification from public heath officer that illness is incurable within 6 months. STANDARDS UNDER EMPLOYER MAY RETRENCH: WHICH AN
1. Losses expected should be imminent and substantial. 2.It must be reasonably necessary and likely to effectively prevent the expected losses 3. Alleged losses if already incurred, and the expected imminent losses sought to be forestalled, must be proved by sufficient and convincing evidence.
TERMINATION
BY
ART. EMPOYER
282.
TERMINATION
BY
JUST CAUSES: 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 organized representative; 4. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative; and 5. Other causes analogous to the following:
OF
1. The installation of labor-saving devices (automation) 2. Redundancy (superfluity in the performance of a particular work) 3. Redundancy to prevent losses (there is excess of employees and employer wants to prevent financial losses) 4. The closing or cessation of operation of the establishment or undertaking UNLESS the closing is for the purpose of circumventing the provisions of the Labor Code. 5. Illness a. If illness is incurable within 6 months and is
SEPARATION PAY
In case of termination due to a) THE INSTALLATION OF LABOR-SAVING DEVICES OF b) REDUNDANCY, - the worker affected thereby shall be entitled to a separation pay equivalent to at least one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher.
c) RETRENCHMENT TO PREVENT LOSSES and CLOSURES OR CESSATION OF OPERATIONS (NOT due to serious business losses or financial reverses) - The separation pay shall be equivalent to one (1) month pay or at least month pay for every year of service, whichever is higher. d) In the case of ILLNESS - separation pay equivalent to at least one month salary or to month salary for every year of service, whichever is greater, a fraction of at least 6 months shall be considered one (1) whole year. NOTE: If CLOSURE is due to severe financial losses, it is still debatable whether or not separation pay should be given. - I f you are able to prove that such portion of capital (10%) investment has been impaired, the employer should be exempt for the payment of separation pay. GUIDELINES TO DETERMINE THE VALIDITY OF TERMINATION: 1. Gravity of the offence 2. Position occupied by the employee 3. Degree of damage to the employer 4. Previous infractions of the same offense 5. Length of service
establishments or operations employing NOT more than ten (10) employees or workers.
BOOK SEVEN TRANSITORY AND FINAL PROVISIONS TITLE II PRESCRIPTION OF OFFENSES AND CLAIMS
ART. 291. MONEY CLAIMS
PERIODS OF PRESCRIPTION
POST- EMPLOYMENT
FORMS OF REINSTATEMENT: 1. ACTUAL OR PHYSICAL REINSTATEMENT -the employee shall be admitted back to work; 2. PAYROLL REINSTATEMENT - the employee is merely reinstated in the payroll. PERIOD COVERED BY THE PAYMENT OF BACKWAGES: Backwages shall cover the period from the date of dismissal of the employee up to the date of actual reinstatement. SECURITY OF TENURE: An employer CANNOT terminate the services of an employee EXCEPT for a just cause or when authorized by law. REQUIREMENTS OF DUE PROCESS BEFORE AN EMPLOYEE CAN BE REMOVED:
BENEFITS- A retiree is entitled to a retirement pay equivalent at least month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. Unless the parties provide for broader inclusions, the term one half (1/2) month salary shall mean: 15 days plus 1/12 of the 13th month pay and the cash equivalent of NOT more than 5 days of service incentive leaves. (22.5 days per year of service) NOTE: Exempted from the payment of retirement pay are retail, service and agricultural
1. written notice to apprise the employee of the particular acts or omission for which his dismissal is sought and is hereby considered as the proper charge; 2. ample opportunity to be employee to be heard and if the employee so decides, with the assistance of counsel; and 3. written notice informing the employee of the employers decision to dismiss him. Under the so-called WENPHIL DOCTRINE if just or authorized cause exist but the affected employees right to due process has been violated, the dismissal is valid but the employee is entitled to damages by way of indemnification for the violation of the right. On Jan. 27, 2000, the SC in the case of SERRANO vs. ISETANN et. al. Disregarded this WENPHIL DOCTRINE and ruled that if the employees right to due process is violated, his dismissal becomes illegal regardless of the existence of a just and authorized cause. REINSTATEMENT - Restoration of the employee to state from which one has been removed or separated without loss of seniority rights and other privileges. WHAT HAPPENS IF THERE IS AN ORDER OF REINSTATEMENT BUT THE POSITION IS NO LONGER AVAILABLE? If the position previously occupied by the employee is no longer available at the time of reinstatement, he should be given a substantially equivalent position. If THERE IS NO SUBSTANTIALLY EQUIVALENT POSITION: If no substantially equivalent position is available, reinstatement should not be ordered because that would in effect compel the employer to do the impossible. In such a situation, the employee should merely be given separation pay of the one month salary for every year of service (1:1). CIRCUMSTANCES WHEN COMPANY MAY NOT REINSTATE DESPITE ORDER OF REINSTATEMENT 1. Transfer of business ownership;There is no law requiring a purchasing corporation to absorb the employees of the selling corporation. A fortiori, reinstatement of unjustly dismissed employees CANNOT be enforced against the new owner UNLESS there is an express agreement on the assumption of liabilities by the purchasing corporation. 2. When reinstatement is rendered impossible due to the abolition of the position; 3. When the business has closed down; 4. Physical incapacity of employee
5. Doctrine of Strained Relations-When the employer can no longer trust the employee and vice-versa, reinstatement could not effectively serve as a remedy. Applies only to positions which require trust and confidence; or Under the circumstances where the employment relationship has become so strained to preclude a harmonious working relationship, and that all hopes at reconciliation are nil after reinstatement, it would be more beneficial to accord the employee backwages and separation pay. BACKWAGES-Relief given to an employee to compensate him for lost earnings during the period of his dismissal. How computed: Under existing law, backwages is computed from the time of the illegal dismissal up to time of actual reinstatement. WHAT ARE INCLUDED IN COMPUTATION OF BACKWAGES THE
1. transportation and emergency allowances 2. vacation or service incentive leave and sick leave 3. 13th month pay. However, facilities such as uniforms, shoes, helmets and ponchos should NOT be included in the computation of backwages. REASON: said items are given free, to be used only during official tour of duty not for private or personal use. CIRCUMSTANCES THAT AWARD OF BACKWAGES: 1. 2. 3. 4. 5. 6. PREVENT
death of the employee physical and mental incapacity business reverses closure of business reinstatement of dismissed employee confinement in jail
SPECIAL LAWS
SOCIAL SECURITY SYSTEM
COVERAGE: Compulsory upon all employees not over 60 years of age and their employers In case of domestic helpers, their monthly income shall not be less than one thousand pesos Any benefit already earned by the employees under private benefit plans existing at the time of the approval of the Act shall not be
discontinued, reduced or otherwise impaired and shall continue to remain under the employers management unless there is an existing agreement to the contrary Filipinos recruited by foreign based employers for employment abroad may be covered by the SSS on a voluntary basis Compulsory upon such self- employed persons as may be determined by the Commission including but not limited to the following: 1. all self employed professionals 2. partners and single proprietors 3. actors and actresses directors 4. professional athletes, coaches, trainers 5. individual farmers and fishermen EFFECTIVE DATE OF COVERAGE: Shall take effect on the first day of the operation with respect to the employer and that of the employee on the day of his employment DEPENDENTS: 1. the legal spouse entitled by law to receive support from the member 2. the legitimate, legitimated or legally adopted and illegitimate child who is unmarried, not gainfully employed and has not reached 21 years of age or if 21 years of age, he is congenitally incapacitated or while still a minor has been permanently incapacitated and incapable of selfsupport, physically and mentally and 3. the parent who is receiving regular support from the member EMPLOYER Any person natural or juridical, domestic or foreign, who carries on in the Philippines, any trade business, industry undertaking or activity of any kind and uses the services of another person who is under his orders as regards the employment except the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government Self- employed person shall be both the employer and employee at the same time. EMPLOYEE
Any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services, where there is an employer- employee relationship. BENEFICIARIES The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally adopted and illegitimate children who shall be the primary beneficiaries of the member, PROVIDED that the dependent illegitimate children shall be entitled to 50% of the share of the legitimate, legitimated or legally adopted children In the absence of the legitimated, legally adopted or legitimate children, illegitimate children shall be entitled to 100% of the benefits. In their absence, the dependent parents who shall be the secondary beneficiaries. In the absence of all of the foregoing, any person designated by the covered employee as secondary beneficiary
MEDICARE
COVERAGE: All SSS members are covered under the Medicare program. Total permanent disability, unemployed partial permanent disability, retirement pensioners and survivors of deceased members of the SSS and their dependents are also entitled to medical care benefits without need of additional contributions PERIOD OF ENTITLEMENT The member or pensioner is entitled to a maximum of 45 days confinement in a hospital in a given calendar year. His dependents are given another set of 45 days to be shared among themselves. Unused benefits cannot be carried over to the succeeding year.
condition that they must settle first their financial obligations with the GSIS and contractuals who have no employer and employee relationship with the agencies they serve. Except for the members of the Judiciary and constitutional commissions who shall have life insurance only, all members of the GSIS shall have life insurance, retirement and all other social security protection such as disability, survivorship, separation and unemployment benefits. COMPUTATION OF SERVICE The computation of service for the purpose of determining the amount of benefits payable shall be from the date of the original appointment/ election including periods of service at different times under the authority of the Republic of the Philippines and those that may be prescribed by the GSIS in coordination with the Civil Service Commission. All service credited for retirement, resignation or separation for which corresponding benefits have been awarded shall be excluded in the computation of service in case of reinstatement in the service of an employer and subsequent retirement or separation which is compensable. UNEMPLOYMENT OR INVOLUNTARY SEPARATION BENEFITS Monthly cash payments equivalent to 50% of the average monthly compensation shall be paid to a permanent employee who is involuntarily separated from the service due to the abolition of his office or position usually resulting from reorganization. RETIREMENT BENEFITS: CONDITIONS FOR ENTITLEMENT 1. Member has rendered at least 15 years of service 2. He is at least 60 years of age at the time of retirement 3. He is not receiving a monthly pension benefit from permanent total disability PERMANENT DISABILITY BENEFITS Monthly income benefit for life equal to the basic monthly pension effective from the date of the disability. Provided: 1. He is in the service at the time of the disability
2. If separated from service, he has paid at least 36 monthly contributions within the 5 year period immediately preceding the disability or has paid a total of at least 180 monthly contributions prior to the disability Unless the member has reached the minimum retirement age, disability benefits shall be SUSPENDED when: 1. he is reemployed 2. he recovers from his disability as determined by the GSIS, whose decision shall be final and binding 3. he fails to present himself for medical examination when required by the GSIS TEMPORARY DISABILITY BENEFITS 75% of the current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding 120 days in one calendar year after exhausting all sick leave credits and collective bargaining agreement sick leave benefits. PROVIDED: 1. he is in service at the time of his disability 2. if separated, he has rendered at least 3 years of service and has paid at least 6 monthly contributions in the 12- month period immediately preceding the disability HOWEVER: A member cannot enjoy temporary total disability benefit and sick leave pay simultaneously. In no case shall it be less than 70 pesos a day. SURVIVORSHIP BENEFITS: Upon the death of a member, the primary beneficiaries shall be entitled to: survivorship pension, PROVIDED: a. member was in service at the time of his death b. if separated from service, has rendered at least 3 years of service and paid 36 monthly contributions with the 5- year period immediately preceding his death or has paid a total of at least 180 monthly contributions. LIFE INSURANCE BENEFITS
All employees except members of the AFP and the PNP shall be compulsorily covered with life insurance. PRESCRIPTION OF CLAIMS Claims for benefits under the Act except for life and retirement shall prescribe after 4 years from the date of the contingency. JURISDICTION GSIS shall have the exclusive and original jurisdiction to settle any dispute arising under the Act and any other laws administered by the GSIS.
1. Money Claims.-, the Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide, the claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual, moral, exemplary and other forms of damages. LIABILITIES The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. The performance bond to be filed by the recruitment/placement agency, as provided by law, shall be answerable for all money claims, or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages. Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment or modification made locally or in a foreign country of the said contract.
POEA
The POEA retains original and exclusive jurisdiction to hear and decide: 1. all cases which are administrative in character, involving or arising out of violations of rules and regulations relating to licensing and registration of recruitment and employment agencies or entities; and, 2. disciplinary action cases and other special cases which are administrative in character, involving employers, principals, contracting partners and Filipino migrant workers.
for three (3) months for every year of the unexpired term, whichever is LESS.
VENUE
A criminal action arising from illegal recruitment shall be filed with the RTC of the province or city where the offense was committed or where the offended party actually resides at the time of the commission of the offense. The court where the criminal action is first filed shall acquire jurisdiction to the exclusion of other courts. PRESCRIPTIVE PERIODS Illegal recruitment cases under this Act shall prescribe in five (5) years; provided, however, That illegal recruitment cases involving economic sabotage as defined herein shall prescribe in twenty (20) years. (Sec. 12, R.A. 8042) PROHIBITED ACTS IN THE RECRUITMENT AND PLACEMENT OF WORKERS UNDER THE LABOR CODE ARE RETAINED UNDER THE MIGRANT WORKERS ACT WITH THE ADDITION OF THE FOLLOWING:
agencies of the government, including government- owned or controlled corporations WITH original charters All government employees can form, join or assist employees organizations of their own choosing for the furtherance and protection of their interest. They can also form in conjunction with appropriate government authorities, labor- management committees, works councils and other forms of workers participation schemes to achieve the same objectives. High- level employees whose functions are normally considered as policy- making or managerial or whose duties are of a highly confidential nature shall not be eligible to join the organization of rank and file government employees. PROTECTION ORGANIZE OF THE RIGHT TO
1. Failure to deploy employee without valid reason 2. Failure to reimburse expenses incurred in connection with his documentation and processing in cases that deployment did not take place
1. Government employees shall not be discriminated against in respect of their employment by reason of their membership in employees organization or participation in the normal activities of the organization. 2. Government authorities shall not interfere in the establishment, functioning or administration of government employees organization through acts designed to place such organization under the control of the government authority REGISTRATION Government employees organization shall register with the Civil Service AND the Department of Labor and Employment .
GUIDELINES ON THE RIGHT TO ORGANIZE OF GOVERNMENT EMPLOYEES (E. O. 180) COVERAGE -Applies to all employees of all branches, subdivisions, instrumentalities and
3. Cash bonuses
STATEMENT OF POLICIES
1. Employees not over 60 years of age and their employers. 2. 2. Domestic helpers whose monthly income is not less than P1,000.00. 3. Self-employed persons as determined by the Commission : a) self-employed professionals; b) partners and single proprietors; c) actors and actresses, directors, etc; d) professional athletes, coaches, trainers, etc. and e) individual farmers and fishermen.
1. Compulsory for all employees receiving compensation who have not reached compulsory retirement age irrespective of employment status. *Including barangay and sanggunian officials
Any person compulsorily covered by GSIS or SSS Any person employed as casual, emergency, temporary, substitute or contractual
VOLUNTARY
1. Spouses who devote full time to managing of household and family affairs, UNLESS they are also engaged in other vocation or employment which is subject to MANDATORY coverage. 2. 2. Filipinos recruited by foreign-based employers for employment abroad. 3. Employees separated from employment by paying TOTAL contribution (meaning : both employer and employees share) Any foreign government, international organization or their wholly owned instrumentality MAT enter into agreement for the inclusion of their employees EXCEPT those covered by their own respective civil service retirement systems.
BY-ARRANGEMENT
EXEMPTED EMPLOYMENT
1. purely CASUAL and not for purpose or occupation of the employer. 2. Performed in an alien vessel by an employee if he is employed when such vessel is outside of the Philippines. 3. By the government of the Philippines or instrumentality or agent thereof. 4. Foreign government of international organization.
1. AFP 2. PNP 3. Contractuals who have no employer and employee relationship * Members of the judiciary and the Constitutional Commissions life insurance only
BENEFITS
1. 2. 3. 4. 5. 6. 7. 8.
Monthly pension Dependents pension Retirement Death Benefits Permanent Disability benefits Funeral Sickness Maternity
1. 2. 3. 4. 5. 6.
* Life insurance for the members of the judiciary and constitutional commissions.
BENEFICIARIES PRIMARY 1. Dependent spouse until remarriage 2. Dependent legitimate, legitimated or legally adopted and illegitimate children 1. Legal, dependent spouse until remarriage 2. Dependent children defines as the legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried, not gainfully employed, not over the age of majority, or is over the age of majority but is incapacitated and incapable of self-support. 1. Dependent parents 2. Legitimate descendants subject to the restrictions on dependent children, the legitimate descendants
SECONDARY
CONTRIBUTIONS
1. Employers contributions 2. Employees contribution 3. Government contribution 1. For those with employees Employee contribution shall be deducted by the employees based on an approved schedule. Employer shall remit BOTH EMPLOYEE AND EMPLOYER contribution to the system. 2. For self-employed Self-employed shall pay BOTH EMPLOYER AND EMPLOYEE contributions to the system. 3. For government contribution remitted to the SSS within the first 10 days of each calendar month following the month got which they are applicable. * Contributions under this Act in case where an employer refuses or neglects to pay the same shall be collected by the SS in the same manner as taxes are made collectable under the National Internal Revenue Code.
1. Employers contribution 2. Employees contribution 1. The employer shall deduct each month from the salary or compensation of each employee the contribution payment. Employer shall remit to the system within 10 days the Employer-Employee contributions.
MODE OF COLLECTION
PENALTIES
1. False statement or misrepresentation as to any compensation as to any compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any claim for any benefit payable under this Act Art. 172 of the RPC (falsification be private individuals and falsified documents) 2. Obtaining or receiving any money or check without being entitled thereto with intent to defraud any covered employee, employer or SSS fine of P5,000.00 to P20,000.00 and imprisonment of 6 years and 1 day to 12 years or both. 3. Buys, sells, offers for sale, uses, transfers, takes or gives in exchange, or pledges or give in pledge, except as authorized in this Act fine of P5,000.00 to P20,000.00 or imprisonment of 6 years and 1 day to 12 years or both. 4. Makes, alters, forges or counterfeits any stamps, coupon, ticket or other device prescribed by the Commission, or uses, sells, lends or in his possession any such altered, forged, or counterfeited materials, or makes, uses or sells or has in his possession any materials used in the manufacture of such stamp, coupon, ticket or book fine of P5,000.00 to P20,000.00 or imprisonment of 6 years and 1 day to 12 years or both.
1. Participating directly or indirectly in commission of fraud, collusion, falsification or misrepresentation in any transaction of the GSIS Article 172 of the RPC (Falsification by private individuals and use of falsified documents) 2. Receiving money or check involving provision of this act, without being entities with intent to defraud fine of P5,000.00 to P20,000.0 or imprisonment of 6 years and 1 day to 12 years or both. 3. Refusing to comply with the provisions of this Act fine of P5,000.00 to P20,000.00 or imprisonment of 6 years and 1 day to 12 years or both. 4. Failure to include in the annual budget corresponding employer contributions by finance officers, treasurers, cashiers, etc. 6 months and 1 day to 6 years imprisonment and a fine of P3,000.00 to P6,000.00 and absolute perpetual disqualification from holding office. 5. Misappropriation or taking of funds and property of the GSIS for purposes other than authorized in this Act Article 217 of RPC
5. Fails or refuses to comply with the provisions promulgated by the Commission fine of P5,000.00 ot P20,000.00 or imprisonment of 6 years and 1 day to 12 years or both. 6. Misappropriation of funds penalties under Article 217 of the RPC. 7. Failure to remit the said deductions to the SSS within 30 days from date they become due Article 315 of the RPC (Estafa). ENTITLED TO RETIREMENT BENEFITS Member has reached age of 60 or 65.
(Malversation of public funds or properties). 6. For head of officers who fails or refuses payment or remittance of GSIS payments within 30 days from the time its demandable imprisonment of 1 year to 5 years and fine of P10,000.00 to P20,000.00 and aboslute perpetual disqualification. OPTIONAL. Member meets the ff : 1. has worked for at least 15 years. 2. Is at least 60 years of age at time of retirement, and 3. Is not receiving monthly pension benefit from permanent total disability COMPULSORY. Member is 65 years with at least 15 years of service (if service is less than 15 years, he may be allowed to continue in accordance with Civil Service Rules and Regulations.)
1. Complete loss of sight in both eyes. 2. Loss of two limbs at or above the ankle or wrist. 3. Permanent complete paralysis of two limbs. 4. Brain injury resulting in incurable imbecility or insanity. 5. Other cases determined by SSS.
1. Complete loss of sight in both eyes. 2. Loss of two limbs at or above the ankle or wrist. 3. Permanent complete paralysis of two limbs. 4. Brain injury resulting in incurable imbecility or insanity 5. Other cases determined by GSIS.
1. Temporary total disability lasting over 120 days. 2. Complete loss of sight in both eyes. 3. Loss of limbs at or above the ankle or wrist. 4. Permanent complete paralysis of two limbs.
5. Brain injury resulting in incurable imbecility or insanity. 6. Other cases determined by Medical Director of SSS DISABILITIES DEEMED PERMANENT PARTIAL Complete and permanent loss of use of a digit, limb, ear (or both ears), hearing in one or both ears, or sight in one eye. Complete and permanent loss of a digit, limb, ear (or both ears), hearing in one or both ears, or sight in one eye. For permanent disability in the ff. cases : 1. grave misconduct 2. notorious negligence 3. willful intent to kill self or another 4. habitual intoxication P12,000.00 Employer and Employee Occurrence of contingency whether or not work-connected. Employee to notify employer within 5 days from injury or illness(unless no longer necessary under the exceptions) Occurrence of contingency whether or not work-connected. Work-related illness or injury. Employee to notify employer within 5 days from injury or illness (unless it is no longer necessary under the P12,000.00 (to be raised to P18,000.00 in year 2002) Employer And Employee Complete and permanent loss of use of a digit, limb, ear (or both ears), hearing in one or both ears, or sight in one eye. For all contingencies in the ff. cases : 1. intoxication 2. willful intent to injure or kill ones self or another 3. notorious negligence P10,000.00 Employer
exceptions) Employer to record the same in logbook within 5 days from notice. Employer to notify SSS or GSIS within 5 days from recording in logbook.
EFFECT OF ERRONEOUS PAYMENT DISPUTE SETTLEMENT 1. 2. 3. 4. File claim with SSS. Appeal to Social Security Commission. Appeal to CA. Appeal to SC
Legal And eligible claimant may still demand benefits, without prejudice to right of GSIS to sue improper claimant. 1. File claim with GSIS. 2. Appeal to GSIS Board. 3. Appeal to CA. 4. Appeal to SC. * Appeals shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure
SSS absolved unless notified of other claim prior to payment. 1. 2. 3. 4. File claim with SSS and GSIS. Appeal to ECC. Appeal to CA Appeal to SC
EXCLUSIVENESS OF BENEFITS
May Apply for same benefits in EC, if in private sector. May not receive benefits for same contingency under GSIS offers more (he may then receive deficiency)
Whenever other laws provide similar benefits for the same contingencies, members who qualifies has option to choose. If benefits chosen are less than under GSIS, he may get the difference. However, with respect to work-
May apply for the same benefits under SSS, if in the private sector. May apply for same benefits under GSIS, if in public sector (applying Mazo Sugar Central vs CA case.
connected illness and injuries, he may also recover in full under ECC, applying the Mazo Sugar Central vs CA case. PRESCRIPTIVE PERIODS 10 years from the time the right of action accrues. 4 years from date of contingency except life and retirement benefits
3. Reinstatement-with cases involving wages 3. Contempt 4. Claims of damages arising from E-E relationship 5. Cases involving prohibited acts in strikes
(ART. 264) 6. Claims arising from E-E relationship including those of domestic service, involving amount exceeding P5,000.0 7. Migrant Worker Cases