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Cause
Mental Illness: mental illness occurs as a result of an abnormal or disturbed chemicals in the
brain, like neurotransmitters.
Mental Disorder: Mental disorders occur due to an abnormality in the normal functioning of the
brain.
However, in summary, defining a mental illness over a mental disorder is quite tricky since they
are used as general terms for all the conditions which involve abnormalities in the brain, resulting
in changes in feelings, emotions, personality and behavior.
Employee or Worker?
This checklist explains the significance of the distinction between an employee, a worker and a self-
employed contractor and also highlights the legal status of volunteers.
Employee status
An employee is an individual who has entered into or works (or worked) under the terms of a
contract of employment. The contract can be expressly agreed (in writing or orally) or implied by the
nature of the relationship. To have employee status:
An individual must be obliged to do the work personally (rather than being able to send a
substitute).
The employer needs to be obliged to provide the work and the employee is obliged to accept
the work.
The employer needs to have some control over the way the employee carries out the work.
Worker status
Worker status is sometimes seen as a “half-way house” between employee and self-employed
status. Workers are entitled to fewer statutory rights than employees, but do have some key legal
rights, including:
TUPE transfers
Only employees will be automatically transferred to any purchaser of the employer’s business under
a TUPE transfer.
Tax
An employer is responsible for deducting tax and national insurance at source (PAYE) from the
salary paid to employees. Self-employed individuals are responsible for paying their own tax and
national insurance under self-assessment.
Insurance
An employer must take out employer’s liability insurance to cover the risk of employees injuring
themselves at work. Self-employed contractors are unlikely to be covered by this type of insurance.
Liability
An employer is liable for acts done by an employee in the course of their employment. This type of
liability is unlikely to extend to self-employed contractors.
Avoiding making payments to volunteers that could be construed as wages. Payments to cover
actual expenses should be clearly identified as such and ideally reimbursed against receipts.
Removing, or at least minimising, any perks that could be could be regarded as remuneration.
Reducing obligations on the part of the volunteer (for example, give the volunteer the ability to
refuse tasks and choose when to work).
Avoiding using language that makes the arrangement sound contractual and adopting flexible
language, such as “usual” and “suggested”.
Treating volunteers fairly. Having clear procedures for dealing with problems and grievances
should help reduce the likelihood of disputes with volunteers.
What is the difference between wages and salary?
You should be aware that some people use the
terms wages and salary interchangeably. I and many others make the
following distinction.
Generally, the hourly-paid employees will earn wages at the rate of time
and one-half for the hours in excess of 40 per week.
The salaried employees in high pay positions are not likely to receive
additional pay for the hours in excess of 40 per week. However,
employees with low salaries are entitled to overtime pay. (In the U.S. see
your state's laws and the federal wage and hour laws.)
Management prerogative
19 October 2016
Management
The law recognizes the employer’s highly discretionary right to manage all aspects of
employment. Management prerogative is that wide freedom of the management “to
regulate, according to its own discretion and judgment, all aspects of employment, including
hiring, work assignments, working methods, time, place and manner of work, processes to
be followed, supervision of workers, working regulations, transfer of employees, work
supervision, lay off of workers and discipline, dismissal and recall of workers.”[1]
This right is tempered only by these limitations: that it must be exercised in good faith and
with due regard to the rights of the employees.[2] So long as the latter two are observed,
the employer has the right to regulate every aspect of employment.
Management prerogative is generally exercised by managers. Managerial employees are
those “vested with the powers or prerogatives to lay down and execute management
policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline
employees.”[3]
To be considered managers by law, the managerial employees have to meet all of the
following conditions:[4]
Their primary duty consists of the management of the establishment in which they
are employed or of a department or subdivision thereof;
They customarily and regularly direct the work of two or more employees therein;
and
They have the authority to hire or fire other employees of lower rank; or their
suggestions and recommendations as to hiring and firing and as to the promotion or
any other change of status of other employees are given particular weight
The 1987 Philippine Constitution, the supreme law of the land, mandates the protection of labor and the
promotion of their welfare. It provides the fundamental labor standards and labor relations rights of the
employees. The constitutional provisions on labor are provided under Articles II, III, IX-B, and XIII as
follows:
Section 9. The State shall promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that provide adequate
social services, promote full employment, a rising standard of living, and an improved quality of life for
all.
Section 10. The State shall promote social justice in all phases of national development.
Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare.
Section 20. The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.
Section 1. 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.
Section 8. The right of the people, including those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to law shall not be abridged.
Section 2.
3. No officer or employee of the civil service shall be removed or suspended except for cause provided by
law.
6. Temporary employees of the Government shall be given such protection as may be provided by law.
Section 3. 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.
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 tosecurity 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 of enterprises to reasonable returns to investments,
and to expansion and growth.
Section 14. The State shall protect working women by providing safe and healthful working conditions,
taking into account their maternal functions, and such facilities and opportunities that will enhance their
welfare and enable them to realize their full potential in the service of the nation.
When is there labor-only contracting? Article 106 of the Labor Code of the Philippines defines
“labor-only” contracting as follows:
There is “labor-only” contracting where the person supplying workers to an employer does not have
substantial capital or investment in the form of tools, equipment, machineries, work premises, among others,
and the workers recruited and placed by such person are performing activities which are directly related to
the principal business of such employer. In such cases, the person or intermediary shall be considered merely
as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the
latter were directly employed by him.
Labor Standards and Labor Relations
19 October 2016
Labor laws are primarily governed by the Labor Code of the Philippines (P.D. 442) and
subsequently reinforced by the 1987 Philippine Constitution. In addition thereto, there are
special laws, implementing rules, regulations, and jurisprudence, which likewise serve as
the legal framework for all incidents of employment.[1]
In general, labor laws are divided into two main categories: (a) labor standards and (b) labor
relations.[2]
Labor standards refer to the legally prescribed minimum requirements concerning terms
and conditions of employment, wages, monetary and welfare benefits, as well as
occupational, safetery, and health standards.[3]
Labor relations pertain to the legal framework governing the individual and collective
bargaining or interaction between employers and employees, including their attendant rights
and duties.[4]
A labor standard is the amount of labor time that is expected for the completion of a task. It is
sometimes referred to as the standard labor rate. The labor standard concept is used when
planning how many employees to assign to a task, which is part of the budgeting and planning
processes. For example, a company may conclude that, given the amount of a labor standard, it
must maintain production through three shifts to ensure that a sufficient number of units are
produced to meet the requirements of the sales forecast.
Also, a labor standard can be used to judge the performance of employees, which may be linked
to bonus and retention plans. For example, if an employee can produce more than 10 units per
hour, she will receive a bonus. Conversely, someone who cannot reliably produce at least eight
units per hour after a suitable training period will be let go or be required to take additional
training.
A profit margin can be added to a labor standard to arrive at a billing rate that is charged to a
customer. For example, a print shop could apply a standard hourly rate to a job to arrive at a
quote for a customer order.
A labor standard can be based on a theoretical standard, which is the absolute best efficiency
level that can possibly be achieved. However, real-world results are nearly always worse than
the theoretical standard, so this approach is not usually recommended. A better alternative is to
derive a labor standard that incorporates a modest stretch goal that can reasonably be attained
with some targeted process improvements.
Labor standards are frequently used to develop labor variances. In particular, the amount of
time stated in a standard is compared to the amount of actual labor experienced, which results in
a labor efficiency variance. Or, the standard cost associated with a labor standard is compared
to the actual labor cost incurred, which results in a labor rate variance.
The quantity assigned to a labor standard can be difficult to derive, since it involves
assumptions regarding the work environment, employee training levels and experience, the
repetitiveness of production, and other factors. This analysis is usually made by an industrial
engineer as the result of an on-site review of the current process. Because of the many factors
involved, actual performance against labor standards can result in quite substantial variances.
A labor standard for a complex process may include a number of individual labor standards that
are compiled into a comprehensive labor routing. The labor routing itemizes the stages of work
involved in the process, and the labor required for each stage. This information can be used for
a variety of purposes, including:
The cost of a labor standard includes not just the labor rate per hour of the labor classification
assumed to be involved in the work, but also the employer-paid portion of payroll taxes and any
related employee benefits.
A strong case can be made against the use of labor standards, since they tend to focus
employees on working faster, rather than producing error-free work at somewhat lower unit
production volumes.