COMPLETE Philippine Labor Law Nutshell

JDP
CONSULTIN
G
COMPANY POLICIES
MANAGEMENT PREROGATIVE in writing
2015, Atty. Jericho B. del Puerto. All rights reserved. For permissions to use this material, send a request to this e-mail address: info@jdpconsulting.ph
JDP
CONSULTIN
G
Company policies lay

down the rules in the
workplace.
- ATTY. JERICHO B. DEL PUERTO
Business Lawyer & Legal Consultant
JDP Consulting Ltd. Co.
Business Law Professor

San Beda Graduate School of Business
Book Author, Legal Aspects of Business

Central Books Publishing
www.legalaspects.ph
Business Laws & Best Legal
Practices
JDP
CONSULTING
www.jdpconsulting.ph
JDP
CONSULTIN
G
What are
company policies?
Company policies are the rules and regulations in the workplace.
It is recognized principle that company policies and regulations are, unless shown
to be grossly oppressive or contrary to law, generally valid and binding on the
parties and must be complied with until finally revised or amended, unilaterally or
preferably through negotiation, by competent authority.
www.legalaspects.ph
Practices
Tanala v. NLRC, Via Mare Catering Services, G.R. No. 116588, 24 January 1996
JDP
CONSULTIN
G
What is the basis for

company policies?
Management prerogative is the basis for company policies.
The principle of management prerogative is that right of the employers to regulate
all aspects of employment.
Jurisprudence recognizes the exercise of management prerogatives. Labor laws

also discourage interference with an employers judgment in the conduct of its
business.
www.legalaspects.ph
Practices
Endico v. Quantum Foods Distribution Center, G.R. No. 161615, 30 January 2009
JDP
CONSULTIN
G
What is the importance of

having good company
policies?
Company policies form part of the employment contracts.
They create rights and obligations between employers and employees.
Whenever there is doubt, all labor laws and employment contracts are construed in
favor of the safety and decent living of the laborer.
Art. 1702, Civil Code of the Philippines
www.legalaspects.ph
Practices
JDP
What are the usual contents of

company policies?
Contents
Mandatory
1. Company Profile
2. Mission and Vision
3. Working Conditions
4. Monetary Benefits
5. Leaves
6. Violations
7. Disciplinary Actions
8. Miscellaneous
www.legalaspects.ph
Practices
A. Sexual Harassment
B. Drug-Free Workplace
C. HIV-AIDS
D. Hepatitis B
E. Tuberculosis
CONSULTIN
G
JDP
What are the usual contents of

company policies?
COMPANY PROFILE
A short introduction of the company

Company values, aspirations and
principles
General background or history of the
company
www.legalaspects.ph
Practices
MISSION & VISION
Company objectives, goals, and

targets
Over-all direction and thrust of the
company
Roadmap towards achieving these
objectives
CONSULTIN
G
JDP
What are the usual components of

company policies?
WORKING CONDITIONS
Working days and time of the week
Rest day of the week
Rules on overtime work
1-hour meal period
20-minute short rest
Compensable working hours
MONETARY BENEFITS
Holiday pay
Overtime pay
Premium pay
Night shift differential pay
Service charges
13th month pay
Separation pay
Retirement pay
www.legalaspects.ph
Practices
CONSULTIN
G
JDP

company policies?
LEAVES
Service incentive leave or vacation
leave, and sick leave
Maternity leave
Paternity leave
Solo parental leave
VAWC leave
Company-authorized leaves
www.legalaspects.ph
Practices
VIOLATIONS
Company violations and offenses
Just causes: serious misconduct,
willful disobedience, gross and
habitual neglect, breach of trust,
commission of a crime against
person, etc.
Absence without leave (AWOL)
CONSULTIN
G
JDP

company policies?
DISCIPLINARY ACTION
Penalties and sanctions

Preventive suspension or penalty of
suspension
Termination or dismissal
www.legalaspects.ph
Practices
MISCELLANEOUS
Clearance process in case of

termination of employment
Release, Waiver, and Quitclaim
CONSULTIN
G
JDP
What are the required components

of company policies?
SEXUAL HARASSMENT
Complaint process, including
reporting of harassment
Due process to give both sides the
opportunity to be heard
Sanctions and penalties, including
termination
Rules against retaliation
www.legalaspects.ph
Practices
DRUG-FREE WORKPLACE
Rules on random drug testing

Process of selection
Date and time to be conducted
Sanctions and penalties, including
termination
CONSULTIN
G
JDP
What are the required components

of company policies?
HIV-AIDS
Non-discrimination and
confidentiality
Advocacy, information, education
and training
Workplace education package on HIV
and AIDS based on curriculum by
Inter-Agency Committee (IAC) on
STD
Work accommodation and
arrangement
www.legalaspects.ph
Practices
HEPATITIS B
Non-discrimination and
Confidentiality
Rights-based, incorporating human
rights standards and principles
Advocacy, information, education
and training
Preventive strategies
Work accommodation and
arrangement
CONSULTIN
G
JDP
CONSULTIN
G
Do company policies need

to have all of these?
Except for those that are required, company policies depend on the
rules and conditions of employment laid down by the
management.
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
What if the company

policies do not provide for
these?
Labor laws are written into employment contracts.
Thus, the employees are entitled to statutory monetary claims and benefits even if
they are not provided in the company policies, employment contracts, and CBA.
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
What should management do if

it revises the
company policies?
Employees should be given an opportunity to access the revised
company policies. If they ask for a copy, they should be given one.
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
What are the consequences for

having poorly written
employment contracts?
Company policies may be the basis for an employees rights.
Poorly written employment contracts may result in creating unintended
rights in favor of the employees which the management will be bound to
observe. Failure to comply with these, a labor complaint may result
exposing the employer to liabilities and costs for litigation.
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
How do you avoid such

liabilities?
Management should observe best legal practices to avoid such
consequences and liabilities.
Best legal practices are best practices with legal compliance. For employment, they
are sourced from labor laws, rules & regulations, jurisprudence, and best practices.
www.legalaspects.ph
Practices
JDP
What are these best legal practices

for company policies?
Ensure that the company policies are in compliance with
current labor laws, rules, and jurisprudence
Clearly and expressly state the working conditions, monetary
claims, benefits, leaves, violations, disciplinary actions, and so
on
Whenever necessary, provide for their scope and extent of
applicability
Harmonize the company policies with the employment
contracts and company practices
Document and announce revisions to the entire workforce, as
well as allow employees the opportunity to read them
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
CONSULTIN
G
Have there been cases when

company policies were used in
labor cases?
Yes, there are numerous Supreme Court Decisions or Jurisprudence
wherein company policies were used either for or against the
employer.
www.legalaspects.ph
Practices
JDP
Jurisprudence or Supreme Court

Decisions
GENERAL
IN FAVOR
Company policies
and regulations are
generally valid and
binding and must be
complied with until
finally revised or
amended by
competent authority.
An employee was
validly dismissed
after refusing to
attend a Values
Transformation
Seminar where
company policies are
primarily discussed.
- Tanala v. NLRC, Via Mare

Catering Services, G.R. No.
116588, 24 January 1996
Canadian Opportunities
Unlimited v. Dalangin, G.R. No.
172223, 06 February 2012
www.legalaspects.ph
Practices
AGAINST
An employer was
liable for illegal
dismissal after
dismissing
employees in
violation of its own
company policies
on drug testing.
- Plantation Bay Resort and
Spa v. Dubrico, G.R. No.
182216, 04 December 2009
CONSULTIN
G
JDP
CONSULTIN
G
Company policies may

help shield the company
from labor complaints.
JDP



CONSULTING
JDP
CONSULTIN
G
MANAGEMENT
PREROGATIVE
FRAMEWORK OF PHILIPPINE LABOR LAW
FOR EMPLOYERS & MANAGERS
WWW.LEGALASPECTS.P
H
Business Laws & Best Legal Practices
JDP
CONSULTIN
G
Labor law can work for

the advantage and
benefit of the employer.

For more info:
www.legalaspects.ph
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What constitutes labor law?

Labor law is a body of laws regulating employment.
It primarily consists of: (a) the 1987 Constitution, (b) Labor Code, (c)
Special laws (e.g. 13th Month Pay, SSS Law, Paternity Leave Law, VAWC
Leave, etc.), (d) Jurisprudence (Supreme Court Decisions), (e) Omnibus
Rules Implementing the Labor Code, and (f) DOLE Advisories.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What is the
most important rule
to know in labor law?
Full protection to labor
The 1987 Constitution itself requires the State to afford full protection to
labor.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What is the next

most important rule
to know in labor law?
Doubts in labor law and employment contract = Rule for Employees
Whenever there is doubt, all labor laws and employment contracts are
construed in favor of the safety and decent living of the laborer.
- Article 1702, Civil Code
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What is the basis for labor law?

Social Justice
The aim and the reason [and, as such,] the justification of labor laws is social
justice.
- Cesar Alvero Azucena, Jr., Former Supreme Court Justice
The basic tenet of social justice is that those who have less in life must have more
in law.
The 1987 Philippine Constitution mandates the State to afford full protection to
labor, local and overseas, organized and unorganized, and promote full employment
and equality of employment opportunities to all.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What is the basis for labor law?

Social Justice
The State is required to guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted activities, including the
right to strike in accordance with law.
The workers are entitled to security of tenure, humane conditions of work, and a living
wage. The constitutional right to security of tenure is an act of social justice.
The State is mandated to 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.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Is labor law unfair to the

employer?
No injustice to employer
While labor law is based on social justice, it does not necessarily mean
that the employer is left to his/her own devices.
The Supreme Court itself has repeatedly mandated that injustice should
not be done to the employer: We cannot simply tolerate injustice to
employers if only to protect the welfare of undeserving employees.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Supreme Court understands the

problems of an employer
Needless to say, so irresponsible an employee like petitioner does not
deserve a place in the workplace, and it is within the managements
prerogative to terminate his employment. Even as the law is
solicitous of the welfare of employees, it must also protect the
rights of an employer to exercise what are clearly management
prerogatives. As long as the companys exercise of those rights and
prerogative is in good faith to advance its interest and not for the purpose
of defeating or circumventing the rights of employees under the laws or
valid agreements, such exercise will be upheld. (Emphasis supplied.)
- Rene P. Valiao v. The Hon. Court of Appeals, G.R. No. 146621, 30 July
2004.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Supreme Court understands the

problems of an employer
Social justice is not one-sided.
The law in protecting the rights of the employees, authorizes
neither oppression nor self-destruction of the employer there
may be cases where the circumstances warrant favoring labor
over the interests of management but never should the scale be
so tilted as to result in an injustice to the employer.
Hence, the Supreme Court has correctly pointed out that social
justice is not one-sided.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
When is there a labor

dispute?
Employment Relationship Labor Dispute
A labor dispute is any controversy or matter concerning terms and
conditions of employment or the association or representation of person in
negotiating, fixing, maintaining, changing or arranging the terms and
conditions of employment, regardless of whether the disputants stand in the
proximate relation of employer and employee. Before any labor case may
proceed, it is required first to establish the employer and employee
relationship between the parties.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
When is there an employeremployee relationship?

Four-fold Test of Employment
The elements to determine the existence of an employment relationship
are: (a) the selection and engagement of the employee; (b) the payment
of wages; (c) the power of dismissal; and (d) the employers power to
control the employees conduct.
The most important element is the employers control of the employees
conduct, not only as to the result of the work to be done, but also as to the
means and methods to accomplish it.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What is the extent of

control or power by the
employer?
Management Prerogative
Management Prerogative is the wide freedom of the management to
regulate, according to its own discretion and judgment, all aspects of
employment, including hiring, work assignments, working methods, time,
place and manner of work, processes to be followed, supervision of
workers, working regulations, transfer of employees, work supervision, lay
off of workers and discipline, dismissal and recall of workers.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Is there a limitation to
management prerogative?
The exercise of management prerogative requires that it be done in good
faith and with due regard to the rights of the employee.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Proper use of
management prerogative
addresses labor
concerns.
For more information, contact:
JDP CONSULTING LTD. CO.

Call: (+632) 479-5405, Fax: (+632) 479-5401
Mobile: (+63) 917-622-0124
E-mail: info@jdpconsulting.ph
Website: www.jdpconsulting.ph
You may also want to visit:
www.legalaspects.ph
JDP
CONSULTIN
G
EMPLOYMENT
CONTRACTS AND
EMPLOYEE STATUS
REGULAR, PROBATIONARY, CASUAL, PROJECT, SEASONAL,
FIXED-TERM
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Defective employment
contracts result regular
employment.

For more info:
www.legalaspects.ph
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What is an
employment contract?
An employment contract is an agreement between the employer and the
employee on the terms and conditions of employment.
WWW.LEGALASPECTS.P
H
JDP
What are the parts of an

employment contract
CONSULTIN
G
1. Parties
2. Whereas Clause
3. Terms and Conditions of Employment
4. Miscellaneous Provisions
5. Signature Provisions
6. Notarial Details
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What is the importance of

having a good employment
contract?
Whenever there is doubt, all labor laws and employment contracts are
construed in favor of the safety and decent living of the laborer.
- Art. 1702, Civil Code of the Philippines
WWW.LEGALASPECTS.P
H
JDP
What are the different employment

arrangements?
REGULAR
PROBATIONARY
Employee who has

been engaged to
perform activities
which are usually
necessary or
desirable in the
usual business or
trade of the
employer
Employee who is
made to undergo a
probationary period
not exceeding 6
months and the
standards/criteria for
qualifying as a
regular employee
was made known
on/before time of
engagement
CONSULTIN
G
CASUAL
Employee who
performs functions
that are incidental,
or those not
necessary or
desirable in the
usual trade or
business of the
employer, and for a
limited duration
WWW.LEGALASPECTS.P
H
JDP

arrangements?
PROJECT
SEASONAL
FIXED-TERM
Employee who has

been engaged for a
specific project or
undertaking the
completion of which
has been determined
at the time of the
employees
engagement
Employee who has

been engaged to
perform work or
service which are
seasonable in nature
and the employment
is for the duration of
that season
Employee who has

been engaged for a
particular duration,
which has been
made known to the
employee at the
time of engagement
CONSULTIN
G
Bilateral relationship:
Employer Project Employee
WWW.LEGALASPECTS.P
H
JDP

arrangements?
CONSULTIN
G
CONTRACTUAL WORKERS
(UNDER DOLE D.O. No. 18-A, S. 2011)
Employee hired by a contractor/subcontractor to perform or
complete a job, work, or service pursuant to the Service
Agreement with a principal
Trilateral relationship:
Principal Contractor Contractual Workers

Note: Do not confuse w/ project employees.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What if the requirements for

employment contracts are not
followed?
The employee is deemed a regular employee despite any verbal or written
agreement as a consequence for failing to comply with the legal
requirements.
The next slides will show these instances.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
When employees are deemed

regular by labor laws
1. A casual employee who has rendered at least one year of service,
whether continuous or broken, with respect to the activity in which
he/she is employed and his/her employment continues while such
activity exists;
2. A probationary employee who has been allowed to continue work
despite the last day of the probationary period;
3. A probationary employee who was not informed of the
standards/criteria under which he will qualify as a regular employee
on/before at the time of engagement;
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G

4. A project employee when the following conditions concur: (a) there is a
continuous rehiring of the project employee even after the cessation of a
project; and (b) the tasks performed by the alleged project employee is vital,
necessary, and indispensable to the usual business or trade of the employer;
5. A fixed-term employee whose employment fails to comply with the 2-fold
criteria: (a) a fixed period of employment was agreed upon knowingly and
voluntarily by the parties, without any force, duress or improper pressure
being brought to bear upon the employee and absent any other circumstances
vitiating his/her consent; or (b) where it is satisfactorily appears that the
employer and the employee dealt with each other on more/less equal terms
with no moral dominance whatsoever being exercised by the former over the
latter;
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G

6. A learner whose training is terminated by the employer before
the end of the stipulated period without any fault of the learner
provided he/she has been allowed or suffered to work during the
first two months.
NOTE: In all of these 6 instances, the law itself deems the

employee to be regular despite any verbal or written agreement as
to his/her status whether probationary, casual, project, or fixedterm. No further declaration by the employer is necessary.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
What are the consequences

once the law deems an
employee to be regular?
The employee is entitled all the rights, benefits, and privileges of a regular
employee under labor laws, employment contract, company policies and
practices, and Collective Bargaining Agreements.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G

liabilities?
Best legal practices are best practices with legal compliance. For
employment, they are sourced from labor laws, rules & regulations,
jurisprudence, and best practices.
WWW.LEGALASPECTS.P
H
JDP
What are these best legal practices

for employment contracts?
CONSULTIN
G
In General
Clearly state in employment contracts the status of the employee
upon engagement e.g. probationary, casual, project, etc.
Provide the necessary information related to the functions, roles,
and responsibilities of the employee
Incorporate by reference the company policies, rules, and
practices as integral parts of the employment contract
Ensure that the terms and conditions of the employment has been
properly explained and the employee understood the same
Notarize the employment contract to convert it to a public
document
WWW.LEGALASPECTS.P
H
JDP
For specific best legal practices

depending on the arrangement
REGULAR
Specifically state the
regular status of the
employee
Provide therein the
necessary preemployment
requirements and
ensure compliance
prior to engagement
PROBATIONARY
Ensure that
probationary period
does not exceed 6
months
Provide the
standards/criteria for
qualifying as a
regular employee
No work beyond
probationary period
CONSULTIN
G
CASUAL
State the functions,
roles, and
responsibilities which
are incidental to the
usual trade or
business of the
employer
Ensure that
employment is for a
limited duration
No casual employment
beyond 1 year
WWW.LEGALASPECTS.P
H
JDP

PROJECT
Clearly state the
specific project or
undertaking
Ensure that the
completion of these
have been determined
at the time of the
employees
engagement
Avoid continuous
rehiring for similar
project/undertaking
SEASONAL
FIXED-TERM
Specifically state
that the work or
service which are
seasonable in nature
Stipulate that the

employee is engaged
for a particular
duration
Ensure that the

employment is for
the duration of that
season
Ensure that such

fixed-term or period
is stated and made
known to the
employee at the
time of engagement
CONSULTIN
G
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G

CONTRACTUAL WORKERS
(UNDER DOLE D.O. No. 18-A, S. 2011)
Ensure that there is a written employment contract that complies
with the Rules, namely: (1) specific job description; (2) place of
work and terms and conditions of employment, including a
statement of the wage rate applicable to the individual
employee; (3) term or duration of employment that must be coextensive with the Service Agreement or with the specific phase
of work for which the employee is engaged.
Avoid prohibited acts e.g. repeated hiring of employee for short
duration Employment Contracts or Service Agreement, Cabo
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Have there been cases when the

law declared employees to be
regular?
Yes, there are numerous Supreme Court Decisions or Jurisprudence
wherein employees were declared to be regular despite having a different
arrangement with the employer.
WWW.LEGALASPECTS.P
H
JDP

Decisions
REGULAR
Employees
(formatters) who
performed necessary
or desirable activities
but under various
fixed-term
employment
contracts were
considered regular
employees.
- Price v. Innodata Phils, Inc.,
G.R. No. 178505, 30
September 2008
PROBATIONARY
CASUAL
An probationary
employee
(management
trainee) who was
made to work 2 days
after the
probationary period
was considered a
regular employee.
An causal employee
(photocopier/sorter)
who performed
necessary or desirable
activities and who has
rendered more than 1
year of service was
considered a regular
employee.
Mitsubishi Motors Philippines

Corporation v. Chrysler
Philippines Labor Union, G.R.
No. 148738, 29 June 2004
CONSULTIN
G
- Philippine Long Distance

Telephone Company, Inc. v.
Arceo, G.R. No. 149985, 05
May 2006
WWW.LEGALASPECTS.P
H
JDP

Decisions
PROJECT
SEASONAL
FIXED-TERM
A project employee
(laborer/carpenter)
who was repeatedly
and continuously rehired for 31 years
and performed vital,
necessary, and
indispensable work
was considered a
regular employee.
Seasonal employees
(hacienda workers)
who were performed
work/services
seasonal in nature
but not hired for
duration of one
season were
considered regular
employees.
Fixed-term employee
(newscaster/anchor)
who was repeatedly
rehired under fixedterm contracts for
fearing of losing the job
resulting in unequal
footing with employer
was considered a
regular employee.
- D.M. Consunji, Inc. v. Jamin,

G.R. No. 192514, 18 April
2012
- Hacienda Bino v. Cuenca,

G.R. No. 150478, 15 April 2005
CONSULTIN
G
- Dumpit-Murillo v. Court of
Appeals, ABC, G.R. No.
164652, 08 June 2007
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Employment contracts
are construed in favor of
labor in case of doubt.

Call: (+632) 479-5405, Fax: (+632) 479-5401
Mobile: (+63) 917-622-0124
www.legalaspects.ph
JDP
CONSULTIN
G
STATUTORY MONETARY
BENEFITS
Minimum wage, holiday pay, premium pay, overtime pay,
maternity/paternity/parental leaves, 13th month pay, etc.
JDP
CONSULTIN
G
Statutory monetary
benefits are mandatory.


WWW.LEGALASPECTS.P
H
For more info:
www.legalaspects.ph
JDP
CONSULTIN
G
What are statutory

monetary benefits?
Statutory monetary benefits are those which the employee is entitled to
receive from the employer and the government as required by law.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Statutory monetary benefits may

either be from
THE EMPLOYER
Minimum wage
Holiday pay
Premium pay
Overtime pay
Night shift pay
Service charge
Service incentive leave
Maternity/Paternity/Parental leave
VAWC leave
Special leave for women
13th month
Separation pay
Retirement pay
WWW.LEGALASPECTS.P
H
THE GOVERNMENT
SSS benefits
Philhealth benefits
Pag-IBIG
ECC benefits
JDP
CONSULTIN
G
Are all establishments required

to pay these statutory monetary
benefits?
Non-agricultural establishments are required to pay them.
Retail and service establishments employing a certain number of
employees are not required to pay them.
See next slide for the compliance guide.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Compliance Guide:
Managers
are not
entitled.
WWW.LEGALASPECTS.P
H
Statutory Monetary
Benefits
Retail & Service w/ up to 9

employees
Non-Agriculture
Minimum wage
Holiday pay
N/A
Premium pay
Overtime pay
Night shift pay
(except up to 5 employees)
Service charge
Service incentive leave
N/A
Maternity/Paternity/ Parental leave
VAWC leave
Special leave for women
13th month pay
Separation pay
Retirement pay
N/A
Coverage:
Not all employees are entitled.

Labor Code working
conditions and benefits do not
apply to:
Labor Code working conditions and benefits do not apply to:

1. Government employees
1. Holiday Pay
2. Managerial employees
2. Premium Pay
4. Field personnel
3. Overtime pay
6. Domestic helpers
4. Night Shift Pay

5. Service Charge
6. Service Incentive Leave
WWW.LEGALASPECTS.P
H
3. Officers/members of managerial staff
5. Family members of employers dependent on latter for support
7. Persons in the personal service of another

8. Workers paid by results
JDP
CONSULTIN
G
May a covered employer

refuse to pay these?
No, the statutory monetary benefits are mandatory.
Failure to pay these statutory monetary benefits opens the employer to
consequences, ranging from labor, administrative, to criminal liabilities.C
WWW.LEGALASPECTS.P
H
JDP
Consequences for failing to pay the

statutory monetary benefits:
LABOR CASE
Labor complaint for
statutory monetary
benefits
For minimum wage,
the employer may
be required to pay
double the unpaid
sum.
10% attorneys fees
on the monetary
award
WWW.LEGALASPECTS.P
H
ADMIN CASE
CRIMINAL CASE
DOLE may initiate an

administrative case
against an employer
for non-compliance
with labor laws
Certain statutory
monetary benefits
carry criminal
liabilities for their
non-compliance.
Administrative
penalties and fines
may be imposed
against the employer
for non-compliance.
For minimum wage,

the employer may be
imprisoned despite
payment of unpaid
sum or indemnity.
CONSULTIN
G
JDP
CONSULTIN
G

liabilities?
Best legal practices are best practices with legal compliance. For
employment, they are sourced from labor laws, rules & regulations,
jurisprudence, and best practices.
WWW.LEGALASPECTS.P
H
JDP
What are the best legal practices for

statutory monetary benefits?
Regularly update on and follow labor laws for legal compliance,
especially on minimum wage and new benefits
Follow social media sites of DOLE and the Government which
regularly provides for statutory monetary computations, particularly
on holiday pay, special holiday pay, overtime pay, etc.
Ensure that the requirements are followed whenever a benefit is
availed e.g. Solo Parental ID, SSS notice, Barangay Complaint, etc.
Harmonize employment contracts, company policies and practices,
and Collective Bargaining Agreement, with statutory monetary
benefits
Keep proofs of payment to serve as evidence in case of a labor
complaint
WWW.LEGALASPECTS.P
H
CONSULTIN
G
JDP
CONSULTIN
G
May an employer substitute

statutory monetary benefits with
company benefits?
No, statutory monetary benefits being mandatory have to be paid to the
employees who are entitled thereto as a matter of law.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
May an employer lessen or

add to these statutory
monetary benefits?
Following the rule on non-diminution, the employer may add and improve
on these statutory monetary benefits but it may not lessen them.
Improving these benefits inure to the benefit of the employees.
Conversely, lessening these benefits are prejudicial to the employees.
WWW.LEGALASPECTS.P
H
JDP
CONSULTIN
G
Statutory Monetary
Benefits
Lets discuss each one.
WWW.LEGALASPECTS.P
H
1) Minimum Wage
The minimum wage rates are those
prescribed by the Regional Tripartite Wages
and Productivity Board for each and every
region.
Exceptions to Minimum Wage*

1. Handicapped/Learner/Apprentice**
2. Retail/Service w/ up to 9 employees**
3. Barangay Micro Business Enterprises
Payment
Legal tender only, twice a month
4. Household Helpers/Personal Drivers

5. Homeworkers in needlework
6. Registered-cooperatives
Employees death, pay to DOLE
7. Distressed/Calamity-affected/New establishments
Proof of payment
8. NCIDA-registered enterprise
9. Farm tenancy or leasehold arrangements
Non-compliance
1. Double unpaid sum
2. Criminal liability
WWW.LEGALASPECTS.P
H
Obtain clearance from DOLE first.

** Requires prior approval
*
2) Holiday Pay
Absent w/o pay prior to a holiday
Payment
No holiday pay unless he works on such

holiday
100% - Unworked
(Same rule if prior day is non-working day)
200% - Worked / Unworked Double Holiday

300% - Worked on Double Holiday
Computation
Regular Wage, COLA not included
Special Rules
Absent w/o pay prior to successive holidays

No holiday pays unless he works on 1st
holiday to be paid the 2nd holiday pay
Temporary/periodic/temporary shutdown of
work
Private School Teachers, Paid by Results

Holiday pays required to be paid unless
(ADS), Seasonal, No regular working days
due to business reverses + DOLE

authorized
WWW.LEGALASPECTS.P
H
3) Premium Pay
Payment (RW: Regular Wage)
x 130% RW Rest day
Compulsory Rest Day Work
x 150% RW Rest day + Special Day*
1. Actual/Impending Emergencies due to disaster/calamity to prevent loss

of life/property, and imminent danger to public safety
x 260% RW Rest day + Regular Holiday
Rest Day Preference

Religious 2 days per month +
serious prejudice or obstruction
to operations
WWW.LEGALASPECTS.P
H
Business*Ninoy
Laws & BestAquino
Legal
(Aug. 21), All Saints Day (Nov. 1), Years
2. Urgent work on machinery, equipment, installation, to avoid serious

loss on employer
3. Abnormal pressure of work due to special circumstances + employer
cannot ordinarily be expected to resort to other measures
4. To prevent loss or damage to perishable goods
5. Nature of work requires continuous operations + work stoppage will
result in irreparable injury/loss
6. Work is necessary to avail of favorable weather or environmental
conditions + performance/quality of work depends thereon
7. Analogous or similar to the foregoing via DOLE regulations
4) Overtime Pay
OT Rate
x 125% RW/8 Ordinary
Compulsory Overtime Work
1. Country at war, or declared national/local emergency by
Day
President/Congress
2. Necessary to prevent loss of life/property, imminent danger to public
safety due to disaster or calamity
Computation
3. Urgent work on machines, installation, equipment, etc. to avoid serious

loss or damage
COLA not included
4. To prevent loss/damage to perishable goods

5. Completion/continuation of work prior to 8th hour necessary to prevent
serious obstruction or prejudice to business/operations
6. Necessary to avail of favorable weather or environmental conditions +
performance/quality of work dependent thereon
WWW.LEGALASPECTS.P
H
JDP
STATUTORY MONETARY BENEFITS

(MANAGERS NOT ENTITLED.)
NIGHT SHIFT PAY
10% daily rate / hour
10:00 pm to 6:00 am
following day work
COLA excluded
SERVICE CHARGE
85% covered nonmanagerial
employees, 15%
covered employers
Paid twice a month
If abolished, 12
month average of
each employee
integrated in salary.
Pooled tips covered.
WWW.LEGALASPECTS.P
H
SERVICE INCENTIVE
LEAVE
5-day leave w/ pay
Conditions: 1 year of
service (continuous /
broken)
Convertible
Non-cumulative
CONSULTIN
G
JDP
CONSULTIN
G

MATERNITY
LEAVE
100% daily salary rate
for 60 days (normal)
or 78 days
(caesarean)
Conditions: SSS
member w/ 3 mo.
contributions,
reasonable notice to
employer and SSS, full
payment advanced by
employer w/n 30 days
from filing, first four
deliveries (or
miscarriages)
WWW.LEGALASPECTS.P
H
PATERNITY LEAVE
SOLO PARENTAL
LEAVE
7 calendar days
leave w/ full pay
7 working days leave w/

full pay
Conditions: married
male employee and
cohabiting with
legitimate wife, first
four deliveries,
employer
For solo parents or

individual w/ responsibility
of parenthood
Non-convertible
Conditions: 1 year service

(continuous or broken),
employer, Solo Parent
Identification Card
Non-convertible, NonCumulative
JDP
CONSULTIN
G

VAWC LEAVE
SPECIAL LEAVE FOR WOMEN
10-day leave w/ full pay, extendible via protection orders
VAWC: Violence against women and their children
Conditions: Certification of Pending Action/Case (either from

Barangay Officers, Prosecutor, or Clerk of Court)
Non-convertible, Non-cumulative
2 mos. leave w/ full pay: gross monthly
Surgery for gynecological disorders (involving female

reproductive organs)
Conditions: 6 mos. service, application w/ employer w/n

reasonable time, underwent above surgery certified by
competent physician
WWW.LEGALASPECTS.P
H
Non-convertible, Non-cumulative
JDP
CONSULTIN
G

13TH MONTH PAY
SEPARATION PAY
Only for Rank & File

Employees who
worked at least 1 mo.
Authorized Causes +
In lieu of
reinstatement
Proportional
Minimum of 1/12 of
total basic salary
earned by employee
in 1 calendar year
For Nos. 1 to 3
authorized causes: 1
mo. pay or 1 mo.
pay / year of service
Basic salary: all

remunerations,
excluding allowances
and monetary
benefits not integral
WWW.LEGALASPECTS.P
H
RETIREMENT PAY
Retirement pay = Labor Code or
Higher (Daily Rate x 22.5 days x
Years of Service); 6 months = 1
year
For Nos. 4 to 6
authorized causes: 1
mo. pay or pay /
year of service
Retirement age: employment

contract, CBA, or company policy;
If none, optional at 60 yrs. old ,
mandatory at 65 yrs. old or 50
yrs. old for underground mining
employees, and minimum 5 years
of service
In both, whichever is
higher
Included: Workers paid by results

and part-time workers
JDP
CONSULTIN
G
Statutory monetary
benefits are owing to the
employees.

Call: (+632) 479-5405, Fax: (+632) 479-5401
Mobile: (+63) 917-622-0124
www.legalaspects.ph
JDP
CONSULTIN
G
DUE PROCESS
TERMINATION
For disciplining or terminating an employee
JDP
CONSULTIN
G
Illegal dismissal is
employee termination
without due process.


www.legalaspects.ph
Practices
JDP
CONSULTING
JDP
CONSULTIN
G
What is
?
DUE PROCESS
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
DUE PROCESS
is the legal way to terminate an employee
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
Due process
is divided into two:
Substantive Due Process
Procedural Due Process
Refers to the step-by-step process of dismissing an employee
Refers to the valid grounds for dismissing an employee
Ground for termination:

(1) Just causes; or
(2) Authorized Causes
Step-by-step procedure for just causes:
(1) 1st Written Notice

(2) Opportunity to be Heard
(3) 2nd Written Notice
+Dole Establishment Termination Report
Step-by-step procedure for authorized causes:
(1) 30-day notice to concerned employee

(2) DOLE Establishment Termination Report
(3) Separation Pay
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
Substantive due process

is further divided into two:
Just Causes
Authorized Causes
Refers to termination grounds attributable to the employee:
(1) Serious misconduct or willful

disobedience by the
employee of the lawful orders of his
employers or
representative in connection with his work;
(2) Gross and habitual neglect by
duties;
the
employee of his
(3) Fraud or willful breach by the

employee of the trust
reposed in him by his employer or duly authorized
representative
www.legalaspects.ph
Practices
Refers to termination grounds which are not attributable to

the employee:
(1) Installation of labor-saving
(2) Redundancy;
(3) Retrenchment;
(4) Closure of establishment;
(5) Disease of an employee
devices;
JDP
CONSULTIN
G
Substantive due process

is further divided into two:
Just Causes
Authorized Causes
Refers to termination grounds attributable to the employee:
Refers to termination grounds which are not attributable to

the employee:
(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;
and
(1) Installation of labor-saving
(5) Other causes analogous to

the foregoing (ex. loss
of trust and
confidence, gross inefficiency,
etc.)
(4) Closure of establishment;
(2) Redundancy;
(3) Retrenchment;
(5) Disease of an employee
www.legalaspects.ph
Practices
devices;
JDP
Just Causes
Procedural due process
www.legalaspects.ph
Practices
Note: The above steps comply with the due

process requirements in relation to the
employee. For DOLE compliance, the
employer is required to submit a monthly
Establishment
Termination
Report
for
dismissed employees.
CONSULTIN
G
JDP
[Date]
CONSULTIN
G
Re: 1st Notice to Explain

Dear Mr. Michael S. Cruz;
1st Written
Notice
Sample 1: Written Explanation
Requirements:
An investigation is being conducted for your alleged

commission, participation, or involvement in the following
specific acts with the corresponding detailed narration of facts
and circumstances:
Specific Acts
(Charges)
Ground/s for disciplinary

action or termination
Reasonable opportunity to
be heard/explain, at least 5
calendar days
Detailed narration of facts
and circumstances as basis
for charge/s
Specific violations of
employment contract,
company rules and policies
and/or just causes
www.legalaspects.ph
Practices
Detailed Narration of
Facts and
Circumstances (Date,
Time, Place, etc.)
Applicable Provisions
Violated in
Employment Contract,
Company Rules &
Policies, Just Causes,
etc.
In the event that you are found responsible, these are

grounds for disciplinary actions, including termination. You are
hereby directed to submit you written explanation within five
(5) calendar days from receipt hereof. Failure to do so
constitutes waiver on your part resulting in the continuation
of the investigation.
For your compliance.
Ms. Anna D. Banal

Human Resource
If sent via registered mail with return card:
Registry Receipt Nos. _______, ________ Post Office
Private Courier O.R./Tracking No. ________________
Received:
Michael S. Cruz
Date: _________
JDP
[Date]
CONSULTIN
G
Re: 1st Notice to Explain with Suspension
1 Written
Notice
st
Sample 2: Written Explanation w/

Suspension
Requirements:

calendar days
for charge/s
and/or just causes
Max Suspension: 30 days
www.legalaspects.ph
Practices

An investigation is being conducted for your alleged commission,
participation, or involvement in the following specific acts with
the corresponding detailed narration of facts and circumstances:
Specific Acts
(Charges)
Facts and
Time, Place, etc.)
Violated in
Company Rules &
etc.
In the event that you are found responsible, these are grounds for
disciplinary actions, including termination. You are hereby
directed to submit you written explanation within five (5) calendar
days from receipt hereof. Failure to do so constitutes waiver on
your part resulting in the continuation of the investigation.
Meanwhile, you are placed on 30-day preventive
suspension effective immediately. You are directed to
report for work after the lapse of the period without
further notice.
Ms. Anna D. Banal

Human Resource
Received:
Michael S. Cruz
Date: _________

JDP
[Date]
CONSULTIN
G
Re: 1st Notice to Explain
1st Written
Notice
Sample
3: Administrative Hearing
Requirements:

calendar days
for charge/s
and/or just causes
Right to counsel in
hearing
www.legalaspects.ph
Practices

An investigation is being conducted for your alleged
commission, participation, or involvement in the following
specific acts with the corresponding detailed narration of facts
and circumstances:
Specific Acts
(Charges)
Facts and
Time, Place, etc.)
Violated in
Company Rules &
etc.
In the event that you are found responsible, these are grounds
for disciplinary actions, including termination. You are
directed to appear for an administrative hearing on
________ at _________ (AM/PM), to be conducted in the
conference room. Failure to participate constitutes your
waiver resulting in the continuation of the investigation.
You may be assisted with counsel.
Ms. Anna D. Banal

Human Resource
Received:
Michael S. Cruz
Date: _________

JDP
[Date]
CONSULTIN
G
Re: 1st Notice to Explain with Suspension
1 Written
Notice
st
Sample 4: Administrative Hearing w/

Requirements:
Suspension

Reasonable opportunity to be
heard/explain, at least 5
calendar days
Detailed narration of facts and
circumstances as basis for
charge/s
and/or just causes
Right to counsel in hearing
Max Suspension: 30 days
www.legalaspects.ph
Practices

An investigation is being conducted for your alleged commission,
participation, or involvement in the following specific acts with the
corresponding detailed narration of facts and circumstances:
Specific Acts
(Charges)
Facts and
Time, Place, etc.)
Violated in
Company Rules &
etc.
In the event that you are found responsible, these are grounds for
disciplinary actions, including termination. You are directed to
appear for an administrative hearing on ________ at _________
(AM/PM), to be conducted in the conference room. Failure to
participate constitutes your waiver resulting in the continuation of
the investigation. You may be assisted with counsel. Meanwhile,
you are placed on 30-day preventive suspension effective
immediately. You are directed to report for work after the
lapse of the period without further notice.
Ms. Anna D. Banal

Human Resource
Received:
Michael S. Cruz
Date: _________

JDP
Opportunity to be heard
may either be through
Written Explanation
In case of a written explanation by the employee, the letter

will suffice to comply with rule on opportunity to be heard.
In labor law, the essence of due process lies simply in an

opportunity to be heard, and not that an actual hearing
should always and indispensably be held.
www.legalaspects.ph
Practices
CONSULTIN
G
Administrative Hearing
If a hearing is scheduled, the employee may be assisted with

counsel.
The employee and his/her counsel should be given the
opportunity to respond to the charge, present their evidence,
or rebut the evidence presented against them.
See: Metropolitan Bank and Trust Company v. Barrientos, G.R. No. 157028, 31 January 2006;
Philippine Pasay Chung Hua Academy v. Edpan, G.R. No. 168876, 10 February 2009.
JDP
[Date]
CONSULTIN
G
Re: 2nd Notice, Management Decision

2 Written
Notice
nd
We hereby inform you that, upon due consideration of all the

circumstances, sufficient grounds have been established to
impose the following disciplinary actions against you:
Sample 1: Management Decision
Requirements:
Detailed narration of
findings and evidence/basis
and/or just causes
Disciplinary actions for
violations, including
termination
www.legalaspects.ph
Practices
Specific Acts
(Charges)
Findings and
Evidence/Basis
Disciplinary Actions
for Violations
The disciplinary actions imposed are effective immediately.

You are hereby directed to personally report and coordinate
with the office regarding their implementation, as well as any
process that you may be required to undertake.
Ms. Anna D. Banal

Human Resource
Received:
Michael S. Cruz
Date: _________
JDP
Authorized Causes
Procedural due process
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
CONSULTIN
G
What if
DUE PROCESS
is not followed?
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
Failure to observe
DUE PROCESS
results in
ILLEGAL DISMISSAL
www.legalaspects.ph
Practices
JDP
Illegal dismissal
What are the consequences?
Full backwages
Reinstatement
Damages
Inclusive of
allowances, and
benefits or their
monetary equivalent
computed from time
withheld up to time
of actual
reinstatement
Without loss of
seniority rights and
other privileges
Moral damages
If employer appeals
reinstatement, payroll
reinstatement is
allowed
Nominal damages
If employer appeals
reinstatement,
computation is until
finality of decision
Separation pay in lieu

of reinstatement if
doctrine of strained
relation applies
www.legalaspects.ph
Practices
Exemplary damages
Attorneys Fees
Joint and solidary
liability of manager
with employer, if
warranted
CONSULTIN
G
JDP
What happens if only one of the due

process is followed?
Illegal Dismissal
Illegal Dismissal
Valid Dismissal
No substantive due
process, no
procedural due
process
No substantive due
process, with
procedural due
process
With substantive
due process, no
procedural due
process
Employer is liable for

full backwages,
reinstatement, and if
applicable, for
damages with
attorneys fees.
Employer is liable for

full backwages,
reinstatement, and if
applicable, for
damages with
attorneys fees.
While dismissal is
valid, employer is
liable for nominal
damages. (Agabon
doctrine)
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
CONSULTIN
G
Due process termination

protects the employer
from illegal dismissal.
www.legalaspects.ph
JDP
CONSULTIN
G
BEST LEGAL
PRACTICES
For Human Resource in relation to Labor Law
JDP
CONSULTIN
G
BULLET PROOF THE

WORKPLACE AGAINST
LABOR COMPLAINTS.


www.legalaspects.ph
Practices
JDP
CONSULTING
JDP
CONSULTIN
G
How?
By observing
Best Legal Practices
www.legalaspects.ph
Practices
JDP
CONSULTIN
G

are based on
Labor Laws
1987 Constitution
Labor Code
Omnibus Rules
Implementing the Labor
Code
Special Laws: Minimum
Wage, 13th Month Pay,
Migrant Workers and
Overseas Act of 1995,
Nightwork, Parental Leave,
Leave for Victims of VAWC,
Retirement, etc.
DOLE Advisories, etc.
www.legalaspects.ph
Practices
Jurisprudence
Totality of infractions
doctrine
Doctrine of strained
relations
Agabon doctrine
Brent doctrine
Globe doctrine
In pari delicto doctrine
Doctrine of necessary
implication
24-hour duty doctrine
Etc.
Best Practices
Industry-wide specific best
practices which comply
with labor laws
International labor
standards prescribed by
the International Labor
Organizations (ILO)
JDP
CONSULTIN
G
Why learn best legal practices?

There are two primary reasons why:
To prevent lawsuits
To avoid liabilities
Monetary awards
Labor complaints for illegal dismissal, monetary claims, etc.
Administrative cases with DOLE for non-compliance with

labor law
Moral damages, exemplary damages, nominal damages,

attorneys fees
Criminal complaints for violations of labor laws, such as

paying below minimum wage, unfair labor practices, etc.
Joint and solidary liability of a manager and the company
DOLE administrative fines
www.legalaspects.ph
Practices
Imprisonment
JDP
CONSULTIN
G
Now let us learn these

for
Human Resource in relation to Labor Law
www.legalaspects.ph
Practices
JDP
1. Require signed rsum or

curriculum vitae
Ensures that the rsum was prepared and/or it came
from the applicant
Protects the employer from any denial later on by the
employee
May be used in evidence in case of misrepresentation
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
CONSULTIN
G
2. Complete company form

Provides employer the opportunity to obtain additional
information which may not be in the rsum
Allows employer to get written consent for background check,
and avoid any liability as a result thereof (ex. action for damages
if current employment is compromised)
Gives the employer the opportunity to obtain written consent for
other matters, such as parental consent in case of minors
Protects and safeguards the employer with an attestation clause
signed by the employee who made all the representations and
declarations therein, especially important for job positions
requiring a license, specialized knowledge, certified training, etc.
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
3. Background check
Verifies information provided in the rsum, from educational
background to work experiences
Forewarns any red flag in an applicant (ex. comments from previous
employer/manager on performance and character)
Alerts the employer of any pending or ongoing cases, such as
criminal, civil, labor, or administrative
Do note: Once the employee is hired, the employer is placed on the
defensive when it comes to labor cases. Regardless of whether
employees have any basis/ground, they have the right to file a labor
complaint. Thus, background checking is an important safeguard.
www.legalaspects.ph
Practices
JDP
4. Regularly re-evaluate
employment contracts
Employment contracts are the 1st line of defense.
Clearly state therein the status of employment (ex. regular, project,
fixed-term, etc.) salaries, benefits, and other terms and conditions
Ensure that employment contracts incorporate by reference the
terms and conditions in the company policies
Keep templates of employment contracts so they are readily
accessible, in particular have samples for each varying employment
status
Explain the terms and conditions of employment to ensure that the
prospective employees understand and consent thereto, especially
on matters concerning Intellectual Property
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
CONSULTIN
G
5. Update company policies

Company policies are the 2nd line of defense.
Update company policies to comply with changes in labor
laws, rules and regulations, jurisprudence
Ensure that the employees learn of any changes by posting it
Obtain written acknowledgment and consent, if practicable
Provide employees with opportunity to read the changes

Do note: Company policies should have rules concerning - (a)
drug-free work environment, (b) tuberculosis, (c) hepatitis B,
(d) HIV-AIDS, and (e) sexual harassment.
www.legalaspects.ph
Practices
JDP
CONSULTIN
G
6. Train Human Resource Staff

Avoid losing to labor cases due to lack of knowledge and
skills in labor law by the employer or human resource
manager/staff
Regularly train human resource staff on company
policies and procedures, in particular conduct written
tests and make the results part of their performance
reviews
Observe proper turn over whenever a human resource
manager or staff moves due to promotion, lateral
transfer, or resignation especially if there are ongoing
labor cases
www.legalaspects.ph
Practices
JDP
7. Observe proper documentation

and safekeeping of employee files
Burden is on the employer to prove: (a) that dismissal was valid,
(b) that monetary claims were paid, (c) that resignation was
voluntary, and (d) that the employees abandoned their work, etc.
All of these rely on documentary evidence. Without
documentation, the employer stands to lose a labor case.
Make digital copies of 201 files by scanning them or
computerizing the system
Backup files to cloud services (ex. Amazon, Google, Microsoft,
etc.)
Send scanned files to office e-mail for future reference
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
8. Design a flowchart for disciplinary

actions
Lays down the process or procedure to guide both the
employer/manager and the employee
Avoids missing or skipping a process required by law (cf.
procedural due process)
Informs everyone of their rights and obligations, in
particular the employees right to have counsel in
administrative hearings
Easy and accessible reference for human resource staff
in-charge of disciplinary actions
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
9. Keep and use templates for 1st

and 2nd written notices, etc.
Avoids drafting and using legal forms which do not comply
with the requirements prescribed by the law
Prevents staff from deleting important clauses
Supports defense or claims by the employers/managers
Easily and readily accessible whenever necessary
Templates: 1st and 2nd written notices, affidavits of service,

employees written explanation, resignation letter, RWQ
(release, waiver, and quitclaim), etc.
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
10. Document process for

disciplinary actions or termination
Avoid losing to a labor case due to lack of
documentation
Prevent being subjected to a huge monetary award (ex.
full backwages) as a result of improper and poor record
keeping
Protect the company and professional managers from
liability, in particular from solidary and personal liability
of managers with the employers/company
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
11. Observe proper conduct before

SENA Officer and Labor Arbitrator
Avoid being the receiving end of an irked and irritated
Labor Arbiter who is empowered and authorized to
grant monetary awards, moral damages, exemplary
damages, nominal damages, and attorneys fees
With the proper approach, the SENA Officer and Labor
Arbiter may be instrumental in reaching an amicable
settlement.
Be nice.
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
12. Be very careful in making

company notices or press releases
To protect the morale of the workforce, the employer
may find it important to issue a statement through
company notices or press releases of an ongoing labor
case. Be very careful in doing so.
If not warranted, do not issue any statement.
If warranted:
Avoid libelous or slanderous remarks or statements
Do not give the other party a leverage that they may
use
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
13. Consider and evaluate all factors

when making a settlement
Assess both the legal and economic costs of continuing
with a labor complaint (ex. full backwages in case of
illegal dismissal)
Determine whether sufficient documentary evidence is
available
Objectively weigh and evaluate the merits of both sides
If settlement is much lower than costs of litigating, the
employer or concerned manager can learn from it and
adapt new measures to avoid similar situations. As they
say, charge it to experience.
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
14. Execute and have the

compromise agreement notarized
Converts the written agreement to a public document
Adds more evidentiary weight to the compromise agreement in
case it is questioned or denied later on
May be used as a bargaining tool (ex. perjury, falsification, etc.)
In an ongoing case, the compromise agreement may be
subscribed and sworn to before the Labor Arbiter.
It is best to use your own legal form for compromise agreement.
Have supervisors or managers sign as witnesses to the
settlement whenever practicable.
www.legalaspects.ph
Practices
CONSULTIN
G
JDP
CONSULTIN
G
PREVENTION IS BETTER
THAN (AN EXPENSIVE)
CURE.
www.legalaspects.ph

COMPLETE Philippine Labor Law Nutshell

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

COMPLETE Philippine Labor Law Nutshell

Uploaded by

Copyright:

Available Formats

JDP

Company policies lay

Business Law Professor

Book Author, Legal Aspects of Business

What is the basis for

Jurisprudence recognizes the exercise of management prerogatives. Labor laws

What is the importance of

What are the usual contents of

What are the usual contents of

A short introduction of the company

MISSION & VISION

Company objectives, goals, and

What are the usual components of

What are the usual components of

What are the usual components of

Penalties and sanctions

Clearance process in case of

What are the required components

Rules on random drug testing

What are the required components

Do company policies need

What if the company

What should management do if

What are the consequences for

How do you avoid such

What are these best legal practices

Have there been cases when

Jurisprudence or Supreme Court

- Tanala v. NLRC, Via Mare

Company policies may

Business Lawyer & Legal Consultant

Business Law Professor

Book Author, Legal Aspects of Business

Business Laws & Best Legal Practices

Labor law can work for

Business Law Professor

Book Author, Legal Aspects of Business

For more info:

Central Books Publishing

Business Laws & Best Legal Practices

What constitutes labor law?

Business Laws & Best Legal Practices

Business Laws & Best Legal Practices

What is the next

Business Laws & Best Legal Practices

What is the basis for labor law?

Business Laws & Best Legal Practices

What is the basis for labor law?

Business Laws & Best Legal Practices

Is labor law unfair to the

Business Laws & Best Legal Practices

Supreme Court understands the

Business Laws & Best Legal Practices

Supreme Court understands the

Business Laws & Best Legal Practices

When is there a labor

Business Laws & Best Legal Practices

When is there an employeremployee relationship?

Business Laws & Best Legal Practices

What is the extent of

Business Laws & Best Legal Practices

Business Laws & Best Legal Practices

For more information, contact:

JDP CONSULTING LTD. CO.