Updates on Labor Law and Jurisprudence (Philippines) February 15,

2013Presentation Transcript
1. Updates on Labor Law and Jurisprudence Resource Speaker: Atty. Apollo X.C.S. Sangalang
Business Lawyer & Legal Coach
2. Why study Labor Law? Because our employment system is highly regulated. Because employees
are favored by our laws. Because you need to be sure that you are getting the right kind of legal
advice. Because you dont want to get your business or company into trouble, especially if you
have no or little access to expert legal help. Because you want to deal with employees and their
unions in the most effective way.
3. Disclaimer This seminar will not make you instant lawyers or even experts in Labor Law. This is
not a comprehensive study of the entire field of Labor Law. The study of Labor Law is not a one-
time course or undertaking. This seminar needs focus and attention from participants, with some
amount of interest in law in general, and Labor Law in particular.
4. What is Labor Law? It is the field of law that defines the relationship between employer and their
employees, as well as certain third parties, in connection with employment. It establishes the rights
of each parties And determines their duties and obligations. It also defines the role of
government.
5. Where do you find Labor Law? Constitution Decisions of the Supreme Court (Jurisprudence)
Civil Code and Revised Penal Code Special statutes that are not yet codified American
jurisprudence LABOR CODE Rules and Regulations issued by the Department of Labor and
Employment (DOLE)
6. Where else do you find Labor Law? Bible: You have six days each week for your ordinary work,
but on the seventh day you must stop working. This gives your ox and your donkey a chance to rest.
It also allows your slaves and the foreigners living among you to be refreshed. (Exodus 23:12 NLT)
Do not rob or defraud your neighbor. Do not make your hired workers wait until the next day to
receive their pay. (Leviticus 19:13 NLT)
7. Classification of Labor Law Labor Relations Labor Standards Terms and Conditions of
Employment Other Social Legislation Batas Kasambahay (RA 10361)
8. The Labor Code The Labor Code (Presidential Decree No. 442, as amended) revolutionized our
employment system on May 1, 1974. What is a code? What does the Labor Code contain?
What does it exclude? What has it done to Labor Law in general?
9. Parts of the Labor Code Book 1: Pre-Employment (with the Preliminary Title) Book 2: Human
Resources Development Program Book 3: Conditions of Employment Book 4: Health, Safety and
Social Welfare Benefits Book 5: Labor Relations Book 6: Post Employment Book 7: Transitory and
Final Provisions
10. Who are covered by Labor Law? Labor Law applies only if an employer-employee relationship
exist. It applies to employers and their employees, as well as to certain third parties. Third Parties:
Recruitment agencies in case of overseas contract workers (OCWs or OFWs). Principals or
indirect employers in job contracting arrangements. Unions and other workers associations.
11. Who are EXEMPTED from Labor Law? No employer-employee relationship: The Principal and his
Agent. The Capitalist Partner and his Industrial Partner. The Project Owner and his Contractor.
The Corporation and the Corporate Officers. Rule No. 1: Labor Law applies only when there is or
was an employer-employee relationship. Exception to the Rule: Non-employment related issues,
i.e. stockholders rights in corporations and members rights in cooperatives.
12. Test of Employment Four-fold Test (or the 4 Elements): SELECTION AND PLACEMENT
PAYMENT OF WAGES POWER OF DISMISSAL POWER OF CONTROL What is Management
Prerogative?
13. Control Test The power of one party to determine, not only the end result of the work, but also the
manner of doing the work, is the POWER OF CONTROL. Only an employer has the power of
control over his employees. The power of control need not be actually exercised. Illustrations:
Job contracting arrangements. Independent contracting arrangements.
14. Classification of Employees Based on Employer: Civil Service and non-Civil Service (including
Employees of GOCCs). Based on Security of Tenure: Regular and Non- Regular. Based on
Function: Rank-and-file and Non-rank-and- file (including Managerial & Supervisory). Based on
Nature: Agricultural and Non-Agricultural. Based on Time and Motion: Workers paid based on
hours-worked and workers paid based on results.
15. Labor Standards The minimum requirements of law with respect to hours of work, rates of pay, and
other terms and conditions of employment is Labor Standards. It is based on the Constitutional
Right to Humane Conditions of Work and to a Living Wage. Rule It is prohibited to have terms
and conditions of employment lower than what the law provides. What are the consequences of
non-compliance with Labor Standards?
16. Labor Standards Updates Download from the Bureau of Working Conditions website: Handbook
of Workers Statutory Monetary Benefits, 2012 Edition (updated as of January 10, 2012) Other
government websites: www.dole.gov.ph (DOLE website & portal) www.nwpc.dole.gov.ph
(Minimum wage) www.bwc.dole.gov.ph (Labor standards) www.oshc.dole.gov.ph (Health &
safety)
17. Labor Standards Updates Download from the National Wages and Productivity Commission
website: Wage Order No. NCR-17 (issued May 17, 2012, but effective on June 3, 2012 with
second tranche on November 1, 2012) Other government websites: www.dole.gov.ph (DOLE
website & portal) www.nwpc.dole.gov.ph (Minimum wage) www.bwc.dole.gov.ph (Labor
standards) www.oshc.dole.gov.ph (Health & safety)
18. Labor Standards Updates Download from the Official Gazette (www.gov.ph) website: Republic
Act No. 10361, Domestic Workers Act or Batas Kasambahay (approved on January 18, 2013 and
effective February 2, 2013). Other government websites: www.dole.gov.ph (DOLE website &
portal) www.nwpc.dole.gov.ph (Minimum wage) www.bwc.dole.gov.ph (Labor standards)
www.oshc.dole.gov.ph (Health & safety)
19. Labor Standards Benefits 1. Minimum Wage 7. Service Incentive Leave 2. Holiday Pay 8. Maternity
Leave 3. Premium Pay 9. Paternity Leave 4. Overtime Pay 10. Parental Leave 5. Night Shift Pay 11.
Leave for VAWC 6. Service Charge Share 12. Special Leave for Women
20. Labor Standards Benefits 13. 13th Month Pay 14. Separation Pay 15. Retirement Pay 16. Employee
Compensation (ECC) Benefits* 17. PhilHEALTH Benefits* 18. SSS Benefits* 19. PagIBIG Benefits*
21. Retail and Service Establishment Exemptions Labor Standard Benefits 1 to 5 Workers 1 to 9
Workers Holiday Pay None None Night Shift Pay None Applicable Service Incentive Leave None
None Retirement Pay None None
22. Minimum Wage Law (RA 6727) National Wages and Productivity Commission. Regional Tripartite
Wage and Productivity Boards. Wage Orders are issued by region, and also by sector, by type of
establishments, by size of workforce, by capitalization, and by gross sales. Penalty for Violation:
Imprisonment of 2 to 4 years (without probation benefits); or Fine of P25,000 to P100,000; or both.
Plus DOUBLE INDEMNITY for the workers.
23. Minimum Wage (NCR) Wage Order No. NCR-17 (May 17, 2012) June 3, 2012: Old COLA was
Integrated to Basic Wage: P22 + P404 = New Basic Wage: P426 New COLA: P20 New
Minimum Wage: P426 + P20 = P446 November 1, 2012: Add P10 to New COLA: P30 + P426 =
P456
24. Minimum Wage (NCR) Rule (June 3/November 1, 2012) : BW: P426 + COLA: P20/P30 = MW:
P446/P456 Exception: BW: P389 + COLA: P20/P30 = MW: P409/P419 Agriculture; Private
Hospitals with bed capacity of 100 or less; Retail and Service Establishments with 15 workers or
less; Manufacturing Establishments with 9 workers or less.
25. Minimum Wage Other Exceptions: Government Employees under Civil Service Law. Domestic
Workers under RA 10361 (MW: P2,500/P2,000/P1,500 per month). Personal Assistants, including
family drivers. Barangay Micro Business Enterprises (BMBEs) under DTI and LGU guidelines.
Distressed Establishments, but only for a period not exceeding 1 year under NWPC guidelines.
26. Minimum Wage Special Circumstances: Reduced working hours, i.e Underemployed or those
working less than 8-hours of work per day. Reduced working days, i.e. Shortened workweek.
Workers paid by results i.e. They should be paid not less than the minimum wage rate proportionate
to the number of working hours they actually rendered. Apprentices, Learners, and (unqualified)
Disabled Workers: 75% of minimum wage.
27. Minimum Wage: Domestic Workers P2,500/month for those employed in NCR P2,000/month for
those employed in chartered cities and first class municipalities P1,500.00/month for those
employed in other municipalities. After 1 year from effectivity of RA 10361 (February 2, 2014), and
periodically thereafter, the Regional Wage Boards shall review, and if proper, determine and adjust
the minimum wage rates of domestic workers.
28. Rules on Wages What is Wage Distortion? What is Across-the-Board Wage Increase? What is
the Rule on Payment of Wages? Paid in legal currency at or near the workplace. Frequency:
2x/month not exceeding 16 days interval. What is the Rule on Wage Deduction? Mandatory:
Allowed by law. Non-mandatory: Written Authorization needed.
29. Rules on Wages: Domestic Workers Payment of wages shall be made on time directly to the
domestic worker to whom they are due in cash at least once a month. The employer, unless
allowed by the domestic worker through a written consent, shall make no deductions from the wages
other than that which is mandated by law. No employer shall pay the wages of a domestic worker
by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than the
cash wage.
30. Rules on Wages: Domestic Workers The employer shall at all times provide the domestic worker
with a copy of the pay slip containing the amount paid in cash every pay day, and indicating all
deductions made, if any. The copies of the pay slip shall be kept by the employer for a period of
three (3) years. It shall be unlawful for the employer to interfere with the freedom of any domestic
worker to dispose of the latters wages.
31. Rules on Wages: Domestic Workers The employer shall not force, compel or oblige the domestic
worker to purchase merchandise, commodities or other properties from the employer or from any
other person, or otherwise make use of any store or services of such employer or any other person.
It shall be unlawful for an employer, directly or indirectly, to withhold the wages of the domestic
worker. Likewise, the employer shall not induce the domestic worker to give up any part of the
wages by force, stealth, intimidation, threat or by any other means whatsoever.
32. Rules on Hours of Work: Who are covered? All employees in all establishments, for profit or not.
Exceptions Government employees under Civil Service Law; Managerial employees and
managerial staff; Domestic workers under RA 10361; Persons in the personal service of another;
Workers paid by results; Field personnel and those whose time and performance are
unsupervised; and Dependent family members of the Employer.
33. Who are the Managerial Employees? Principal Duty Management of the establishment in which
they are employed, or a department or division thereof. They customarily direct the work of 2 or
more employees. They have authority to hire/fire, or their suggestions on this matter are given
weight. They exercise Management Prerogative on behalf of the Employer.
34. Who are the Managerial Staff? Primary duty Perform work directly related to management
policies. They customarily exercise discretion and independent judgment. They regularly assist
managerial employees. They do not devote more than 20% of their work time to activities not
related to all the above.
35. Who are the Domestic Workers? Domestic Worker or kasambahay refers to any person engaged
in domestic work within an employment relationship such as, but not limited to, the following: general
househelp, nursemaid or yaya, cook, gardener, or laundry person. (It may include family drivers
and persons in the personal service of another.) Excluded are any person who performs domestic
work only occasionally or sporadically and not on an occupational basis. Domestic work refers to
work performed in or for a household or households.
36. Normal Hours of Work Shall not exceed 8 hours/day. Rationale. Broken time or workday is
lawful. Shortening of work week is lawful.
37. What are Hours Worked? All time during which an employee is required to be on duty or at a
prescribed work place. All the time during which an employee is permitted or suffered to work.
38. Principles to Determine Hours Worked All hours required, whether spent in productive labor or
involved physical or mental exertion, are hours worked. Rule on rest period. Rule on work
interruptions.
39. Other Rules on Work Hours Waiting time compensable if integral part of work. On call
compensable if time cannot be used for personal purpose. Travel time if part of work, yes.
Home to work, no. Travel away from home, yes only if it cuts across employees workday.
Attendance to seminars No, if voluntary, outside of work hours and/or no productive work done.
40. Other Rules Power interruptions yes, if less than 20 minutes. No if more, and employee leave
premises. Union matters no, unless CBA provides otherwise. Attendance at hearings not
compensable. Strike participation NO, definitely.
41. Meal Periods Required. It should not be less than 60 minutes, but it is not compensable.
Shortening of meal period to less than 60 minutes? Yes, it is allowed but it must be paid.
42. Overtime Pay Overtime Pay refers to the additional compensation for work performed beyond 8
hours per day. Rule: Overtime work is not permitted. Exceptions: When there is an emergency
or urgent situation. When completion or continuation after work hours is necessary to prevent
prejudice to business or operations. Rate: 125% of regular hourly rate on ordinary working days.
130% for overtime work on Rest Days. COLA not included in computation.
43. Overtime Pay: Who are Covered? All employees in all establishments, for profit or not. Exceptions
Government employees subject to Civil Service Law; Managerial employees and managerial
staff; Persons in the personal service of another; Workers paid by results; Field personnel and
other employees whose time and performance are unsupervised; and Dependent family members
of the Employer.
44. Overtime Pay: Domestic Workers? The domestic worker shall be entitled to an aggregate daily rest
period of eight (8) hours per day. The domestic worker shall be entitled to all other benefits under
existing laws. Therefore, domestic workers are entitled to overtime pay for work done within their
daily rest period. This concept of overtime pay is by way of analogy since under RA 10361, a
domestic worker can waive a particular rest day in return for an equivalent daily rate of pay.
45. When Is Overtime Work Valid & Must Be Paid? Even if without prior permission: The work
performed was necessary. The work benefited the Employer. Employee could not abandon his
work at the end of normal working hours because there is no replacement.
46. Undertime Not Offset By Overtime Undertime work on any day shall not be offset by overtime work
on any other day. Permission granted by the Employer for the Employee to go on leave on some
other day shall not exempt him from the payment of additional compensation for overtime work
rendered. Valid overtime work is always subject to Overtime Pay.
47. 15-Minute Networking Break Masters, treat your slaves the SAME WAY. Dont threaten them;
Remember, you both have the same Master in Heaven, and He has no favorites. EPHESIANS 6:9
New Living Translation (NLT)
48. Holiday Pay Holiday Pay refers to the payment of regular daily wage for any unworked Regular
Holiday at the rate of 100%. If the Employee is allowed or required to work on a Regular Holiday,
he is entitled to 200% of his daily wage rate (Basic Wage + COLA). If 2 Regular Holidays fall on the
same day and the Employee is allowed or required to work on such day, he is entitled to 300%.
49. Holiday Pay: Who are Covered? All employees in all establishments, for profit or not, including
daily-paid workers. Exceptions Government employees subject to Civil Service Law;
Managerial employees and managerial staff; Persons in the personal service of another; Workers
paid by results; Field personnel and other employees whose time and performance are
unsupervised; Dependent family members of the Employer; and Retail/Service Establishment
regularly employing less than 10 workers.
50. Rules on Holiday Payment Employees are entitled when they are present or on leave with pay on
the preceding workday. Employees are NOT entitled if absent or on leave without pay on the
preceding workday, unless they work on such Regular Holiday, in which case they are entitled to
200%. When preceding day is non-work day or rest day, the Employee is entitled, if he worked on
the day before such non-work day or rest day. In case of successive Regular Holidays i.e. Holy
Week, the Employee shall NOT be entitled to the successive Regular Holidays if he is absent or on
leave without pay on the preceding work day (Wednesday), unless he worked on the first Holiday.
51. Holiday Pay Rules continued Seasonal workers may not be paid during off season. Those
without regular working days are entitled. When company is on temporary or periodic shutdown not
due to business reverses, the employee is entitled. But when shutdown is due to business
reverses, the employee is not entitled. If a Regular Holiday falls on the same day, the Employee
shall still be paid 100% for each days or a total of 200%.
52. What are the Regular Holidays? EO 292, as amended by RA 9849. 12 Regular Holidays: New
Years Day, Maundy Thursday, Good Friday, Araw ng Kagitingan, Labor Day, Independence Day,
National Heroes Day, Eidul Fitr (End of Ramadhan), Eidul Adha (Feast of Sacrifice October 26,
2012), Bonifacio Day, Christmas Day, Rizal Day. 4 Muslim Holidays observed in ARMM (for both
Muslims and Non-Muslims) and applicable to all Muslims outside ARMM.
53. What are Special Days? EO 292, as amended by RA 9849. 3 Special Days: Ninoy Aquino Day,
All Saints Day, and Last Day of the Year. The President (or Congress) may proclaim other days as
Special Day i.e. November 2, 2012 (per Proclamation No. 295). Unworked Special Day is NOT
paid. Work performed on a Special Day is paid 130%. Special Work Day (or Special Working
Day) is treated as an ordinary work day.
54. What are Weekly Rest Days? It is the duty of the Employer to provide a Rest Day of not less than
24 hours after 6 consecutive working days. Old law: Rest Day is Sunday. New law: Rest Day is
any day. Employer determines the Rest Day of the Employee, subject to agreement and rules of
DOLE. Employees are given preference based on religion.
55. Premium Pay (Rest Day/Special Day Pay) Rule: Work on Rest Day (and Special Day) is not
permitted. Exceptions (Rest Day): When there is an emergency or urgent situation. When work
is necessary to prevent prejudice to business or operations. Rate: 130% of regular hourly rate on
ordinary working days. 150% if Rest Day and Special Day fall on the same day. COLA not included
in the computation (unlike in Holiday Pay).
56. Premium Pay: Who are Covered? All employees in all establishments, for profit or not. Exceptions
Government employees subject to Civil Service Law; Managerial employees and managerial
staff; Househelpers and persons in the personal service of another; Workers paid by results;
Field personnel and other employees whose time and performance are unsupervised; Dependent
family members of the Employer.
57. Night Shift Differential Pay NSD Pay refers to the the additional compensation for each hour of
work performed between 10PM and 6AM. Rate: 110% of the regular hourly wage rate.
58. Night Shift Differential Pay: Who are Covered? All employees in all establishments, for profit or not.
Exceptions Government employees subject to Civil Service Law; Managerial employees and
managerial staff; Househelpers and persons in the personal service of another; Field personnel
and other employees whose time and performance are unsupervised; Workers paid by results;
Dependent family members of the Employer; and Retail/ Service Establishment employing not
more than 5 workers.
59. Service Incentive Leave The Employee is entitled to 5 days of leave with pay for every one year of
service; provided that he has served for 1 year already. If Employer grants vacation leave with pay
of at least 5 days every year, then this is already compliance with SIL. Commutable to cash and
becomes SIL Pay. Part-time employees are also entitled to full service incentive leave. No Labor
Code provisions on vacation leave or sick leave.
60. Service Incentive Leave: Who are Covered? All employees in all establishments, for profit or not.
Exceptions Government employees subject to Civil Service Law; Managerial employees and
managerial staff; Persons in the personal service of another; Field personnel and other
employees whose time and performance are unsupervised; Workers paid by results; Dependent
family members of the Employer; and Retail/ Service Establishment employing less than 10
workers.
61. Service Incentive Leave: Domestic Workers A domestic worker who has rendered at least one (1)
year of service shall be entitled to an annual service incentive leave of five (5) days with pay. Any
unused portion of said annual leave shall not be cumulative or carried over to the succeeding years.
Unused leaves shall not be convertible to cash.
62. Service Charges Employees are entitled to a share from the Service Charge being collected by the
Employer from his customers. Rank-and-file employees share: 85% Managements share: 15%.
Rank-and-file employees shall receive equal share. If abolished, the share of the Rank-and-file
employees shall be considered integrated to their wages. If the Employer doesnt collect Service
Charge, the pooled tips shall be treated the same way as Service Charge.
63. Retirement Pay Retirement age: 60 to 65 years old. Employee must also have worked for at least
5 years for the Employer. Rate: Equivalent to 22.5 days salary for every year of service payable by
Employer. Distinct from the Retirement Benefits from SSS. Excluded: Government employees;
and Retail/ Service/ Agricultural Establishments employing not more than 10 workers.
64. Separation Pay Employees terminated by the Employer on the basis of Authorized Causes are
entitled to Separation Pay. Rate: 1 Month or Month Salary for every year of service:
Retrenchment, Closure of Business, Serious Disease. Rate: 1 Month or 1 Month Salary for every
year of service: Labor-saving device, Redundancy, and Impossible Reinstatement. Regular
Allowance in included in the computation.
65. 13th Month Pay Rank-and-file employees are entitled to 13th month pay; provided they worked for
at least 1 month. Rate: 1/12 of the total basic salary earned by an Employee in a year. Excluded:
Government employees, Employees paid based on results, and Managerial employees. Domestic
workers are now entitled to 13th Month Pay per RA 10361.
66. Maternity Leave All pregnant female workers are entitled to Maternity Leave subject to SSS Law.
60 days of the average daily salary credit for normal birth or miscarriage. 78 days of the average
daily salary credit for ceasarian section delivery. Requirements: Membership in the SSS with at
least 3 months contributions prior to delivery or miscarriage.
67. Paternity Leave All married male workers are entitled to Paternity Leave of 7 calendar days with
pay for the first 4 deliveries (or miscarriage) of his lawful wife whom he is cohabiting with. Paternity
Leave is Not convertible to cash.
68. Parental Leave for Solo Parents Parental Leave shall mean leave benefits granted to a solo parent
to enable him or her to perform parental duties and responsibilities where physical presence is
required. The solo parent is entitled to 7 days leave with pay. Parental Leave is Not convertible to
cash. Requirements: At least 1 year of service and DSWD Solo Parents ID.
69. Leave for Victims of VAWC Female employees who are certified as victims under the Anti-
Violence Against Women and their Children Act of 2004 are entitled to 10 days of leave with pay to
enable her to attend to medical and legal concerns. VAWC Leave is Not convertible to cash.
Requirements: Certification from the barangay, prosecutor, or clerk of court that a VAWC case
involving the victim female employee is pending.
70. Special Leave for Women Female employees who has undergone surgery due to gynecological
disorders are entitled to 2 months leave with pay to enable her to attend to medical and legal
concerns. Special Leave is Not convertible to cash. Requirements: Certification from physician,
and employment service of at least 6 months within the 12 month period prior to surgery.
71. Employees Compensation Program The ECP is designed to provide a compensation package to
Employees and their dependents in case of work-related sickness, injury, disability or death.
Benefits: Loss of income benefit; Medical benefit; Rehabilitation services; Carers allowance; and
Death benefits. Workers in the formal sector are covered starting on day 1 of their employment.
72. PhilHEALTH Benefits The National Health Insurance Program, which is administered by
PhilHEALTH, provides financial assistance to member-Employees when they get hospitalized. All
employees are required to be members. Benefits: Inpatient hospital care; and outpatient care
based on a Schedule of Benefits.
73. Social Security Benefits The Social Security Program provides a package of benefits in the event of
death, disability, sickness, maternity, and old age. It provides replacement for income lost during
these contingencies. All employees in the private sector are mandatorily covered, including
Domestic Workers. Benefits: Sickness, Maternity, Disability, Retirement, Death & Funeral, based
on a Schedule of Benefits.
74. Loan and Miscellaneous Benefits Socialized loans for emergency, housing and other purposes are
available to employees who are qualified members of the SSS and PagIBIG Fund. The duty of the
Employer is to deduct and remit the Employees contributions as well as his required contributions to
SSS, PhilHEALTH, ECC, and PagIBIG. Failure on the part of the Employer to remit the mandatory
contributions has serious consequences.
75. Domestic Workers Social Benefits A domestic worker who has rendered at least 1 month of
service shall be covered by the SSS, PhilHealth and Pag-IBIG, and shall be entitled to all the
benefits in accordance with the pertinent provisions provided by law. (This may also include ECC
coverage.) Premium payments or contributions shall be shouldered by the employer. But if wage
is P5,000 and above, the Domestic Worker shall pay his/her share in the premium or contribution
payments.
76. Domestic Workers Catch-All Benefit Clause The domestic worker shall be entitled to all other
benefits under existing laws. (SEC. 30, RA 10361) Fine of P10,000 to P40,000.00. Implementing
Rule and Regulation (IRR) within 90 days from effectivity of law.
77. Occupational Safety and Health Standards Every covered Employer is required to keep and
maintain his workplace free from work hazards that are causing or likely to cause physical harm to
the workers or damage to property. The Occupational Safety and Health Standards, as amended,
is the body of rules and regulations that protect every worker against the dangers of injury, sickness
or death through safe and healthful working conditions.
78. Special Protection Children. Physically-impaired. Women. Domestic Workers. Homeworkers
and the informal sector. Filipino professionals and labor versus- aliens.
79. Company-initiated Benefits Employers are not prohibited from, and in fact encouraged to, provide
terms and conditions of employment that are better or higher than Labor Standards. Higher than
Labor Standards Benefits are either initiated by the Employer, on its own, by request of the
Employees, or by demand of their Union or Association.
80. Non-diminution of Benefits The reduction or elimination of benefits provided under the law,
agreement or voluntary practice is prohibited.
81. When does an act become a practice? If done for a long period of time (ex. Three years). The act
is done consistently and intentionally. The act should NOT be a product of erroneous interpretation
of law.
82. Exceptions to Rule on Non-diminution If circumstances no longer justify grant of benefits
(Dislocation pay, relocation allowance, per diem, supplements, etc.) Rule on grant of bonus
management prerogative, but not if given as a salary supplement and without conditions.
83. Labor Relations Right to Security of Tenure. Right to Just Share in the Fruits of Production.
Right to Self-Organization. Right to Bargain Collectively. Right to Strike and Other Peaceful
Concerted Action. Right Against Unfair Labor Practices.
84. Labor Relations Updates 2011 NLRC Rules of Procedure. (Effective August 2011) DOLE
Department Order No. 18-A Rules Implementing Article 106 to 109 of the Labor Code, As
Amended. (Effective December 2011) The Rules of Procedure of the Single Entry Approach
(SEnA) (Effective March 2011)
85. Role of Government Policy-Maker Regulator Program Administrator Inspector Conciliator and
Mediator Arbitrator or Arbiter or Adjudicator Enforcer
86. What is a Labor Organization? Definition any union or association of employees which exist in
whole or in part for the purpose of (a) collective bargaining or (b) for dealing with employers
concerning terms and conditions of employment.
87. What is a legitimate labor organization? Definition one which is duly registered with the
Department of Labor and Employment.
88. What distinguishes a legitimate labor organization? Right to represent its members for purposes of
collective bargaining. Right to be certified as exclusive representative of all employees in
bargaining unit for purposes of col. Bargaining To be furnished financial records To sue and be
sued in its registered name To own property To undertake programs to benefit the org/members
89. Requirements for Registration Registration fee Names of officers, their addresses, the address of
the org., minutes of org. meeting and list of workers who participated. Names of all members who
comprise 20% of all employees in the bargaining unit where it seeks to operate. Annual financial
records. Copies of constitution and by-laws
90. Purpose of registration requirements To prevent fraud To protect members from unscrupulous or
fly by night unions.
91. Is the requirement for union registration a violation of the freedom to associate? - Any group of
employees may organize into a union, even without registration. - But registration is condition sine
qua non for the exercise of privileges. - A group may not register but they cannot avail of the rights of
legitimate unions. - Registration is an exercise of police powers by the state because union is
invested with public interest.
92. Critical requirements to be able to register Membership must be at least 20% of all the employees
in the bargaining unit.
93. What is a bargaining unit? It is a group or cluster of jobs or positions that supports the labor
organization which is applying for registration. Test whether the bargaining unit is appropriate-if it
will best assure to all employees the exercise of their collective bargaining rights.
94. What is an employer unit? Refers to a case where there is only 1 bargaining unit for all the
employees of the company. Purpose why the employer unit is encouraged by the state.
95. Another way of organizing as a labor union Affiliation as a chapter of an existing labor federation or
a national union. What is a labor federation or national union?
96. Duty of an employer when workers organize Self-organization is a constitutional right. Therefore,
the company must respect the right of employees to organize.
97. Penalty for infringing on the right to unionize Unfair labor practice is a prohibited act. It is
considered a criminal offense. Penalty includes imprisonment and payment of fine.
98. What happens when a union is organized/registered? It becomes entitled to the privileges of a
legitimate labor organization. But it is not automatically a bargaining agent or majority
representative. To be a bargaining agent, it needs to be certified that it is the exclusive bargaining
agent.
99. What is needed to be Certified as a Bargaining Agent? It must win a certification election; or, It is
voluntarily recognized by the employer; or, It is selected by the employees through a consent
election.
100. What is a Certification Election (CE)? It is a process by which the members of a bargaining
unit chooses one among contending unions to be its exclusive bargaining agent. Non-adversarial
Fact-Finding Administered by DOLE
101. Important things related to CE Who can participate in Certification Election? Role of
Employer in a Certification Election: Neutral Observer.
102. When a union fights in a CE and loses, does it mean that it does not have any more duty to
its members? It continues to represent its members but it does not have the right to engage in
collective bargaining.
103. What is the importance of being a bargaining agent? A bargaining agent possesses the
right, by law, to demand from the employer that it negotiates with it (union) terms and conditions of
employment, including wages, hours of work, and rates of pay.
104. Product of Bargaining A collective bargaining agreement or CBA, if the union is able to
have an agreement with the employer about its proposed terms and conditions of employment.
105. Recourse of Union in the event of failed negotiations It can engage in strike. It can engage
in other concerted activities. All of which are protected by law if no criminal act attends the holding
of said actions.
106. Win-Win Labor Relations 1. Master the Basic Principles of Labor Relations. 2. Observe the
Golden Rule of Human Relations. 3. Documentation, Documentation, Documentation! 4. Write
Clearly. 5. Consult the Experts. 6. Use Best Practices. 7. Be Open-minded. 8. Negotiate, Negotiate,
Negotiate!
107. Thank You! Do not twist JUSTICE in legal matters by favoring the poor or being partial to
the rich and powerful. Always judge people fairly. (LEVITICUS 19:15 Bible New Living Translation)