Labor legislation consists of statutes, regulations, and jurisprudence governing the relations between capital and labor, by providing

for certain employment standards and a legal framework for negotiating, adjusting and administering those standards and other incidents of employment. This definition provides the divisions of labor legislation i.e. labor standards and labor relations. These two are not mutually exclusive but rather, they complement each other. For academic purposes though, distinction should be made between labor standards and labor relations. But in actuality, they overlap each other such that the grievance machinery is a labor relations matter but very often the subject of the complaint is labor standards such as unpaid overtime work or a disciplinary action.

Art. 1. Name of Decree. This Decree shall be known as the"Labor Code of the Philippines".Presidential Decree No. 442 o t h e r w i s e k n o w n a s t h e Labor Code of the Philippines. Social legislation include laws that provide particular kindsof protection or benefits to society or segments thereof infurtherance of social justice. Labor Legislation consists of statutes, regulations and jurisprudence governing the relations between capital andlabor,by providing for employment standards and a legalframework for negotiating, adjusting and administering thosestandards and other incidents of employment.

Classifications of Labor Legislation 1.Labor standards law is that which sets out theminimum terms, conditions and benefits of employment that employers must provide or complywith and to which employees are entitled as a matter of legal right.As defined more specifically by jurisprudence, are theminimum requirements prescribed by existing laws, rulesand regulations relating to wages, hours of work, cost-of-living allowance, and other monetary welfare benefits,including occupational safety, and health standards. (Maternity Children's Hospital vs. Secretary of Labor, GR No. 78909, June 30, 1989.) 2.Labor relations law defines the status, rights andduties, and the institutional mechanisms, that governthe individual and collective interactions of employers, employees or their representatives. Labor - is understood as physical toil although it does notnecessarily exclude the application of skill, thus there isskilled and unskilled labor. Distinction: Labor law and social legislation Labor laws-directly affect employment Social legislation -governs effects of Employment.-are social legislation-not all SL are Labor Laws Social Justice is neither communism, nor despotism, nor atomism nor anarchy, but the humanization of laws and theequalization of social and economic forces by the State so that justice inits rational and objectively secular conception may atleast be approximated. Social justice means the promotion of the welfare of all the people, the adoption by the Governmentof measures calculated to insure economic stability of all thecomponent elements of society, through the maintenance of a proper economic and social equilibrium in the interrelations of the members of the community, constitutionally, through theadoption of measures legally justifiable, or extraconstitutionally, the exercise ofpowers underlying theexistence of all governments on the timehonored principle of salus populi est suprema lex.(Calalang vs. Williams, 70 Phil. 726.) Whilesocial justice is the raison d'etre of labor laws, their basis or foundation is the police power of the State. Police Power is the power of the government to enact laws,within constitutional limits, to promote the order, safety,health, morals and general welfare of society.It is settled that state legislatures may enact laws for the protection of the safety and health of employees as an exerciseof police power. Art. 2. Date of effectivity. This Code shall take effect six (6)months after its promulgation.May 1, 1974 PD No. 442 was signed into law. November 01, 1974 effectivity date of the Labor Code. Related Laws: Civil Code, RPC, Special Laws Art. 3. Declaration of basic policy. The State shall affordprotection to labor, promote full employment, ensure equalwork opportunities regardless of sex, race or creed andregulate the relations between workers and employers. TheState shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work.The Basic Policy of the Labor Code (social economic goals) 1 . P r o t e c t i o n t o l a b o r ; 2.Promote full e m p l o y m e n t ; 3.Ensure equal work opportunities regardless of sex,race or creed, and4 . R e g u l a t e t h e r e l a t i o n s b e t w e e n w o r k e r s a n d employersBoth sectors (employees and employers) need each other.They are interdependent one is inutile without the other.The basic policy is to balance or to coordinate the rightsand interests of both workers and employers.

Rights of Workers Under Art. 3 of the Labor Code 1.Self-organization;2.Collective bargaining;3.Security of tenure; a n d 4.Just and humane conditions of work Constitutional Basis of the Labor Code Art. II, Sec. 18 -the 1987 Constitution declares as astate policy: The State affirms labor as a primarysocial economic force. It shall protect the rights of workers and promote their welfare. Art. III, Sec. 18, par. 2 no involuntary servitude Art. IX-B, Sec. 2, Par. 1 C S C e m b r a c e s a l l branches... agencies of government, includingGOCCs with original charters. Art. IX-B, Sec. 2, par. 3 No officer or employeeshall be removed or suspended except for cause provided by law Art. IX-B, Sec.5 standardization of compensationof government officials and employees. Art. XII, Sec. 6 t h e r i g h t t o o w n , e s t a b l i s h economic enterprises subject to the duty of the Stateto promote distributive justice Art. XII, Sec. 12 preferential use of Filipino labor Art. XII, Sec. 14, par. 2 practice of all professionsshall be limited to Filipinos Art. XII, Sec. 16 Congress shall not provide for theformation, organization, or regulation of privatecorporations Art. XIII, Sec. 1 protect and enhance right tohuman dignity, reduce social, economic and politicalirregularities, and remove cultural inequalities byequitably diffusing wealth and political power for thecommon good Art. XIII, Sec. 2 promotion of social justice shallinclude the commitment to create economicopportunities Art. XIII, Sec. 3, par. 1 protection to labor, localand overseas, organized and organized, and promotefull employment and equality of employmentopportunities for all Art. XIII, Sec. 3, par. 2 guaranteethe rights of allworkers: ( 1 ) s e l f - o r g a n i z a t i o n ; (2)collective bargaining and negotiations;(3)peaceful concerted activities, including the rightto strike in accordance with law;( 4 ) s e c u r i t y o f t e n u r e ; (5) humane conditions of work;( 6 ) l i v i n g w a g e ; (7)participate in policy and decision-making processes affecting their rights and benefits Art. XIII, Sec. 3, par. 3 s h a r e d r e s p o n s i b i l i t y : voluntary modes in settling disputes Art. XIII, Sec. 3, par. 4 r e g u l a t e t h e r e l a t i o n s between workers and employers, recognizing theright of labor to its just share in the fruits of production and the right of enterprises to reasonablereturns on investments and to expansion and growth. (Constitutional balance between the rights of workers and employers)

Job is a property, and no person shall be deprived of life,liberty, and property without due process.Through distributive justice, labor must receive what is duethem for the return of investment. Art. 4. Construction in favor of labor.All doubts in the implementation andinterpretation of the provisions of this Code,including its implementing rules and regulations,shall be resolved in favor of labor. The Supreme Court adopts the liberal approach which favorsthe exercise of labor rights.The labor law is liberally construed in favor of the workersand strictly construed against the employers. Reason for according greater protection to employees In the matter of employement bargaining, there is no doubtthat the employer stands on higher footing than the employee.Those who have less in life should have more in law. Management Rights It should not be supposed that every labor dispute will beautomatically decided in favor of labor. Management has alsoits own rights which are entitled to respect and enforcement inthe interest of simple fair play.The law, in protecting the rights of the laborer, authorizesneither oppression nor selfdestruction of the employer. Right to Return of Investments (ROI) theemployer has the right to recover his investments andto make profit. The Constitution provides that theState shall regulate the relations between workers andemployers, recognizing the right of labor to its justshare... and the right of enterprises to reasonablereturns on investments, and to expansion and growth. The Right to Prescribe Rules employers have theright to make reasonable rules and regulations for thegovernment of their employees, and whenemployees, with knowledge of an established rule,enter the service, the rule becomes part of thecontract of employment. The Right to Select Employees an employer has aright to select his employees and to decide when toengage them. The State has no right to interfere in a private employment; it cannot interfere with theliberty of contract with respect to labor except in theexercise of the police power. If the employer cancompel the employee to work against the latter's will,this is servitude. If the employee can compel theemployer to give him work against the employer'swill, this is oppression. Right to Transfer or Discharge Employees theemployer has the perfect right to transfer, reduce or lay off personnel in order to minimize expenses andto insure the stability of the business, and even toclose the business, provided the transfer or dismissalis not abused but is done in good faith and is due tocauses beyond control. To hold otherwise would beoppressive and inhuman. Art. 5. Rules and regulations. The Department of Laborand other government agencies charged with theadministration and enforcement of this Code or any of itsparts shall promulgate the necessary implementing rulesand regulations. Such rules and regulations shall becomeeffective fifteen (15) days after announcement of theiradoption in newspapers of general circulation. The Labor Code itself in Art. 5 vests the Department of Labor and Employment with rule-making powers in the enforcementthereof. ART.6. Applicability. -All rights and benefits granted toworkers under this Code shall, except as may otherwise beprovided herein, apply alike to all workers, whetheragricultural or non-agricultural. (As amended by Presidential Decree No. 570-A, November 1, 1974).

The Code is applicable to all employees in private sector andgovernment corporations without original charter.Under the present state of the law, the test in determiningwhether a government-owned or controlled corporation issubject to the Civil Service Law is the manner of its creation. Government corporations created by special (original charter) from Congress are subject to Civil Service rules,whilethose incorporated under the general Corporation Law are covered by the Labor Code.The government-owned-and-controlled corporations withoriginal charter refer to corporations chartered by special lawas distinguished from corporation organized under our generalincorporation statute, the Corporation Code Employer - Employee Relationship By: LawInfo What may determine whether or not a person is an employee? Historically, especially in law, employer and employee were termed "master and servant. Whether an employer-employee relationship exists under the law will usually depend upon the respective rights and duties of the parties. In determining issues such as wrongful dismissal, vicarious liability and statutory liability, among other things, a court will examine the evidence of the relationship in determining, in a particular case, whether or not a person is an employee, regardless, often, of the intentions of the parties. The rules of determining such status have evolved by judicial precedent in the common law through history. The absence or presence of some of these factors may indicate a person is or is not an employee in an area of law where changing times and circumstances may change such decisions. One of the main tests has been that of the employer's right of control over the person being paid to perform. Some questions a court might ask in determining whether or not a person is an employee are: - Does the master (employer) have the right to select the servant (employee)? - Is there payment of wages or other remuneration? - Does the master have right to control the method of doing the work? - Does the master have the right of suspension or dismissal? - Is the person subject to company policy? - Is the person subject to discipline? - Who decides the hours of work? - Who decides where the work is to be performed? - Who decides to whom the person can or cannot sell goods? - Does the worker have power, without authority, to hire others to perform the work? What type of person may not be considered an employee? An independent contractor, consultant or "entrepreneur". This is a situation where control, or lack of control, by the person contracting the services being performed is not necessarily conclusive. - Who owns the business of the services being provided? - Who controls the chance for profit or the risk of loss? - Who owns the tools or equipment being used? This alone may not be enough to qualify a person as an independent contractor. The degree of investment by the person in such tools or equipment and their amount or nature would be considered relevant. - Does the person or organization paying for the services refrain from making deductions for income tax, unemployment insurance, health tax or Canada Pension Plan? This is an indicator, but often does not preclude the provider of services from being an employee. - Does the person providing the services have the power to assign or delegate the services performed? Some Distinctions:

A motion picture studio's actors, merchant ship's captain, a chauffeur or a newspaper's staff reporters may all be employees under a contract for services. But an independent actor may or may not be considered an employee; a ship's pilot who controls the handling of a ship in a harbour would not usually be an employee of the shipowner and may be a completely independent contractor; a taxiowner is an independent contractor and there are many independent writers, columnists and correspondent's who contribute articles to newspapers and are not employees, but there are many of those who may be considered employees. A franchisee. One person operated a store for another. He fixed his own hours of work, hired and terminated his employees on his own authority, ran the risk of loss and was not supervised in the way he discharged his duties - however, he was expected to devote all of his time and effort to this store and no other business, sell only at prescribed prices, pay the proceeds to the other person and keep the store open during prescribed hours. The court found that the person was an employee and the business was not his own. This is very close to the operation of a business by a franchisee, who may be under a great deal of control by the franchisor, but still has the greater interest in the profit and loss area of the business. In Ontario very recently, one large franchisor has forced the closure of about 25% of its donut shops that were not making enough profit. The power of this franchisor has wiped out all the assets of many franchisees who may not have any redress. A partner. If the "partners" share profits and losses, have a joint or common interest in the property used to produce income and share management of the business it will be presumed a partnership, which presumption may be challenged by other evidence which shows the true intention of the parties. For example, although the driver of a taxi had the vehicle registered in his name, he was found to be the employee of the person who managed the business, as this owner-driver was paid only a percentage of the gross sales and had no interest in the general profits of the business. Personal Corporation. A person who sets up a personal corporation usually does so for tax advantages, so there is not usually an employee relationship between such person and the corporation, to consider such things as required notice of termination and severance payment. A different view might be held if such person did not have control over the corporation. Director of a corporation. A director of a corporation may not be an employee of the corporation, but he or she can be one, in addition to being a director, and the employee relationship would be considered a separate matter from any position of directorship in the corporation. Shareholder of a corporation. Simply owning the shares of a corporation does not create an employer employee relationship. However, many employees own shares in the employing corporation. The one position is usually exclusive of the other for most, if not all, purposes. Commission Sales Representatives. Courts have often (not always) found that commission sales people are either employees or in an "intermediate class" and therefore entitled to notice of termination of their services. Family Members. Family members can be considered employees of one another. All factors would be considered, such as the closeness of the relationship and the nature of the business and the duties and obligations of those in it. Clergy. Particularly when considering a question of dismissal, it has been held that many of the elements of an employer - employee relationship exist between a church, congregation or synagogue and its priest, minister or rabbi and a court may intervene, even if the clergy person is not considered an employee. Military Personnel. Members of the Canadian Forces have no contractual relationship with the Crown, but serve "at the pleasure of the Crown". Any claims or grievances a member of the forces may have would be dealt with under the grievance procedures found in the National Defence Act. Prisoners. It has been held that being a prisoner does not necessarily prevent a person from also being an employee of a correctional institution. For example, medical practitioner or other professional

person who is serving a sentence may be employed to provide certain services in the prison. Other prisoners may be given compensable work in the institution. Note that even in many cases where the parties have not considered themselves in an employer employee relationship, a court may, at the instance of an aggrieved party, consider all the circumstances and find that sufficient lack of control of an aggrieved party in a situation may entitle such party to relief as an employee. In contract situations, as society is complex and changing, so is the application of the law in this area. A person may require the advice of a knowledgeable specialist in employment law. The employer-employee relationship forms the basis of a valid legal dispute. Without it, a labor dispute will be dismissed. The following elements must be present in order to determine the existence of an employer-employee relationship: 1.) Power to hire 2.) Power to fire 3.) Payment of salaries/wages 4.) Power of control Of the above four powers, the fourth one is the most important because it can negate the other three. There is no employer-employee relationship if the following are present: 1.) The person works at his own pleasure 2.) He has no set time for work 3.) He decides for himself what is to be done 4.) He is paid according to the results of his work There is no employer-employee relationship if the above are present because there is no power of control. Employer- A legal entity that controls and directs a servant or worker under an express or implied contract of employment and pays (or is obligated to pay) him or her salary or wages in compensation. employee-An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties. Also called worker.