LABOR LAW DISCUSSION VIDEO

Labor Standards

refer to Philippine laws that provide minimum requirements regarding work conditions, work hours, wages, benefits, and other employment conditions that are being implemented by management

Labor Relations 

goal is to strike the proper balance between protection of workers rights vs. the exercise of management prerogatives by the employer in accordance with law and to achieve industrial peace

• proper balance between protection of workers rights vs. the exercise of management prerogatives by the employer in accordance with law.

• to achieve industrial peace

What are the goals of Labor Relations?

Industrial Peace 

• allows the company to be more productive 

• for workers to earn their living

• afford full protection to labor, local and overseas

• guarantee the rights of all workers

• security of tenure

• promotion the principle of shared responsibility between workers and employers

• rights of labor (workers) to its just fruits of production and right of enterprises (employers) to reasonable returns on investments

State Protection of Labor: Section 3

afford full protection to labor, local and overseas

organized and unorganized, and promote full employment and equality of employment opportunities for all

guarantee the rights of all workers

• self-organization, collective bargaining and negotiations, and peaceful concerted

• activities

• includes right to strike in accordance with law

security of tenure

• humane conditions of work, and a living wage

• cannot be arbitrarily fired by managers or employers

• participation in policy and decision-making processes affecting their rights and benefits

promotion the principle of shared responsibility between workers and employers

foster industrial peace

Labor Code

state shall afford protection to labor

labor or employees

all doubts in implementation and interpretation of the Law, it will be resolved in favor of _____________.

• an employer-employee relationship between parties

• number of workers employed

• nature of the employment

Things to Consider in Statutory Benefits of Workers

FALSE:

• If none, benefits are not applicable

TRUE OR FALSE:

• if there’s no employer-employee relationship between parties, benefits are still applicable.

1. Agricultural

2. Retail Establishment

3. Service Establishment

3 natures of the employment

Minimum Wage 

the lowest amount of wage that an employer should pay an employee

TRUE

TRUE OR FALSE:

• the law provides a minimum, not the maximum

TRUE

TRUE OR FALSE:

• the law provides a minimum, not the maximum. however, employer and employee can negotiate a higher pay

• Distressed businesses

• New enterprises (incl. BMBEs)

• Retail/service establishments with ≤10 workers

• Establishments hit by natural calamities

Exemptions of Minimum Wage Policy:

No Work, No Pay Policy

You get paid only if you work — “a fair day’s wage for a fair day’s labor.”

Strike

Workers voluntarily stop working; no pay for days not worked.

lockout

Employees cannot work because the employer closes operations; no work, no pay does NOT apply since it’s not the employee’s fault.

1. Selection and hiring

2. Payment of wages

3. Power to dismiss

4. Control over work (most important)

4-Fold Test

Overtime Work 

Work beyond 8 hours; +25% additional pay.

OT on Holiday/Rest Day

Regular rate for 8 hours + 30% of hourly rate.

TRUE

TRUE OR FALSE:

• OT is not presumed; employee must prove they worked overtime.

30% of regular wage (wage + 30%)

if working on a rest day, additional compensation of at least ________________

FALSE:

additional compensation is given to work performed on a Sunday, provided that it is their established rest day.

TRUE OR FALSE:

• Regular pay is given to work performed on a Sunday, provided that it is their established rest day.

30% of wage

if working on a special holiday, they will be paid additional _______

50%

if holiday falls on a rest day, additional compensation will be _____

regular daily wage

if regular holiday: if not working, paid ________

100%

if regular holiday: if working, additional ______

law

holidays are mandated by ____

Night Shift Differential

works between 10 PM to 6 AM

not less than 10% of regular wage for each hour of work

Night Shift Differential paid ____________________

Labor Relations (security of tenure) 

A company wants to fire employees without due process. Which area of labor law protects workers?

Right to participate in policy and decision-making.

Employees demand participation in company decisions affecting their benefits. Which right applies?

FALSE:

always in favor of labor

TRUE OR FALSE:

• When in doubt, labor law is interpreted in favor of management.

Yes — control test satisfied

A company controls how, when, and where a worker performs the job. Is there an employer-employee relationship?

No — exempt (retail ≤10)

A sari-sari store employs 8 workers. Must it follow minimum wage?

FALSE:

• employer must prove payment.

TRUE OR FALSE:

• Salary differential claims must be proven by the employee.

• salary differential

• service incentive leave

• holiday pay

• 13th month pay

should be paid by the employer (burden of proof) if money claims are based on:

• overtime

• premium for holidays

• rest days

burden of proof is on the employee if money claims are based on:

13th Month Pay and Bonus

1/12 of the basic salary of an employee within a calendar year

P1,000 a month

employers shall pay employees receiving a basic salary of not more than ________

not later than December 24 every year

13 month pay paid ______________

₱15,000 (₱180,000 ÷ 12)

An employee earned ₱180,000 basic salary this year. How much is her 13th month pay?

Yes — all rank-and-file employees, regardless of salary, must receive it.

A worker earns ₱1,000/month basic salary. Is the employer required to give 13th month pay?

No — it has become a management practice, so they cannot diminish it.

A company has been giving 14th month pay for 6 years. This year they want to remove it. Is this allowed?

No — existing leave benefits replace SIL.

An employee has worked for 1 year. The company gives 10 days of paid vacation leave. Is the employee still entitled to SIL?

every employee who rendered at least 1 year of service shall be entitled to yearly SIL of five days with pay

every employee who rendered at least ______ of service shall be entitled to yearly SIL of _ days with pay

Yes — she must have at least 6 months to 12 months of service.

A female employee undergoes surgery for a gynecological disorder and has worked for 10 months. Is she entitled to the 2-month paid leave?

No — the benefit is strictly a leave with pay, not convertible.

A woman takes her 2-month special leave. Can she convert unused days into cash?

No — she must have at least 1 year of service.

A solo parent wants to use leave but has only worked for 8 months. Is she eligible?

7 working days per year.

A solo parent with 3 years of service requests leave for childcare. How many paid days can they use?

No — he must be cohabiting with his legitimate spouse.

A man is legally married but does not live with his wife. She gives birth. Is he entitled to paternity leave?

No — benefit applies only to the first 4 deliveries.

A married male employee’s wife delivers their 5th child. Is he entitled to paternity leave?

Up to 10 days paid leave, extendable by court order.

A female employee who is a VAWC victim asks for leave. How many days can she take?

Yes — court-ordered extension must be respected.

A VAWC victim already used her 10-day leave but the court issues a protection order extending it. Is the employer required to approve?

Yes — 7 days are transferable regardless of marital status.

A mother gives birth and decides to give the father 7 days of her leave credits. He is not the legal husband. Is it allowed?

105 days

A mother gives birth. How long is her maternity leave with pay?

120 days (105 + 15 additional for solo parents).

If a solo mother gives birth. How long is her maternity leave with pay?

60 days paid leave

A woman has a miscarriage. How many days of paid leave does she get?

No — the additional 30 days is without pay.

A mother wants to extend her maternity leave for 30 more days. Will she be paid?

60 to 65

retirement age = _____

65

compulsory retirement age = ___

five years

Retirement pay must have served at least _____ in the establishment

1/2 month salary for every year

retirement pay = ____________ of service

6 months

__ months considered as one whole year

Years counted = 21

Half-month = ₱20,000

Retirement pay = 21 × 20,000 = ₱420,000

Mark worked for 20 years and 7 months and earns ₱40,000 monthly. What is his retirement pay?

• installation of labor-saving devices

• redundancy

• retrenchment to prevent losses

• closing or cessation of operations

employer terminating employment due to:

1 month

termination written notice must be given to the worker and DOLE at least _______ before the intended date

• 1/2 month pay for every year of service

• if less than one year of service = 1 month pay

in case of installation of labor-saving devices or redundancy. how much is the separation pay?

serious business losses or financial reverses

employers are not compelled to pay separation pay is when they close their establishments due to ____________________. 

3 days upon request

When is Certificate of Employment must be issued by HRD?

employer

In Business Closure, burden of proof is on the ______.

Yes — no proof means separation pay is required.

A business closes permanently but cannot show financial statements proving losses. Must they still pay separation pay?

SSS Act

for one to have a source of income upon retirement, there must be contributions while working

SSS

be the one collecting payments and investing these to make it grow

Social Security System

SSS stands for:

Pag-IBIG

A worker wants to apply for a housing loan. Which contribution is required?

Home Development Mutual Fund Law

a law that allows an individual to have heir own house through a membership in an integrated, nationwide savings system

PhilHealth

• make essential goods, health, and other social services available to all the people at affordable coast and to provide free medical care to paupers

• comprehensive healthcare services to all Filipinos through a socialized health insurance program

Yes — PhilHealth uses a percentage-based contribution.

higher salary = higher contribution

An employee earns a higher salary this year. Will his PhilHealth contribution increase?