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Artucle 2
Conventions as part of the law
Incoporated, embedded in toto in the labor code of the philippines
Protection to labor
Why is there a need: because between labor and capital, labor is weak as it
depends economically to the capital
o Two tierred test: economic dependence and
Full employment
Those Able and willing to work can find work without undue difficuly
Promition: cteation of more jobs through investments
Mandate article 143, living wage
o LIVING vs. MINIMUM Wage:
Minimum wage provides the boundary line so that wage or
compensation may not fall below the minimum. They can stioulate
as to higher compensation but not below minimum.
Living wage : is nit mere substistence wage but one that can provide
worker invluding his family reasonable comfort/decent living
Congress can enact law in the event of wage problem
Wage issuance: Intraregional : will not encompass other region
Standards are enumerated in the issuance ( memorize atleast 5)
which shall be applied in the same region
Doctribe of double indemnity: Er not comlliant is liablle twice the
amount
WAGE DISTORTION
Not hatmoniza with CBA
In cases of merger and consolidation
Setltlement:
With union-conclusive arbitration clause
o Parties are still required to settle amicabl
o Vikuntary arbitration appealable to CA within 10 days
Without
o Settle then to NCMB then transmit it to compulsory arbitration( Labor
arbiter) appealble to NLRC
Elements:
Existence of hierarchy of position
Increase in lower without increase to higher( abolition of position)
Intraregion
Retrenchment
To downsize, to reduce, delayaring to prevent exonomic downfall
The company is in the verge of economic collapse the employer shoukd embark
on retrenchnent to prevent losses. Losses include not only aactual losses but also
perceived losses
Requirrements
2 separaate notice
Payment of separation pay. 1 month pay for less than 1 year ee and
half of pay for every year of service
Done in gf
Abs cbn close its entire broadcasting network. Those affected file case demanding
separation pay. Is abscbn liable?
Yes. The closure of abs is partial close of business is a form of retrenchment.
Retrenxhment includes closure of kne department, product line.
Redundancy
There is no duplication of function.
The position is redundant is superfluent and thhe outcome resukts to over hirinv
of workers. Decljne in the business, closure in one economic line
There is excess services than that needed bybthe company. Who are not needed
economically
Ahould they be maintained? Yes
Decline on the volume of business can be lack of raw materials can result to
redundancy
Pay full payment for every year of service
Diaease
Must not be curable in 6 months. If 6 months, he shall be allowed to take leave of
absence and be abke to return after. If he will nit be admjtted, constructive
dismissal.
If the disease is not curable: the company can validy dismiss the employee
What kinf of disease is contemplated? The law does nit distinguish. All is included.
Employee must submit a governmment record of assessment
Mamangement perogative
To establish and
Procedural aspect of dismissal.
3 notice anf first notice. Formal specific charge. And intelligible hearing and notice
o Perez doctrine: ample opportunity to be heard. Hearing or conferrnxe bg
virtur of implenting rules. Today ample opportunity is folowed. Exemplified
in the employer is asked to explain in writing. Is there substatial
compliance? Yes.
Post- notice/ notice of dismissal. Written notice informing him why he is validly
dismissed
o Purpose: in order to give the dismissed employer to file the proper
complaint of dismissal with the proper forum.
Violation of substantive or procedural would resultto illegal dismissal, normal
consequences
Reinstatement- restoration of ee to his former position
o Actual and pay roll reinstatement. Actuak restored to former position.
Payroll only to payroll.
o Why dirs the law allow the option?
Payroll reinstatement is a lesser evil.
The er doesn’t want to see the ee
o Pioneer ruling: it is immediately self executory( reinstatement ruling). No
need of writ of exexution. Uoon receipt of employee of decision, it is already
executory.
o Stubborn refusal of ee,
file a motion to cite in contempt,
pay monthly intallment,
labor arbiter can file motu proprio an order of reinstatement.
o The immediately executory letter only applies to this case. LABOR ARBITER
LEVEL.
o When not allowed or not proper:
Dismissal for cause
Waiver or lasches ( 4 years is given to claim reinstatement. )
Principle of strained relation. Cant be applied indiscriminately
In lieu of reintatement he should be paid separation lay as a form of
compromise to reinstatement
Abolition of position
He must be reinstatement to substatially equivalent position. If not he should be
paid separation lay as a form of compromise to reinstatement.
Closure of business
Legally and physically impossible. he shiuld be paid separation lay as a form of
compromise to reinstatement
Tetirement pay, resignation pay
No reinstatement of OFW seaman, illegally dismissed on the fiduciary relationship
including kasambahay.
Co structive dismjssal is also an illegay dismissal. Reinstatement is required. Constrained
relatio ship in co structive dismissal is not anymore a ground not tk reinstatement.
Types of workers:
Regular:
o performs work which is usualky necessary for the business of er
o Performed job for atleast 1 year
o Mechanic in a auto repair shop: regular? Yes. The entire shop needs repair
because of typhoon. They hired a carpenter. Is he regular? No. Because his
works does not entail the work necessary for the business operation
o But when the carpenter works for a period of 10 years to the business, he
is already a regular
o 5-5-5 doctrine. 5 months hiring then released the hired again. He is regular
as the hiring js considrred together this is successive hiring. Incdications
of regular employee.
Xpn: an ofw and seaman ( contractual )
Bret school v zamora : they voluntarily sgreef in fixed term
contractn consensual
The cobtract terminates by itself:fixed term contract no need
of notice of termination
Probation requiremnt
o Employer has to evaluate the skills of the ee
o Time when ee will train
o General period : 6 months. Csn they stipulate below 6 moonths or above?
Yes. ( pldt case 18 month probation is valid cobsideratng the nature of the
business
o Case: theh are on peiduxtion of atlmic bond. An ee is hired. The nature of
the job requires extensive training.
o Hiring of teacher. It includes that he should have masteral degree.
o Can he again undergo another probation? No. That is tantamount to double
probation.
Apprenticeship
o Upo termination, the worker doea not automatically become emoloyee
o But on case of learner, automatic employee provided he is trained for a
minimum of 3 months
o Any training program should be approved by tesda.
o Apprenticeship contract. No force and effect if it is not approved by tesda.
The legal effect is the apprentice is considered a regular emoloyee as he
performs work necessary for thhe business
Seasonal employment:
Seasonal because he is employed for a particular season
When emoloyed from season to season : he is a regular employee
Are they covered of SSs law. He is purely a casual employee. He is not entitled to
sss coverage.
Project
Automatic termination after project
Types : Casual( not oerforming work essential to the nature of the business),
probationary( 6 month period) and non peoject( without regard to speciifc work
pool)
Retirement
Bilateral act wgere the ee has to diassociate himself to the business
Component parts of retirement
o 15 days of satary x no. Of service
o 1/12 of 13 month pay
o Is it possible that other benefits would be included? Yes.
Retirement plan: exceeds benefit provided. Retirement scheme will be followed.
Can the union agree a retirement rate below the rates providd? Yes. Because the
purpose is to e joy the remaining years of his life.
If dismissed to just cause: still entitled for retrirement benefits
Prescriptive periods
Statute of limitations
o Pureply money claims 3 years
o Incremental proceeds 3 years
o Employees compensation 3 gears
o Union funds 3 years
o Criminal cases under labor 3 years
Xpn
Large scale 20
Syndicated 20
Ulp 1 year
Social security 4 year
Illegal dismissal 4 years
Reinstatement 4 years callanta doxtrine
o Prescriptive of service incentive leave 3 years ( xo sidering the peculiarity
of SIL, time ahoukd start on yhe denial of minetary equivalent od SIL) .
Available even after year of service.
o Full back wages are but a cobsequence of illegal dismissal so 4 years would
aoply
o Sss claims. prescribe in 20 years right to claim
o Gsis. 4 years. Rrtired govt employee, instead of filing his retieement claim,
he went to US. When he decided to return, he filed a clakm kn GSIS whuch
is deneid for prescription. Will the claim prosper? Yes. Because under Gsis
law, retirwment clakm is imprescribtible. (Life and retirement claim is not
prescriptible)