LABORATORY MANAGEMENT: LECTURE 5 – LABOR RELATIONS & STANDARDS

EMPLOYER-EMPLOYEE RELATIONSHIP

Four -fold Test

 Selection and engagement of the workers
 Payment of wages
 Power of dismissal
 Power to control the workers conducts
 Refers to existence of power and not necessarily to the actual exercise thereof

HOURS OF WORK

All time during which an employee is required to be on duty or to be at the prescribed workplace
Rest period of short duration: counted as hours worked (coffee break, meal break <1hour)
Normal hours of work for hospital workers: 5 days (40 hours) a week

NIGHT SHIFT DIFFERENTIAL

At least 10% of regular wage for each hour of work between 10pm-6am
 Example: Regular Wage: Php 100/hour, shift: 11pm-7am, How much is the salary on the night
shift? 870
100/hour (11pm-7am) 100 x 8 = 800+ 70 = 870
(11pm-6am) 100 x 7 = 700 x .10 = 70

OVERTIME WORK

Work performed beyond 8 hours a day

Additional compensation
 Regular day: wage + at least 25% thereof
 Holiday: wage + at least 30% thereof
 Example: Shift 7am-3pm, Overtime 3pm-5pm – 800+200+50= 1,050
100/hour (7am-3pm) 100 x 8 = 800
(3pm-5pm) 100 x 2 = 200 x .25 = 50

COMPULSORY OVERTIME WORK

If the country is at war or when there is a declaration of national or local emergency

To prevent loss of life or property, or in case of imminent danger to public safety caused by
accidents, fire, floods, typhoons, epidemic, or other disaster (man-made or natural) or calamities
LABORATORY MANAGEMENT: LECTURE 5 – LABOR RELATIONS & STANDARDS
When there is urgent work to be performed on machines, installations or equipment to avoid serious
loss or damage
To prevent loss or damage to perishable goods
Completion of work is necessary to prevent serious business loss
To avail of favorable weather

MEAL BREAK

Not less than 60 minutes time-off for regular meals

May be taken outside company premises
 Case: PAL vs. NLRC (GR 132805)

REST DAY

Duty of employer: 24hours rest period after every 6 consecutive normal work days
 Employer shall respect the preference of employees as to their weekly rest day when such
preference is based on religious grounds

HOLIDAY PAY

Work on special holiday: (daily rate + 130%)

Work on regular holiday: (daily rate + 200%)
 What are the regular holiday? (RA 9849)
 New year – January 1
 Maundy Thursday and Good Friday
 Araw ng Kagitingan – April 9
 Labor Day – May 1
 Independence Day – June 12
 National Heroes Day
 Bonifacio Day – November 30
 Eid’l Fitr
 Eid’l Adha
 Christmas Day – December 25
 Rizal Day – December 30
 Example: 7am-3pm, 100/hour
Special Holiday – 100 x 8 = 800 x 1.3 = 1,040
Regular Holiday – 100 x 8 = 800 x 2 = 1,600
LABORATORY MANAGEMENT: LECTURE 5 – LABOR RELATIONS & STANDARDS
13TH MONTH PAY

PD 851: 1 / 12 of an employee’s basic annual salary

 May be given in 2 installments (May & December)
 Example: Annual salary / 12
318,000/12 = 26,500 / 2 = 13,250 (for May & December)

FORMS OF PAYMENT

“No employer shall pay the wages of an employee by means of promissory notes, vouchers,
coupons, tokens, tickets, chits or any object other than legal tender, even when expressly requested
by the employee.”

MATERNITY LEAVE

In service at least 6 months

RA 11210: 105 days leave with pay + an option to extend for 30 days without pay (single parent:
additional 15 days with pay)
 Miscarriage or emergency termination of pregnancy: 60 days

PATERNITY LEAVE

RA 8187: 7 days with full pay for the first 4 deliveries (or any miscarriage) of the legal spouse with
whom he is cohabiting

SECURITY OF TENURE

“A regular employee shall remain employed unless his or her services are terminated for just or
authorized cause and after observance or procedural due process”

TERMINATION OF EMPLOYMENT

Balancing of interest in disciplinary cases

 Labor’s interest – right to labor and due process
 Management’s interest – promulgation of rules and regulations and enforce and implement
them for efficient business operations
Just Causes
Authorized Causes – needs separation pay
LABORATORY MANAGEMENT: LECTURE 5 – LABOR RELATIONS & STANDARDS
JUST CAUSES

Serious misconduct
 Serious: related to performance of duties
 Sexual harassment, fighting within company premises, theft of company property, drug
abuse, falsification of time records
Willful disobedience/ Insubordination
 Willful / intentional
 Order violated must be reasonable, lawful, and made known to the employee prior
Gross negligence / habitual neglect of duties
 Absenteeism, abandonment of work
Fraud / loss of trust and confidence
 Misappropriation of company funds
Commission of a crime or offense against the employer
Other analogous causes

AUTHORIZED CAUSES

Redundancy
 Services of am employee are in excess of what is reasonably demanded
 1 month written notice
 Separation pay (1 month per year of service)
 Fair and reasonable criteria in ascertaining redundant positions: efficiency, seniority
 Example: 1-month salary x years of service
15,000 x 3 = 45,000
LIFO rules: Last In, First Out
Closure of the company
 In good faith
 1month written notice
 Separation pay needed, except in cases of serious business losses
Disease or illness
 Continued employment is prohibited by law or prejudicial to health
 Medical certificate needed: disease can’t be cured within 6 months
 1month written notice
 Separation pay
LABORATORY MANAGEMENT: LECTURE 5 – LABOR RELATIONS & STANDARDS
OTHER CAUSES FOR TERMINATION

Failure of the probationary employee to qualify as a regular employee

Totality of infractions doctrine