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Lecture 5: Labor Relations and Standards  Regular day: wage + at least 25% thereof

 Holiday: wage + at least 30% thereof


EMPLOYER-EMPLOYEE RELATIONSHIP Example:
 Four-fold Test  Regular day, Wage: Php 100/hour
 Selection and engagement of the workers  Shift: 7am - 3pm
 Payment of wages  Overtime: 3pm - 5pm
 Power of dismissal 1. Solve for the Regular pay
 Power to control the workers’ conduct 7am - 3pm: 8 hours x 100 = 800
- Refers to existence of power and not 2. Solve for Over time pay
necessarily to the actual exercise thereof
3pm - 5pm: 2 hours x 100 = 200
3. Solve for 25% of overtime pay
HOURS OF WORK
200 x 0.25 = 60
 All time during which an employee is required
4. Add all of them
to be on duty or to be at the prescribed
workplace 800 + 200 + 60 = 1060
 Rest period of short duration: counted as
hours worked (coffee break, meal period <
1hour) COMPULSORY OVERTIME WORK

 Normal hours of work for hospital workers:  If the country is at war or when there is a
5 days (40 hours) a week declaration of national or local emergency
 To prevent loss of life or property, or in case of
imminent danger to public safety caused by
NIGHT SHIFT DIFFERENTIAL accidents, fire, floods, typhoons, epidemic, or
other disaster or calamities
 At least 10% of regular wage for each hour of
work between 10:00 pm-6:00 am  When there is urgent work to be performed on
Example: machines, installations, or equipment to avoid
serious loss or damage
 Regular wage: Php 100/hour
 To prevent loss or damage to perishable goods
 Shift: 11pm-7am
 Completion of work is necessary to prevent
 How much is the salary? serious business loss
1. Solve for the Basic Pay  To avail of favorable weather2
11pm -7 am : 8 hoursX100=800
2. Solve for the Night shift pay MEAL BREAK
10-6: 8 hoursX100 = 800X0.10 = 80  Not less than 60 minutes time-off for regular
meals
3. Add both
 May be taken outside company premises
Basic Pay + Night shift pay = 880
 Case: PAL vs. NLRC (GR 132805)

OVERTIME WORK
REST DAY
 Work performed beyond 8 hours a day
 Duty of employer: 24 hours of rest period
 Additional compensation
after every 6 consecutive normal work days
 Employer shall respect the preference of Php 318, 000
employees as to their weekly rest day
2. Divide by 12
when such preference is based on
religious grounds Php 318, 000/12 = Php 26,500

HOLIDAY PAY
 Special Holiday: (daily rate x 130%)
 Regular Holiday: (daily rate x 200%) FORMS OF PAYMENT
Example: “No employer shall pay the wages of an
employee by means of promissory notes, vouchers,
I. Special Holiday II. Regular Holiday
coupons, tokens, tickets, chits or any object other
Shift: 7 am - 3pm Shift: 7 am - 3 pm than legal tender, even when expressly requested
by the employee.”
Wage: 100/hr Wage: 100/hr
Regular Pay: Regular Pay:
MATERNITY/PATERNITY LEAVE
8 hrs x 100 = 800 8 hrs x 100 = 800
 Maternity Leave
Holiday Pay: Holiday Pay:
 In service at least 6 months
800 x 1.3 = 1040 800 x 2 = 1600
 RA11210: 105 days leave with pay + an
option to extend for 30 days without pay
 What are Regular Holidays? (RA 9849) (single parent: additional 15 days with pay)

 New year  Miscarriage or emergency termination of


pregnancy: 60 days
 Maundy Thursday and Good Friday
 Araw ng Kagitingan
 Paternity leave
 Labor Day
 RA 8187
 Independence Day
 7 days with full pay for the first 4 deliveries
 National Heroes Day (or any miscarriage) of the legal spouse
 Bonifacio Day with whom he is cohabiting

 Eid’l Fitr
 Eid’l Adha SECURITY OF TENURE

 Christmas Day “A regular employee shall remain employed unless


his or her services are terminated for just or
 Rizal Day authorized cause and after observance of
procedural due process.”

13TH MONTH PAY


TERMINATION OF EMPLOYMENT
 PD 851: 1/12 of an employees basic annual
salary  Balancing of interests in disciplinary cases
 May be given in 2 installment (May and  Labor’s interest: right to labor and due
December) process
Example:  Manager’s interest: promulgation of rules
and regulations and enforce and
1. Annual salary
implement them for efficient business  Separation pay
operations
 In good faith
 Just causes
 Fair and reasonable criteria
 Authorized causes: needs separation pay
 Closure of the company
 In good faith
JUST CAUSES
 1 month written notice
 Serious misconduct
 Separation pay needed, except in cases of
 Serious; related to performance of duties serious business losses
 Sexual harassment, fighting within  Diseases or illness
company premises theft of company
 Continued employment is prohibited by law
property, drug abuse, falsification of time
or prejudicial to health
records
 Willful disobedience/insubordination  Medical certificate needed: disease cant
be cured within 6 months
 Willful/intentional
 1 month written notice
 Order violated must be reasonable, lawful
 Separation pay
and made known to the employee
 Gross negligence/habitual neglect of duties
OTHER CAUSES FOR TERMINATION
 Absenteeism, abandonment of work
 Fraud/loss of trust and confidence  Failure of the probationary employee to qualify
as a regular employee
 Misappropriation of company funds
 Totality of infractions doctrine
 Commission of a crime or offense against
the employer
 Other analogous causes

AUTHORIZED CAUSES
 Redundancy
 Services of an employee are in excess of
what is reasonably demanded
 1 month written notice
 Separation pay (1 month per year of
service: 1 month salary x year of service
 Fair and reasonable criteria in ascertaining
redundant positions: efficiency, seniority
 Retrenchment
 Last resort:dismissing employees to avoid
or minimize losses (BEFORE the losses
anticipated are actually sustained)
 1 month written notice

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