CE512 – CE2FA1 (CE LAWS, ETHICS, CODES AND • PARAÑAQUE PREMIER MEDICAL CENTER

STANDARDS) • TWO SERENDRA

GROUP 11 • PALAWAN INFRASTRUCTURE PROJECTS
Angeles, Jefferson • THE ETON RESIDENCES
Barredo, Princess Sydney • 9 CEBU CITY BARANGAYS ROAD & BRIDGE
Bensan, Juan Alessandro PROJECTS
Galang, Glenn Ark • OZONE DISCO
Geronimo, Kenneth
INTERNATIONAL CASES
Case Study on Construction Labor
• RANA PLAZA BUILDING
THE 20 CASES A COMPILATION OF ETHICAL ISSUES IN CIVIL • SAMPOONG SUPERSTORE
ENGINEERING PROFESSION • HYATT REGENCY HOTEL WALKWAY
INTRODUCTION • 2000 COMMONWEALTH

Engineering ethics is the field of applied ethics and system of moral • RONAN POINT

principles that apply to the practice of engineering. The field • AUTOROUTE 19 DELA CONCORDE OVERPASS

examines and sets the obligations by engineers to society, to their • MINNEAPOLIS I-35W BRIDGE

clients, and to the profession. The compilation consists of 20 cases • TACOMA NARROWS BRIDGE
of ethical issues in the field of Civil Engineering. Issues like breach • QUEBEC BRIDGE
of contract, misconduct, insufficient design, corruption and many • STAVA DAM
more are some of the main issues. Labor Management Relations
In the local scenes, 10 cases were introduced by means of news Categories of Employees
articles obtained from the internet. Some of these issues are the o Managerial Employees
controversial Makati City Hall Building II, Torre de Manila and o Supervisory Employees
Ozone Disco. On the other hand, another 10 cases were introduced o Rank-and-File Employees
in the international scene. Some of which are the Rana Plaza Types of Labor Disputes
Building, Hyatt Regency Hotel Wlakway and Ronan Point. Also, a o Right Disputes
copy of the Code of Ethics for Civil Engineers from the Philippine
o Interest Disputes
Institute of Civil Engineering (PICE) is included.
o Labor Standards Disputes
LOCAL CASES o Labor Relations Disputes
• MAKATI CITY HALL BUILDING II o Welfare and Social Legislation Disputes
• TORRE DE MANILA National Policy on Labor Dispute Settlement
• MANILA RIVER GREEN RESIDENCES o 1987 Constitution (Section 2, Article XIII provide:
• IRRIGATION PROJECTS OF NIA “The state shall promote the principle of shared
 responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation
, and shall enforce their mutual compliance therewith to
foster industrial peace''
o Labor Code, as amended by Republic Act 6715 Article
211 of the Code provides, among others:
A) ''It is the policy of the state...to promote and
emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation,
and conciliation, as modes of settling labor or industrial
labors.
B) ''To provide adequate administrative machinery for the
expeditions settlement of labor or industrial disputes.
Contents of the Contract Agreement
o Recognition and Union Security
o Management Rights
o Grievance Procedure
o Arbitration of Grievance
Pursuant to Article 280 of the Labor Code of the
Philippines (“Labor Code”), the primary standard that
determines regular employment is the reasonable
connection between the particular activity performed by
the employee and the usual business or trade of the
employer; the emphasis is on the necessity or desirability
of the employee’s activity. Thus, when the employee
performs activities considered necessary and desirable to
the overall business scheme of the employer, the law
regards the employee as regular.
In addition, the Labor Code also considers as regular
employment a casual arrangement when the casual
employee’s engagement has lasted for at least one year,
regardless of the engagement’s continuity. The controlling
test in this arrangement is the length of time during which
the employee is engaged.
 Project Employment
Project employment contemplates an arrangement
whereby “the employment has been fixed for a specific

o Disciplinary Procedure project or undertaking whose completion or termination

o Compensation and Benefits Provisions
o Hours of work
o Lay Off Procedure
o Health and Safety Provisions
o Employee Security and Seniority
o Contract Expiration Date
Types of Employment in the Philippines
In the Philippines, the following are the
recognized types of employment: (1)
regular; (2) casual; (3) project; (4)
seasonal; (5) fixed-term; and
probationary.
 Regular and Casual Employment
has been determined at the time of the engagement of the
employee.” (Article 280, Labor Code of the Philippines)
Since the employee’s services are coterminous with the
project, the services of the project employees are legally
and automatically terminated upon the end or completion
of the project.
 Seasonal Employment
Seasonal employment applies “where the work or service to be
performed is seasonal in nature and the employment is for the
duration of the season.” (Article 280, Labor Code of the Philippines)
Season employees may also be considered regular employees,
(6) thus: “[f]arm workers generally fall under the definition of seasonal
employees. We have consistently held that seasonal employees
may be considered as regular employees. Regular seasonal
employees are those called to work from time to time. The nature of
their relationship with the employer is such that during the off-
season, they are temporarily laid off; but reemployed during the
summer season or when their services may be needed. They are
in regular employment because of the nature of their job, and not
because of the length of time they have worked.” improper pressure
being brought to bear upon the employee and absent any other
circumstances vitiating his consent; or (b) it satisfactorily appears
that the employer and the employee dealt with each other on more
or less equal terms with no moral dominance exercised by the
former or the latter.
 Probationary Employment
Probationary employment exists when the employee, upon his
engagement is made to undergo a trial period where the employee
determines his fitness to qualify for regular employment, based on
reasonable standards made known to him at the time of
engagement. The employer shall make known to the employee the
standards under which he will qualify as a regular employee at the
time of his engagement. Where no standards are made known to
the employee at that time, he shall be deemed a regular employee.
(See Section 6(d), Implementing Rules of Book VI, Rule VII-A of the
Labor Code) Generally, probationary employment shall not exceed
six (6) months from the date the employee started working. (See
Article 281, Labor Code)
LABOR UNIONS
Union- an organization of workers, acting collectively, seeking to
promote and protect its mutual interests through collective
bargaining
WHY EMPLOYEES JOIN UNIONS?
1. Greater job security - provides members with a sense of
independence from management’s power to arbitrarily hire
promote or fire
2. Influence over work rules- workers can help determine the
conditions under which they work and have an effective channel
through which they can protest conditions they believe are unfair
- Provides rules that define channels in which worker complaints
and concerns can be registered
3. Compulsory membership- once a person enters into an
organization or becomes an employee through labor
management agreements with union security arrangements
4. Union security arrangements- labor contract provisions
designed to attract and retain dues-paying union members
Types of union security arrangements:
a. Union shop - most powerful relationship legally available to a
union
-stipulates that employers, while free to hire
whomever they choose, may retain only union members
- employees hired to positions covered under the
terms of a CBA must, after a specified probationary period (30-60
days), join the union or forfeit their jobs
b. agency shop - second strongest union security arrangement
- employees must pay union dues to the
certified bargaining unit even if they choose not to join the union
- designed as a compromise between the
union’s desire to eliminate the “free rider” and management’s
desire to make union membership voluntary
c. Open shop - least desirable form, in which joining is voluntary
-those who do not join are not required to pay
union dues or any associated fees.
- workers who join have maintenance-of-
membership clause in the existing contracts
o Maintenance-of-membership - requires an individual
who chooses to join a union to remain in the union for
the duration of the existing contract
o Dues check-off –employer withholding ot union dues
 from union members’ paycheck SOCIAL JUSTICE

Chapter I (GENERAL PROVISIONS)

5. Dissatisfaction with management - upset with the way their
Art. 1. Name of Decree. This Decree shall be known as the "Labor
supervisor handles problems, upset over how a co-worker has
Code of the Philippines". Art. 2. Date of effectivity. This Code shall
been disciplines, and so on
take effect six (6) months after its promulgation. Art. 3. Declaration
Philippine labor law (Labor Code)
of basic policy. The State shall afford protection to labor, promote
-principal law of the Philippines full employment, ensure equal work opportunities regardless of sex,
- A piece of social legislation, referring to a broad category race or creed and regulate the relations between workers and
of laws that protect or promote the welfare of society ore employers. The State shall assure the rights of workers to self-
segments of it in furtherance of social justice organization, collective bargaining, security of tenure, and just and
humane conditions of work. Art. 4. Construction in favor of labor. All
- Contains most of our labor laws, such as on illegal
doubts in the implementation and interpretation of the provisions of
recruitment, wages of workers, rights of union members, collective
this Code, including its implementing rules and regulations, shall be
bargaining and employment termination
resolved in favor of labor. Art. 5. Rules and regulations. The
- Also deals with the rights of employers, such as right to
Department of Labor and other government agencies charged with
make and enforce reasonable regulations, to reorganize and
the administration and enforcement of this Code or any of its parts
economize and to lay off lazy and undisciplined employees
shall promulgate the necessary implementing rules and regulations.
Seven basic rights of workers (ART XIII, Sec 3):
Such rules and regulations shall become effective fifteen (15) days
1. Right to organize
after announcement of their adoption in newspapers of general
2. Right to conduct collective bargaining or negotiation with
circulation. Art. 6. Applicability. All rights and benefits granted to
management
workers under this Code shall, except as may otherwise be
3. Right to engage in peaceful concerted activities, including strike
provided herein, apply alike to all workers, whether agricultural or
in accordance with law
non-agricultural. (As amended by Presidential Decree No. 570-A,
4. Right to enjoy security of tenure
November 1, 1974)
5. Right to work under humane conditions
6. Right to receive a living wage Chapter II (EMANCIPATION OF TENANTS)
7. Right to participate in policy and decision-making processes
Art. 7. Statement of objectives. Inasmuch as the old concept of
affecting their rights and benefits as may be provided by law
land ownership by a few has spawned valid and legitimate
Government Regulations grievances that gave rise to violent conflict and social tension and
the redress of such legitimate grievances being one of the
PRESIDENTIAL DECREE NO.442 - A DECREE INSTITUTING A
fundamental objectives of the New Society, it has become
LABOR CODE THEREBY REVISING AND CONSOLIDATING
imperative to start reformation with the emancipation of the tiller of
LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO
the soil from his bondage.
LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES
DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON Art. 8. Transfer of lands to tenant-workers. Being a vital part of
the labor force, tenant-farmers on private agricultural lands
primarily devoted to rice and corn under a system of share crop or
lease tenancy whether classified as landed estate or not shall be
deemed owner of a portion constituting a family-size farm of five (5)
hectares, if not irrigated and three (3) hectares, if irrigated. In all
cases, the land owner may retain an area of not more than seven
(7) hectares if such landowner is cultivating such area or will now
cultivate it.
Art. 9. Determination of land value. For the purpose of
determining the cost of the land to be transferred to the tenant-
farmer, the value of the land shall be equivalent to two and one-half
(2-1/2) times the average harvest of three (3) normal crop years
immediately preceding the promulgation of Presidential Decree No.
27 on October 21, 1972. The total cost of the land, including interest
at the rate of six percent (6%) per annum, shall be paid by the
tenant in fifteen (15) years of fifteen (15) equal annual
amortizations. In case of default, the amortization due shall be paid
by the farmers’ cooperative in which the defaulting tenant-farmer is
a member, with the cooperative having a right of recourse against
him. The government shall guarantee such amortizations with
shares of stock in government-owned and government-controlled
corporations.
Art. 10. Conditions of ownership. No title to the land acquired by
the tenant-farmer under Presidential Decree No. 27 shall be
actually issued to him unless and until he has become a full-fledged
member of a duly recognized farmers’ cooperative. Title to the land
acquired pursuant to Presidential Decree No. 27 or the Land
Reform Program of the Government shall not be transferable
except by hereditary succession or to the Government in
accordance with the provisions of Presidential Decree No. 27, the
Code of Agrarian Reforms and other existing laws and regulations.
Art. 11. Implementing agency. The Department of Agrarian
Reform shall promulgate the necessary rules and regulations to
implement the provisions of this Chapter.
BOOK ONE (PRE-EMPLOYMENT)
Art. 12. Statement of objectives.
It is the policy of the State: a. To promote and maintain a state of
full employment through improved manpower training, allocation
and utilization; b. To protect every citizen desiring to work locally or
overseas by securing for him the best possible terms and conditions
of employment; c. To facilitate a free choice of available
employment by persons seeking work in conformity with the
national interest; d. To facilitate and regulate the movement of
workers in conformity with the national interest; e. To regulate the
employment of aliens, including the establishment of a registration
and/or work permit system; f. To strengthen the network of public
employment offices and rationalize the participation of the private
sector in the recruitment and placement of workers, locally and
overseas, to serve national development objectives; g. To insure
careful selection of Filipino workers for overseas employment in
order to protect the good name of the Philippines abroad.
Title I (RECRUITMENT AND PLACEMENT OF WORKERS)
Chapter I (GENERAL PROVISIONS)
Art. 13. Definitions.
a. "Worker" means any member of the labor force, whether
employed or unemployed.
b. "Recruitment and placement" refers to any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring
workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit or
not: Provided, That any person or entity which, in any manner,
offers or promises for a fee, employment to two or more persons
shall be deemed engaged in recruitment and placement.
c. "Private fee-charging employment agency" means any person
or entity engaged in recruitment and placement of workers for a fee
which is charged, directly or indirectly, from the workers or
employers or both.
d. "License" means a document issued by the Department of Labor
authorizing a person or entity to operate a private employment
agency.
e. "Private recruitment entity" means any person or association
engaged in the recruitment and placement of workers, locally or
overseas, without charging, directly or indirectly, any fee from the
workers or employers.
f. "Authority" means a document issued by the Department of
Labor authorizing a person or association to engage in recruitment
and placement activities as a private recruitment entity.
g. "Seaman" means any person employed in a vessel engaged in
maritime navigation.
o Special Days (e.g. Special (Non-Working) Holiday)
During special days, the principle of "no work, no pay" applies and
on such other special days as may be proclaimed by the President
or by the Congress. Workers who were not required or permitted to
work on those days are not bylaw entitled to any compensation.
This, however, is without prejudice to any voluntary practice or
provision in the Collective Bargaining Agreement (CBA)providing
for payment of wages and other benefits for days declared as
special days even if unworked. Executive Order No. 203
as amended by Republic Act No. 9492 lists down three (3) special
days that shall be observed in the country:
 Ninoy Aquino Day Monday Nearest Aug. 21
 All Saint's Day November 1
 Last day of the year December 31

h. "Overseas employment" means employment of a worker o Holiday Pay

outside the Philippines.
i. "Emigrant" means any person, worker or otherwise, who
emigrates to a foreign country by virtue of an immigrant visa or
resident permit or its equivalent in the country of destination
Legal Aspects/Standards
Holiday Pay refers to the payment of the regular daily wage for any
unworked regular holidays.
o Regular Holidays
Every employee covered by the holiday pay rule is entitled to his
daily basic wage for any unworked regular holiday. This means that
the employee is entitled to at least 100% of his basic wage even if

o Minimum Wage he did not report for work, provided he is present or is on leave of
absence with pay on the work day immediately preceding the
The current daily minimum wage for employees in the National
holiday.
Capital Region (NCR) is PhP382.00, per Wage Order No. NCR-14
Under Executive Order No. 203, as amended by RA 9492, there
granting a wage increase of PhP20.00 per day effective 28 August
are eleven (11) regular holidays, namely:
2008
 New Year's Day January 1
o Premium Pay  Maunday Thursday Movable dates
Premium Pay refers to the additional compensation required by law  Good Friday Movable dates
for work performed within eight (8) hours on non-working days, such  Araw ng Kagitingan April 9
as rest days and special days.  Labor Day May 1
  Bonifacio Day November 30 Work:
 Independence Day June 12 On Ordinary day (110% x basic hourly rate)
 National Heroes Day last Sunday of August On a rest day, special day, regular holiday (110% of regular hourly

 Christmas Day December 25 rate for arest day, special day, regular holiday)

 Rizal Day December 30

Computing Overtime on Night Shift:
 E'dl Fi'tr Movable dates
On ordinary day (110% x overtime hourly rate)
On rest day, special day or regular holiday (110% x overtime hourly
o Overtime Pay
rate for rest days, special days, regular holidays)
Overtime Pay refers to the additional for work performed beyond
eight (8) hoursa day.
Computing 13th Month Pay:
o Night Shift Differential Total basic salary earned for the year exclusive of allowances,
Night Shift Differential refers to the additional compensation of ten overtime, holiday, and night shift differential pay divided by 12
percent (10%)of an employee's regular wage for each hour of work months = 13th month pay.
performed between10:00PM and 6:00AM
o Service Incentive Leave
o Computation of Wages Every employee who has rendered at least one (1) year of service
Computation of wages is governed by the following rules: is entitled to a yearly service incentive leave of five (5) days with
pay.
Computing Overtime: This benefit does not apply to the following:
On Ordinary Days  government employees
Plus 25% of the hourly rate multiplied by the number of hours.  domestic helpers and persons in the personal service of
On a rest day, special day or regular holiday another
Plus 30% of the hourly rate on said days multiplied by the number  managerial employees
of hours.  field personnel and those whose time and performance is
unsupervised by the employer
Computing pay for work done on:
 those already enjoying this benefits
A special day (130% x basic pay)
 those enjoying vacation leave with pay of at least five (5)
A special day, which is also a scheduled rest day (150% x basic
days* those employed in establishments regularly
pay)
employing less than ten (10)employees
A regular holiday (200% x basic pay)
A regular holiday, which is also a scheduled rest day (260% x basic o Paternity Leave

pay) Paternity leave is granted to all married male employees in the

private sector, regardless of employment status, (e.g. probationary,

Computing Night Shift Premium Where Night Shift is a Regular regular, contractual, project-based) the purpose of which is to allow
the husband to lend support to his wife during her period of recovery
and/or in the nursing of her newborn child. The leave shall be for
seven (7) days, with full pay, consisting of basic salary and
mandatory allowances fixed by the Regional Wage Board, if any,
provided that his pay shall not be less than the mandated minimum
wage. Availment of the paternity leave may be after the delivery,
without prejudice to an employer’s policy of allowing the employee
to avail of the benefit before or during the delivery, provided that the
total number of days shall not be more than seven (7) days for each
covered delivery.
o Maternity Leave
Every pregnant woman in the private sector, whether married or
unmarried is entitled to maternity leave of (60) days in case of
normal delivery ,abortion or miscarriage, or seventy-eight (78) days
in case of caesarian section delivery with benefits equivalent to
100% of the average daily salary credit of the employee as defined
under the Social Security Law
o Service Charges
Employees of employers collecting service charges are entitled to
an equal share in the 85% of the total of such charges, except
managerial employees. The remaining 15% of the charges may be
retained by the management to answer for losses and breakages
and for distribution to managerial employees, at thediscretion of the
management in the later case. Service charges are collected
bymost hotels and some restaurants, night clubs, cocktail lounges,
among others.
o Separation Pay
Separation pay is given to employees in instances covered by
Articles 283 and284 of the Labor Code. An employee's entitlement
to separation pay depends on the reason or ground for the
termination of his services. An employee may be terminated for just
cause (i.e. gross and habitual neglect of duty, fraud or commission
of a crime) and other similar causes as enumerated under
Article282 of the Labor Code and generally, may not be entitled to
separation pay. On the other hand, where the termination is for
authorized causes, separation pay is due.
o 13th Month Pay
All employers are required to pay their rank and file employees
regardless of thenature of their employment and irrespective of the
method by which their wagesare paid provided they worked for at
least one (1) month during a calendar year.13th Month Pay should
be given to the employees not later than December 24 of every
year.
Conciliation and Mediation
Conciliation and Mediation
NCMB – National Conciliation and Mediation Board.
They help or handle disputes out of the court.
Services:
o Perform conciliation and mediation functions;
o Provide Technical Assistance in the Preparation and
Administration of Collective Bargaining Agreements and
and in Drawing Up Joint Agreements;
o Provide training on Alternative Dispute Resolution;
o Supervise/observe conduct of strike balloting and
improved/reduced offer balloting; Provide counseling
services on labor relations related issues;
o Provide training on effective negotiations and collective
bargaining;
o Provide speakership services on labor relations related
topics during seminars, symposia, and orientation;
o Provide Free Legal Aid and Voluntary Arbitration Services
(FLAVAS).
Conciliation- voluntary proceedings in which parties are free to
agree and attempt to solve their disputes by a conciliator.
Mediator- A form of intervention by a third party in which a
mediator can provide possible solutions to resolve disputes
between parties. ventilate their respective positions
Difference between Conciliation and Mediation: without legal technicalities.
For conciliation, parties can ask a conciliator to provide them a Who can declare a strike/lockout?
non-bidding statement proposal, while for mediation; mediator
Any certified or duly recognized bargaining
will refrain from making a proposal.
representative may declare a strike in cases
Different forms of Strikes: of bargaining deadlock and unfair labor
o Legal Strike - called for a valid purpose practice. Likewise, the employer may
and conducted through means allowed by declare a lockout in the same cases.
the law.
Time requirement for notice of strike/ lockout:
o Illegal Strike - one staged for a purpose
15 and 30 days requirement is known as Cooling-Off
not recognized by the law.
Period designed to afford parties the opportunity to resolve
o Economic Strike - one staged by workers disputes with the assistance of NCMB
to force wage from the employer which is
Prohibited acts and practices for a Strike:
not required by the law to be granted.
o Declaring a strike or lockout on grounds involving inter-
o ULP Strike - also known as Unfair Labor
union and intra-union disputes or on issues brought to
Practice. It is done against employer’s
voluntary or compulsory arbitration.
acts of unfair practice.
o Declaring a strike or lockout without first having bargained
o Slow Down Strike – done by the
collectively or without first having filed the required notice
employees or workers by not finishing
or lockout vote first having been obtained and reported to
their work or not producing their required
the Regional Branch of the NCMB.
output.
Who can avail conciliation and Mediation services?
o Wild Cat Strike- done without filing the
o Any party to a labor dispute, either union or management,
required notice of strike and without the
may seek assistance of NCMB by means of formal request
majority approval of the recognized
for conciliation and preventive mediation
bargaining agent.
o When dispute has already been assumed or certified to
o Sit Down Strike- where workers stop
the NLRC, is it also possible to remand the same to
working but do not leave their place of
conciliation and mediation services?
work.
o The parties are not precluded from availing the services of
CONCILIATION
NCMB as the duty to bargain collectively subsists until the
o Conciliation ensures party autonomy
final resolution of all issues involved in the dispute.
o Conciliation ensures confidentiality
o It is non-litigious/ non-adversarial Strike, Picketing and Lockout
o Parties find it more expedient to fully o Strike- any temporary stoppage of work by the concerted
 action of the employees as a result of an industrial or labor
dispute.
o Picketing- the right of workers during strikes consisting of
the marching to and from before the premises of an
establishment involved in a labor dispute, generally
accompanied by the carrying and display of signs,
placards or banners with statements relating to the
dispute.
o Lockout- means the temporary refusal of an employer to
furnish work as a result of an industrial or labor dispute.