Post on 18-Nov-2014
Fair Labor Practice
Enrico C. AguilaOPST 127: Organization and Administration in Rehabilitation
College of Allied Medical ProfessionsMarch 8, 2010
Labor Code of the Philippines
Employees Union codes
Legislations related to labor issues
Labor Code
• Laws and policies governing the rights of employees and employers
• Prescribes standards and a legal framework to promote better terms and condition for work
Labor Code of the Philippines
• Presidential Decree 442 (1974) – Labor Code of the Philippines
• Republic Act 6175 (1989) – Amendments to the Labor Code
How are the labor standards enforced?
• Enforced through the inspectorate system. – Every employer shall give to the Secretary
or his/her duly authorized representative access to its premises or records at any time of the day or night when there is work to determine and effect compliance.
• Every establishment or workplace shall be inspected at least once a year.
Special inspection visits may be authorized by the Regional Office to investigate • work-related accidents• occupational illness or dangerous occurrences• conduct surveys• follow-up inspection recommendations• or to conduct an investigations or inspections
upon request of an employer, worker or labor union in the establishment.
Regular Employee• has been engaged to perform
activities which are usually necessary or desirable in the usual business or trade of the employer or
• has rendered at least one (1) year of service, whether such service is continuous or broken, with respect to the activity in which he is employed. (Art. 280)
Probationary Employment
• Probationary period should not exceed six (6) months from the date the employee started working. One becomes a regular employee upon completion of his six-month period of probationary. (Art. 281)
• Exceptions– when the employer and the employee mutually
agree on a shorter or longer period– when the nature of work to be performed by the
employee requires a longer period– when a longer period is required and established by
company policy.
Work Days and Work Hours
• 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.
Work Days and Work Hours
• An employee must be paid his or her wages for all hours worked.
• Night shift pay – 10:00 to 6:00 AM• Overtime pay – more than 8 hours of
work• Exceptions–Managerial and field personnel– Provides personal service to another person– Paid by result
Overtime work• An employee may not be compelled to
work overtime• Exceptions:– during war, emergencies, disasters or
calamities; – when urgent repairs need to be undertaken; – when work is necessary to preserve
perishable goods, avoid serious obstruction or prejudice to the employer's business;
– or take advantage of favorable weather conditions.
Weekly rest day
• It shall be the duty of every employer to provide each of his/her employees a weekly rest period of not less than 24 consecutive hours after every six (6) consecutive normal workdays. (Art. 91)
Wage
• Amount paid to an employee in exchange for a task, piece of work, or service rendered to an employer
Wages
• 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.
Forms of Wages• It may also be fixed for a specified task or result.
– 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 rendered for more or less than 8 hours a day.
• Wage may be fixed for a given period, as when it is computed hourly, daily or monthly. – 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 the employer.
Minimum Wage
Deductions
• 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
• Payment of wages shall be made in cash and at or near the place of work. (Art. 102 & 104)
• Payment maybe received from a bank upon written request by a majority of workers. (Sec. 7 R.A. 6727)
• Wages shall be paid directly to the workers. (Art. 105)
• Payment shall be made at intervals not exceeding sixteen (16) days. (Art. 103)
Payment of wages
• Wage deduction must be authorized by law. (Art. 113)
• "Labor only contracting" is prohibited wherein the person supplying workers to an employer is only an agent of the employer. (Art. 106)
• In the event of bankruptcy or liquidation of an employer's business, his/her workers shall enjoy first preference as regards their wages and other monetary claims before claims of the government and other creditors may be paid. (Art. 110)
Emergency Cost of LivingAllowance (ECOLA)
• All private sector workers and employees in the National Capital Region earning minimum wage
Computing Overtime
• On Ordinary Days– Number of hours in excess of 8 hours
(125% x hourly rate)
• On a rest day, special day or regular holiday– Number of hours in excess of 8 hours
(130% x hourly rate)
Premium Pay
• The additional compensation required by law for work performed within eight (8) hours on nonworking days, such as rest days and special days.
Regular Holidays
• New Year’s Day - January 1• Maundy Thursday - Movable Date• Good Friday - Movable Date• Araw ng Kagitingan - April 9• Labor Day - May 1• Independence Day - June 12• National Heroes Day - Last Sunday of August• Bonifacio Day - November 30• Eidul Fitr - Movable Date• Christmas Day - December 25• Rizal Day - December 30
Nationwide Special Days
• November 1, All Saints Day• December 31, Last Day of the Year
Computing pay for work done on
• A special day (130% x basic pay)• A special day, which is also a
scheduled rest day (150% x basic pay)
• A regular holiday (200% x basic pay)• A regular holiday, which is also a
scheduled rest day (260% x basic pay)
2 holidays on the same day
• Araw ng Kagitingan and Good Friday• Unworked – 200 %• Worked – 300 %
Absence during successive regular holidays
• The rule in case of successive regular holidays is as follows: – An employee may not be paid for both
holidays if he absents himself from work on the day immediately preceding the first holiday, unless he works on the first holiday, in which case, he is entitled to his holiday pay on the second holiday.
13th Month Pay
• Paid not later than December 24 of each year.
• Prescribed by P.D. 851• 13th month-pay shall mean one
twelfth (1/12) of the basic salary of an employee within a calendar year
Computing 13th Month Pay
• Total basic salary earned for the year exclusive of overtime, holiday, and night shift differential pay divided by 12
Who are entitled to 13th month pay?
• All employers are required to pay their rank and file employees regardless of the nature of their employment and irrespective of the method by which their wages are paid provided they worked for at least one (1) month during the calendar year. (P.D. No. 851)
Is 13th month pay tax-exempt?
• It depends. If the amount of 13th month pay is equivalent to Php30,000 and below, it is not subject to tax.
• Otherwise, it is subject to tax. (Rev Regulations No. 8 & 10, s. 2000, Bureau of Internal Revenue)
Bonus Pay
• Voluntarily given by the employer• Maybe withheld if there is no profit,
unless previously agreed upon between the employer and the employees to be given without any precondition
Bonus Pay
• Bonus is an amount granted and paid ex gratia to the employee for his industry or loyalty, hence, generally not demandable or enforceable.
• If there is no profit there should be no bonus.
• If profit is reduced, bonus should likewise be reduced, absent any agreement making such bonus part of the compensation of the employee.
When is bonus demandable and enforceable?
• On the basis of equitable considerations, long practice, agreement (e.g. CBA) and other peculiar circumstances, bonus may become demandable and enforceable.
• Consequently, if bonus is given as an additional compensation, which the employer agreed to give without any condition such as success of business or more efficient or more productive operation, it is deemed part of wage or salary, hence, demandable.
Overtime pay
• Additional compensation for work performed beyond eight (8) hours a day beginning at the time an employee actually started working. (Art. 87)
Overtime pay rate
• The minimum overtime pay rates vary according to the day the overtime work is performed, as follows:– For work in excess of eight hours performed
on ordinary working days - additional 25%of the hourly rate
– For work in excess of eight hours performed on a scheduled rest day, a special day and a regular holiday - additional 30% of the hourly rate on said days. (Art. 87)
Night differential
• Night shift pay: Additional pay of not less than 10 percent (10%) of his/her regular wage for each hour of work performed between 10:00 in the evening and 6:00 in the morning. (Art. 86)
Service incentive leave
• For every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay. (Art. 95)
Maternity benefits
• Every pregnant woman in the private sector, whether married or unmarried, is entitled to maternity leave of sixty (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.
Paternity leave
• Paternity leave is granted to all married male employees in the private sector, regardless of employment status, (e.g. probationary, 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.
Paternity leave
• 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.
Paternity leave
• 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.
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 Causes for Dismissal
• Just causes stated in Art. 282 of the Labor Code– Serious misconduct– Willful disobedience to lawful orders of the
employer or representative in connection with his work
– Gross and habitual neglect of duty– Fraud and willful breach of trust– Commission of crime against the person of the
employer, his representative or any immediate member of his family
– Analogous causes
Authorized Causes
• Economic circumstance not due to the employee's fault, including:– the introduction of labor-saving devices– redundancy– retrenchment to prevent losses– closure or cessation of business– disease
Dismissal of an employee
• furnish the worker whose employment is sought to be terminated a written notice
• containing a statement of the causes for the termination
Other causes of dismissal by an employer, not stated in Art. 282:
• Termination pursuant to a union shop/closed shop agreement in a CBA
• Defiance of an employee of a Return-to-Work order
• Failure to meet the standards set in a probationary contract of employment
Due process
• Afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative, if he so desires, in accordance with the company rules and regulations promulgated pursuant to the guidelines set by the DOLE.
Right to appeal
• Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the NLRC. (Art. 277 (b))
Requirements for closure of business or cessation of operations
• Written notice to the employees and the DOLE at least one (1) month before the intended date of closure/cessation
• Closure or cessation of business operations is bona fide in character
Separation pay
• None if terminated for just causes• Available if the termination is for due
processes
Separation Pay
• Payment of termination/separation pay – amounting to at least one-half (1/2)
month pay for every year of service, or one (1) month pay whichever is higher. (Art. 83)
– separation pay shall be multiplied with the number of years of actual service.
– a fraction of at least six (6) months is considered as one (1) whole year
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.
Right to Self-Organization and Collective Bargaining
• Except those classified as managerial or confidential, 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:
• The representative of the employer• 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:
• To fix and administer terms and conditions of employment which must not be below the minimum standards fixed by law
• To set a mechanism for resolving their grievances
Collective Bargaining Agreement
• The result of collective bargaining is a contract called collective bargaining agreement (CBA).
• A CBA generally has a term of five years.
Collective Bargaining Agreement
• The provisions of a CBA may be classified as political or economic. – Political provisions refer to those 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 affectivity for the CBA.
Occupational Safety and Health Standards
• Mandatory rules and standards set and enforced to eliminate or reduce occupational safety and health hazards in the workplace
Safety and Health in the Workplace
• Safety refers to the physical or environmental conditions of work which comply with prescribed Occupational Safety and Health (OSH) Standards and which allow the workers to perform his or her job without or within acceptable exposure to hazards.
Safety and Health in the Workplace
• Health means a sound state of the body and mind of the workers that enables him or her to perform the job normally.
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.
Protection includes provision of:
• Appropriate seats, fighting and ventilation• Adequate passageways, exits and firefighting
equipment• Separate facilities for men and women• Appropriate safety devices like protective gears,
masks, helmets, safety shoes, boots, coats or uniforms
• Medicine, medical supplies or first aid kits• Free medical and dental services and facilities,
the kind of which depends on the number of employees and the nature of the work