Labor Law Discussion Video

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Date @October 26, 2023

Labor Standards vs Labor Relations

Labor Standards

refer to Philippine laws that provide minimum requirements regarding work conditions,
work hours, wages, benefits, and other employment conditions that are being
implemented by management

Labor Relations

goal is to strike the proper balance between protection of workers rights vs. the exercise
of management prerogatives by the employer in accordance with law and to achieve
industrial peace

industrial peace allows the company to be more productive and for workers to earn their
living

State Protection of Labor

Section 3

afford full protection to labor, local and overseas

organized and unorganized, and promote full employment and equality of

employment opportunities for all

guarantee the rights of all workers

self-organization, collective bargaining and negotiations, and peaceful concerted

activities

includes right to strike in accordance with law

security of tenure

humane conditions of work, and a living wage

Labor Law Discussion Video 1

 cannot be arbitrarily fired by managers or employers

participation in policy and decision-making processes affecting their rights and

benefits

promotion the principle of shared responsibility between workers and employers

foster industrial peace

rights of labor (workers) to its just fruits of production and right of enterprises
(employers) to reasonable returns on investments

Labor Code

state shall afford protection to labor

all doubts in implementation and interpretation of the Law, it will be resolved in favor of
labor or employees

Statutory Benefits of Workers

Things to Consider

an employer-employee relationship between parties. If none, benefits are not applicable

Four-fold test to ascertain existence of such relationship

selection and engagement of the employee (power to hire)

payment of wages

power of dismissal

power to control the employee’s conduct (control test) ⇒ most important

number of workers employed

1-5

1-9

10 or more

nature of the employment

Agricultural

Labor Law Discussion Video 2

 Retail/Service

Minimum Wage

the lowest amount of wage that an employer should pay an employee

the law provides a minimum, not the maximum

employer and employee can negotiate a higher pay

Exemptions:

distressed establishments

currently incurring a net loss in their income

new business enterprises

includes barangay micro enterprise (BMBE)

retail/service establishments employing not more than 10 workers

establishments adversely affected by natural calamities

No Work, No Pay Policy

a fair day’s wage for a fair day’s labor

in the case of a strike,

it is deemed a voluntary and deliberate cessation of work on the part of the workers. this
means that even if there is a strike, the workers will not get paid if they do not work for
the days of the strike

in the case of a lockout

non-rendering of service was involuntary (not fault of the employee), then there can be
no work, no pay policy

bottom line: the principle is only applied if cessation of work is voluntary

Overtime, Holiday, Premium, Night Shift Differential Pay

Labor Law Discussion Video 3

 Overtime Work

work may be performed beyond eight hours a day

additional compensation equivalent to wage plus 25%

if working on a holiday or rest day, additional compensation of rate for the first 8 hours
plus 30%

overtime is not presumed

the rendition of overtime must be proven before they can be entitled to overtime
pay

Rest day, Sunday, or Holiday Work

if working on a rest day, additional compensation of at least 30% of regular wage (wage
+ 30%)

additional compensation is given to work performed on a Sunday, provided that it is

their established rest day.

if working on a special holiday, they will be paid additional 30% of wage

if holiday falls on a rest day, additional compensation will be 50%

if regular holiday

if not working, paid regular daily wage

if working, additional 100%

holidays mandated by law

Night Shift Differential

not less than 10% of regular wage for each hour of work

between 10 PM to 6 AM

Salary Differential

difference between the minimum wage rate and the actual wage paid

should be paid by the employer (burden of proof) if money claims are based on salary
differential, service incentive leave, holiday pay, and 13th month pay

Labor Law Discussion Video 4

 burden of proof is on the employee if money claims are based on overtime and premium for
holidays and rest days

13th Month Pay and Bonus

1/12 of the basic salary of an employee within a calendar year

annual salary divided by 12

employers shall pay employees receiving a basic salary of not more than P1,000 a month

paid not later than December 24 every year

companies can no longer remove benefits that have been ripened into management practice

principle that no benefit and supplement can be diminuted

ex. companies that give 14th month pay can no longer remove this when it has become
a management practice

Service Leave, Maternity Leave, Magna Carta for Women

Service Incentive Leave

every employee who rendered at least 1 year of service shall be entitled to yearly SIL of
five days with pay

if the company already has benefits like sick leave and vacation leave, this will take the
place of the service incentive leave

Special Leave Benefits for Women

surgery caused by gynecological disorders

woman employee rendered continuous aggregate service of at 6 to 12 months

2 months with full pay

Paternity, Solo Parent, VAWC Leave

Flexible Work Schedule

flexible working schedule for solo parents

Labor Law Discussion Video 5

 Parental Leave (Solo Parent)

not more than 7 working days every year is granted to any solo parent employee who
rendered at least 1 year of service

Paternity Leave

every married male employee

7 days with full pay

first 4 deliveries of the legitimate spouse with whom he is cohabiting

VAWC Victims

paid leave of absence up to 10 days in addition to other paid leaves under the Labor
Code

any employer who prejudices the right of the worker shall be penalized

the court can clear a protection order which can extend the number of days past 10 days

Expanded Maternity Leave

105 days paid leave for live birth

7 days are transferrable to the father

regardless if not legitimate father

the mother will decide tranferability

additional 15 days for solo parents = 120 days

can avail additional 30 days leave, but without pay

for miscarriages, emergency termination of pregnancy = 60 days paid leave

Retirement Pay

retirement age = 60 to 65

compulsory retirement age = 65

must have served at least five years in the establishment

Labor Law Discussion Video 6

 retirement pay = 1/2 month salary for every year of service

6 months considered as one whole year

ex. working for 20 years and 10 months is equal to 21 years of service

if salary is 50k a month, 50% of that is multiplied to years of service

25k x 21 = 525,000 retirement pay

Separation Pay

employer terminating employment due to:

installation of labor-saving devices

redundancy

retrenchment to prevent losses

closing or cessation of operations

written notice must be given to the worker and DOLE at least 1 month before the intended
date

in case of installation of labor-saving devices or redundancy

separation pay = 1 month pay for every year of service

if less than one year of service = 1 month pay

in case of retrenchment and closures

separation pay = 1/2 month pay for every year of service

if less than one year of service = 1 month pay

Business Closure

employers are not compelled to pay separation pay is when they close their establishments
due to serious business losses or financial reverses

this means that the business must have operated at a loss for a period of time and employer’s
objective perception that the business’ financial standing is unlikely to improve in the future

Labor Law Discussion Video 7

 burden of proof is on the employer

evidence financial statements covering a sufficient period of time

SSS, Pagibig, and PhilHealth

SSS Act

for one to have a source of income upon retirement, there must be contributions while
working

SSS will be the one collecting payments and investing these to make it grow

in order to have pension

government-mandated deductions in the salary

Home Development Mutual Fund Law

main goal of PAG-IBIG is for one to be able their own house through a membership in
an integrated, nationwide savings system

contributions for housing

PhilHealth

make essential goods, health, and other social services available to all the people at
affordable coast and to provide free medical care to paupers

comprehensive healthcare services to all Filipinos through a socialized health insurance

program

higher salary = higher contributions

contributions for healthcare

Labor Law Discussion Video 8