LABOR AND EMPLOYMENT

Kinds of  Labor Laws

 

1. Labor Standards

This refers to 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.

 

2. Labor Relations Laws

These are the laws, rules and regulations which govern the relationship between the employees and their employers, promote the right of the employees to self-organization and collective bargaining, penalize unfair labor practice, and provide modes for settlement of labor disputes such as conciliation, mediation, grievance machinery, voluntary arbitration and compulsory arbitration

 

Sources of  Labor Laws under the Constitution

 

Section 10, Article II

The State shall promote social justice in all phases of  national development.

 

Section 18, Article II

The State affirms labor as a primary social economic force. It shall protect the rights of  workers and promote their welfare.

 

Section 3, Article XIII

The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.It shall guarantee the rights of all workers to self-organization and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision making-processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation; and shall enforce their mutual compliance therewith to foster industrial peace.The State shall regulate the relations between workers and employers recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth.

 

Section 14, Article XIII

The State shall protect working women by providing safe and healthful working conditions, taking into account their maternal functions, and such facilities and opportunities that will enhance their welfare and enable them to realize their full potential in the service of the nation.

 

Elements to determine the existence of  Employer-Employee Relationship

1. Power of  Selection

2. Payment of  Wages

3. Power of  Dismissal

4. Power of  Control

 

CAUSES FOR DISMISSAL

1. Just Causes

2.Authorized Causes

 

Due Process

1.Substantive Due Process

2.Procedural Due Process

 

Substantive Due Process

 

According to the Supreme Court, “the just and lawful cause constitutes the substantive aspect

of  due process. Lack of  just causes renders the dismissal illegal.” (China  City Restaurant Corporation v. NLRC, G.R. NO. 97196, January 22, 1993)

 

 

Procedural Due Process

Twin Notice Rule

 

“ As for the notice requirements, it is settled that for the manner of dismissal in termination proceedings to be valid, the employer must comply with the employee’s right to procedural due process by furnishing him with two written notices before the termination of his employment. The first notice apprises the employee of the specific acts or omissions for which his or her dismissal is sought, while the second informs the employee of the employer's decision to dismiss him or her. “ (Eagle Clark Shipping Philippines et al. v. NLRC et al., G.R. No. 245370, July 13, 2020)

 

Procedure in cases of  termination for a Just Cause

 

1. A written notice served on the employee specifying the ground or grounds for termination, and giving to said employee reasonable opportunity within which to explain his side.

 

2. A hearing or conference during which the employee concerned, with the assistance of counsel if the employee so desires, is given the opportunity to respond to the charge, present his evidence or rebut the evidence presented against him.

 

3. A written notice of termination is served on the employee indicating that upon due consideration of all the circumstances, grounds have been established to justify his/her termination. (Duka, 2019)

 

GROUNDS

 

1. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work

 

Misconduct is defined as an improper or wrong conduct. It is a transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, willful in character, and implies

wrongful intent and not mere error in judgment.

- Imasen Philippine Manufacturing Corporation v. Alcon, G.R. No. 194884, October 22, 2014

 

Requisites for Validity of  Dismissal

 

1. The misconduct must be serious;

2. It must relate to the performance of the employee’s duties showing that the employee has become unfit to continue working for the employer; and

3. It must have been performed with wrongful intent.

 

Sexual harassment abounds in all sick societies. It is reprehensible enough but more so when inflicted by those with moral ascendancy over their victims. It is a valid cause for separation from service.

- Villarama v. NLRC, G.R. No. 106341, September 2, 1994

 

R.A. 7877, Anti-Sexual Harassment Act of  1995

The law covers acts of harassment in the following places:

1. Workplace;

2. Education Environment; and

3. Training Environment.

 

Sec. 3. Work, Education or Training related sexual harassment defined Work, education or training related sexual harassment is committed by an employee, manager, supervisor, agent of the employer, teacher,instructor, professor, coach, trainor, or any other person, who having

authority, influence or moral ascendancy over another in a work training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand , request or requirement for submission is accepted by the subject of such Act.

 

Sexual Harassment in a Work-related Environment

1. The sexual favor is made as a condition in the hiring or in the employment, reemployment or continued employment of said individual, or in granting said individual favorable compensation, terms, conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which in a way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee;

 

2. The above acts would impair the employee’s rights or privileges under existing labor laws; or

 

3. The above acts would result in an intimidating, hostile, or offensive environment for the employee.

 

2. Gross and habitual neglect by the employee of his duties.

 

Abandonment

 

It is the deliberate and unjustified refusal of an employee to resume is employment.

It is a form of neglect of duty, hence, a just cause for termination of employment by the employer.

 

For a valid finding of  abandonment, these two factors must be present:

 

1. The failure to report for work or absence without valid or justifiable reason; and

 

2. A clear intention to sever employer-employee relationship, with the second as the more determinative factor which is manifested by the overt acts from which it may be deduced that the employees have no more intention to work. The intent to discontinue the employment must be shown by clear proof that it was deliberate and unjustified.

- Agabon v. NLRC, G.R. No. 158693, November 17, 2994

 

3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative.

 

Requisites for Dismissal Due to Loss of  Trust and Confidence

1. The loss of confidence must not be simulated;

2. It should not be used as a subterfuge for causes which are illegal, improper or unjustified;

3. It may not be arbitrarily asserted in the face of overwhelming evidence to the contrary;

4. It must be genuine, not a mere afterthought, to justify action earlier taken in bad faith;

5. The employee involved holds a position of trust and confidence.

- Ramos v. Court of  Appeals, G.R. No. 145045, June 29, 2004

 

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 representatives.

 

5. Other causes analogous to the foregoing.

 

Example of  Analogous Causes

 

In this relation, jurisprudence instructs that gross inefficiency is analogous to gross and habitual neglect of duty under Article 297 (e) in relation to Article 297 (b) of the Labor Code, as amended, for both involve specific acts of omission on the part of the employee resulting in damage to the employer or to his business, and constituting, therefore, just cause to dismiss an employee, thus:

 

"[G]ross inefficiency" falls within the purview of "other causes analogous to the foregoing," [and] constitutes, therefore, just cause to terminate an employee under Article 282 [now under Article 297] of the Labor Code[, as amended]. One is analogous to another if it is susceptible of comparison with the latter either in general or in some specific detail; or has a close relationship with the latter. "Gross inefficiency" is closely related to "gross neglect," for both involve specific acts of omission on the part of the employee resulting in damage to the employer or to his business. (TELEPHILIPPINES, Inc. v.

Jacolbe, G.R. No. 233999, Feb. 18, 2019)

 

DISMISSAL FOR AUTHORIZED CAUSES

 

GROUNDS

 

1. Installation of  Labor Saving Devices Requisites for Validity

 

Requisites for Validity

 

1. Service of  written notice to the employees and the DOLE one (1) month before the intended date of  termination of  employment;

2. Separation pay of  at least one (1) month pay or at least one (1) month pay for every year of  service whichever is higher.

 

2. Redundancy

 

Redundancy exists where the services of  an employee are in excess of  what is reasonable demanded by the actual requirements of  the enterprise.

- Almodiel v. NLRC, G. R. No. 100641, June 14, 1993

 

Requisites for Validity

 

1. Service of  written notice to the employees and the DOLE one (1) month before the intended date of  termination of  employment;

2. Separation pay of  at least one (1) month pay or at least one (1) month pay for every year of  service whichever is higher.

 

3. Retrenchment

 

Retrenchment is normally resorted to by management during periods of business reverses and economic difficulties occasioned by such events as recession, industrial depression, or seasonal fluctuations. It is an act of the employer of reducing the work force because of losses in the operation of the enterprise, lack of work, or considerable reduction on the volume of business.

Retrenchment is, in many ways, a measure of last resort when other less drastic means have been tried and found to be inadequate. While a legitimate business option, retrenchment may only be exercised in compliance with substantive and procedural requisites.

 

Substantive Requisites

 

1. The losses expected should be substantial and not merely de minimis in extent.

 

2. The substantial loss apprehended must be reasonably imminent, as such imminence can be perceived objectively and in good faith by the employer.

 

3. The retrenchment must be reasonably necessary and likely to prevent expected losses.

 

4. Alleged the losses if already realized, and the expected imminent losses sought to be forestalled, must be proved by sufficient and convincing evidence.

 

Procedural Requisites

 

1. Written notice both to the employees and to the Department of Labor and Employment at least one month prior to the intended date of retrenchment.

 

2. Separation pay equivalent to one month pay or at least 1/2 month pay

for every year of service, whichever is higher.

 

When termination of employment is occasioned by retrenchment to prevent losses, an employer must declare a reasonable cause or criterion for retrenching an employee. Retrenchment that disregards an employee's record and length of service is an illegal termination of employment.

- LA CONSOLACION COLLEGE OF MANILA, SR. IMELDA A. MORA, OSA, ALBERT D. MANALILI, AND ALICIA MANABAT VS. VIRGINIA PASCUA, M.D.,

G. R. No. 214744, March 14, 2018

 

4. Closing or Cessation of  Business Operations

 

Requisites for a Valid Cessation of  Business  Operations

 

1. Service of a written notice to the employees and to the DOLE at least one (1) month before the intended date of closure;

2. The Cessation of business must be bona fide in character; and

3. Payment to the employees of at least one-half (1/2) month pay for every year of service, or one (1) month pay whichever is higher.

 

4. Disease

 

Requisites for Validity

1. The employee suffers from a disease which cannot be cured within six (6)months and the continued employment of the employee is prohibited bylaw or is prejudicial to his health as well as to the health of his co-employees;

2. A certification to that effect must be issued by a competent public health authority.

3. Payment of separation pay equivalent to at least one (1) month salary or one half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year.