HUMAN RESOURCEMANAGEMENTII. Constitutional and Legal FrameworkBy: John Edward Estayo

Learning OutcomesAt the end of this Presentation, we will be able to: Gain knowledge on the Labor Code and

The Constitution. Be preventive on other disputes and

allegations and legal implications. Be informed on the rights on health,

safety, and Compensation of employees Understand the different concepts of the

Law on Unfair Labor Practice (ULP), Strikes, Termination and the Anti-Sexual Harassment.

I. Understanding the constitutional and Legal FrameworkProtection of the Rights of

LaborLegal Aspects of Human

resource HR manager and the CEO

I. Understanding the constitutional and Legal Framework

Companies that are at the losing end of legal suits.

“Preventive Lawyering”

“An Ounce of prevention is better than a Pound of Cure”

I. Understanding the constitutional and Legal Framework

Responsibility of management to be come educated in labor laws.

“Ignorantia legis, nimenem excusat. -Ignorance of the law excuses no one.

“Police Power”

II. Constitutional Basis

“State affirms labor as a primary socio-economic force.

It shall protect the right of workers and promote their

welfare” (Article II Section 18)

II. Constitutional Basis Article XIII section 3 expands the Labor

policy by providing that:• The State shall afford full protection to

labor• It shall guarantee the rights for self

organization• The State shall promote principle of

shared responsibility.• The state shall regulate the relations

between workers and employers.

III. Labor Code Martial Law Six Major Parts

1. Pre-Employment2. Human Resources Development Program3. Conditions of Employment4. Health, Safety and Social Welfare

Benefits5. Labor Relations6. Post-Employment

IV. Kinds of Employees - Definitions

“The Employer” “The Employee”

Types of Employees according to role

1. Managerial Employees2. Supervisory Employees3. Rank and File employees

Types of Employees in terms of Tenure

1. Regular Employee2. Project Employee3. Casual Employee4. Probationary Employee5. Fixed Contract Employee as settled

in Jurisprudence

V. Health, Safety and Social Welfare Provisions Requirements

1. To keep Medicines and Equipment in the employer’s Establishment

2. Full time registered nurse >50 Employees <200

3. Full time registered nurse, Part time physician and a dentist and an emergency Clinic >200 <300

V. Health, Safety and Social Welfare Provisions Requirements

4. For >300 employees, Full time Physician and dentist and a full time registered nurse as well as dental clinic and an infirmary or emergency hospital with one bed capacity for every 100 employees

5. Trainings for industrial medicine and occupational safety and health

6. Provide adequate and immediate attention to the sick and injured.

VI. Employee Compensation and State Insurance Fund Tax Exempt for employee compensation

in the event of work-connected disability State Insurance Fund• Employees Compensation Commission

o Sec. Labor and employmento GSIS Gen Mngr.o SSS Admino Chairman of PMCCo Executive Director of the ECC

VI. Employee Compensation and State Insurance Fund State insurance fund is liable for

compensation except Disability or Death was due to:

• Employees’ Intoxication• Willful intention to injure or kill himself or

another• Notorious negligence*

VI. Employee Compensation and State Insurance Fund

25% penalty percentage of the lump sum equivalent of the income benefit is to be paid to the State Insurance Fund.

VII. LABOR RELATIONSMANAGEMENT PREROGATIVES

LABOR RIGHTS

Power to mange Right to participate in decision making

Power to hire Union security rights

Power to Fire Security of Tenure

Power to Transfer Employees Right to refuse

Power to Promote/ Demote Right to question

Power to Layoff/Lockout Right to question if the basis is unfair

Power to Lay down Policies Right to participate in decision making

Power to Discipline Right to due process

Power to set working hours Right to file grievance

Fair Return in Investments and Expansion

Right to just share in Fruits of Production

VII. LABOR RELATIONS

“Give and Take” attitude “Win-win situation Powers of management and Labor

rights are neither absolute. JUST SHARE IN FRUITS OF

PRODUCTION Employer Vs. Employee

Allowance on the allocation of fruits of production

VIII. Unfair Labor Practice (ULP) ULPs are offences committed by an

employer or labor organization. An employer commits ULP when he/she:

1. Interferes, restrains, coerces employees their right to exercise self-organization

2. Requires a condition that an employee is not to join a labor org. or shall withdraw from where he belongs.

3. Contracts out services or functions being performed.

4. Initiates, Dominates or interferes with the formation of the organization.

VIII. Unfair Labor Practice (ULP) An employer commits ULP when he/she:

5. Discriminates in regards to wages, number of hours of work and others.

6. Dismisses, Discharges or otherwise prejudice or discrimination.

7. Violates duty to bargain collectively8. Pays negotiation or attorney’s fees

to the union9. Violates a Collective Bargaining

Agreement (CBA)

IX. Strikes and Work Stoppages/Lockouts Right to strike is not absolute and

neither is the right of employers to lockout.

Employees can only strike on 2 grounds

1. Deadlock in Collective Bargaining2. Unfair Labor Practice (ULP)

IX. Strikes and Work Stoppages/Lockouts

Conditions before a strike can be staged: Strike notice is to be filed 30 days

before the intended strike in case of deadlock in CBA; 15 days in case of ULP

Strike must be approved by a secret balloting by the members of the bargaining unit. NCMB of DOLE must be notified 24 hours before such meeting, then the result of the voting at least 7 days before the strike.

IX. Strikes and Work Stoppages/LockoutsSince Strikes are only limited to two grounds a)Deadlock in CBA b)ULP;

then there are also procedures to be followed before a union strike.

Even if legal conditions are met a strike could still be illegal if it was attended to in picketing and/or

when any criminal acts are committed within the strike.

X. Law on TerminationJust Causes of Termination:1. Serious Misconduct or Wilful

Disobedience.2. Gross and Habitual neglect of his

duties.3. Fraud or wilful breach.4. Commission of a crime or offense to

his employer or immediate family member.

5. Or other causes analogous to the foregoing.

X. Law on TerminationConditions:

Installation of Labor-Saving devices or redundancy provided the terminated employee 1 month pay for every year of service.

Retrenchment to prevent losses or closing or cessation of the establishment or undertaking ; that the employee to be retrench is given one-half (1/2) month pay per year of service.

6 months is rounded of to 1 whole year.

X. Law on TerminationOther Authorized Causes Labor Code allows disease as ground for termination under the ff. conditions:

when one suffers a disease wherein his continued employment is prohibited by law, when the nature of disease is not cured even with proper treatment for 6 months.

the terminated employee is entitled to ½ month pay per year of service.

X. Law on Termination

Other Authorized Causes Labor Code allows disease as ground for termination under the ff. conditions:

Retirement pay law. For employees that reaches the age of 60 but not more that 65 is provided with retirement pay.

Employee is awarded with 22days pay per year of service.

XI. Wage Rationalization Law The Idea was to regionalize wage fixing

to reflect the prevailing cost of living in a particular region.

Standard Criteria for a minimum wage fixing:1. Demand for living wages.2. Wage adjustment vis-Pá-vis consumer

price index.3. Cost of living4. Needs of workers and their families

XI. Wage Rationalization Law

Standard Criteria for a minimum wage fixing:

5. Need to induce Industries to invest to countryside

6. Improvements of standards of living7. Prevailing wage levels8. Fair return of capital Invested and

Capital to pay of employers9. Effects of Employment Generation10. Equitable distribution of income and

wealth

XII. Anti-Sexual Harassment LawSexual Harassment is defined as any work, education, or training-related sexual harassment committed by:

An employer Employee Manager, Supervisor Agent of the employer Teacher, Instructor, Professor Coach, Trainer Or other persons having authority

XII. Anti-Sexual Harassment Law

Sexual Harassment is punishable, upon conviction by:

Imprisonment of not less than one(1) month nor not more that six(6) months,

Or a fine not less than P10,000 nor more than P20,000,

Or both such fine and imprisonment.

THANK YOU!