ATTY. J. OSWALD B. LORENZO

Former Labor Arbiter, NCR-NLRC; Professor of Law and Pre-Bar Reviewer; President, The Center for Law Advocacy and Specialized Studies (CLASS); former Assistant Secretary, DENR and POEA Director for Licensing and Past President, National Association of Labor Arbiters (NALA), Inc.

A- UPDATES ON LABOR RULES AND JURISPRUDENCEA-I LEGALLY ALLOWABLE HIRING POLICIES AND PRACTICES

REGULAR EMPLOYMENT Regular employment is one where the employee has been engaged to perform activities which are necessary or desirable in the usual business or trade of the employer. (Art. 280, Labor Code)

CASUAL EMPLOYMENT Casual employment is one where the work or service to be performed by the employee is merely incidental to the business of the employer and such work or Service is for a definite period made known to the employee at the time of the engagement. (Art. 280, Labor Code). A casual employee may become a regular employee after one (1) year of service. (Conti vs. NLRC, 271 SCRA 114)

PROBATIONARY EMPLOYMENTProbationary employment is one where the employee is on trial by employer during which the employer determines the qualification of the employee for regular employment.

As a general rule, the probationary period of employment should not exceed six (6) months from the date of the employee started working. Applying Article 13 of the Civil Code, the probationary period of six (6) months consists of one hundred eighty (180) days. (Mitsubishi Motors vs. Chrysler Phils. Labor Union, G.R. No. 148738, June 29, 2004).

The standards should be made known to the employee at the start of engagement. If standards are not made known to the employee at start of employment, he is deemed a regular employee from day one.(Clarion Printing House, Inc. vs. NLRC, G.R. No. 148372, June

27, 2005. If there is no stipulation on probationary period, the employment is deemed regular. (ATCI Overseas Corporation vs. CA, G.R. No. 143949, August 9, 2001).

The permanent status of private school teachers may be acquired if the following conditions are present:

He is a full time teacher;He must have rendered three consecutive years of service; andHis service must have been satisfactory.(UST vs. NLRC, 182 SCRA 371).

An employee who is allowed to work after a probationary period is considered a regular employee. (Article 281, Labor Code)

PROJECT EMPLOYMENT Project employment is one where the employment of an employee has been fixed for a specific project or undertaking, the completion or termination of which has been determined at the time of the engagement of the employee.(Article 280, Labor Code).

SEASONAL EMPLOYMENTSeasonal employment is one where the work or service to be performed by the employee is seasonal in nature and the employment is for the duration of the season. (Article 280, Labor Code). Seasonal employee may become regular employee after one (1) year of service. Once he attained such regularity, he is properly to be called regular seasonal employee. (Abasolo vs. NLRC, G.R. No. 118475, 11/29/00).

FIXED-TERM EMPLOYMENTFixed-term employment is one where the employment of an employee is covered by a fixed contract of employment.The two (2) criteria under which fixed contracts of employment cannot be said to be in circumvention of security of tenure are:

The fixed period of employment was knowingly and voluntarily agreed upon by the parties, without any force, duress or improper pressure being brought to bear upon the employee and absent any other circumstance vitiating his consent; or

It satisfactorily appears that the employer and employee dealt with each other on more or less equal terms with no moral dominance whatever being exercised by the former on the latter. (PNOC-EDC vs. NLRC, G.R. No. 97747, 3/31/93).

The validity of fixed-period employment has been consistently upheld by the Supreme Court starting with Brent School vs. Zamora, G.R. No. 48494, 2/5/90.While their employment as mixers, packers and machine operators was necessarily and desirable in the usual business of the company, they were employed temporarily only, during periods when there was heightened demand of production.

Consequently, there could have been no illegal dismissal when their services were terminated on expiration of their contracts. Contracts of employment for a fixed period terminate on their own at the end of such period. (Labayog vs. M.Y. San Biscuits, Inc., G.R. No. 148102, 7/11/06).

While the employees employment as chicken dressers is necessary and desirable in the usual business of the employer, they were employed on a mere temporary basis, since their employment was limited to a fixed period. Consequently, there was no illegal dismissal when the employees services were terminated by reason of the expiration of their contracts. (Pangilinan vs. General Milling Corporation, G.R. No. 149329,7/12/04).

A.II LEGALLY ALLOWABLE FIRING POLICIES AND PRACTICES

JUST CAUSES OF TERMINATION Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;

Gross and habitual neglect of the employee of his duty;

Fraud or willful breach by the employee of the trust reposed in him by his employer or his duly authorized representative;

Commission of a crime or offense by the employee against his employer or any immediate member of his family or his duly authorized representative; (Article 282, Labor Code).

Violation of the Anti-Sexual Harassment Law (Sec. 3, Republic Act No. 7877);

Violation of the Comprehensive Dangerous Drug Law (Sec. 36 (d) Republic Act No. 9165);Dismissal of an employee pursuant to the demand of the union from the management to enforce the closed-shop provision of the CBA. (Article 248 (e), Labor Code; Tanduay Labor Union vs. NLRC, 149 SCRA 470; Del Monte Phils., Inc. v. Saldivar, et.al., G.R. No. 158620, October 11, 2006).

An employer can be adjudged guilty of unfair labor practice for having dismissed its employees in line with a closed-shop provision of the CBA if they were not given a proper hearing or due process. The discharge of an employee from his employment is null and void where the employee was not formally investigated and was not given the opportunity to refute the alleged findings by the company. (Tropical Hut Employees' Union vs. Tropical Hut, Inc. G.R. L-43495-99, January 20, 1990);

Dismissal or loss of employment status of union officers and members who knowingly participates in an illegal activity/strike by defying a Return-To-Work Order (RTWO) of the Secretary of Labor or of the Commission. (San Juan de Dios Education Foundation Employees Union-Alliance of Filipino Workers vs. San Juan de Dios Educational Foundation, Inc., G.R. No. 143341, May 28, 2004, 430 SCRA 193; Manila Hotel Employees Assn. v. Manila Hotel Corporation, G.R. no. 154591, March 5, 2007).

Dismissal or loss of employment status of union officer who knowingly participates in an illegal strike. (Art. 264 (a), Labor Code; Gold City Integrated Port Services, Inc. vs. NLRC, G.R. No. 103560, July 6, 1995; Pinero vs. NLRC, G.R. No. 149610, August 20, 2004, 437 SCRA 112); and

Dismissal or loss of employment status of any worker or union officer who knowingly participates in the commission of illegal acts during strike. (Art. 264 (a), Labor Code.Ex. - Infliction of physical injuries, assault, breaking of truck windows and throwing empty bottles to non-strikers. (International Container Terminal Services, Inc. vs. NLRC, 256 SCRA 124).

AUTHORIZED CAUSES OFTERMINATIONInstallation of labor-saving devices;Redundancy- It exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprises.

A position is redundant where it is superfluous and superfluity of a position may be caused by over hiring of workers, decreased volume of business or dropping of a particular product line or service activity previously manufactured or undertaken by the enterprise. It is not linked with losses. (De Ocampo vs. NLCR, 213 SCRA 652);

Retrenchment to prevent losses - It is resorted to by an employer primarily to avoid or minimize losses;Closure or cessation of operation. (Art. 283, Labor Code); backwages up to the closure of company only. (Retuya v. Dumarpa, G.R. No. 148848, August 5, 2003).

Notes: By jurisprudence, a closure of establishment may include the following:

Transfer of a workplace to a very far location beyond the control of an employer such as but not limited to expiration of a lease contract. (Chiniver Deco Print vs. NLRC 325 SCRA 758).

Sale of company;Merger;Bankruptcy;Insolvency

Closure due to serious business losses or financial reverses, the employer is not obliged to pay separation pay to his employees. (North Davao Mining Corporation vs. NLRC, 254 SCRA 721; Galaxie Steel Workers Union v. NLRC, G.R. No. 165757, October 17, 2006).

Involuntary closure due to CARP Program of DAR where the employees are the beneficiaries, the employer is not obliged to pay separation pay to his employees. (NFL vs. NLRC/ Patalon Coconut Estate, 327 SCRA 158).Disease (Article 284, Labor Code)In the absence of the required certification by a public health physician, the employee's dismissal due to disease is invalid. (Crus vs. NLRC, G.R. No. 116384, February 7, 2000).

A.III LABOR STANDARDS BENEFITSDEFINITIONLabor standards are defined as the minimum requirements prescribed by law relating to wages, hours of work, cost-of-living allowance, and other monetary and welfare benefits.

LEAVES WITH PAYSERVICE INCENTIVE LEAVE

A.1 - MANDATORY FIVE (5) DAYS SERVICE INCENTIVE LEAVE WITH PAY (ART. 95)A.2 OPTIONAL MORE THAN FIVE (5) DAYS SUCH AS 15 DAYS SICK LEAVE AND 15 DAYS VACATION LEAVE. ONCE GIVEN COULD NOT BE UNILATERALLY WITHDRAWN NOR DIMINISHED. (ART. 100)

3 SERVICE REQUIREMENT 1 YEARA.4 EXEMPTIONS:SECTION I, RULE V, BOOK III RULES IMPLEMENTING THE LABOR CODE GOVERNMENT EMPLOYEES DOMESTIC HELPERS

MANAGERIAL EMPLOYEES FIELD PERSONNEL ESTABLISHMENTS EMPLOYING LESS THAN TEN (10) WORKERS (MEANS 1-9) THOSE WHO ARE ALREADY ENJOYING VACATION LEAVES FOR AT LEAST FIVE (5) DAYS

MATERNITY LEAVE

B.1 60 DAYS FOR ORDINARY DELIVERY; 78 DAYS FOR CAESARIAN DELIVERY;B.2 FIRST FOUR (4) DELIVERIES EITHER NORMAL, ABORTION OR MISCARRIAGE;B.3 LEGITIMATE OR ILLEGITIMATE

B.4 Service requirement the pregnant woman must have rendered service of at least 6 months for the last 12 months.

B.5 The employer must have paid at least 3 months of maternity contributions within the 12-month period immediately before the semester of contingency. (R.A. NO. 8282; ART. 133)

PATERNITY LEAVE C.1 7 days for married male employee, and cohabiting or living together as husband and wife.C.2 First four (4) deliveries either normal, abortion or miscarriage (R.A. NO. 8187, 7/5/96)

SOLO PARENT LEAVE D.1 7 DAYS FOR SOLO PARENT (MALE AND FEMALE)D.2 WHO IS A SOLO PARENT?A WOMAN WHO GIVES BIRTH AS A RESULT OF RAPE;WIDOW OR WIDOWER;SPOUSE OF CONVICT IN JAIL;SPOUSE OF INSANE;SPOUSE AFTER LEGAL SEPARATION WITH CUSTODY OF CHILDREN;

SPOUSE AFTER DECLARATION OF NULLITY OF MARRIAGE WITH CUSTODY OF CHILDREN;

SPOUSE ABANDONED FOR AT LEAST ONE YEAR;

UNMARRIED MOTHER OR FATHER WITH CUSTODY OF CHILDREN;

ANY PERSON WHO SOLELY PROVIDES PASTORAL CARE AND SUPPORT TO A CHILD; AND

ANY FAMILY MEMBER WHO ASSUMES RESPONSIBILITY OF A PARENT WHO ABANDONS. (R.A. NO. 8972, 11/7/2000)

BATTERED WOMAN LEAVE

E.1- 10 DAYS LEAVE WITH PAY IN ADDITION TO OTHER PAID LEAVES UNDER THE LABOR CODE, OTHER LAWS AND COMPANY POLICIES.

BATTERED WOMAN Is one who is a victim of any act or series of acts of violence committed by any person which resulted to her physical, sexual or psychological suffering.E.3. TO APPLY FOR SUCH LEAVE, THE WOMAN EMPLOYEE

Has to submit a certification from the barangay captain or kagawad or prosecutor or the clerk of court that an action under R.A. No. 9262 has been filed and is pending.

Usage of the 10-day leave is at the option of the woman employee. It shall cover the day or days when she will have to attend to medical and legal concerns.

LEAVES NOT AVAILED OF ARE NON-CUMULATIVE AND NOT CONVERTIBLE TO CASH (R.A. NO. 9262, THE ANTI-VIOLENCE AGAINST WOMEN AND THEIR CHILDREN ACT OF 2004; 3/8/04).

II 13TH MONTH PAYThe purpose of 13th month pay is to help the plight of the working masses to properly celebrate Christmas and New Year.The employee must have rendered service with the company for at least one (1) month.

The minimum 13th month pay required by law shall not be less than 1/12 of the total basic salary earned by an employee within a calendar year.

The required 13th month pay shall be paid not later than December 24 each year. An employer, however, may give to his employees one half (1/2) of the required 13th month pay before the opening of the regular school year and the other half on or before the 24th day of December of every year. (Rules Implementing P.D. No. 851)

An employee who has resigned, whose services were terminated, and who has retired at any time before the time of payment of the 13th month pay is entitled to this benefit in proportion to the length of time he worked during the year. (International School of Speech v. NLRC, G.R. No. 112658, 3/16/95).

III OVERTIME PAYIII.1 Overtime work means work performed beyond 8 hours. (In computing overtime pay, a day is understood to be 24-hour period commences from the time the employee regularly starts to work);

COMPENSATION: 1. Overtime work during ordinary day = regular hourly wage plus 25% premium2. Overtime work during holiday or rest day an additional compensation equivalent to the rate of first 8 hours on a holiday or rest day plus 30% premium. (ART. 87)

Undertime work on any particular day shall not be offset by overtime work on any other day. (Art. 88)

IV REST DAY/SPECIAL DAY PAY IV.1 THE SPECIAL DAYS ARE: NOVEMBER 1, DECEMBER 31 (E.O. NO. 203, 6/30/87), AUGUST 21 (R.A. NO. 9256), 2.25.04), OTHER SPECIAL DAYS ENACTED BY CONGRESS, AND PROCLAIMED BY THE PRESIDENT FOR CERTAIN AREA IN THE COUNTRY (EXAMPLE CHARTER DAY).

IV.2 Work performed on rest day regular wage plus 30% premium.IV.3. Work performed on special day regular wage plus 30% premium.IV.4 Work performed during rest day falling on special day regular wage plus 50% premium. (Art. 93).

IV.5 EXEMPTIONS:SECTION II, RULE I, BOOK III RULES IMPLEMENTING THE LABOR CODEGovernment employees Domestic helpers Managerial employees Field personnel Workers paid by results

V. NIGHT SHIFT DIFFERENTIAL PAYV.1 At least 10% premium of his regular wage for each hour of work performed between 10:00 oclock in the evening and 6:00 oclock in the morning of the following day. (Art. 86).

V.2 EXEMPTIONS:SECTION I, RULE II, BOOK III RULES IMPLEMENTING THE LABOR CODE

Government employees Domestic helpers Managerial employees Field personnel Retail and service establishments employing not more than five (5) workers (means 1-5)

VI. HOLIDAYS WITH PAYVI.1 Every worker shall be paid his regular wage during regular holiday.

VI.2 The eleven (11) regular holidays are January 1, Holy Thursday, Good Friday, April 9, May 1, June 12, last Sunday of August, November 30, December 25, December 30. (E.O. NO. 203, 6/30/87) AND EIDUL FITR (R.A. 9177, 11/13/02).

VI.3 The employer may require an employee to work on regular holiday but such employee shall be paid compensation equivalent to twice or 200% of his regular rate (art. 94).VI.4 If the holiday work falls on the scheduled rest day = 260% of his regular wage

VI.5 The employee shall be entitled to holiday pay provided he works on the day immediately preceding a regular holiday or when he is on leave of absence with pay, (SEC. 6, RULE IV, BOOK III, IMPLEMENTING RULES)

VI.6 - EXEMPTIONS:SECTION I, RULE IV, BOOK III RULES IMPLEMENTING THE LABOR CODEGOVERNMENT EMPLOYEES DOMESTIC HELPERS MANAGERIAL EMPLOYEES FIELD PERSONNEL RETAIL AND SERVICE ESTABLISHMENTS EMPLOYING LESS THAN TEN (10) WORKERS (MEANS 1-9)

VI.7 - DOUBLE HOLIDAY if unworked 200% - if worked - 400% (Asian Transmission Corporation vs. CA, G.R. No. 144664, 3/15/04, 425 SCRA 478).

VII. RETIREMENT PAY Retirement benefits are intended to help the employee enjoy the remaining years of his life, lessening the burden of worrying his financial support, and are a form of reward for his loyalty and service to the employer. (Laginlin vs. WCC, 159 SCRA 91)

VII.1 In general optional 60 years old; compulsory 65 years old; (ART. 287, R.A. NO. 7641)VII.2 Underground mining optional 50 years old; compulsory 60 years old; (ART. 287, R.A. NO. 8558)

VII.3 Minimum length of service AT LEAST 5 YEARSVII.4 Retirement benefit month pay for every year of service a fraction of at least 6 months being considered as one (1) whole year.

VII.5 THE TERM 1/2 MONTH PAY SHALL MEAN:

15 DAYS SALARY5 DAYS EQUIVALENT OF SERVICE INCENTIVE LEAVE 1/12 OF THE 13TH MONTH PAY(FACTORS IN OBTAINING 1/12 OF THE 13TH MONTH PAY:391.5/12/12 = 2.71 (EMPLOYEES WHO WORK 365 DAYS IN A YEAR)

365/12/12 = 2.53 (MONTHLY RATE EMPLOYEES)314/12/12 = 2.18 (DAILY RATE EMPLOYEES)262/12/12 = 1.81 (EMPLOYEES WHO WORK FIVE (5) DAYS PER WEEK)MOST COMMON = 15 + 5 + 2.18 = 22.18 DAYS FOR EVERY YEAR OF SERVICE.

VII.6 EXEMPTIONS:Section 2. Rule II Rules implementing the New Retirement Law (R.A. No. 7641)GOVERNMENT EMPLOYEES DOMESTIC HELPERS RETAIL, SERVICE AND AGRICULTURAL ESTABLISHMENTS EMPLOYING NOT MORE THAN TEN (10) WORKERS (MEANS) (1-10)

VIII. SERVICE CHARGES VIII.1 Shall apply to hotels, restaurants and similar establishments.VIII.2 DISTRIBUTION RATE:85% FOR ALL COVERED EMPLOYEES.15% FOR MANAGEMENT. (ART. 96).

IX.3 EXEMPTIONS: Barangay Micro Business Enterprises whose total assets exclusive of land shall not be more than P3 M after issuance of Certificate of Authority by the City/Municipality Treasurer. Social security and health care benefits are not included. (Sec. 8, R.A. No. 9178, BMBE Act of 2002, approved on November 13, 2002).

SEPARATION PAYIt is a statutory right designed to provide the employee with the wherewithal during the period he is looking for another employment (Santos vs. NLRC, 154 SCRA 166).

X.1 An employee is entitled to separation pay equivalent to his one (1) month pay for every year of service. A fraction of at least six (6) months being considered as one whole year. If his separation from service is due to any of the following:

INSTALLATION BY THE EMPLOYER OF LABOR-SAVING DEVICES ANDREDUNDANCY, AS WHEN THE POSITION OF THE EMPLOYEE HAS BEEN FOUND TO BE SURPLUSAGE OR UNNECESSARY IN THE OPERATION OF THE BUSINESS. (ART. 283)

X.2 An employee is entitled to separation pay equivalent to one (1) month pay, or one-half (1/2) month pay whichever is higher for every year of service a fraction of at least six months being considered as one whole year, if his separation is due to any of the following causes:

RETRENCHMENT TO PREVENT LOSSES, i.e. REDUCTION OF PERSONNEL;CLOSURE OR CESSATION OF OPERATION OR UNDERATAKING OF AN ESTABLISHMENT NOT DUE TO SERIOUS LOSSES OR FINANCIAL REVERSES (ART. 283); AND

When the employee is suffering from a disease not curable within a period of six (6) months and his continued employment is prejudicial to his health or to the health of his co-employees (Art. 284).

X.3 PROCEDURE Serve a written notice on the workers and the regional director of the department of labor and employment having jurisdiction over the place of business at least one (1) month before the intended termination.

B- STEPS FOR DEALING APROBLEM EMPLOYEEAn ideal employee is one who will help solve an existing problem and will not add any problem to his employer. Conversely, an employee is a problem one.

B.1 - DISCIPLINARY PROCESSEstablish performance standards and work rules; Communicate the rules to employees; Evaluate employee performance and identify violations of the rules; Conduct investigation; Inform the union if company is unionized; Application of corrective action when necessary.

B.2 CIRCUMSTANCES AFFECTING LIABILITYJustifying;Qualifying;Exempting;Mitigating;Aggravating. Note: Good performance, long tenure, first offense are mitigating factors while recidivism is an aggravating factor.

B.3 DISCIPLINARY ACTIONSOral or written warning; Reprimand Fines (economic sanctions); Demotion; Suspension; Dismissal

STEPS TO TAKE BEFORE FIRING AN EMPLOYEEC.1 The procedure for termination of employment based on just causes as defined in Article 282 of the Code:

1. A written notice served to the employee specifying the ground or grounds for termination, and giving to said employee reasonable opportunity within which to explain his side;

2. A hearing or conference during which the employee concerned, with assistance of counsel if the employee so desires, is given the opportunity to respond to the charge, present his evidence or rebut the evidence presented against him; and

3. A written notice of termination served on the employee indicating that upon due consideration of all the circumstances, grounds have been established to justify his termination.In case of termination, the foregoing notices shall be served on the employees last known address.

For termination of employment based on authorized causes as defined in Article 283 of the Code, the requirements of due process shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the Department at

least thirty (30) days before the effectivity of the termination, specifying the ground or grounds for termination.

If the termination is brought by the completion of the contract or phase thereof, no prior notice is required. If the termination is brought about by the failure of an employee to meet the standards of the employer in the case of probationary employment, it shall be sufficient that written notice is served to the employee within a reasonable time from the effective date of termination.

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 Commission.

During the hearing of the termination cases based on just causes, the employer may place the worker concerned under preventive suspension if his continued employment poses a serious and imminent threat to the life and property of the employer or of his co-worker. No preventive suspension shall last longer than thirty (30) days.

The law requires that the employer must furnish the worker sought to be dismissed with two written notices before termination of employment can be legally affected:

1. Notice which apprises the employee of the particular acts or omissions for which his dismissal is sought; and

2. Subsequent notice which informs the employee of the employers decision to dismiss him. Failure to comply with the requirements taints the dismissal with illegality. This procedure is mandatory, in the absence of which, any judgment reached by management is void and inexistent. (Pepsi-Cola v. NLRC, 101900, June 23, 1992).

C.2 LEGAL IMPLICATION IF THE TERMINATION OF AN EMPLOYEE IS WITHOUT COMPLIANCE OF THE DUE PROCESS REQUIREMENT

If the dismissal is based on a just cause under Article 282 but the employer failed to comply with the notice requirement, the sanction to be imposed upon him should be tempered (P30,000.00) because the dismissal process was, in effect, initiated by an act imputable to the employee (AGABON CASE).

If the dismissal is based on an authorized cause under Article 283 but the employer failed to comply with the notice requirement, the sanction should be stiffer (P50,000.00) because the dismissal process was initiated by the employers exercise of his management prerogative. (Jaka Food Processing Corporation vs. Darwin Pacot, G.R. No. 151378, March 28, 2005).

D-I WAGE ISSUESWage mean the remuneration capable of being expressed in terms of money which is payable by an employer to an employee for services rendered. (Article 97 (f), Labor Code).

1. The minimum wage rates in every region of the country shall be those prescribed by the Regional Tripartite wages and Productivity Board (RTWPB). (Art. 99, Labor Code)2. The employer may not unilaterally withdraw, eliminate or diminish wage, supplements or other benefits being enjoyed by the employees. (Art. 100, Labor Code).

3. An employer cannot be forced to distribute bonuses which it can no longer afford to pay. To hold otherwise would be to penalize an employer for his past generosity. Bonus is an act of grace and cannot be demanded as a matter of right. (Producers Bank vs. NLRC, G.R. 100701, 3/28/01).

4. The payment of wages by an employer to an employee shall be in legal tender. (Art. 102, Labor Code).

5. The wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. No employer shall make payment with less frequency than once a month. (Art. 103, Labor Code).

6. The payment of wages shall be made at or near the place or undertaking. The payment o wages through automated teller machines is allowed. (Art. 104, Labor Code).

7. The wages shall be paid directly to the workers to whom they are due except in cases of force majeure or under special circumstances. (Art. 105, Labor Code).

D-2 WAGE DEDUCTIONS

No employer shall make any deduction from the wages of his employees except:

1. In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance;

2. Union dues;3. Value of meals and other facilities;4. Debt of an employee to the employer where such has become due and demandable;5. Withholding tax;6. SSS, Philhealth and Pag-Ibig Contributions;7. Dues to a legally established cooperative;

8. Loss or damage; provided the responsibility of an employee has been clearly shown; with opportunity to be heard; and the deduction is fair, reasonable, does not exceed the actual loss or damage and does not exceed 20% of his wages in a week; and9. Absences. (Arts. 113, 114 and 115, Labor Code)

SUPREME COURT DECISIONS ON LEGAL AND ILLEGAL DISMISSAL AND OTHER ISSUES ON LABOR

1. ATTITUDE PROBLEM A VALID GROUND FOR TERMINATION.

An employee who cannot get along with his co-employees is detrimental to the company for he can upset and strain the working environment. Without the necessary teamwork and synergy, the organization cannot function well. Thus, management has the prerogative to take the necessary action to correct the situation and protect its organization.

When personal differences between employees and management affect the work environment, the peace of the company is affected. Thus, an employee attitude problem is a valid ground for his termination. It is a situation analogous to loss of trust and confidence that must be duly proved by the employer (Heavylift Manila, Inc. v. CA, G.R. No. 154410, October 20, 2005).

2. SHOWING DISRESPECT AND MAKING OFFENSIVE REMARKS AGAINST SUPERIOR ARE GROUNDS FOR TERMINATION.

The showing of disrespect and making offensive remarks against his superior is a valid ground for termination which is tantamount to serious misconduct (Punzal v. ETSI Technologies, Inc. G.R. Nos. 170384-85, March 9, 2007).

In falsely accusing a superior for robbery, the offense committed was libel, not slander (Torreda v. Toshiba Information Equipment, Inc., G.R. No. 165960, February 8, 2007).

The utterance of obscene, insulting or offensive words against a superior constitutes gross misconduct, which is one of the grounds to terminate the services of an employee (Echevaria v. Venutek Medika, Inc., G.R. No. 169231, February 15, 2007).

3. POSTING NOTICE OF CLOSURE ON BULLETIN BOARD IS NOT COMPLIANCE OF DUE PROCESS.

- The mere posting on the company bulletin board does not meet the requirement under Article 283 of serving a written notice on the workers. In order to meet the purpose of informing the employees of the specific date of termination or closure of business operations at least one month before the date of effectivity, service of written notice must be made individually upon each and every employee of the company (Galaxie Workers Union v. NLRC, G.R. No. 165757, October 17, 2006).

4. Refusal to render overtime work to meet the production deadline is considered insubordination (R.B. Michael Press v. Galit, G.R. No. 153510, February 13, 2008).

5. The employer may be liable for damages if he fails to report to the SSS within five (5) days the entry in the logbook, the sickness, injury or death he deems to be work-connected under Articles 205 and 206 of the Labor Code (U-Bix Corporation v. Bandiola, G.R. No. 157168, June 26, 2007).