1

Planning, Organizing & Leading -The basic functions of the management process

Manager - Person who is responsible for accomplishing an org. Goals by managing the
efforts of the org. People

Outsourcing - Which function of the management process requires a manager to

establish goals and standards and to develop rules and procedures.

Organizing - A manager delegates the tasks for a project.

Controlling - Managers use metrics to assess performance and then

develop strategies for corrective action.

Marketing new products and services - Not Included in line manager’s human resource
responsibilities.

Recruiter - Search for qualified applicants

Line Authority - Human resource manager generally exert within the human resources
department

Staff Authority - outside the human resources department

Compensation Manager - In charge of Developing the plans for how people are paid and
how the employee benefits program is run

Embedded HR Teams - An HR Generalist at Wilson Manufacturing has been assigned to

the sales department to provide HR management assistance as needed. What kind of
structure of the HR services provided.

Corporate HR Team - Involves dedicated hr members that assist top management

in issues such as developing the personnel aspects of the company long term strategic
term.

Human Capital- What term refers to the knowledge, skills and abilities of a firm’s worker

On-Demand workers - Where freelancers and independent contractors work when they
can,
on what they want to work on and when the company needs them.

Unbalanced labor force - The recent trend where in some occupations (Such as high-
tech) unemployment rates are low, while in others unemployment rates are still very
high and recruiters in many companies can't find companies, while in others there’s a
wealth of candidates is called

The use of gaming features to enhance training and performance appraisal - One of the
best examples of recent trends in technology that are affecting human resource
management.

Qualitative Opinions - Evidence-based human resource management relies on

True - In small organizations, line managers frequently handle all personnel duties
without the assistance of human resource staff?

Line Authority, Staff Authority - What are the two distinct functions carried out by human
resource managers?

Deciding what positions to fill - What is the first step in the recruitment and selection
process?

Personnel Planning - Must decide what position the firm should fill in the next six months,
which means he is currently working on.
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Succession Planning The process of deciding how to fill executive positions at a firm is
known as?

Trend Analysis - Refers to studying a firm's past employment needs over a period of
years to predict future needs?

Skills inventories Contains data regarding employee’s education, career development,

and special skill and is used by managers when selecting inside candidates for
promotion.

Skill inventories - When managers need to determine which current employees are
available for promotion or transfer.

Developing skill inventories - This is not a method used by firms to develop high-
potential candidates for future positions.

Outsourcing- Thinking of having another company take care of it’s benefit management

Develop an applicant tool - Is necessary to Recruiting

Potential to lose employees who aren't promoted - Primary disadvantage of using

internal sources of candidates to fill vacant positions in a firm

What percentage of employees - Not included in order to meet the company’s goals for
the future and improve employee retention rate.

Internet job postings - recruitment outside candidates Not a tool used by firms.

Skills needed for the job - Play the greatest role in determining medium for a job
advertisement?

An employer will most likely use a private employment agency in order to Fill a specific
job quickly

You need to ensure that applicants are screened properly, so you should Provide the
agency with an accurate job description

Temporary assignment and on as-needed basis Contingent worker, not permanent

Advantage of using employee referral campaigns? Applicants have received realistic job
previews

True - Publicizing an open job to current employees through a firm’s intranet or bulletin
board is known as job posting.

Reliable employment test will most likely yield Consistent scores when a person takes
two alternate forms of the test

Validity - Refers to the accuracy with which a test fulfills the function for which it was
designed

True - Selection tests should be used as supplements to other tools like interviews and
background checks.

Motor Ability - As part of the selection process for a position at UPS, Jack has been asked
to lift weights and jump rope. What is most likely being measured by the UPS?

Physical abilities or Motor Ability - Carlos recently participated in a selection test for a
position at Northern Aeronautics. The test measured Carlo's finger dexterity and reaction
time, so it was most likely what kind of test?

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Optimism - Not part of the Big Five Optimism

Miniature job training - Refers to training candidates to perform several of the job’s tasks
and then assessing the candidate’s performance prior to hire.

Uncover false information - Primary reason that firms conduct background investigation
of job applicants.

Management assessment center - It is a multi day simulation in which candidates

perform a tasks in hypothetical situations and are scored on their performance.

True - In an effective talent management system, an employee’s performance appraisal

would initiate training and development opportunities.

Job analysis - Not included in collecting by a human resource specialist through a job
analysis

In assigned the task of conducting a job analysis the first step in the process is Decided
how the gathered information will be used

Working conditions - Not included in Job Specifications.

Organizational Chart - Indicated the division of work within a firm and the lines of
authority and communication.

Using computerized systems to combine separate tasks - Example of business of process

re-engineering

worker - It is essential to confirm the validity of collected data.

Job Rotation - Refers to systematically moving workers from one job to another

False - Conducting the job analysis is the sole responsibility of the HR specialist

Needs to gather job analysis information from a large number of employees who perform
similar work. Holding a group interview

Reactivity - is when workers alter their normal activities because they are being watched.

False - Informal interviews provide quantitative job analysis information, which is why
they are frequently used by managers who need to determine the relative worth of a job
for pay purposes.

Diaries - Record every activity in which the employee participates.

Employee orientation - Learned about employee benefits packages, personnel policies

and the structure of the company

Assisting new employees in selecting the best labor union - Not one of the goals of a
firm’s employee orientation program.

True - Employee orientation programs range from brief, informal introductions to lengthy,
formal courses.

False - Hiring highly skilled employees with great potential eliminated the need to
provide orientation and training.

Training Initiatives -The methods used to give new or present employees the kills they
need to perform their jobs.

Strategic Training needs analysis - This identify the training employees will need to fill
future job.
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Analyzing the training need- What is the first step in the ADDIE training process?

In order to motivate the individuals who, attend her training session Amy should most
likely not do Use new terminology and the technical concepts

Questioning current job holders - This method will not use by the employer in identifying
the training need for new employees.

True - Training session should be half day or three-fourths day in length rather than a full
day, because the learning curve goes down late in the day.

Holding on the job training sessions - Most likely to occur during the fourth step of the
ADDIE training process.

If the employee will move to various jobs each month for a nine month period of time.
The employer will utilize this form of training Job Rotation

Ian is currently being trained on the job and is at the first step in the OJT process, which
involves Familiarizing the trainee with equipment, tools, and trade terms.

When jobs consist of a logical sequence of steps and are best taught step-by-step, the
most appropriate training method to use is Job instruction training

Performance Appraisal - Refers to the process of evaluating an employee’s current and/

or past performance relatives to his or her performance standards.

The primary purpose of providing employees with feedback during a performance

appraisal is to motivate employees to Remove any performance deficiencies

Creating an organization strategy map - Not included for reasons in appraising

employees performance.

Employee’s direct supervisor - is primarily responsible for appraising an employee’s

performance

Setting work standards - first step of any performance appraisal.

Ratings are higher than when provided by supervisors- usually occurs when employees
rate themselves for performance appraisals.

Upward feedback - It refers to the process of allowing subordinated to rate their

supervisors performance anonymously

360 degree feedback - Refers to a performance appraisal based on surveys from peers,
supervisors, subordinated and customers.

True - Supervisors should provide employees with feedback, development and incentives
necessary to help employees eliminate performance deficiencies or to continue to
perform well True
The HR department monitors the performance appraisal system, but it is typically not
involved in rating employees.

True - In order to ensure that performance appraisals are effective. It should make sure
to schedule a feedback session to address each subordinate’s performance, progress and
future development plans.
Paired Compassion - Easiest and most popular technique for appraising employee
performance

True - Management by objectives requires a manager to set specific measurable,

organizationally relevant goals with each employee and then periodically discuss the
employees progress toward these goals.
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INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT
A series of actions that aim to achieve the goals of an organization.
a. Recruitment
b. Management
c. Organization
d. Job Analysis

When managers use metrics to assess performance and then develop strategies for corrective
action, they are performing the _________ function of the management process.
a. Staffing
b. Planning
c. Controlling
d. Directing

Claire spends most of her times at work establishing goals for her staff of fifty employees and
developing procedures for various tasks. In which function of the management process does
Claire spend most of her time?
a. Planning
b. Organizing
c. Staffing
Which of the following is not a function of human resources management
a. Recruits qualified applicants for the job vacancies.
b. Make sure that the company complies with the Labor Code.
c. Analyzes financial reports and makes decisions form it.
d. Formulate and implement training programs.

WIlmer works in the HR department and is in charge of developing the plans for how people are
paid and how the employee benefits program is run. Wilmer is most likely holding the position
of_____
a. Training specialist
b. Recruiter
c. Compensation manager
d. Job analyst

The HRM Function started as a mere administrative function in a business enterprise.

True

The following are the three product lines of HR, except:

a. Administrative services and transactions.
b. Strategic partner
c. Business partner services.
d. Welfare services

Personnel activities associated with human resource management most likely include all of the
following EXCEPT____
a. Orienting and training new employees
b. Apprasing employees performances
c. Building employees commitment
d. Developing customer relationships

No one wants to make mistakes, least of all managers. Which one of the following is NOT a
personnel mistake?
a. Waste time with useless interviews.
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b. Hure the wrong person

c. Have your people demotivated and exhausted
d. Experience low turnover

Human resource managers generally exert _____ within the human resources department and
_____ outside the human resources department.
a. Line authority; staff authority
b. Staff authority; line authority
c. Functional authority; line authority
d. Staff authority; implied authority

Which of the following is most likely a line function of the human resource manager?
a. Ensuring that line managers are implementing HR policies
b. Advising top managers about how to implement labor laws
c. Representing the interest of employees to senior management
d. Directing the activities of subordinates in the HR department

An HR generalist at Wilson Manufacturing has been assigned to the sales department to provide
HR management assistance as needed. Which of the following best describes the structure of the
HR services provided at Wilson Manufacturing?
a. Shared HR teams
b. Embedded HR teams
c. Centers of expertise
d. Corporate HR teams

Which organizations of the human resource function involves dedicated HR members that assist
top management in issues such as developing the personnel aspects of the company’s long-term
strategic
a. Shared HR teams
b. Embedded HR teams
c. Centers of expertise
d. Corporate HR teams

_____ refers to the tendency of firms to extend their sales, ownerships, and/or manufacturing to
new markets abroad.
a. Expansions
b. Globalization
c. Export growth
d. Diversification

What term refers to the knowledge, skills, and abilities of a firm’s workers?
a. Human resources
b. Human capital
c. Intangible assets
d. Contingent personnel

Which management style is suitable for knowledge workers?

a. Empowering
b. Autocratic
c. Authoritarian
d. Commanding

It is a systematic planned strategic effort by a company to attract, retain, develop, and motivate
highly skilled employees and managers.
a. Empowerment
b. Management
c. Talent Management
d. Employee Retention

What is the term for work forces like those at the company Uber. Where freelancers and
independent contractors work when they can, on what they want to work on , and when the
company need them?
a. Telecommuters
b. Human capital
c. Job-analyst
d. On-demand workers
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The recent trend where in some occupations (such as hightect) unemployment rates are low,
while in others unemployment rates are still very high and recruiters in many companies can’t
find candidates, while in others there’s a wealth of candidates is called____
a. Talent analyst
b. Globalization
c. Unbalanced labor force
d. Human capital

Which term refers to exporting jobs to lower-cost locations abroad?

a. Freelancing
b. Offshoring
c. Rightsizing
d. Warehousing

Evidence-based human resource management relies on all of the following types of evidence
EXCEPT_____
a. Scientific rigor
b. Existing data
c. Research studies
d. Qualitative opinions

Distributed HR is the idea that more and more human resource management tasks are now being
redistributed from a central HR department to the company’s employees and line managers.
True

This type of organization embraces a culture of lifelong learning, enabling employees to

continually acquire and share knowledge.
a. Learning Organization
b. Telecommuting
c. Merger
d. Critical Talent

What are the possible implications of low/poor economic performance for human resource
management?
Financially unstable, magbabawas ng employee, tipid ng resources, unemployment rate

In what way has technology changed human resources management?

Easy data gathering, faster recruitment, easy to find and secure info, etc.

JOB ANALYSIS
Which of the following terms refers to the procedure used to determine the duties associated
with job position and the characteristics of the people to hire for those position?
a. Job description
b. Job specification
c. Job analysis
d. Job context

The information resulting from a job analysis is used for writing____

a. Job description
b. Corporate objectives
c. Personnel questionnaires
d. Training requirement

All of the following types of information will most likely be collected by a human resources
specialist through a job analysis EXCEPT_____
a. Work activities
b. Human behaviors
c. Performance standards
d. Employee benefits options

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A manager users the information in a job analysis for all of the following EXCEPT_____
a. Assessing training requirements
b. Complying with labor regulations
c. Determining appropriate compensation
d. Providing accurate performance appraisals

Which one of the following most likely to depends on a job’s required skills, education level,
safety hazards, and degree of responsibility?
a. Employee compensation
b. Organizational
c. Annual training requirements
d. Job specifications

Jennifer, a manager at an engineering firm, has been assigned the task of conducting a job
analysis. What should be Jennifer’s first step in the process?
a. Deciding how the gathered information will be used
b. Collecting data on job activities and working conditions
c. Selecting representative job positions to assess
d. Reviewing relevant background information

Which of the following refers to the human requirements needed for a job, such as education,
skills, and personality?
a. Job specifications
b. Job analysis
c. Job placements
d. Job descriptions

All of the following requirements are typically addressed in job specifications EXCEPT____
a. Desired personality traits
b. Required education levels
c. Necessary experience
d. Working conditions

Which one of the following indicates the division of work within a firm and the lines of authority
and communication?
a. Process chart
b. Employee matrix
c. Organizational chart
d. Corporate overview

Which one of the following is an example of business process reengineering?

a. Using computerized systems to combine separate task
b. Creating a visual chart for work flow procedures
c. Assigning additional activities to new employees
d. Developing employee skills and behaviors

While performing the fifth step of a job analysis, it is essential to confirm the validity of collected
data with the _____
a. DOLE representative
b. HR manager
c. Legal department
d. Workers

The primary drawback of performing a job analysis regards the _____

a. Unverifiable data a job analysis typically provides
b. Certification required to conduct a job analysis
c. Amount of time a job analysis takes to compete
d. Redundant information gathered during a job analysis

Job ____ means assigning workers addittional same-level activities.

a. Enrichment
b. Assignment
c. Enlargement
d. Rotation

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Which one of the following terms refers to systematically moving workers from one job to
another?
a. Job rotation
b. Job enrichment
c. Job enlargement
d. Job adjustment

Which one of the following terms refers to redesigning jobs in a way that increases the
opportunities for the worker to experience feelings of the responsibility, achievement, growth,
and recognition?
a. Job rotation
b. Job enrichment
c. Job reengineering
d. Job enlargement

Who argued that the best way to motivate workers is to build opportunities for challenge and
achievement into their jobs via job enrichment?
a. Adam Smith
b. Frederick Taylor
c. Frederick Herzberg
d. Abraham Maslow

Jack is an employee at a Best Western Hotel. Some weeks he works with the catering group, and
other weeks he assists the reservations clerk or the parking attendant. This is an example of
_____
a. Job enlargement
b. Job rotation
c. Job enrichment
d. Job specialization

Which method for collecting job analysis information is considered best for quantifying the
relative worth of a job for compensation purposes?
a. Electronic log
b. Worker diary
c. Observation
d. Position analysis questionnaire

Jerome, a manager at an electronics company, needs to gather a job analysis information from a
large number of employees who perform similar work. Which one of the following would be most
appropriate for jerome?
a. Observing all employees
b. Interviewing the HR manager
c. Holding a group interview with a supervisor
d. Conducting telephone surveys of all employee

For which of the following jobs is directing observation NOT a recommended method for
collecting job analysis data?
a. Assembly-line worker
b. Accounting clerk
c. Attorney
d. Nurse

RECRUITMENT AND SELECTION

What is the first step in the recruitment and selection process?
a. Performing initial screening interviews
b. Building a pool of candidates
c. Performing candidate background
d. Deciding what positions to fill

Marcus, an HR manager for Samsung, must decide what positions the firm should fill in the next
six months, which means Marcus is currently working on ________.
a. Screening job candidates
b. Personnel planning
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c. Interviewing job candidates

d. Writing job descriptions

The process of deciding how to fill executive positions at a firm is known as ________.
a. Internal recruiting
b. Succession planning
c. Long-Term forecasting
d. Advanced interviewing

Which one of the following terms refers to studying a firm’s past employment needs over a
period of years to predict future needs?
a. Ratio Analysis
b. Trend Analysis
c. Graphical Analysis
d. Computer Analysis

Newton Building Supplies hopes to generate an extra $4 million in sales next year. A salesperson
traditionally generates $800,000 in sales each year. Using ratio analysis, how many new
salespeople should Newton hire?
a. 2
b. 5
c. 10
d. 20

When managers need to determine which current employees are available for promotion or
transfer, they will most likely use ______.
a. Scatter plots
b. Skills inventories
c. Estimated sales trends
d. Personnel forecasts

All of the following are methods used by firms to develop high potential candidates for future
positions EXCEPT __________.
a. Providing internal training
b. Implementing job rotation
c. Offering global assignments
d. Developing skills inventories

Smith industries is thinking of having another company take care of its customer service. This is
called __________.
a. Outsourcing
b. Downsizing
c. Recruiting
d. Screening

The following are the possible HR intervention if you have personnel surplus, except:
a. Stop recruiting
b. Offer early retirements
c. Increase overtime
d. Retrenchment

An employer will most likely use a private employment agency in order to _______.
a. Receive assistance writing job ads
b. Adhere to legal hiring practices
c. Fill a specific job opening quickly
d. Spend more time recruiting applicants

Newton Manufacturing is using a private employment agency to recruit individuals for

management positions. As the HR manager at Newton you need to ensure that applicants are
screened properly, so you should _______.
a. Provide the agency with an accurate job description
b. Post jobs on the firm’s intranet and bulletin boards
c. Develop applicant screening software for internal hires
d. Send HR experts to monitor the agency’s recruiting activities.

What is an advantage of using employee referral campaign?

a. Local, hourly workers can be recruited quickly.
b. Applicants have received realistic job previews.
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c. Rewards and incentives are eliminated.

d. Applicants have community ties.

Selection tests should be used as supplements to other tools like interviews and background
checks.
TRUE

As part of the selection process for a position at UPS, Jacques has been asked to lift weights and
jumps rope. Which one of the following is most likely being measured by UPS?
a. Interpersonal skills
b. Cognitive skills
c. Physical abilities
d. Achievements

Carlos recently participated in a selection test for a position at Northern Aeronautics. The test
measured Carlos finger dexterity and reaction time, so it was most likely a (n) _____ test.
a. Motor ability
b. Personality
c. Cognitive
d. Interest

All of the following are most likely assessed on personality tests EXCEPT _________.
a. Extraversion
b. Reasoning
c. Sensitivity
d. Emotional stability
Which one of the following is the primary reason that firms conduct background investigations of
job applicants?
a. Adhere to legal hiring process
b. Limit the number of applicants
c. Uncover false information
d. Report criminals to police

Michelle Simmons recently applied for a position with Pfizer Pharmaceuticals. Which personality
trait most likely has the strongest correlation to Michelle’s success as a pharmaceutical sales
representative?
a. Extroversion
b. Agreeableness
c. Conscientiousness
d. Openness to experience

With the work sampling technique, applicants are _______.

a. Asked to submit examples of projects they have completed for other employers
b. Tested on their ability to perform several tasks crucial to performing job of interest
c. Tested on their ability to perform a range of tasks related to several positions in a firm
Given video based situational interviews to assess their critical thinking skills

TRAINING AND DEVELOPMENT

On Letitia’s first day of work at a software firm, she attended a meeting with the HR manager
and other new employees. Letitia learned about employee benefits packages, personnel policies,
and the structure of the company. In which one of the following did Letitia most likely
participate?
a. Recruitment
b. Selection
c. Employee orientation
d. Employee development

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Which of the following is most likely NOT one of the goals of a firm’s employee orientation
program?
a. Making a new employees feel like part of a team
b. Helping new employees become socialized into the firm
c. Assisting new employees in selecting the best labor union
d. Teaching new employees about the firm’s history and strategies

Employee training programs range from brief, informal introductions to lengthy, formal courses.
True

Hiring highly-skilled employees with great potential eliminates the need to provide orientation
and training.
False

The methods used to give new or present employees the skills they need to perform their jobs
are called ________.
a. Orientation
b. Training
c. Development
d. Management

_______ identifies the training employees will need to fill future jobs.
a. Competency modeling
b. Performance analysis
c. Strategic training needs analysis
d. Screening

What is the first step in the ADDIE training process?

a. Assessing the program’s successes
b. Appraising the program’s budget
c. Analyzing the training need
d. Acquiring training materials

Amy, an accounting supervisor, has been asked to provide training for her subordinates about
new tax laws. In order to motivate the individuals who, attend her training session, Amy should
most likely do all of the following EXCEPT:
a. Use as many visual aids as possible during the session
b. Provide an overview of the material to be covered
c. Use new terminology and technical concepts
d. Give information in logical, meaningful section

Training sessions should be half day or ¾ day in length rather than a full day, because the
learning curve goes down late in the day.
True

Which one of the following would most likely occur during the fourth step of the ADDIE training
process?
a. Holding on the job training sessions
b. Selecting employees for training
c. Preparing online training materials
d. Asking participants for feedback

Rebekah was hired soon after graduation and assigned to complete a management trainee
program. She will move to various jobs each month for nine month period of time. Her employer
is utilizing the _______ form of training.
a. Job rotation
b. Understudy
c. Job expansion
d. Informal learning
A structured process by which people become skilled workers through a combination of
classroom instruction and on the job training is called ________.
a. Job instruction training
b. Programmed learning
c. Apprenticeship training
d. Coaching technique

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When jobs consist of a logical sequence of steps and are best taught step by step, the most
appropriate training method use is _______.
a. Job instruction training
b. Apprenticeship training
c. Programmed learning
d. Job rotation

It is the delivery of learning and training through digital resources.

a. E-learning
b. On the job training
c. Orientation
d. Refresher training

American Airlines uses flight simulators to train pilots about airplane equipment and safety
measures. This is an example of ________.
a. On the job training
b. Vestibule training
c. Virtual reality training
d. Programmed learning

Travel agents at Apollo Travel Services follow a computer program that displays question prompts
and dialogue boxes with travel policies as the agent enters information about the consumer’s
travel plans. This is an example of a (n) ________.
a. Learning management system
b. Intelligent tutoring systems
c. Computer simulations
d. Training modules

United Airlines utilizes a checklist of things that pilots should do prior to take off and landing. This
checklist is an example of a (n) ________.
a. Job aid
b. Skill sheet
c. Work function analysis
d. Electronic support system

Which one of the following terms refers to a teaching method that uses special collaboration
software to enable multiple remote leaners to participate in live audio and visual discussions via
PC or laptop?
a. Computer simulation
b. Virtual classroom
c. Intelligent tutoring system
d. Learning portal

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Law- is a rule of conduct, just, obligatory promulgated by legitimate authority

Labor - all doubts in the implementation and interpretation of the provision

of this code.

Labor Law - includes all rules of law under the control of other persons
called employers.

Labor Code – all doubts In the implementation of the provision of the labor
code including its implementing rules and regulations. Shall be resolved in
favor of labor.

labor Standards Law – prescribes the minimum requirements, prescribe by

existing law as a term and conditions of employment affecting wage of
monetary benefits, hours of work, cost of living allowances, and occupational
health, safety and welfare of others. it is obligatory in nature

Labor Relations Law

- defines status, rights and duties and the institutional mechanism that
govern the individual and collective interactions of employee.
- seeks to stabilize the relation between the employer and employee to
forestall and tress out their differences though the encouragement of

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collective bargaining and the settlement of labor dispute through conciliation

mediation, and arbitration.

Social Justice - promotion of the welfare of all people, the adoption by

government of measures calculated to insure economic stability of all the
competent elements of the society, through the maintenance of a proper
economic and social equilibrium.

Social Welfare Legislation - law that governs the employer- employee

relationships while the latter arising from employee employment such as
retirement, etc.

Concept of Labor
- refers to physical or mental exertion necessary to produce goods or render
some services.

- In broader sense, it may include the labor force who are employed or those
who are able and willing to work but are temporarily or involuntarily
unemployed.

- Physical toil although it does not necessarily include the application of skill;
thus there is skilled and unskilled labor

- Set of substantive and procedural laws that prescribe the principal rights and
responsibilities of employers, employees and other industrial participants as
well as the role of government

Source of labor law

Primary
1. Philippine constitution
2. legislative passes
3. decisions of the supreme court
4. IRR of DOLE
5. Decision of Quasi-Judicial bodies such as NLRC
Secondary
1. opinions of DOLE Secretary and DOJ Secretary
2.Report, debates, hearing made by congress written
3. labor revies, textbook and opinions
4. foreign laws and decisions of foreign

Concepts under Labor Law

Principle Of Non-Oppression - the principle mandates capital and labor

not to act oppressively against each other to impair the interest and
convenience of the public.
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* The protection of labor clause in the constitution is not designated to

oppress or destroy capital

Full Employment Clause - who want to work at the prevailing rates of pay
are able to work without undue difficulty.

Unemployment - involuntary idleness on the part of an employee who is

able and willing to work but could hardly find one.

Management Prerogative - an employer is free to regulate, according to

his own discretion and judgement, all aspects of employment,

Employee rights
1. employee tenure
2. self-organization
3. collective Bargaining
4. Just and Humane Working Conditions
5. Strike/ Concerted Activities
6. Participate in Decision Making
7. Just share in the fruit and production
8. labor standards
9. CBA Rights
10. Full State
11. Equal Work Opportunities
12. Due- process in Discipline and Dismissal

CBA PARTS
Compensation
Benefits
Labor Relations

 Grievance and Formation of Grievance Machinery

 Labor Management Council / Labor Management Committee
 Strike
 Voluntary Arbitration Employment
 Termination of Employment under CBA

Why is it important to determine employer-employee relationship?

- Jurisdiction of the case
- Entitlement to benefits
- Security of Tenure

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Statutory Benefits of workers

The four fold test – the selection and engagement of the employee,
payment of wages, power of dismissal.
Control test – Most important element if all of these are present then there
is an employer and employee relationship
Min wage – lowest amount of wage that an employer will pay to an
employee.

Four fold test - existence of employer-employee relationship.

Hiring - The manner of selection and engagement of the putative employee
Wages - mode of payment
Firing - The presence or absence of the power of dismissal
Control Test - The power to control the means and method by which work is
to be accomplish

Subordinate Alternative test

Economic Test- Existing economic conditions between the parties are used
to determine whether employer-employee exist
Contract of Employment - beginning of employment.
Commencement of employment- beginning of the first day

For Government Employees

with original charters – governed by the Civil Service Law

without original charters – covered by the Labor Law

Importance of 'Yer-'Yee Rel.

1. Determining the Law to govern - labor law applies for those who
are covered by it under the condition
Exceptions:
a. Misuse of POEA license
b. Instances of Illegal recruitment activities
c. In cases of indirect employers liabilities

2. Determining the Court Jurisdiction arising from EER are under the
authority of the National Labor Relations Commission.

Cabo System Is Illegal – refers to a person r group of persons or a labor

group which, in the guise of labor organization supplies workers to an
organization supplies workers to an employee.
Cabo System - is a case where the labor union becomes merely a recruiter
or a labor negotiator and supplier to companies of employees which become
a form of labor only contracting.

Employment of Aliens/Foreigners in the Philippines

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Coverage: It applies to all aliens employed or seeking for

employment (private) in the Philippines, and their present or
prospective employers.

Employment permit of non-resident aliens- Article 40, LC. . Any alien

seeking admission to the Philippines for employment purposes and any
domestic or foreign employer who desires to engage an alien for employment
in the Philippines shall obtain an employment permit from the Department of
Labor

Prohibition against transfer of employment- Article 41, LC. After the

issuance of an employment permit, the alien shall not transfer to another job
or change his employer without prior approval of the Secretary of Labor.

Duration of employment permit- Subject to renewal upon showing of

good cause, the employment permit shall be valid for a minimum period of 1
year starting from the date of its issuance unless sooner revoked by the
Secretary of DOLE for violation of the provisions of Labor Code. (GR: 1 yr,
Except: Employment Contract not exceed 3 yrs)

Employment of Aliens/Foreigners in the Philippines Requirements:

1. Determination of non-availability of Filipino Art. 40, The Alien

Employment Permit (AEP) is a permit issued to a nonresident alien or
foreign national seeking admission to the non- availability of filipino citizen
who is competent able and willing at a time of application to perform the
services for which alien is desired.

2. Determination whether AEP is new or for renewal Fill up the form

photocopy of passport of foreign rational, notarized contract of
employments valid Mayor’s permit including ceza

Payment of Fees and Fine- Application (P9.000), Renewal P4,000),

Card Replacement (P1,500) Fine (to employer and foreign national
without valid AEP (P10,000)

Contracting or Subcontracting - refers to an arrangement whereby a

principal agrees to farm out to a contractor.

Parties to a Contracting
Employee- employee of contractor – hired to perform worked farm out by
the principal pursuant to as service agreement.

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Principal- job provider – any natural or juridical entity who puts out or farm
out a job or work to contractor

Contractor/Sub Con- employer – any person engage in legitimate

contracting arrangement providing service for a specific job farmed out by
principal under a service agreement.

Service agreement - is a contract between the principal and contractor

containing the terms and conditions governing the performance f completion
of a specific job or work farmed out for a definite or predetermined period.

Registration of Contractor

As a Rule of Registration – the registration of contractors and

subcontractors shall be necessary for purpose of establishing and effective
labor market information and monitoring.

Failure to registration by the contractor – it gives rise to the presumption

that the contract is engaged in labor only – contracting.

Validity of Registration – it shall be effective for to years unless cancelled

after due process. All registered contractor shall apply for 30 days before the
expiration of their registration to remain the roster of legitimate service
contractor.

Registration of Contractor

1. As a Rule for Registration- purposes of establishing an effective

labor market information and monitoring

2. Failure to Register by the Contractor- it presumes that the

contract is engaged in labor –only contracting.

3. Validity of Registration- effective for two (2) years, unless

cancelled after due process. All registered contractors shall apply for
renewal 30 days before expiration

Existence of 'Yer-'Yee Relationship- The Contractor or sub-contractor shall

be considered the employer of the contractual

Exceptions: Labor Only Contracting Where contracting arrangement falls

within the prohibited acts

Effect: Principal becomes the Employer of the contracted employee

JOB-CONTRACTING (Legal)
Principal needs some workers to do jobs that is merely incidental to the
nature of the business;
Contractor supplies workers to the principal

Contractor has substantial capital and investments for legitimate

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manpower business;

Contractor exercises control over the works of the manpower which he

supplied;

Principal does not exercise control to methods of workers;

Principal is the indirect employer

Limited liability of principal – principal is solidarily liable with contractor

only when latter fails to comply with the requirements as to unpaid wages
and other violations

LABOR-ONLY CONTRACTING (Illegal)

Principal needs some workers to do jobs i.e. highly-necessary and directly
related to business

Contractor supplies workers to the principal

Contractor has no substantial capital and investments for legitimate

manpower business

Contractor does not exercise control over the works of the manpower
which he supplied;

Principal was the one who exercises control to workers;

Principal is the direct employer

Principal’s liability extends to all rights, duties and liabilities under labor
standard laws including the right to self-organization – primarily liable

Under DOLE DO 174-17, Sec.5

Labor-Only Contracting, which is totally prohibited, refers to an

arrangement where:

1. The contractor or sub-con does not have substantial capital*, OR

2. The contractor or sub-con does not have investments in the form of tools,
equipment, machineries, supervision and work premises, among others;
AND

3. The employees recruited are performing activities which are directly

related ot the main business operation of the employer. -or-

4. the contractor or sub- contractor does not exercise the right to control
over the performance of the work of the employee.
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Substantial capital - refers to paid-up capital stock/shares at least Five

million pesos (P5,000,000.00)

Other Illicit Forms of Employment Arrangements

Cabo System- When the principal farms out work to a “Cabo”

Contracting through in-house agency- it is a contractor which is owned,

managed, or controlled

Contracting to in-house cooperative- refers to a

cooperative which is managed, or controlled

Contracting while on strike- Contracting out of a job or work by reason of

a strike or lockout whether actual or imminent

Interference to right to organize- Contracting out a job or work being

performed by union members

Redundancy- Requiring the contractor’s employees to perform functions

which are currently being performed by the regular employees of the
principal

Requiring to sign waiver of liability - contractor’s employees to sign, as

are condition to employment or continued employment, antedated
resignation letter

Repeated Hiring- repeated hiring by the contractor/subcontractor of

employees under an employment contract of short duration

Short Term Contracts- Requiring employees under a contracting

arrangement to sign a contract fixing the period of employment to a term
shorter

Posting of a Bond
- An employer or indirect employer may require the contractor or subcon to
furnish a bond
- Amount of Bond: cost of labor under contract,
- Condition of the Bond: that the bond will answer for the wages due the
employees should the contractor fail to pay the same.

Liable of the Principal to the employee in case of illegal dismissal

Joint and several with the employee – contractor but with the right to
reimbursement from the employee contractor.

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Separation pay and back Wages – Principal shall only believe when the
principal has relation to the termination of the employee.

Civil liability of employee – Contractors – every employer or indirect

employer contractor shall be jointly and severally liable with principal. ***
LESSON 2 END**

Recruitment and Placement - any act of canvassing, enlisting, contracting,

transporting.

For local recruitment – Labor Code

For Overseas employment – RA 8042 Overseas Migrant Workers Act

Entities authorized to engaged in Recruitment and Placement - Public

employment offices, POEA, Private Recruitment entities, Private Employment
Agencies, Shipping or manning agents or representatives, persons or entities
authorized by the Secretary of DOLE, Construction contractors

Direct-Hiring of OFW’s- Employers cannot directly hire workers for

overseas employment except through authorized entities.
Fees Paid By Workers
General Rule: : A placement fee may be charged against OFW equivalent to 1
month basic salary specified in the POEA approved contract, except for the
following:

A. Domestic Workers; And

B. Workers Deployed To Countries Where They Do Not Allow Collection Of
Placement Fees (Usa, Netherlands, Ireland, Uk, Canada)
Documentation Fee- The deployed OFW also need to shoulder the
payment for the processing of the following documents (Passport, NBI,
Barangay and Police clearance, Authentication of birth certificate, Medicare
and Philhealth Trade test, Immunization, Medical Certificate

FEES SHOULDERED BY EMPLOYER: VISA, AIRPLANE TICKET, OWWA

MEMBERSHIP FEE, POEA PROCESSING FEES

Illegal Recruitment- Under Section 6, RA 8042 For purposes of this Act,

illegal recruitment shall mean any act of canvassing, enlisting, contracting

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License – Document issued by DOLE authorizing a person or entity to

private employment agency.

Authority - Means a document issued by DOLE authorizing the person or

association to engage in recruitment and placement activities as a private
recruitment agency.

Non-license or non - Means any person corporate or entity which has not
been issued a valid license or authority to engaged in recruitment and
placement by the secretary of DOLE.

A. Excessive Collection of placement fee;

B. Misrepresentation in relation to recruitment or employment;
C. Misrepresentation for purposes of securing a license or authority under
the Labor Code.
D. Inducement of a worker to quit his present employment for
another unless the transfer liberates a worker from oppressive terms and
conditions of employment;
E. Influencing or attempting to influence any person or entity not to employ
any worker who has not applied for employment through his agency;
F. Engagement in recruitment or placement of workers in jobs harmful to
public health or morality or to the dignity of the Republic of the Philippines;
G. Obstruction of inspection by the Secretary of Labor and Employment
or by his duly authorized representative;
H.Failure to submit reports required by the Secretary of Labor and
Employment;
I.Contract substitution
J. For an officer or agent of a recruitment or placement agency to engage in
the business of travel agency or in the management thereof;
K. Withholding or denying worker’s travel documents before departure
for monetary or financial consideration other than those authorized
under the Labor Code and its implementing rules and regulations;
L. Failure to actually deploy workers without valid reasons;
M. Failure to reimburse worker for processing and documentary expenses, in
cases where the deployment does not take without the worker’s fault.
Exceptions
 School and civic, charitable organization or employers for their own
use;
 Direct hiring by diplomatic corps, international org, and other
employers allowed by the Secretary of Labor

Types of Illegal Recruitment

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Simple Illegal Recruitment- license or non-license or a holder or non-

holder authority.
Penalty - imprisonment of not less than 6 years and 1 day but not more than
12 years and a fine of not less than P200,000 nor more than P500,000 (5
years prescriptive period)

Recruitment involving Economic sabotage

1.Syndicate illegal recruitment- carried out by a group of 3 or more
person
2.Large scale illegal Recruitment- committed against 3 or more person

Penalty - life imprisonment and a fine of not less than P500,000 but not
more than P1,000,000; Prescription: 20 years

CONDITIONS OF EMPLOYMENT

Principles of "Hours Worked" Art. 82. Coverage. The provisions of this Title
shall apply to employees in all establishments and undertakings whether for
profit or not, but NOT to government employees, managerial employees, field
personnel, members of the family of the employer who are dependent on him
for support, domestic helpers, persons in the personal service of another, and
workers who are paid by results as determined by the Secretary of Labor in
appropriate regulations.
 General Rule: The conditions of employment covers all employees in
all establishments and undertakings whether for profit or not, except
the following:

Exceptions
Government Employees - refers to those employed by the National
Government or any of its political subdivisions including those employed in
GOCCs with original charter
Managerial Employees- refer to those who is primary duty consists of the
management of the establishment in which they are employed or of a
department or subdivision thereof, and to other officers or members of the
managerial staff
Officers and Members of Managerial Staff- refer to those who se
primary duty consists of the management of the establishment in which
they are employed or of a department or subdivision thereof, and to other
officers or members of the managerial staff
Domestic Servants- those who perform services in the employer’s home
which are usually necessary or desirable for the convenience and enjoyment
thereof, or minister to the personal comfort, convenience or safety of the
employer and members of his employer’s household
Members of the Family- the members of the employer dependent upon
him for support include husband and wife, parent and children, their
ascendants and descendants, brothers and sister whether full or half blood

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Piece Rate Workers- payment of this type of worker is determined by the

results of the work performed or the number of hours work in the
completion of the job or the time spent in the production
Field Personnel- – shall refer to non-agricultural 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.

NORMAL HOURS OF WORK

General Rule: The normal hours of work of any employee shall not exceed 8
hours a day.
 the rule does not preclude the employer in the exercise of its
management prerogative to reduce the number of working hours
EXCEPTIONS:
Health Personnel- Health personnel in cities and municipalities with a
population of at least one million (1,000,000) or in hospitals and clinics with
a bed capacity of at least one hundred (100) shall hold regular office hours
for eight (8) hours a day, for five (5) days a week, exclusive of time for
meals
Compressed Work Week- Employees will be regularly working for less
than 6 days but each workday exceeds 8 hours

HOURS WORKED: Determination of Working Hours - Art. 84. Hours

worked. Hours worked shall include:
(a) all time during which an employee is required to be on duty or to be at a
prescribed workplace; and;
(b) all time during which an employee is suffered or permitted to work.
Rest periods of short duration during working hours shall be counted as
hours worked.
Cases on Hours of Work
 Idle Time- not counted as working time only where the work is broken
or is not continuous (NDC vs. CIR 1962)
 Cases on Seaman - while on board a ship or vessel beyond the
regular 8 hours work schedule
 Engaged to Wait vs. Waiting to be engaged
 Continuous Work- the time during which the laborer is not working
and can leave his working place and can rest completely shall not be
counted
 Waiting Time- considered as working if:
 waiting time is integral part of his work; or
 employee is required or engaged by employer to wait
 Subject to Call or On-call- one required to remain on call in the
employer's premises or close thereto Test: cannot use time for his own
purpose
 Brief Rest Period- Rest periods of short duration during working
hours shall be counted as hours worked. (Article 84, Labor Code) (5-20
minutes)
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 BrownOuts- a. Short Duration (20 minutes and below) b. Long

Duration (more than 20 minutes)
 lectures, Meetings and Trainings- It is considered as not
compensable if the following conditions are met:
a. attendance is outside the employee’s regular working hours;
b. attendance is in fact voluntary; and
c. employee does not perform any productive work during such
attendance
- Travel Time- a. Home to Work b. All in Days Work c. Away From Home /
Overnight
- Meal Period- GR; not less than 60 minutes (Compensable)
 Exceptions: a. non-manual b. operates more than 16 hours a day
actual or impending emergencies prevent serious loss of goods
Overtime Pay- Overtime pay refers to the additional compensation for
work performed beyond 8 hours a day
 Compensation- an additional compensation equivalent to his regular
wage plus at least 25%, except on holiday or rest day where OT pay is
at least 30%

Conditions to be Entitled to OT Pay-

 Actual rendition of OT work
 Submission of sufficient proof that said work was actually performed
 OT work is with the knowledge and consent of the employer
Undertime Offsetting Overtime- Undertime work on any particular day
shall not be offset by overtime work on any other day. (Art. 88)
Waiver of OT Pay- Rights may be waived but the waiver must not be
contrary to law, public policy, morals, or good customs or prejudicial to a
third person with a right recognized by law (Article 6, Civil Code)
Emergency OT Work- a. national or local emergency (i.e. war, etc.) b.
necessary to prevent loss urgent work on machines, installations and
equipments; d. completion of work to prevent prejudice to the business
Night Shift Differential (NSD)-
 Rule on NSD- Every employee shall be paid a night shift differential of
not less than ten percent (10%) of his regular wage for each hour of
work performed between ten o’clock in the evening and six o’clock in
the morning.
Coverage- Applies to all employees, except:
 Government Employees;
 Kasambahay
 Managerial Employees;
 Officers or members of Managerial Staff
 Field Personnel
 Waiver of NSD- GR: NSD cannot be waived for such waiver is against
public policy (Mercury Drug Co., Inc., vs. Dayao, et.al.)
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 Exception: Higher or better benefits given by employer

Weekly Rest Day (RD)-
 Right to Rest Day - It shall be the duty of every employer, whether
operating for profit or not, to provide each of his employees a rest
period of not less than twenty-four (24) consecutive hours after every
six (6) consecutive normal work days.
 Designation of Rest Day- Article 91b. The employer shall determine
and schedule the weekly rest day of his employees subject to collective
bargaining agreement and to such rules and regulations as the
Secretary of Labor and Employment may provide. However, the
employer shall respect the preference of employees as to their weekly
rest day when such preference is based on religious grounds.
 Work on a Rest Day (Article 92)
 Compensation on Working on RD (Article 93)
Regular Holiday and Special Holiday
Holiday – means a consecrated day designated, a religious festival, a day
of exemption, that is, cessation from work, a day of festivity, recreation or
amusement
Holiday pay and Premium Pay
 Holiday pay – form of a premium accorded to an employee who does
not work on regular holidays.
 Premium pay – is an additional compensation granted to a covered
employee for services rendered or work done on holidays or rest days.
Holiday Pay for Certain Employees
 Teachers (private school)- not paid on sem break except Christmas
Break
 Piece Rate wrokers- holiday pay not less than average daily earning
for the last 7 days
 Seasonal workers-not paid during off season
 workers without regular working days- entitled
LEAVES AND PAY
1.SERVICE INCENTIVE LEAVE- Rule: Every employee who has rendered at
least one (1) year of service shall be entitled to Service Incentive Leave of
five (5) days leave with pay
Exceptions: Govt employees, persons in personal service of another,
Managerial employees, officers or members of managerial staff, field
personnel, those already enjoying the benefit, those with VL of at least 5
days, establishment with less than 10 employees
Paternity Leave
Coverage- All married male employees in the private sector and public
sector (but shall be governed by the Civil Service rules), regardless of their
employment status (e.g. probationary, regular, contractual, project based)
Benefit- Seven (7) calendar days, with full pay, consisting of basic salary
and mandatory allowances. It will be availed after delivery unless company
policies provide otherwise
Limitation - apply only to the first four (4) deliveries or miscarriage

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Conditions for Enttlement

1. He is an employee at the time of the delivery
2. He is cohabiting with his spouse at the time of delivery or miscarriage.
Note: cohabiting means the obligation of the husband and wife to live
together. If the spouses are not physically living together because of
workstation or occupation, the male employee is still entitled to the
paternity leave benefit.
3. He has applied for paternity leave with his employer within a
reasonable period of time. In case of miscarriage, prior application for
paternity leave shall not be required.
4. His wife has given birth or suffered miscarriage
Maternity leave
Coveraage- all female employees, whether married or unmarried
Benefit- 105 days leave with option of additional 30 days but without pay;
additional 15 days for solo mothers. For miscarriage, it is 60 days
Additional 30 days may be availed but without pay
Frequency of Grant- in every instance of pregnancy regardless of
frequency (Section 4, IRR-RA-11210,)
Conditions for Enttlement
1. a female employee should be an SSS member employed at the time of
her delivery or miscarriage,
2. She must have given the required notification to the SSS through her
employer,
3. her employer must have paid at least monthly contributions to the
SSS within the 12-month period immediately before the date of
contingency (i.e. childbirth or miscarriage)
Solo Parent Leave (RA 8972)
Coveraage
1. A woman who gives birth as a result of rape and other crimes against
chastity even without a final conviction of the offender, provided that
mother keeps and raises the child.
2. Parent left solo or alone with the responsibility of parenthood due to the
following circumstances:
a. Due to death of spouse.
b. Spouse is detained or is serving sentence for a criminal conviction for
at least one (1) year.
c. Physical and/or mental incapacity of spouse as certified by a public
medical practitioner.
d. Legal separation or de facto separation from spouse for at least one (1)
year, as long as he/she is entrusted with the custody of the children.
e. Declaration of nullity or annulment of marriage as decreed by a court
or by a church as long as he/she is entrusted with the custody of the
children.
3. Unmarried mother/father who has preferred to keep and rear her/his
child/children instead of having others care for them or give them up to a
welfare institution.

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4. Any other person who solely provides parental care and support to a child
or children.
5. Any family member who assumes the responsibility of head of family as a
result of the death, abandonment, disappearance or prolonged absence of
the parents or solo parent.
Effect of Change of Status - A change in the status or circumstances of
the parent claiming benefits this Act, such that he/she is no longer left alone
with responsibility of parenthood, shall terminate his/her eligibility for
benefits
Benefit- 7 days leave wth pay
Conditions for entitlement
1. He/she has rendered at least 1 year of service, whether continuous or
broken;
2. He/she has notified his/her employer that he/she will avail
himself/herself of it within a reasonable period of time, and
3. He/shehas presented to his/her employer a Solo Parent ID, which may
be obtained from the DSWD office of the city or municipality where he/she
resides
Leave for victims of VAWC
VAWC Leave- "Violence against women and their children" refers to any
act or a series of acts committed by any person against a woman who is his
wife, former wife, or against a woman with whom the person has or had a
sexual or dating relationship, or with whom he has a common child, or
against her child whether legitimate or illegitimate, within or without the
family abode, which result in or is likely to result in physical, sexual,
psychological harm or suffering, or economic abuse including threats of
such acts, battery, assault, coercion, harassment or arbitrary deprivation of
liberty.
Purpose of the Leave- to attend to medical and legal concerns
Benefit- up to 10 days with full pay consisting of basic salary and
mandatory allowances. The said leave shall be extended when the need
arises, as specified in the protection order issued by the barangay or the
court.
Requirements for Entitlement- To be entitled to the leave benefit, the
only requirement is for the victim-employee to present to her employer a
certification from the barangay chairman or barangay councilor or
prosecutor or the Clerk of Court, as the case may be, that an action relative
to the matter is pending.
Special Leave for Women under RA 9710
Coverage- Any female employee regardless of age and civil status
Gynecological Disorder - refers to disorders that would require surgical
procedures such as, but not limited to mdilatation and curettage and those
involving female reproductive organs such as the vagina, cervix, uterus,
fallopian tubes, ovaries, breast, adnexa and pelvic floor, as certified by a
competent physician. It shall also include hysterectomy, ovariectomy and
mastectomy

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Special Leave - A woman employee having rendered continuous

aggregate employment service of at least six (6) months for the last twelve
(12) months shall be entitled to a special leave benefit of two (2) months
with full pay based on her gross monthly compensation following surgery
caused by gynecological disorders.
Benefit- two (2) months full pay based on her gross monthly
compensation
Conditions:
1. She has rendered at least 6 months continuous aggregate employment
service for the last 12 months prior to surgery;
2. She has filed an application for special leave with her employer within
a reasonable period of time from the expected date of surgery
3. She has undergone surgery due to gynecological disorders as certified
by a competent physician
Usage- special leave shall be granted after employee has undergone
surgery without prejudice to an employer allowing an employee to receive
her pay before or during the surgery
Vl and SL- Vacation leave and Sick Leave are not required and provided by
the Labor Code and depends solely on voluntary employer’s policy and CBA
Rules on Cost of Living Allowances (COLA – P10.00 for NCR):
Included (in the computation): Regular Holiday and Double Holiday
Excluded (in the computation): OT pay, NSD pay, RD, SH, RH+RD, SH+RH
but will be added in the final computation
Rules on Retail and Service Establishments:
1. Employing 1-5 workers – NO: Holiday pay, NSD, SIL, Retirement pay
2. Employing 1-9 workers – NO: Holiday pa, SIL, Retirement pay
3. Employing 1-15 workers – with minimum wage of P454.00 prior to
October, 2017, and P475.00 from October 2017 onwards
Note: Muslim Holidays – while the regular holidays are observed in the
whole country, the Muslim Holidays, except Eidul Fitr and Eidul Adha, are
observed only in specified areas. Muslim employees working outside of
the specified areas shall be excused from reporting for work during the
observance of the Muslim Holidays as recognized by law, without
diminution of salary during the period.
Kinds of Employment and Post-Employment
SECURITY OF TENURE- is the right not to be removed from one’s job
except for a valid reason and through proper procedure.
Coverage- Art. 278. Coverage. The provisions of this Title shall apply to
all establishments or undertakings, whether for profit or not.
Art. 279. Security of tenure. In cases of regular employment, the
employer shall not terminate the services of an employee except for a just
cause or when authorized by this Title. An employee who is unjustly
dismissed from work shall be entitled to reinstatement without loss of
seniority rights and other privileges and to his full backwages, inclusive of
allowances, and to his other benefits or their monetary equivalent
computed from the time his compensation was withheld from him up to the

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time of his actual reinstatement. (As amended by Section 34, Republic Act
No. 6715, March 21, 1989)
“A profession, trade or calling is a property right within the
meaning of our constitutional guarantees. One cannot be deprived
of the right to work and the right to make a living because these
rights are property rights, the arbitrary and unwarranted
deprivation of which normally constitutes an actionable wrong."
(JMM Promotion and Management, Inc. v. Court of Appeals)”

Application of Security of Tenure

FIXED PERIOD EMPLOYEES- they could not be terminated before the
agreed period
PROJECT EMPLOYEES- terminating prior to completion of the project may
be considered as illegal dismissal
PROBATIONARY EMPLOYEES- they could only be terminated upon just or
authorized cause or through failure to comply with the employer’s
standards.
FOR OFWS- OFWs are not entitled to security of tenure
GENERAL RELIEFS AVAILABLE TO AN ILLEGALLY TERMINATED
EMPLOYEE
 Reinstatement
 Separation Pay
 Backwages
REINSTATEMENT - restoration of the employee to the State from which he
has been unjustly removed or separated without lost of seniority rights and
other privileges.
Two types of Reinstatement
a. Actual or Physical Reinstatement

b. Payroll Reinstatement

Important Points on Reinstatement:

WENPHIL DOCTRINE- Orderr of Reinstatement is immediately executory. It
is not affected by the existence of an ongoing appeal.
DOCTRINE OF STRAINED RELATIONS- Where the employment
relationship has become so strained to preclude a harmonious working
relationship, and all that hopes of reconciliation are not effectively serve as
a remedy, it would be more beneficial to accord employee backwages and
separation pay.

CASES WHEN SEPARATION PAY IN LIEU OF REINSTATEMENT IS GIVEN

(PAYROLL):
 there is resultant strained relations;
 long passage of time or realities of the situation;
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 inimical to employer's / employee's interest;

 it will not serve the best interest of the parties;
 company will be prejudiced;
 reinstatement is not feasible
SEPARATION PAY- given to employees in instances covered by Just Causes
and Authorized causes dismissal
Entitlement- An employee’s entitlement to separation pay depends on the
reason or ground for the termination of his or her services.
As Act of Social Justice- It may also be given as financial assistance as
act of social justice and as a benefit granted in the CBA or company policy.
Amount of Separation Pay
CAUSE OF TERMINATION AMOUNT OF SEPARATION PAY
Automation At least 1 month pay for every year of
service, a fraction of at least 6 months being
considered as one whole year
Redundancy At least 1 month pay for every year of
service, a fraction of at least 6 months being
considered as one whole year
Impossible At least 1 month pay for every year of
reinstatement for service, a fraction of at least 6 months being
reasons not attributable considered as one whole year
to the employer
Retrenchment at least ½ month pay for every year of
service, a fraction of at least 6 months shall
be considered as 1 whole year
Closure or Cessation of at least ½ month pay for every year of
business not due to service, a fraction of at least 6 months shall
serious business losses be considered as 1 whole year Note: if due to
or financial reverses severe financial losses, no separation pay is
due
Disease at least ½ month pay for every year of
service, a fraction of at least 6 months shall
be considered as 1 whole year

Basis of Separation Pay - the computation of separation pay of an

employee shall be based on his/her latest salary rate
Inclusion of Regular Allowance - in the computation of separation pay,
it would be error not to integrate the allowance with the basic salary.
(Planters’ Products Inc. vs. NLRC January 20, 1989)
Coverage from Income Tax- Exempted fromm taxation is the separation
pay received by an employee as a result of his/her separation from the
service of the employer due to death, sickness, or other physical disability
or for other cause beyond the control of said employee such as
retrenchment, redundancy or cessation of business operations. (BIR Ruling
No. 057-2014)

BACKWAGES - a relief given to an employee to compensate him for lost of

earnings during the period of his dismissal. It presupposes illegal
termination of the employee.

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How Computed:
a. actual reinstatement - from the time of illegal dismissal to actuall
reinstatement
b. payroll reinstatement - from actual dismissal until finality of decision
other rules of backwages
Rationale: The reason is that the employee while litigating the illegality of
his dismissal must still earn a living to support himself and his family
(Buenviaje vs. CA GR no. 147806)
Included in backwages: transportation and emergency allowances,
vacation leave or sick leave or SIL, 13th month pay

Classification of Employment- Regular, Casual, Project,

Probationary, Fixed Period, Seasonal, Other types
1. REGULAR EMPLOYEES- Test of Regularity: reasonable connection
between particular activity perfomed by the employee in relation to the
usual business or trade of the employer

Two types of Regular Employees

By Nature of Work- those who are engaged to perform activitiesthat are
usually necessary or desirable in the usual business or trade of employer.

By duration or length of employment- those who has rendered at least

1 year of service whether such service is continuous or broken, with
respect to the activity in which he is employed;

2. CASUAL EMPLOYEES- where an employee is engaged to perform

activities which are not usually necessary or desirable in the usual trade or
business of the employer and he is not considered as a project type, or hired
for fixed period, or seasonal in nature
Book VI, IRR of Labor Code Sec. 5(b) Employment shall be deemed as casual
in nature if it is not covered by the preceding paragraph; Provided, That any
employee who has rendered at least one year of service, whether such
service is continuous or not, shall be considered a regular employee with
respect to the activity in which he is employed and his employment shall
continue while such activity exists.
3. PROJECT EMPLOYEES- one whose employment has been fixed for a
specific project, the completion or termination of which has been
determined at the time of engagement
Test: whether or not the employee is assigned to carry out a
specific project

Two types of Project Employment

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a. within the regular business of employer- within the regular business of

employer but is distinct and separate from the other undertakings of
the company
b. not within the regular business- not within the regular business of the
corporation

4. PROBATIONARY EMPLOYEES
Concept- Probationary employment exists where the employee upon his
engagement is made to undergo trial period during which the mployer
determines his fitness to qualify for regular employment base on reasonable
standards made known to him at the time of his engagement.
CHARACTERISTICS of Probationary Employees
First: Employment is for a trial period (GR: shall not exceed 6 months exc:
1. apprenticeship agreement, 2. contrary agreement, 3. established
company rule, 4. nature of work, 5. second chances, 6. extension)
Second: it is a temporary employment status prior to regular employment
Third- Presence of the elements of probationary employment contract
(indication in the contract of - type of work, qualification for regularization,
fixed period, power to terminate during trial period, causes of termination -
JC or AC, and failure to qualify)

5. CONTRACTUAL EMPLOYEES- Fixed-period employees are employees

whose employment are based on a contract for a fixed period

Reason for Validity: Principle of Free Stipulation

Deemed Regular:
- the nature of his work is necessary and desirable in the principal business
of the employer; and
- He enjoys the security of tenure during the limited time of his employment

6. SEASONAL EMPLOYEES- Employment arrangement where an employee

is engaged to work during a particular season on an activity that is usually
necessary or desirable in the usual trade or business of the employer.

Status During Off-Season- employer-employee relationship is not

severed but employee is considered on leave of absence without pay
(temporarylaid off)
When Shall be considered as regular-seasonal- 1. when there is
reasonable connection between the particular activity performed by the
employee in relation to the usual trade or business of the employer; and

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1. seasonal workers who are repeatedly engaged to perform the same

tasks for more than one season (Hacienda Fatima vs. NFSW-FGT
January 28, 2003)

Other Types of Employees

1. OFWs including Seafarers
2. Teachers- only for Private School Teachers
3. Househelpers

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