LECTURE 5: LABOR RELATIONS AND STANDARDS
Instructor: Christian John E. Villahermosa, RMT
Employer-employee relationship
• Four-fold test
–Selection and engagement of the workers
–Payment of wages
–Power of dismissal
–Power to control the workers’ conduct
• Refers to existence of power and not
necessarily to the actual exercise thereof
hours of work
• All time during which an employee is required to
be on duty or to be at the prescribed workplace
• Rest period of short duration: counted as hours
worked (coffee break, meal period < 1 hour)
• Normal hours of work for hospital workers: 5 days
(40 hours) a week
Night shift differential
• At least 10% of regular wage for each hour of work
between 10:00 pm to 6:00 am
• Example:
–Regular wage: Php 100 per hour
–Shift: 11 pm to 7 am
–How much is the salary on that night shift?
Overtime work
• Work performed beyond 8 hours a day
• Additional compensation
–Regular day: wage + at least 25% thereof
–Holiday: wage + at least 30% thereof
Compulsory overtime work
• If the country is at war or when there is a declaration
of national or local emergency
• To prevent loss of life or property, or in case of
imminent danger to public safety caused by accidents,
fire, floods, typhoons, epidemic, or other disaster or
calamities
• When there is urgent work to be performed on
machines, installations, or equipment to avoid serious
loss or damage
• To prevent loss or damage to perishable goods
• Completion of work is necessary to prevent serious
business loss
• To avail of favorable weather
Meal break
• Not less than 60 minutes time-off for regular meals
• May be taken outside company premises
–Case: PAL vs. NLRC (GR 132805)
Rest day
• Duty of employer: 24 hours rest period after
every 6 consecutive normal work days
–Employer shall respect the preference of
employees as to their weekly rest day when
such preference is based on religious grounds
Holiday pay
• Work on special holiday: (daily rate * 130%)
• Work on regular holiday: (daily rate * 200%)
– What are the regular holidays? (RA 9849)
• New Year
• Maundy Thursday and Good Friday
• Araw ng Kagitingan
• Labor Day
• Independence Day
• National Heroes Day
• Bonifacio Day
• Eid’l Fitr
• Eid’l Adha
• Christmas Day
• Rizal Day
13th Month pay
• PD 851: 1/12 of an employee’s basic annual salary
–May be given in 2 installments (May and December)
Forms of payment
“No employer shall pay the wages of an employee by
means of promissory notes, vouchers, coupons, tokens,
tickets, chits or any object other than legal tender, even
when expressly requested by the employee.”
Maternity/paternity leave
• In service at least 6 months
• RA 11210: 105 days leave with pay + an option to
extend for 30 days without pay (single parent: additional
15 days with pay)
– Miscarriage or emergency termination of pregnancy:
60 days
• Paternity leave (RA 8187)
– 7 days with full pay for the first 4 deliveries (or any
miscarriage) of the legal spouse with whom he is
cohabiting
Security of tenure
“A regular employee shall remain unless his or her
services are terminated for just or authorized cause and
after observance of procedural due process.”
Termination of employment
• Balancing of interests in disciplinary cases
– Labor’s interests: right to labor and due process – Continued employment is prohibited by law or
– Management’s interests: promulgation of rules and prejudicial to health
regulations and enforce and implement them for – Medical certificate needed: disease can’t be cured
efficient business operations within 6 months
• JUST CAUSES – 1 month written notice
• AUTHORIZED CAUSES: needs separation pay – Separation pay

JUST CAUSES Other causes for termination

• Serious misconduct • Failure of the probationary employee
– Serious; related to performance of duties to qualify as a regular employee
– Sexual harassment, fighting within company premises, • Totality of infractions doctrine
theft of company property, drug abuse, falsification of
time records Procedural due process
• Willful disobedience/insubordination • Notice of appraisal: specifying the grounds of
– Willful/intentional termination giving time to employee to rebut
– Order violated must be reasonable, lawful, and made • Hearing or conference
known to the employee •Notice of termination: after considering all
• Gross negligence/habitual neglect of duties circumstances
– Absenteeism, abandonment of work
• Fraud/loss of trust and confidence No due process
– Misappropriation of company funds • Authorized causes: P50,000 damages
• Commission of a crime or offense against the • Just causes: P30,000 damages
employer
• Other analogous causes Questioning the legality of dismissal
• Substantive grounds
Authorized causes – Absence of a just or authorized cause supporting the
• Redundancy dismissal
– Services of an employee are in excess of what is • Procedural grounds
reasonably demanded – Failure of the employer to give the employee an
– 1 month written notice opportunity to explain his or her side
– Separation pay (1 month per year of service) • THE EMPLOYER has the DUTY to prove the dismissal is
– Fair and reasonable criteria in ascertaining redundant Valid
positions: efficiency, seniority
• Retrenchment Termination by employee
– Last resort; dismissing employees to avoid or minimize • Written notice at least 1 month in advance
Losses (BEFORE the losses anticipated are actually • No written notice:
sustained) –Serious insult by the employer
– 1 month written notice –Inhuman and unbearable treatment
– Separation pay –Commission of a crime or offense by the employer
– In good faith against the employee
– Fair and reasonable criteria
Authorized causes
• Closure of the company
– In good faith
– 1 month written notice
– Separation pay needed, except in cases of serious
business losses

• Disease or Illness