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Labor laws governing cooperatives


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  • Our Labor Laws is almost focused on employer-employee relationships failing to recognize the nature and culture of Workers' Cooperatives which a form of business ownership owned, managed by workers themselves.
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Labor laws governing cooperatives

  1. 1. Labor legislation is divided broadly into: LABOR STANDARDS – refers to the minimum terms and conditions of employment which employees are legally entitled to and employers must comply with. LABOR RELATIONS – refers to the interactions between employer and employees or their representatives and the mechanism by which the employment standards are negotiated, adjusted and enforced. Books I to IV of the Labor Code deal with Standards Books V to VII deal with Relations.
  2. 2. Social Legislation are laws which provide social security benefits through:1. Income substitutes in case they suffer contingencies resulting in temporary or permanent loss of earning capacity;2. Rehabilitation assistance for work-related disability3. Financial assistance or allowance for death or sickness4. Old age pensions in case of retirement5. Credit access for social needs
  3. 3. Social Security benefits are sourced from a common fund sustained by contributions both from employers and employees. These are:1. The EMPLOYEES COMPENSATION PROGRAM, which provides employees and dependents with tax-exempt income and medical benefits in case of work-connected disability or death;2. The SOCIAL SECURITY PROGRAM, which provides tax-exempt benefits for employees and their families in case of disability, sickness, old age or death;3. The HOUSING PROGRAM, which provides employees who are members of SSS and PAGIBIG PROGRAM with housing loans.
  4. 4. Also a part of Social Legislation is the RETIREMENT LAW, which provides retirement benefits equivalent to 22.5 days salary for every year of service for optional retirement at 60 under R.A. 7641 or under applicable agreement or for compulsory retirement at age 65.For underground mine employees, optional retirement at 50 under R.A. 7641 as amended by R.A. 8558; compulsory at 60.
  6. 6. 1. MINIMUM WAGEREPUBLIC ACT No. 6727 (also known as the “Wage Rationalization Act”) mandates the fixing of the statutory minimum wages applicable to different industrial sectors, namely, Non-Agricultural, Agricultural Plantation and Non-Plantation, Cottage/Handicraft, and Retail/Service, depending on the number of workers or capitalization or annual gross sales in some sectors.
  7. 7. The said law rationalized wage determination by establishing the mechanism and proper standards through the creation of Regional Tripartite Wages and Productivity Boards authorized to determine the wage rates in the different regions based on established criteria.Existing Regional Wage Orders prescribe the daily minimum basic wage rates per industry per locality within the region, in some instances depending on the number of workers and the capitalization of enterprises. The Wage Orders likewise provide the basis and procedure for exemption from compliance. Some Wage Orders grant allowances instead of wage increases.
  8. 8. A. CoverageThe wage increases prescribed under Wage Orders apply to all private sector workers and employees regardless of their position, designation or status and irrespective of the method by which their wages are paid, except the following:1. Househelpers, including family drivers and workers in the personal service of another whose conditions of work are prescribed in R.A. 7655.2. Workers and employees in: a) retail/service establishments regularly employing not more than ten (10); b) of distressed establishments; and c) of other firms or employers as determined by the Board, when specifically exempted from compliance for a period fixed by the Board.3. Workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority issued by the Office of the Municipal or City Treasurer.
  9. 9. 2. HOLIDAY PAY (Art. 94)Holiday Pay refers to the payment of the regular daily wage for any unworked regular holiday.COVERAGE:This benefit applies to all employees except:1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws.2. Those of retail and service establishments regularly employing less than ten (10) workers.
  10. 10. HOLIDAY PAY - Coverage cont…..3. Househelpers and persons in the personal service of another.4. Managerial employees, if they meet all the following conditions: 4.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereat. 4.2 They customarily and regularly direct the work of two or more employee therein. 4.3 They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing and promotion or any other change of status of other employees are given particular weight.
  11. 11. HOLIDAY PAY - Coverage cont…..5. Officers or members of a managerial staff, if they perform the ff. duties and responsibilities: 5.1 Primarily perform work directly related to management policies of their employer; 5.2 Customarily and regularly exercise discretion and independent judgment. 5.3. (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he/she is employed; (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience or knowledge; or (c) execute, under general supervision, special assignments and tasks; and 5.4 Do not devote more than twenty percent (20%) of their hours worked in workweek to activities which are not directly and closely related to the performance of the work described in par. 5.1, 5.2, and 5.3 above.
  12. 12. HOLIDAY PAY - Coverage cont…..6. Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.
  13. 13. REGULAR HOLIDAYSEvery employee covered by the Holiday Pay Rule is entitled to his/her daily basic wage and ECOLA. This means that the employee is entitled to at least 100% of his/her basic wage even if he/she did not report for work. Provided he/she is present or is on leave of absence with pay on the work day immediately preceding the holiday.When a Regular Holiday falls on a Sunday, the following Monday shall not be a holiday, unless a proclamation is issued declaring it a special day.
  14. 14. There are eleven (11) Regular Holidays in a yearunder Executive Order No. 203, as amended by Republic Act 9177, namely: 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 Eidl Fitr Movable date Bonifacio Day November 30 Christmas Day December 25 Rizal Day December 30
  15. 15. MUSLIM HOLIDAYS Presidential Decree 1083 Amun Jadid (New Year), which falls on the first day of the lunar month of Muharram; Maulid-un-Nabi (Birthday of the Prophet Muhammad), which falls on the twelfth day of the third lunar month of Rabi-ul-Awwal; Lailatul Isra Wal Miraj (Nocturnal Journey and Ascension of the Prophet Muhammad), which falls on the twenty-seventh day of the seventh lunar month of Rajab; Id-ul-Adha (Hari Raha Haji), which falls on the tenth day of the twelfth lunar month of Dhu’l-Hijja. The dates of Muslim Holidays shall be determined by the Office of the President of the Philippines in accordance with the Muslim Lunar Calendar (Hijra).
  16. 16. PRESIDENTIAL PROCLAMATION NO. 1198 (26 October 1973)“All private corporations, offices, agencies and entities or establishments operating within the provinces and cities enumerated herein shall observe the legal holidays as proclaimed, provided, however, that all Muslim employees working outside of the Muslim provinces and cities shall be excused from work during the observance of the Muslim Holidays as recognized by law without diminution or loss of wages during the said period . . . .”
  17. 17. 3. PREMIUM PAY (Articles 91-93 – Labor Code)PREMIUM PAY refers to the additional compensation for work performed within eight (8) hours on non- work days, such as rest days and special days.SPECIAL DAYS – Executive Order No. 203, as amended by R.A. 9256, lists down three (3) Special Days that shall be observed in the Philippines: Ninoy Aquino Day August 21 All Saints Day November 1 Last Day of the Year December 31
  18. 18. 4. OVERTIME PAY (Article 87)OVERTIME PAY refers to the additional compensation for work performed beyond eight (8) hours a day.WORK DAY refers to any day 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 beless than one hour.
  19. 19. OVERTIME PAY . . . Cont.An employee may not be compelled to work overtime except: 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.
  20. 20. OVERTIME PAY . . . Cont.An employee may not be compelled to work overtime except: 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.
  21. 21. 5. NIGHT SHIFT DIFFERENTIAL (Article 86)Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10pm and 6am.
  22. 22. 6. SERVICE CHARGES (Article 96) SHARING – All rank-and-file employees of employers collecting service charges are entitled to an equal share in the eighty-five percent (85%) of the total of such charges. The remaining fifteen percent (15%) of the charges may be retained by management to answer for losses and breakages and for distribution to managerial employees, at the discretion of the management in the latter case. Service Charges are collected by most hotels and some restaurants, night clubs, cocktail lounges, among others.
  23. 23. 7. SERVICE INCENTIVE LEAVE (Article 95)Every employee who has rendered at least one (1) year of service is entitled to Service Incentive Leave (SIL) of five (5) days with pay. The phrase “one year of service” of the employee means service within twelve (12) months, whether continuous or broken, reckoned from the date the employee started working.
  24. 24. 8. MATERNITY LEAVE (R.A. 1161, as amended by R.A. 8282)This benefit applies to all female employees, whether married or unmarried and is entitled to sixty (60) days leave benefit in case of normal delivery or miscarriage and seventy-eight (78) days in case of Caesarian section delivery with benefits equivalent to one hundred percent (100%) of the average daily salary credit of the employee as defined under the law. The female employee should be an SSS member employed at the time of her delivery and have paid at least three monthly contributions to the SSS within the twelve-month period immediately before the date of the contingency. This benefit is granted by the Social Security System in lieu of wages.
  25. 25. 9. PATERNITY LEAVE (R.A. 8187)Paternity Leave is granted to all married male employees in the private sector, regardless of their employment status (e.g. probationary, regular, contractual, project basis). The purpose of this benefit is to allow the husband to lend support to his wife during her period of recovery and/or in nursing her newborn child.Government employees are also entitled to the paternity leave benefit. They shall be governed by the Civil Service rules.The Paternity Leave shall be for seven (7) calendar 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. Said benefit shall apply to the first four(4) deliveries of the employee’s lawful wife with whom he is cohabiting.
  26. 26. 11. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND THEIR CHILDREN (R.A. 9262)“Violence against women and their children” as used in Republic Act 9262 (the “Anti-Violence Against Women and Their Children Act of 2004”), refers to any act or a series of acts committed by any person against a woman who is his wife, former wife, or against a woman with whom the person has or had a sexual or dating relationship, or with whom he has a common child, or against her child whether legitimate or illegitimate, within or without the family abode, which will result in or is likely to result in physical, sexual, psychological harm or suffering, or economic abuse including threats of such acts, battery assault, coercion, harassment or arbitrary deprivation of liberty.
  27. 27. 10. PARENTAL LEAVE FOR SOLO PARENTS (R.A. 8972)“PARENTAL LEAVE” shall mean leave benefits granted to a solo parent to enable him/her to perform duties and responsibilities where physical presence is required. This benefit is granted to any solo parent or individual who is left alone with the responsibility of parenthood. This is in addition to leave privileges under existing laws and shall be for seven (7) work days every year, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his/her pay shall not be less than the mandated minimum wage.
  28. 28. This benefit is in addition to other paid leaves under existing labor laws, company policies, and/or collective bargaining agreements. The qualified victim-employees shall be entitled to a leave of up to ten (10) days with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board., if any. Said leave shall be extended when the need arises, as specified in the protection order issued by the barangay or the court. The leave benefit shall cover the days that the woman employee has to attend to medical and legal concerns.
  29. 29. 12. THIRTEENTH-MONTH PAY (Presidential Decree 851)All employers are required to pay their rank-and-file employees Thirteenth-Month Pay, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one (1) month during a calendar year. The Thirteenth-Month Pay should be given to the employees not later than December 24 every year. Said pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee in a calendar year. The mandated pay need not be credited as part of the regular wage of employees for purposes of determining overtime and premium payments, fringe benefits, as well as contributions to the State Insurance Funds, Social Security System, Medicare and private retirement plans.
  30. 30. 13. SEPARATION PAY (Articles 283-84 Labor Code)Separation Pay is given to employees in instances covered by Articles 283 and 284 of the Labor Code . An employee’s entitlement to Separation Pay depends on the reason or ground for the termination of his/her services. An employee may be terminated for just cause and other similar causes as enumerated under Article 282 of the Labor Code and, generally, may not be entitled to Separation Pay. On the other hand, where the termination is for authorized causes, Separation Pay is due. Computation of Separation Pay shall be based on his/her latest salary rate.
  31. 31. 14. RETIREMENT PAY (Article 287, as amended by RA 7641)Employees shall be retired upon reaching the age sixty (60) or more but not beyond sixty-five (65) years old. It provides retirement benefits equivalent to 22.5 days salary for every year of service, optional or compulsory. This benefit applies to all employees except: 1. government employees; 2. employees of retail, service and agricultural establishments/operations regularly employing not more than ten (10) employees.
  32. 32. 15. BENEFITS UNDER THE EMPLOYEES’ COMPENSATION PROGRAM (Pres. Decree 626)The Employees’ Compensation Program (ECP) is a government program designed to provide a package of benefits for public and private sector employees and their dependents in the event of work-related contingencies such as sickness, injury, disability or death. This covers all workers in the formal sector. Coverage in the ECP starts on the first day of employment. Employees in the private sector who are registered members of the SSS, except self-employed workers and voluntary members of the SSS.
  33. 33. 16. PHILHEALTH BENEFITS (R.A. 7875, as amended by R.A. 9241)The National Health Insurance Program (NHIP), formerly known as Medicare, is a health insurance program for SSS members and their dependents whereby the health insurance subsidize the sick who may find themselves in need of financial assistance when they get hospitalized.The Philippine Health Insurance Corporation or PhilHealth is the mandated administrator of the Medicare program under the National Health Insurance Act of 1995 (R.A. 7875)
  34. 34. 17. SOCIAL SECURITY BENEFITS (RA 1161, as amended by RA 8282)The Social Security Program provides a package of benefits in the event of death, disability, sickness, maternity and old age. Basically, the SSS provides for a replacement of income lost on account of the aforementioned contingencies. This covers a private employee, whether permanent, temporary or provisional; a household helper earning at least P1,000 a month subject to compulsory coverage starting Sept. 1, 1993.
  36. 36. SOURCES OF LABOR RIGHTS 1. Constitution 2. Labor Code and its Implementing Rules and Regulations 3. Civil Code of the Philippines 4. Special Laws/Orders a. Wage Order b. Productivity Incentives Act c. Retirement d. Paternity e. Sexual Harassment
  37. 37. SOURCES OF LABOR RIGHTS f. Prohibition on Discrimination Act g. Child Abuse, Exploitation and Discrimination Act h. Solo Parents’ Welfare Act i. Others 5. Employment Contracts 6. Company Personnel Policy (CPP) 7. Company Rules and Regulations (CRR) 8. Collective Bargaining Agreement (CBA)
  38. 38. RELEVANT PROVISIONS OF THE CONSTITUTIONARTICLE II, SECTION 18 – The State:  Affirms Labor as a Primary Social Economic Force;  Shall Protect the Rights and Promote the Welfare of Workers – The Workers:  Shall be entitled to security of tenure, humane conditions of work, and living wage  Shall participate in policy and decision- making processes affecting their rights and benefits as may be provided by law.
  39. 39. ARTICLE XIII, SECTION 3– The State:  Shall afford full protection to labor, local and overseas, organized and unorganized;  Shall promote full employment and equality of employment opportunities for all;  shall guarantee the rights of workers to:  Self-organization, collective bargaining and negotiations  Peaceful concerted activities, including the right to strike in accordance with law.  Shall promote principle of shared responsibility between workers and employers
  40. 40. State Policies on Labor RelationsArticle 211, Labor Code Primacy of collective bargaining Provision of an adequate administrative machinery for the expeditious settlement of labor or industrial disputes Ensuring a stable but dynamic and just industrial peace Ensuring the participation of workers in decision and policy-making processes affecting their rights, duties and welfare
  42. 42. Statutory Right Constitutional Right Management Security of Prerogative Tenure Right to Right to Property Life
  43. 43. BILL OF RIGHTS[Article III, Section I, Constitution] “No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.”
  44. 44. SOCIAL JUSTICE & HUMAN RIGHTS Article XIII, Section 3 Constitution “The State shall afford full protection to labor, local and overseas, organized and unorganized and promote full employment and equality ofemployment opportunities for all.”
  45. 45. RIGHTS - are those which an individual has a rightful claim as a person I relation to his/her workplace by law.PRIVILEGES – are those benefits given by the company to a worker and which may be taken away at any time. However, it should be emphasized that once those privileges are incorporated in the contract, they automatically become rights of the worker.
  46. 46. CLASSIFICATION OF RIGHTSINDIVIDUAL RIGHTS - are rights which are inherent as a person in relation to his workplace. These rights exist independently of any worker’s organization.COLLECTIVE RIGHTS – pertains to rights exercised by employees as a group including the right to form unions, bargain collectively with management and to engage in collective action or concerted activities within the limits prescribed by law and to participate in decision-making processes. These are in addition to the worker’s individual rights.
  47. 47. BASIC INDIVIDUAL RIGHTS in accordance to the Labor Code1. The right to join or not to join unions/organizations.2. Right to Security of Tenure3. Right to just and humane Conditions of Work. Right to rest. Right to overtime pay for work in excess of eight (8) hours Right to a meal period (one (1) hour. Right to rest day premium. Right to holiday pay and premium.4. Right to Service Incentive Leave
  48. 48. BASIC INDIVIDUAL RIGHTS in accordance to the Labor Code5. Right to statutory minimum wage with COLA integration.6. Right to 13th Month Pay.7. Right to Service Charge 85% for employees 15% for management8. Right to Night Shift Differential.9. Right to protection of wages.10. Right of labor to its just share in the fruits of production.11. Right to Maternity and Paternity Leave12. Right to certain facilities.
  49. 49. Legal Framework of Labor Relations In the Philippines I II III Workers’ Law/ Management Rights CBA PrerogativesWorkers’ Rights Law/CBA Management Prerogatives 1. Security of Tenure A. Compensation 1. Hire 2. Self Organization B. Benefits 2. Fire 3. Collective Bargaining C. Labor Relations 3. Transfer 4. Just and Humane a. Grievance 4. Promote/Demote Conditions of Work b. Dialogue 5. Lay Off 5. Strikes/Concerted c. Strike 6. Lay Down Policies Actions d. Voluntary 7. Discipline 6. Participation in Arbitration 8. Working Hours Decision Making D. Employment/ 9. Working 7. Just Share in the Termination of Procedures Fruits of Production Employment 8. Labor Standards 9. CBA Rights
  50. 50. Objectives of CPP and CRR1. To ensure that the people in the company undertake their tasks as effectively as possible.2. To promote efficiency, well- being and well-disciplined conduct and behavior of the employees.
  51. 51. COMPANY POLICIESTwo of the most elastic terms in the vocabulary of industry are ‘COMPANY POLICY’ and ‘CORPORATE OBJECTIVE’. The first is often a cloak to hide the behind; and, the second is a managerial haven for generalities.POLICY is merely the outgrowth of practice. In any operation, there is a customary way of doing things. This is what we call the practice. When the performance of a single task is standardized, a method is established. A series of interrelated steps performed in sequence becomes a procedure. While a system is a network of related procedures. All of these activities are accomplished within the framework of COMPANY POLICY . Whether written or unwritten.
  52. 52. Company Policies• A general plan of action and/or a set of rules bywhich business corporations are managed, directedand controlled.• A structure which specifies the distribution ofrights and responsibilities among the differentparticipants in the corporation. •Shareholders • Other Stakeholders •Board of Directors • Customers/Dealers •Officers • Suppliers/Contractors •Employees • Regulators/Government • Community
  53. 53. Company Personnel Policies (CPP) Company Personnel Policies: guiding principles stated in broad, long-range terms that express the philosophy or beliefs of an organization’s top authority regarding personnel matters. The usual source of grievances are rules and regulations governing disciplinary actions.San Miguel Corp. v. NLRC, G.R. No. 108001, 15 March1996, 225 SCRA 133
  54. 54. Areas Normally Covered by the CPP1. General Provisions: a. Personnel Philosophy b. Administration and application of Policies2. Supervisory Role3. Recruitment and Selection4. Employment5. Placements, transfers, details, temporary assignments.6. Training and Development7. Employee benefits and services
  55. 55. Areas Normally Covered by the CPP8. Employee conduct and discipline9. Attendance and time keeping10. Leaves11. Performance standards and performance evaluation12. Complaints and grievances13. Retirement and separation14. Others
  56. 56. Company Rules & Regulations (CRR) Rules are more specific guides than the main policy itself and, as such, specify the means for implementing them; usually, with penalty provisions. They provide uniform methods in the application of the policy. Provide guidelines to the supervisor in making decisions or action plans on certain personnel problems within reasonable limits. Provide guidelines of compliance by company personnel.
  57. 57. Why do we need CRR?1. To give life and direction to the program of activities covering the needs of the organization and its human resources.2. To protect the rights of all personnel.3. To provide uniformity and consistency in the application of policies. (consistency and fairness of decision in recurring problems)4. To maintain organized effort in preventing confusion and delay in avoiding injustice to any employee. (serves as standards of performance and provides consistency in the treatment of employees)
  58. 58. Characteristics of a Good CRR1. Provides in clear terms the expected norms of behavior by employees and reasonable and appropriate penalties for violation.2. Following them must make a difference to the organization.3. Easy to enforce and easier to understand.4. Reasonable and necessary.5. Known and communicated to all.
  59. 59. Characteristics of a Good CRR6. Provides for due process – “Day in Court” principle as well as fair and objective investigation.7. Consistent and non-discriminatory in its application.8. Provide for increasingly serious steps if the problem is not resolved.9. Must result in the employee’s changing behavior to become a good performer.
  60. 60. Expectations in the implementation,interpretation and enforcement of the CRR 1. Grievances/complaints 2. Discipline actions o Verbal warning o Written warning o Suspension o Termination
  61. 61. How are CPPs and CRRs announced or made known? Employee Handbooks Company Publications Memoranda or Circulars Company Bulletin Boards Meetings or Conferences
  64. 64. LAWFUL GROUNDS FORTERMINATION1. The so-called Just Causes under Article 282 of the Labor Code.2. The Authorized Causes as enumerated in Articles 283, 284 and 287 of the Labor Code.3. Violation of Union Security Clauses in the Collective Bargaining Agreement (CBA).4. Those arising from the nature of employment.
  65. 65. Article 282 – Labor Code JUST CAUSES FOR TERMINATION1. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;2. Gross and habitual neglect by the employee of his duties;3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
  66. 66. Article 282 – Labor Code JUST CAUSES FOR TERMINATION4. Commission of a crime or offense of the employee against the person of his employer or any immediate member of his family or his duly authorized representative;5. Other causes analogous to the foregoing.
  67. 67. The separation from work of an employee for a just cause does not entitle him to the termination payprovided in the Labor Code. Without prejudice, however, to whatever rights, benefits and privileges he may have under the applicable individual or collective agreement with the employer or voluntary employer practice. (Sec. 7, Rule I, Book IV, Rules Implementing the Labor Code)
  68. 68. AUTHORIZED CAUSES FOR TERMINATION (Articles 283, 284, & 287)1. Installation of labor-saving devices or redundancy.2. Retrenchment to prevent losses.3. Closure or cessation of operation. (Article 283, Labor Code)4. Disease or medical termination. (Article 284, Labor Code)5. Retirement (Article 287, Labor Code)
  69. 69. Termination due to the abovecauses entitles the employees toTERMINATION PAY, as follows:No. 1 - At least one (1) month pay forevery year of service.No. 2, 3 & 4 - At least one (1) monthpay or one-half (1/2) month for everyyear of service, whichever is higher
  70. 70. DUE PROCESS IN TERMINATION• Notice to Explain a) in writing b) with specific charge or offense c) must be received by the employee. If employee is not available to receive, it must be sent to the employee’s last known address.• Notice to dismiss must be in writing and sent to the employee’s last known address.
  71. 71. Decision of reinstatement on illegal dismissals by Labor Arbiter or Voluntary Arbitrator is immediately executory, pending appeal.This does not apply to payment of backwages, damages or other money claims as a result of the illegal termination.
  72. 72. Pending investigation, employee can beput under preventive suspension,provided:a) Continued employment poses serious and imminent threat to life or property of the employer or of his co-workers;b) Suspension must not be longer than thirty (30) days;c) After 30 days, while investigation is still pending: -actual physical reinstatement to former or substantially equivalent position; or -payroll reinstatement
  73. 73. DISMISSALS based on Union SecurityClauses:• Elements: - CBA provision must be specific - Bargaining union must demand for it - Due process must be observed• Does not apply to: - Non-union members in the bargaining unit, but are members of another union - During the freedom period
  74. 74. RULES & REGULATIONS ONDISCIPLNE:• Rules and Regulations must be spelled out in detail the offenses as broadly defined by law. It should be an improvement of the law in favor of the workers.• The Law shall be applied when no rules and regulations are being utilized.
  75. 75. For the Rules to be valid, thefollowing Principles shall be applied:• It must be known to all the employees.• It must be reasonable and not oppressive.• It must be uniform in application.• It must be progressive in application