TERENCIO, JENNILYN G.

CBET 02-703E
The Workers Basic Rights Equal Work Opportunities for All The State shall protect labor, promote full employment, provide equal work opportunity regardless of gender, race, or creed; and regulate employee-employer relations. Male and female employees are entitled to equal compensation for work of equal value and to equal access to promotion and training opportunities. Discrimination against female employees is unlawful. It is also unlawful for an employer to require a condition of employment that a woman employee shall not get married or to stipulate expressly or tacitly that a woman employee shall be deemed dismissed upon marriage. The minimum age of employment is 18 years for hazardous jobs, and 15 years for nonhazardous jobs. But a child below 15 maybe employed by parents or guardians in a non-hazardous job if the employment does not interfere with the child's schooling. Security of Tenure Every employee shall be assured security of tenure. No employee can be dismissed from work except for a just or authorized cause, and only after due process. Just Cause refers to any wrongdoing committed by an employee including: 1. serious misconduct 5. commission of crime or offense against 2. willful disobedience of employers' lawful the employer, employer's family orders connected with work member/s or representative 3. gross and habitual neglect of duty 6. other analogous cases 4. fraud or willful breach of trust Authorized Cause refers to an economic circumstance not due to the employee's fault, including: 1. the introduction of labor-saving devices 2. redundancy Due Process in cases of just cause involves: 1. notice to employee of intent to dismiss and grounds for dismissal 2. opportunity for employee to explain his or her side 3. notice of decision to dismiss In authorized causes, due process means written notice of dismissal to the employee specifying the grounds, at least 30 days before the date of termination. The inability of a probationary employee to meet the employer's prescribed standards of performance made known to him or her at the time of hiring is also a just cause for dismissal. Work Days and Work Hours 3. retrenchment to prevent losses 4. closure or cessation of business

Work Day refers to any day during which an employee is regularly required to work. Hours of Work refer to all the time an employee renders actual work, or is required to be on duty or to be at a prescribed workplace. The normal hours of work in a day is 8 hours. This includes breaks or rest period of less than one hour, but excludes meal periods, which shall not be less than one hour. An employee must be paid his or her wages for all hours worked. If all or any part of his or her regular work hours falls between 10:00 p.m. to 6:00 a.m., a covered employee shall be entitled to a night shift pay in addition to his or her pay for regular work hours. If he or she works for more than 8 hours in one day, he or she shall be entitled to overtime pay. Weekly Rest Day A day-off of 24 consecutive hours after 6 days of work should be scheduled by the employer upon consultation with the workers. Wage and Wage-Related Benefits Wage is the amount paid to an employee in exchange for a task, piece of work, or service rendered to an employer. This includes overtime, night differential, rest day, holiday and 13th month pay. It also includes the fair and reasonable value of board, lodging and other facilities customarily furnished by the employer. Wage may be fixed for a given period, as when it is computed hourly, daily or monthly. It may also be fixed for a specified task or result. If wage is for a fixed period, the minimum wage for a regular 8-hour workday shall not be lower than the minimum daily wage applicable to the place of work as determined by the Regional Tripartite Wage and Productivity Board having jurisdiction over workplace. If wage is paid by result, the worker shall receive at least the prescribed minimum wage for 8 hours of work. The amount may be increased or reduced proportionately if work is rendered for more or less than 8 hours a day. An employer cannot make any deduction from an employee's wage except for insurance premiums with the consent of the employee, for union dues, or for withholding taxes, SSS premiums and other deductions expressly authorized by law. Payment of Wages Wages shall be paid in cash, legal tender at or near the place of work. Payment may be made through a bank upon written petition of majority of the workers in establishments with 25 or more employees and within one (1) kilometer radius to a bank. Payment shall be made directly to the employees. Wages shall be given not less than once every two (2) weeks or twice within a month at intervals not exceeding 16 days. Employment of Women Night work prohibition unless allowed by the Rules:

in industrial undertakings from 10PM to 6AM in commercial/non-industrial undertakings from 12MN to 6AM in agricultural undertakings, at night time unless given not less than 9 consecutive hours of rest

Welfare facilities must be installed at the workplace such as seats, separate toilet rooms, lavatories, and dressing rooms. Prohibition against discrimination with respect to pay (i.e. equal pay for work of equal value), promotion, training opportunities, study and scholarship grants. Employment of Children Minimum employable age is 15 years. A worker below 15 years of age should be directly under the sole responsibility of parents or guardians; work does not interfere with child's schooling/normal development. No person below 18 years of age can be employed in a hazardous or deleterious undertaking. Safe Working Conditions Employers must provide workers with every kind of on-the-job protection against injury, sickness or death through safe and healthful working conditions. Jobs may be hazardous or highly hazardous. Hazardous jobs are those which expose the employee to dangerous environment elements, including contaminants, radiation, fire, poisonous substances, biological agents and explosives, or dangerous processes or equipment including construction, mining, quarrying, blasting, stevedoring, mechanized farming and operating heavy equipment. Right to Self-Organization and Collective Bargaining The right to self-organization is the right of every worker, free of any interference from the employer or from government, to form or join any legitimate worker's organization, association or union of his or her own choice. Except those classified as managerial or confidential employees, all employees may form or join unions for purposes of collective bargaining and other legitimate concerted activities. An employee is eligible for membership in an appropriate union on the first day of his or her employment. Collective Bargaining involves two parties: 1. the representative of the employer 2. a union duly authorized by the majority of the employees within a bargaining unit called exclusive bargaining agent. It is a process where the parties agree: 1. to fix and administer terms and conditions of employment which must not be below the minimum standards fixed by law 2. to set a mechanism for resolving their grievances The result of collective bargaining is a contract called collective bargaining agreement (CBA). A CBA generally has a term of five years. The provisions of a CBA may be classified as political or economic. Political provisions refer to those which define the coverage of the CBA and recognize the collective bargaining agent as the exclusive representative of the employees for the term of the CBA. Economic provisions refer to all terms and conditions of employment with a monetary value.

Economic provisions have a term of five years but may be renegotiated before the end of the third year of effectivity for the CBA. EC Benefits for Work-Related Contingencies The Employees' Compensation Program is the tax-exempt compensation program for employees and their dependents created under Presidential Decree No. 626 which was implemented in March 1975. The benefits include:

Medical benefits for sickness/injuries Disability benefits Rehabilitation benefits

Death and funeral benefits Pension benefits

Regular Workers are entitled to the following benefits: 1. Wage-related (or Income) benefits Overtime pay is pay given for service or work performed that shall exceed the regular eight hours of work. Service incentive leave is a 5-dayleave with pay given every year after one year of service. Workers/employees have the right to receive a satisfactory wage for the work or service that they have rendered. Wage is earning capable of being expressed in terms of money. It is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done. It is supposed to be of fair and reasonable value as determined by the Secretary of Labor. (Articles 97-98 of the Labor Code) Holiday pay is a days pay given by law to an employee even if he/she does not work on a regular holiday. If the worker comes to work on the regular holiday, she earns extra pay equivalent to his/her regular rate. (Arts.94-96) 13th - month pay - Employees/workers who have rendered service or work for at least one month for the same employer are entitled to receive an amount equivalent to one-month pay. The employer must pay the employee not later than December 24 of every year. (13th-month law or PD 851) 2. Social Security Service (SSS) benefits The Social Security Service (SSS) was created under Republic Act 1161. The act requires that all employees/workers in the private sector throughout the country contribute fixed and regular contributions to the SSS. (Government employees are covered by the Government Service Insurance System or GSIS.) Look at the pictures on the next page. These are the benefits that workers can avail of under the SSS (or GSIS for government employees). 3. Employees Compensation Commission (ECC) benefits For illnesses, injuries and deaths that are work-related, compensation shall be given by the ECC. These include disability, rehabilitation, death and funeral benefits.

Other Rights of Workers

The right to completely air grievances Workers have the right to completely air their grievances. This means that they can complain to their employers or to the management about unsatisfactory working conditions, insufficient wages and benefits and others. Under Article 255 of the Labor Code, the State preserves and respects the right of an individual employee or any group of employees to present grievances to their employers at any given time. A labor dispute is any controversy or disagreement about terms or conditions of employment or representation of persons in the negotiation for changing terms and conditions of employment. To avoid disputes, an employee can express his/her complaint, problems and suggestions by going directly to the employer. He/She may also be represented by the labor organization where he/she belongs. The right to self organization This brings us to another workers right, which is the right to self-organization. Article 243 of the Labor Code states that all persons employed in commercial, industrial and agricultural enterprises have the right to form, join or assist labor organizations of their own choosing for purposes of collective bargaining. An employee can join labor organizations on the very first day of his/her employment. A labor organization is any union or association of employees which exists in whole or in part for the purpose of collective bargaining. It also deals with employers concerning terms and conditions of employment (Art. 212). The following can be members of a labor organization: 1. Industrial, commercial and agricultural workers; 2. Employees of religious, charitable, medical and educational institutions (profit or non-profit); and 3. Employees of government-owned or controlled corporations. All other workers including those who are self-employed have no definite employer and rural workers may form their own workers association. Managerial employees are not eligible to form, join or assist any labor organization. What is a Collective Bargaining Agreement? A Collective Bargaining Agreement (CBA) is a contract between workers and employers on terms and conditions of employment which are over and above those provided by law. Right to join lawful concerted activities Similar to a workers right to self-organization is his/her right to join lawful concerted activities in order to attain legitimate objectives. (Concerted means mutually agreed on or performed in unison.) Article 263 of the Labor Code declares that in line with the policy of the State to encourage free trade unionism and free collective bargaining, workers shall have the right to engage in concerted activities for purposes of collective bargaining and for their mutual benefit and protection.

Lawful concerted activities include the following: 1. Strike - this is stoppage of work by employees in order to get more favorable terms for themselves. It lasts until the employer grants their demands. 2. Picketing - Walking or marching in the area or vicinity of a business involved in a labor dispute to convince the public not to support the services or products of the said business establishment. This may be done through word of mouth, banners, placards, etc. Picketing workers may also influence or persuade their co-workers to quit working for that business establishment. 3. Collective Letter - Employees or workers may voice out their grievances against the employer/management through a letter signed and published by them. 4. Publicity - The members of a labor organization or union may inform the public of the existence of a strike and the issues involved. They may do this through signs, handbills, or newspaper advertisement. 5. Carrying of placards and banners - A striker or picketer may solicit public support by carrying placards or banners on public streets. 6. Speeches, Music and Broadcasts - It is lawful for a labor organization to express its opinion about the fairness of an employer towards a labor organization in a radio broadcast. It may also use a vehicle bearing signs that are not unlawful and carrying apparatus for broadcasting music. However, it is condemned as a form of intimidation to use a loudspeaker in front of a picketed place. 7. Boycott - This is concerted refusal to patronize an employers goods or services and to persuade others to do the same. 8. Slowdown - This a method by which the employees, without seeking a complete stoppage of work, delay production and distribution. This is done to put pressure on the employer to grant the demands of the employees. The right to participate in policy and decision-making processes A worker has the right to participate in policy and decision-making processes affecting their rights, benefits and welfare (Art. 211). This provision in the labor Code does not refer to the management of the business operation. This refers mainly to workers participation in grievance procedures and voluntary modes of settling disputes. Workers should participate in decisions, especially those that will affect their security of tenure or may lead to loss of work or livelihood. Management should also see to it that its employees are at least properly informed of its decisions or modes of action. The right to a safe and healthy workplace According to the Labor Code, employers are required to observe occupational safety and health standards. This is intended to eliminate or reduce occupational risks or hazards in the workplace. The workplace should have proper lighting, ventilation, fire exits, etc. The employer shall also provide safety devices, such as first aid kits, medicine and fire extinguishers. It shall take steps to have a sufficient number of employees trained in giving firstaid treatment. (Book IV, Art. 162-165)

The right to equal opportunities at work Another right of a worker is the right to equal opportunities at work or employment. The law provides protection for female workers against discrimination. It is illegal for any employer to discriminate against any woman employee on account of her sex or gender. Example of discrimination are paying her lower wages or favoring a male employee with respect to promotion, training opportunities and other benefits.27 The right to freedom from sexual harassment The law also provides protection for women against sexual harassment. Under the AntiSexual Harassment Act of 1995 all forms of sexual harassment in an employment, education or training environment are unlawful. Sexual harassment is committed by a person by requesting or requiring sexual favor from a female worker. This is just one of the many forms of sexual harassment.

MANAGEMENTPREROGATIVES Management prerogative Definition: An exclusive and special right, power or privilege granted to business owners Property right attributed to the owner of a business establishment Par.4, Sec. 3, ART. XIII, Philippine Constitution: The state shall regulate the relations between workers and employers, recognizing the x x x right of enterprises to reasonable returns of investments, and to expansion & growth. ART. 428 of the Civil Code: The owner has the right to enjoy and dispose of a thing, without other limitations than those established by law.

Based on what was stated The owner of a business establishment has, among others, the right to control or direct its business, the right to its fruits and the right to dispose the same, subject to the regulations of the police power of the state. Example When an owner of a business enterprise, after operating a profitable business for several years and decides to close the same for he is already tired of doing business and wants to travel abroad for vacation, absolutely, he CAN CLOSE the business. However, he is obliged to pay separation pay to workers as mandated by law. (Art. 283, Labor Code.) Most common Management Prerogatives The Right to Hire The company has the exclusive right to purchase labor from any person whom it chooses. Thus, the transferee in good faith of a business establishment has no obligation to

absorb employees of the transferor and to continue on employing them. (MDII Employees Association vs Presidential Assistant on Legal Affairs, 79 SCRA 40) There is no law which requires the purchaser to absorb the employees of the selling corporation. As there is no such law, the most that the purchasing company may do, for purposes of public policy and social justice, is to give preference to the qualified separated employees of the selling company, who in their judgment are necessary in the continued operation of the business establishment. (San Felipe Neri School of Mandaluyong vs NLRC, et al., GR NO. 78350, 9/11/91) The Right to Dismiss (Fire/Terminate) The company has the right to dismiss employees in accordance with the causes and procedures established by law. This particular right must be exercised with CAUTION and without abuse of discretion because termination affects the right of the worker to Security of Tenure. Art. 279 in cases of Regular Employment, termination on the grounds of just and authorized causes, subject to the requirements of due process. End of contract? Completion of contract/phase? No prior notice is required. Termination of probationary employment? Notice served on employee within a reasonable time Any decision of termination shall be without prejudice to the right of the worker to contest the same by filing a complaint with the RAB of the NLRC. Validity of 30 day preventive suspensions. The Right to Transfer The company has the right to transfer an employee from one office to another within the business establishment provided that there is no demotion in rank, salary, benefits and other privileges. This is a privilege inherent in the employers right to control and conduct its business enterprise and conduct of its business operations to achieve its purpose. It cannot be denied to the employer. IT is the employers prerogative, based on its assessment on the following employee attributes: Qualifications Aptitudes Competence An employees security of tenure does not give him such a vested right in his position as would deprive the company of its prerogative to change his assignment or transfer him where he will be most useful. When the EEs transfer is not unreasonable, nor inconvenient, nor prejudicial to him, and it does not involve a demotion in rank or diminution in salaries, benefits and privileges, the

employee may not complain that it amounts to constructive dismissal. (PT&T vs NLRC, GR NO. 76645, July 23, 1991; Allied Bank vs CA, GR No. 144412, 11/18/03) The Right to Promote and Demote o The company has the right to promote employees. o Promotion: scalar ascent of an employee to another position higher in rank or salary. The right to promote carries with it the right to demote. o There is no law that compels an employee to accept a promotion, as a promotion is in the nature of a gift or reward, which a person has a right to refuse. He who uses his own right, injures no one. (Milares vs Subido, 20 SCRA 954; PT&T Corp. vs NLRC, Gr No. 152057, 9/29/03) The Right to Discipline o The right of the employer to subject his employees to disciplinary measures and the need for discipline have been judicially noticed. o Success in industries and public services is the foundation in which just wages may be paid. There can be no success without efficiency. There can be no efficiency without discipline. Thus, when they violate the rules of discipline, employees and laborers jeopardize the interest not only of the employer but also of their own. In violating the rules of discipline, they aim at killing the hen that lays golden eggs. Laborers who trample down the rules set for an efficient service are, in effect, parties to a conspiracy against not only to capital but also to labor. o The employer has the right to instill discipline in his employees and to impose reasonable penalties on erring employees pursuant to company rules and regulations. (SMC vs NLRC, GR No. 87277, May 12, 1989) IF the undesirable one remains in service, it will demoralize the other employees (Shoemart vs NLRC Gr No. 74229, 8/11/1989) The Right to Lay down Policies, Establish Working Hours, and to Organize and Reorganize o In general terms, an employer is free to regulate, according to his own discretion and judgment, all aspects of employment, including work assignments, working methods, time, place and the manner or work, tools to be used, processes to be followed, supervision of workers and working regulations. (SMC Sales vs Ople, GR No. 53515,Feb. 8, 1989) The Right to Reasonable Return of Investment and the Right to Expansion and Growth o Every business enterprise endeavors to increase its profit and in the process it may adopt or devise means designed towards expansion and growth.