Labor legislation in the Philippines is divided into labor standards, which establish minimum employment terms, and labor relations, which govern interactions between employers and employees. This document outlines various statutory employee benefits in the Philippines, including minimum wage, holiday pay, overtime pay, night shift differential, service charges, leave benefits, and thirteenth month pay. It provides definitions and coverage for each benefit.

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. 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
disability
3. Financial assistance or allowance for death
or sickness
4. Old age pensions in case of retirement
5. Credit access for social needs

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. 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.

5. WORKER’S
STATUTORY
BENEFITS

6. 1. MINIMUM WAGE
REPUBLIC 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. 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. A. Coverage
The 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. 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. 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. 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. 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. REGULAR HOLIDAYS
Every 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. There are eleven (11) Regular Holidays in a year
under 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.

35. OVERVIEW
OF LABOR
RELATIONS
IN THE
PHILIPPINES

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. 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. RELEVANT PROVISIONS OF THE
CONSTITUTION
ARTICLE 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. 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. State Policies on Labor Relations
Article 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

41. MANAGEMENT
PREROGATIVES
1. PREROGATIVE TO REGULATE ALL ASPECTS OF
EMPLOYMENT ACCORDING TO ITS DISCRETION AND
JUDGMENT.
2. MANAGEMENT CANNOT BE DEPRIVED OF ITS
PREROGATIVE TO DISCIPLINE ITS EMPLOYEES.
3. MANAGEMENT PREROGATIVE TO TRANSFER OR
REASSIGN.
4. SECURITY OF TENURE DOES NOT MEAN PERMANENCY
IN ONE’S POSITION.
5. MANAGEMENT PREROGATIVE TO DOWNSIZE,
RIGHTSIZE OR CLOSE OPERATIONS.
6. MANAGEMENT PREROGATIVES ARE NOT ABSOLUTE.
7. MANAGEMENT PREROGATIVES SHOULD BE EXERCISED
IN GOOD FAITH.

42. Statutory Right Constitutional Right
Management Security of
Prerogative Tenure
Right to Right to
Property Life

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. 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 of
employment opportunities for all.”

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. CLASSIFICATION OF RIGHTS
INDIVIDUAL 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. BASIC INDIVIDUAL RIGHTS
in accordance to the Labor Code
1. The right to join or not to join
unions/organizations.
2. Right to Security of Tenure
3. 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. BASIC INDIVIDUAL RIGHTS
in accordance to the Labor Code
5. Right to statutory minimum wage with COLA
integration.
6. Right to 13th Month Pay.
7. Right to Service Charge
85% for employees
15% for management
8. 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 Leave
12. Right to certain facilities.

49. Legal Framework of Labor
Relations In the Philippines
I II III
Workers’ Law/ Management
Rights CBA Prerogatives
Workers’ 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. Objectives of CPP and
CRR
1. 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. COMPANY POLICIES
Two 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. Company Policies
• A general plan of action and/or a set of rules by
which business corporations are managed, directed
and controlled.
• A structure which specifies the distribution of
rights and responsibilities among the different
participants in the corporation.
•Shareholders • Other Stakeholders
•Board of Directors • Customers/Dealers
•Officers • Suppliers/Contractors
•Employees • Regulators/Government
• Community

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 March
1996, 225 SCRA 133

54. Areas Normally Covered by the
CPP
1. General Provisions:
a. Personnel Philosophy
b. Administration and application of Policies
2. Supervisory Role
3. Recruitment and Selection
4. Employment
5. Placements, transfers, details, temporary
assignments.
6. Training and Development
7. Employee benefits and services

55. Areas Normally Covered by the
CPP
8. Employee conduct and discipline
9. Attendance and time keeping
10. Leaves
11. Performance standards and performance
evaluation
12. Complaints and grievances
13. Retirement and separation
14. Others

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. 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. Characteristics of a Good CRR
1. 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. Characteristics of a Good CRR
6. 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. 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. How are CPPs and CRRs announced
or made known?
 Employee Handbooks
 Company Publications
 Memoranda or Circulars
 Company Bulletin Boards
 Meetings or Conferences

62. LAW ON
TERMINATION

63. NO DISMISSAL EXCEPT FOR A
JUST AND AUTHORIZED
CAUSES, AFTER OBSERVANCE
OF DUE PROCESS

64. LAWFUL GROUNDS FOR
TERMINATION
1. 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. Article 282 – Labor Code
JUST CAUSES FOR
TERMINATION
1. 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. Article 282 – Labor Code
JUST CAUSES FOR
TERMINATION
4. 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. The separation from work of an
employee for a just cause does not
entitle him to the termination pay
provided 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. 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. Termination due to the above
causes entitles the employees to
TERMINATION PAY, as follows:
No. 1 - At least one (1) month pay for
every year of service.
No. 2, 3 & 4 - At least one (1) month
pay or one-half (1/2) month for every
year of service, whichever is higher

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. 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. Pending investigation, employee can be
put 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. DISMISSALS based on Union Security
Clauses:
• 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. RULES & REGULATIONS ON
DISCIPLNE:
• 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. For the Rules to be valid, the
following 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

76. DELAYED
IMPLEMENTATION OF
THE PENALTIES, ERODES
THE CREDIBILITY AND
VALIDITY OF THE
PENALTY

77. THANK
YOU
VERY MUCH!