Constitutional Framework

1. CHAPTER 2
THE CONSTITUTIONAL
AND LEGAL FRAMEWORK
Abad, Fhershin Acaso, Rhyzl Mae Alforque, Reyna Amor

2. THE CONSTITUTIONAL AND LEGAL FRAMEWORKS
Managing human resources is oftentimes fraught with
legal implications. One cannot just ignore the
protection of the rights of labor that are enshrined in
our Constitution and statutes principally the Labor
Code.
The Constitutional and statutory provisions protecting labor
are derived from the “Police Power” of the state to regulate
labor relations for the general welfare and to maintain
industrial peace. It is also based social justice - to ensure
protection of the weaker social partner - labor.

3. THE CONSTITUTIONAL BASIS
a.The Philippine Constitution laid the basis for protecting the rights and
welfare of employees. In the Declaration of Principles and State
Policies the Constitution provides:
“The State affirms labor as a primary socio-economic force. It shall protect
the rights of workers and promote their welfare.(Article II, Section 18).”
b. Declaration of Principles, Article XIII, Section 3 expands its labor
policy by providing that
The State shall afford fukk protection to labor, local and overseas,
organized and unorganized, and promote full employment and
equality of employment opportunities for all.

4. It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including
the right to strike in accordance with law. They shall be entitled to security
of tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights
and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes in
settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and
the right to enterprises to reasonable returns to investments, and to
expansion and growth.

5. STATUTORY AND INTERNATIONAL BASIS OF RIGHT TO
SELF-ORGANIZATION
The Labor Code reinforces this Constitutional right to self-organization
(Art.211).Also, two Geneva Conventions ratified by our Senate and
thus, become part of the law of the land, guarantee workers the right
to self-organization:
ILO Convention 87 (Freedom of Association)
ILO Convention 98 (Right to Collective Bargaining)

6. THE LABOR CODE
The Labor Code of the Philippines was enacted during Martial Law by virtue of
President Decree 442.
It is divided into six major parts:
Book One: Pre-Employment
Book Two: Human Resources Development Program
Book Three: Conditons of Employment
Book Four: Health, Safety, and Social Benefits
Book Five: Labor Relations
Book Six: Post-Employment

7. KINDS OF EMPLOYEES
Employer - includes any person acting in the interest of the employer directly or
indirectly.
Employee - includes any person in the employ of an employer.
( when will his classification as employee end and when will his classification as
employer begin?
Managerial Employee - one who is vested with powers or prerogatives to lay down
and execute management policies and/or hire, transfer, suspend, layoff, recall,
discharge, assign, or discipline employees.
1.
Supervisory Employee - one who, in the interest of the employer, effectively
recommends such managerial actions if the exercise of such authority is not merely
routinary or clerical in nature but requires the use of independent judgment.
2.
Rank and File Employee - one who is not falling under any of the preceding definitions
of managerial or supervisory employee.
3.

8. TYPES OF EMPLOYEES IN TERMS OF TENURE
There are five types of employment. Art. 280 of the Labor Code defines the first three types
of employment.
Regular - regardless of the written or oral agreement, “ an employment shall be
deemed to be regular where the employee has been engaged to perform activities
which are usually necessary or desirable in the usual business or trade of the
employer.
1.
Project - “ Where the employment 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 or where the work or services to be
performed is seasonal in nature and the employment is for the duration of the
season.”
2.
Casual - “An employment shall be deemed to be casual if it is not covered by the
preceding paragraph: Provided That, any employee who has rendered at least one
year service, whether such service is continuous or broken, shall be considered a
regular employee and his employment shall continue while such activity exists.”
3.

9. 4. Probationary - As defined in Art. 281 which provides “Probationary
employment shall not exceed six (6) months from the date the employee
started working, unless it is covered by an apprenticeship agreement
stipulating a longer period.”
5. Fixed contract employee as settled in jurisprudence - An “employment
with a fixed term, where there’s a day certain agreed upon by the parties for
the commencement and termination of their employment relationship, a
day certain being understood to be that which must necessarily come,
although it may not be known when.”
TYPE OF EMPLOYEE IN TERMS OF TENURE

10. HEALTH, SAFETY AND SOCIAL WELFARE PROVISIONS
Articles 156 to 161 of the Labor Code require employers to provide medical and dental
services. Here are some important requirements.
To keep in the employer’s establishment such first-aid medicines and equipment as
the nature and conditions of work ,ay require, in accordance with such regulations at
the DOLE shall provide. Employer shall take steps in training of sufficient number of
employees in the first-aid treatment.
To have services of full-time registered nurse when number of employees exceeds
50 But not more than 200. When employer does not maintain hazardous
workplaces, he can get the services of a graduate of first-aide where no registered
nurse is available.

11. HEALTH, SAFETY AND SOCIAL WELFARE PROVISIONS
When the number of employees exceeds 200 but not more than 300, the employer
shall get the services of a full-time registered nurse, a part-time physician and
dentist and an emergency clinic.
When the number of employees exceeds 300, the employer shall obtain the
services of a full-time physician and dentist and a full-time registered nurse as
well as a dental clinic and an infirmary or emergency hospital with one bed
capacity for every 100 employees.
The physicians, nurses, and dentists employed shall have the necessary training in
industrial medicine and occupational safety and health.
It shall be the duty of the employer to provide all necessary assistance to ensure
the adequate and immediate medical and dental attendance and treatment to an
injured or sick employee in case of emergency.

12. EMPLOYEE COMPENSATION AND STATE INSURANCE FUND
The state shall promote and develop a tax-exempt employee
compensation program whereby employees and their dependents,
in the event of work-connected disability or death, may promptly
secure adequate income benefit, and medical or related benefits.
A State Insurance fund is created out of monthly contributions by
the employer for the employee. The agency administrating this fund
is the Employees Compensation Commission which is composed of
five ex-officio members namely;
Secretary of Labor and Employment
1.
GSIS General Manager
2.
SSS Administrator
3.
Chairman of the Philippine Medical Care Commission
4.
Executive Director of the ECC secretariat
5.

13. EMPLOYEE COMPENSATION AND STATE INSURANCE FUND
The State Insurance fund shall be liable for compensation to the
employee or his dependents, except when the disability or death
was occasioned by the employee’s intoxication, willful intention to
injure or kill himself or another, or notorious negligence.
In case the employee’s injury or death was due to failure of the
employer to comply with any law, or to install and maintain safety
devices, or take other precautions for the prevention of injury, the
said employer shall pay a penalty of twenty-five percent of the
lump sum equivalent of the income benefit payable by the System
to the employee. This shall be given to the State Insurance fund.

14. LABOR RELATIONS
Labor relations can be defined as the aspeact or quality that holds
together the social partners, labor and capital in the attainment of
their mutual goal - just and equitable pay and treatment and fair
return of investments.
Labor relations refer to the relationship between employers and
employees in industry, and the political decisions and laws that affect
it.
Sources of conflicts in labor relations
Manner by which hierarchical demands are made or executed
1.
Clash between Management Prerogatives and Labor Rights
2.
Just share in the fruits of production
3.
Fair return in investments, expansion, and growth
4.

15. UNFAIR LABOR PRACTICE
Unfair labor practices are those covered under Articles 247, 248,
and 249 of the Labor Code. It can be committed by the employer or
by the employee. Although, ULP is usually charged against the
employer.
Some concepts of Unfair Labor Practice:
Violates constitutional right of workers to self-organization
Is inimical to the legitimate interests of both labor and
management and labor’s right to bargain collectively with freedom
and mutual respect.
Disrupts industrial peace
Hinders promotion of healthy labor-management relations
Violates civil rights of the parties
Is a criminal offense

16. Unfair Labor Practice by Employer
Interferes, restrains, and coerces employees in the exercise of their right to self-
organization.
Requires as a condition of employment that a person or an employee shall not join a labor
organization or shall withdraw from which he belongs:
Contracts out services or functions being performed by union members when such will
interfere with, restrain, or coerce employees in the exercise of their rights to self-
organization;
Initiates, dominates, assists, or otherwise interferes with the formation/administration of
labor organization including giving of financial or other support to its organizers or
supporters.;

17. Discriminates in regard to wages, hours of works and other terms and
conditions of employment in order to encourage or discourage membership in
labor organizations;
Dismisses, discharges, or otherwise prejudice or discriminate against an
employee for having given or being about to give testimony under the Labor
code;
Violates the duty to bargain collectively as prescribed by the labor code;
Pays negotiation or attorney’s fee to the Union or its officers or agents as part
of the settlement of any issue in Collective Bargaining Agreement; and
Violates a Collective Bargaining Agreement.
Unfair Labor Practice by Employer

18. STRIKES AND WORK STOPPAGES/LOCKOUTS
The right to strike is guaranteed by the Constitution and the law. But the right to strike is
not absolute. Neither is the right of employer to lockout.
Employees can only strike on two grounds:
Deadlock in Collective Bargaining Negotiations
1.
Unfair Lab or Practice ( ULP )
2.
Further conditions before a strike can be staged:
A strike notice must be filled with the Department of Labor and Employment 30 days
before intended strike in case of deadlock in CBA negotiations;15 days for ULP;
1.
Strike must be approved through secret balloting by the majority of the members in the
bargaining unit in a meeting called for the purpose. Tha National Conciliation and
Medication Boeard ( NCMB ) of DOLE must be notified 24 hours before such meeting as
well as the results of the voting at least seven (7) days before the intended strike.
2.

19. STRIKES AND WORK STOPPAGES/LOCKOUTS
Lockout is a weapon that can be availed of by the company under the above
conditions. It must be approved by two-thirds vote of the Board of Directors.
Can the Union Stage a Wildcat Strike?
Yes, in case of ULP involving the dismissal of a Union officer duly elected
according to its Constitution and By-Laws which amounts to union busting
provided a strike vote is conducted and results submitted to the regional
branch of NCMB.
Illegal Strike
A strike can be declared illegal if it was attended to in picketing “by violence,
coercion, or intimidation or obstruct thne free ingress to or ogress from the
employer’s premises for lawful purposes or obstruct the public thoroughfares.”

20. This emphasizes the importance of "job security" for employees and the
protections in place to prevent unjust dismissal.
4 key points
1. Security of Tenure
- employees cannot be dismissed from their jobs without just or an
authorized cause. An employer cannot arbitrarily terminate an employee.
2. Impact on Livelihood
- highlights that an employee's job is not just a source of income but
essential to providing for basic needs like food, clothing, shelter education,
and health for themselves and their families.
THE LAW OF TERMINATIONS

21. 3. Compassionate view of workers
- the law and the state take a protective stance towards workers because losing a
job can result in significant hardships, including financial distress and emotional
strain , not just for the employee but also for their dependents.
4. Consequence of Unjust dismissal if an employee is unjustly dismissed, they have
the right to:
• Reinstatement - to their former job, without losing their rank, privileges, or seniority
rights.
THE LAW OF TERMINATIONS

22. The law allows terminations due to Just Causes or
Authorized Causes
Just causes
Art. 282 of the Labor Code enumerates the following just causes of termination:
1. Serious misconduct or willful disobedience
- improper or unlawful behavior of the employee and refusal to obey the lawful
orders to their employer, as long as the orders are related to their work.
2. Gross and Habitual Neglect of duties
- failure of the employee to perform their job duties consistently and to a serious
degree, indicating a pattern of disregard for their responsibilities.

23. The law allows terminations due to Just Causes
or Authorized Causes
3. Fraud or willful breach of trust
- employees do acts that betray the employers trust like engaging in fraud,
embezzlement or other deceitful actions.
4. Commission of a crime or offense against the employer or immediate
family.
- employee can be dismissed if they commit a crime against their employer,
employer's family, or the employer's representative.
5. Other causes analogous to the foregoing.

24. Authorized Causes:
1. Installation of Labor- saving devices
- the introduction of machines or technology that can perform tasks previously
done by the employees, thereby making certain positions redundant.
Requirement: The terminated employee must be given one (1) month's salary
for every year of service as separation pay
2. Retrenchment to Prevent Losses
- reducing the workforce to avoid or minimize financial losses, often employed
during tough economic times when a company needs to cut costs by reducing
its number of employees.
Requirement: The employee must be given one half (1/2) of month's pay for
every year of service as separation pay .

25. 3. Closing or cessation of Operations
- when company decides to stop its operations, either partially or entirely, due to various
reasons, such as business failures, economic downturn, or shifts in business strategy.
Requirement: The employee is entitled to one half (1/2) month's pay for every year of
service as unless the closure is done to circumvent labor laws ( reopening under a
different name to avoid paying benefits) .
Other Authorized Causes
- terminations based on health conditions or retirement.
1. Termination due to disease
- an employee can be terminated if they suffer from a disease that is incurable within 6
months and poses a threat to their health or others. They are entitled to 1/2 month's pay
per year of service.

26. 2. Termination due to Retirement
- employees who reach the age of 60 to 65 are entitled for retirement. The 22.5 days of
salary per year of service provided as retirement pay if the company has no retirement
plan is in place. The employer is required to provide a retirement pay equivalent to 22.5
days of salary per year of service.
Example: Linda reaches the age of 65, and the company does not have its own retirement
plan, the employee earns 30,000 pesos per month and has worked for the company for
20 years.
Calculation:
Daily rate/Monthly salary : 30,000 ÷ 30= 1,000 pesos/day
• 22.5 days/year : 1,000 x 22.5 days= 22, 500/ year of service
Total retirement pay: 22,500 x 20 yrs = 450, 000

27. Due Process Requirement
Due Process Requirement The Bill of Rights of the Constitution provides that no
person shall be deprived of life, liberty or property without due process of law.
The job of a person is considered as his property and therefore he cannot be
deprived of that property without due process.
Due Process means that an erring employee is entitled to a "day in court," with
the assistance of counsel if he so desires, to confront the witnesses against him.
The "twin notice" requirement on termination due to just causes simply means
that the employer should give the worker two written notices before terminating
his employment.

28. Procedural Due Process:
1. First Notice
2. Hearing
3. Second Notice
4. Final settlement
THE WAGE RATIONALIZATION LAW ( R.A. 6727 )
Passed in 1989, among others , to rationalize wage fixing of minimum wages and to promote
productivity improvement and gain sharing
- wage fixing under R.A. 6727 has been delegated to the Regional Tripartite Wages and
Productivity Boards ( RTWPB )
- wage fixing was regionalized to better reflect local economic conditions as opposed to having a
one size fits all wage policy across the country

29. The standard criteria for minimum wage fixing are the following
1.The demand for living wages;
2. Wage adjustment vis-à-vis the consumer price index;
3. The cost of living and changes or in- creases therein;
4. The needs of workers and their families;
5. The need to induce industries to in- vest in the countryside;
6. Improvements in the standard of living;
7. The prevailing wage levels;
8. Fair return of the capital invested and capacity to pay of employers;
9. Effects on employment generation and family income; and
10. The equitable distribution of income and wealth along the imperatives of
economic and social development.

30. ANTI- SEXUAL HARASSMENT LAW ( R.A. 7877 )
- enacted on February 14, 1995
Sexual Harassment is defined as any work, education or training - related sexual
harassment committed by an employer, employee, teacher, instructors, professor,
coach, trainer, or any other person who, having authority, influences and moral
ascendancy over another.
1. Punishment by Imprisonment
2. Fines
3. Combination of punishments
4. Independent Action for Damages

31. THE NEW LABOR RELATIONS LAW ( R.A. 9481)
- R.A. 9841 that was passed in 2008. Otherwise known as " An act strengthening
the worker's constitutional right to self - organization, amending the Labor
Code of the Philippines "
The salient provisions of the law that raised a lot of serious concern by
employers are:
1.Filing of petition for certification election by a federation or national union
issuing a charter certificate to an unregistered local participating in the
certification election.
2. Co-mingling of rank-and-file and supervisory unions operating within the
same establishment in the same federation and national unions without
qualifications/ conditions.

32. THE NEW LABOR RELATIONS LAW ( R.A. 9481)
3. Employer as bystander in certification election unlike before when
the employer is a legitimate party in the proceedings.
4. Non-disclosure of who are officers and members of the union.
cannot be deprived of that property without due process.

33. THANK YOU!