Sun Tzus The Art of War

The Story of
Jovert and the 27 Janitors

FVR Skills and Services Exponent, Inc.

(SKILLEX), Fulgencio V. Rana, and
Monina R. Burgos
-versusJovert Seva, et. al. (and 27 other workers)
G.R. No. 200857
October 22, 2014
Supreme Court of the Philippines

LABOR ARBITER
-WINNERSSKILLEX et. al.
-AWARDSValid Dismissal.*
BUT workers were awarded money
claims worth at least PhP100,000.

National Labor Relations Commission

-WINNERSJovert Seva and 27 other workers.
-AWARDS1. Regularization.
2. Separation Pay in lieu of Reinstatement.
3. Backwages.
4. Money claims of PhP100,000+

Court of Appeals
-WINNERSJovert Seva and 27 other workers.
-AWARDS1.
2.
3.
4.

Regularization.
Separation Pay in lieu of Reinstatement.
Backwages.
Money claims of PhP100,000+

5. Rana and Burgos solidarily liable!!!

Supreme Court
-WINNERSJovert Seva and 27 other workers.
-AWARDS1.
2.
3.
4.

Regularization.
Separation Pay in lieu of Reinstatement.
Backwages.
Money claims of PhP100,000+

BUT Rana and Burgos ABSOLVED!!!

Conflict Resolution Scenarios

The greatest
victory is that
which requires
no battle.
- Sun Tzu,
The Art of War

Hi! Im
PoL Sangalang
+63 917 821 6848

apollo.sangalang@lawyer.com

OFFICER OF THE COURT

and
MEMBER OF THE BAR

COUNSELOR
and
ATTORNEY
-ATLAW

Knight
Champion

OWNER and PARTNER

of a LAW FIRM

BROADCASTER

FACILITATOR and TRAINER

Former
STUDENT
LEADER

UNIVERSITY LEGAL COUNSEL

University of the Philippines

EXECUTIVE DIRECTOR

National Labor Relations Commission

CHIEF LEGISLATIVE OFFICER

Senate of the Philippines

Labor Law Made Easy

https://www.facebook.com/legalcoach

Free learning!
Free links!
Free consultation!

This seminar is INTERACTIVE.

ITS OK TO INTERUPT ME
IF YOU HAVE QUESTIONS.
And yes, I mean it!

Disclaimer
No lawyer-client relationship.
Consult your own legal counsel.
Remember: legal opinions differ.
Respect the sub judice rule.
Avoid conflicts of interest.

If you know your enemy and know

yourself, you need not fear the results of a
thousand battles.
If you know yourself but not the enemy, for
every victory gained you will also suffer a
defeat.
If you know neither the enemy nor yourself,
you will succumb in every battle.
-Sun Tzu, The Art of War

Do you need a
Department for Employers?

Do you need an Employers

Code?
WHY?

Anatomy of a Labor Case

Evolution of Work Arrangement

Capitalism

Capitalist Model

Communism

Capitalist Exploitation

Revolution!!!

Socialist Model

Democratic Model

Labor Law Revolution!

Tripartite Model

Shared Responsibility Model

What is Social Justice?

Elements of Labor Law

Rule of Law

Employers Rights
Law on Ownership (Civil Code):
The owner has the right to enjoy and dispose of a
thing, without other limitations other than those
established by law. (Art. 428, Civil Code).

A thing can be:

Physical Capital (e.g. land, building, equipment)

Financial Capital (e.g. financing)
Intellectual Capital (e.g. business model)
Human Capital (e.g. organization)

Employers Rights
Law on Contracts (Civil Code):
The contracting parties may establish such
stipulations, clauses, terms and conditions as may
be deemed convenient, provided they are not
contrary to law, morals, good customs, public order,
or public policy. (Art. 1306, Civil Code)

Employment is a contract.
Contract is the basis of Company Policies.

Employers Power Equation

Employers Power
Law on Management Prerogative:
The State recognizes the indispensable role of
the private sector, encourages private
enterprises, and provides incentives to needed
investments. (Sec. 20, Art. II, Constitution)
The Statex x x recognizing the right of
enterprises to reasonable returns on
investments, and to expansion and growth.
(Sec. 3, Art. XIII, Constitution)

Management Prerogative
Right to hire employees of their
(employers) own choice;
Right to fire (and discipline) them;
Right to determine their compensation
and benefits; and
Right to control their employees.

4-Fold Test of Employment

Right to hire employees of their
(employers) own choice;
Right to fire (and discipline) them;
Right to determine their compensation
and benefits; and
Right to control their employees.

Control Test
Right to control the workers on the:
Final outcome or ultimate result; and on the
Means, methods and manner of achieving
or accomplishing those outcomes and
results.

Control includes:
Work structure, transfers, assignments, schedules,
job descriptions, uniforms, IDs, DTRs, etc., etc.

Control Test
Its your FIRST LINE OF DEFENSE.
No Control = No Employment Relation.

No Employment Relation =
No Labor Case!

No Employment Relations
Independent Contractors Job Contractors
Consultants

Freelancers

Agents

Industrial Partners

Corporate Officers

Cooperative Members

Volunteers

Academic Interns

Anatomy of a Labor Case

3 Kinds of Win Scenarios

Win Lose
Compromise (or Half-baked Win)
Win Win (Mindset)
Think Win-Win by Stephen Covey

3 Ways To Win
By Hook or by Crook.
Out Last. Out Wit. Out Pay!
WIN with INtegrity (WIN-wIN).

Why WIN with INtegrity?

I cant compartmentalize my life.
I cant justify the means with the end.
I reaped what Ive sown.
I almost lost my soul.

Whats WIN-wIN?
what king would go to war against
another king without first sitting down with
his counselors to discuss whether his army
of 10,000 could defeat the 20,000 soldiers
marching against him? And if he cant, he
will send a delegation to discuss terms of
peace while the enemy is still far away.

- Jesus Christ
(Luke 14:31-32 NLT)

1. Is it the TRUTH?
2. Is it FAIR to all
concerned?
3. Will it build
GOODWILL and
BETTER
FRIENDSHIPS?
4. Will it be
BENEFICIAL to all
concerned?

How to have Win-WIN?

D.O.C.U.M.E.N.T.
GOOD FAITH

2013

How to D.O.C.U.M.E.N.T. 2013

D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand Law Law principles.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

Documentation X 3
Pre-Employment Documentation.
Employment Documentation.
Pre-Termination & Post
Employment Documentation.

Open-Mindedness
Be tolerant with your employees.
Be receptive to new ideas and
possibilities.
Be accepting of the outcome.

Clarity
Clarity in written communication.
Clarity in oral communication and
action.
Clarity in purpose and objective.

Understand ER/LR
Understand:
1. that ER/LR is a Game.
2. the Rules of the Game of
ER/LR.
3. the other aspects of the
ER/LR Game.

Master HR
ER/LR is essentially HR.
HR is exemplified by MR.
MR is enhanced by GR.

Embrace Best Practices

Good Practices.
Better Practices.
Best Practices.

Negotiate X 3
Negotiate before a labor dispute.
Negotiate during a labor dispute.
Negotiate after a labor dispute.

Take advice only from experts

Licensed or seasoned experts.
Local labor law experts.
Practical and trust-worthy experts.

Documentation X 3
Pre-Employment Documentation.
Employment Documentation.
Pre-Termination & Post
Employment Documentation.

Open-Mindedness
Be tolerant with your employees.
Be receptive to new ideas and
possibilities.
Be accepting of the outcome.

Clarity
Clarity in written communication.
Clarity in oral communication and
action.
Clarity in purpose and objective.

Understand ER/LR
Understand:
1. that ER/LR is a Game.
2. the Rules of the Game of
ER/LR.
3. the other aspects of the
ER/LR Game.

Master HR
ER/LR is essentially HR.
HR is exemplified by MR.
MR is enhanced by GR.

Embrace Best Practices

Good Practices.
Better Practices.
Best Practices.

Negotiate X 3
Negotiate before a labor dispute.
Negotiate during a labor dispute.
Negotiate after a labor dispute.

Take advice only from experts

Licensed or seasoned experts.
Local labor law experts.
Practical and trust-worthy experts.

How to D.O.C.U.M.E.N.T. 2013

D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand Labor Law principles.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

24 Rules of the Game

R1: Comply with labor laws!
R2: Ignorance of the law isnt an
excuse!
R3: Stay focused on your business and
management goals!

24 Rules of the Game

R4: Know your strengths as business
owner or company management!
R5: Design your relationship with your
employees through written contracts!
R6: Use management prerogative
wisely by way of written company
policies!

24 Rules of the Game

R7: Know that you have the upper
hand. So be magnanimous about it!
R8: Accept that your employees are the
underdogs!
R9: Labor laws only to level the playing
field. Enjoy the challenge!

24 Rules of the Game

R10: Problem employees are merely
obstacles, not opponents!
R11: All doubts favor your employees.
Make sure there are no doubts!
R12: You have the burden of proof.
Silence means youre guilty!

24 Rules of the Game

R13: Your rights are not absolute. But
theyre enough; so maximize them!
R14: Laws, principles of justice and
equity, and public policies are higher
than contracts!
R15: Bad faith will be punished!

24 Rules of the Game

R16: Good faith will be rewarded.
Document it if you can!
R17: Compromise is encouraged. But
quitclaims are frowned upon. Beware
of the distinctions!
R18: Out-of-court settlements can be
dangerous. Settle in court!

24 Rules of the Game

R19: Discipline and terminate your
employees based on substantial
evidence!
R20: Observe administrative due
process! And be strict about it!
R21: Managers are employees too. So
be careful who you trust!

24 Rules of the Game

R22: Strictly follow DOLE and NLRC
procedures. Better safe than sorry!
R23: Voluntary modes of dispute
resolution are your best allies!
R24: Labor officials are humans too.
Put yourself in their shoes!

WHAT IS THE
BEST GAME RULE?

GOLDEN
RULE

This Golden Rule?

HE WHO HAS
THE GOLD
RULES!

Best Game Rule?

The GOLDEN RULE:

Love your employees as

yourself
and WIN

with INtegrity!

So, do you still need a

Department for Employers?
Do you still need an
Employers Code?
Really?