The Essentials of

HR and Labor Law

Atty. Apollo PoL X.C.S. Sangalang
Business Lawyer & Legal Coach

Disclaimer
No lawyer-client relationship.
Consult your own legal counsel.
Remember: legal opinions differ.
Respect the sub judice rule.
Avoid conflicts of interest.

Omni Hauling Services Inc., Lolita Franco

and Aniceto Franco
-versusBernardo Bon, et. al. (and 17 other
worker-respondents)
G.R. No. 199388
September 3, 2014
Supreme Court of the Philippines

Labor Law Made Easy!

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Whats the Essentials of

HR and Labor Law?

D.O.C.U.M.E.N.T.
GOOD FAITH

2013

How to D.O.C.U.M.E.N.T. 2013

D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand Labor Law principles.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

Documentation X 3
Pre-Employment Documentation.
Employment Documentation.
Pre-Termination and Post
Employment Documentation.

Open-Mindedness
Be tolerant with your workers.
Be receptive to new ideas and
possibilities.
Be accepting of the outcome.

Clarity
Clarity in written communication.
Clarity in your talk and action.
Clarity in purpose and objective.

Understand Labor Law Principles

Understand that:
1. Labor Law is a Game.
2. the Rules of the Game.
3. the Goals of the Game.

It all starts with a

Hiring
Strategy!

Hiring Process

The Evolution of

Labor Law

Did you know that

Employment
is a

CONTRACT?

Law on Contracts
The contracting parties may establish
such stipulations, clauses, terms and
conditions as may be deemed
convenient, provided they are not
contrary to law, morals, good
customs, public order, or public
policy. (Art. 1306, Civil Code)

The Evolution of

Ownership

Law on Ownership
The owner has the right to
enjoy and dispose of a thing
without other limitations other
than those established by law.
(Art. 428, Civil Code).

The

Employer

Power
Equation

Ownership
Contracts

________________________________________________________

Power

Employer Rights!
The State recognizes the indispensable role
of the private sector, encourages private
enterprises, and provides incentives to
needed investments.
(Sec. 20, Art. II, Constitution)
The Statex x x recognizing the right of
enterprises (1) to reasonable returns on
investments, and (2) to expansion and
growth. (Sec. 3, Art. XIII, Constitution)

Management Prerogative
1. Right to hire;
2. Right to fire;
3. Right to fix compensation
& benefits; and
4. Right to control.

So whats the problem?

Well

Management Prerogative
is

NOT Absolute!

Why!?

Because Labor Law

LIMITS
Management Prerogative!

What are these limitations?

1) The burden of proving that the

termination was for a valid or authorized
cause shall rest on the employer. (Article
291 paragraph 2, Labor Code)(Formerly Article 277)

2) All doubts in the interpretation and

implementation of the Labor Code and its
implementing rules and regulations shall
be resolved in favor of LABOR. (Article 4,
Labor Code)

The Evolution of

Management Prerogative

The

Full Protection Equation

The Evolution of HR

How to D.O.C.U.M.E.N.T. 2013

D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand Labor Law principles.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

Master HR
ER / LR is essentially HR.
HR is exemplified by MR.
MR is enhanced by GR.

Did you know that

Employment
is like

MARRIAGE?

MARRIAGE

EMPLOYMENT

Anatomy of a Labor Dispute

Labor Relations Game

Rule of Law

Shared Responsibility Model

Tripartite Model

What is Social Justice?

Elements of Labor Law

Did you know that

Labor Law is about

90% ++
Employment Law?

Did you know that

Not everyone who

gets hired becomes
an employee?

Hiring Process

Labor Law

1.
2.
3.
4.
5.

Full protection
Living wage
Humane conditions of work
Security of tenure
Participation in policy-making and
decision-making
6. Sharing of the fruits of production

Self-organization and collective bargaining;

Freedom of expression; and
Strikes or other peaceful-concerted activities

Minimum Wage
Premium Pay
Night Shift
Differential
Service Incentive
Leave
Paternity Leave
VAWC Leave
13th Month Pay

Holiday Pay

Retirement Pay

Overtime Pay

Compensation
Benefit* (ECC)

Service Charges

PhilHEALTH
Benefit*

Maternity Leave

Social Security
Benefit*

Solo Parents Leave

Special Leave for
Women
Separation Pay

Pag-IBIG Benefit*

2014 Handbooks

Non-Diminution of Benefits

Test of Employment

Whats Control?

Control Test
The power to determine the end
results and the means of doing
the work is CONTROL.
Only an employer has the power
of control over his employees.
The power of control need not be
actually exercised.

Non-employment Options
Independent Contractors Job Contractors
Consultants

Freelancers

Agents

Industrial Partners

Corporate Officers

Cooperative Members

Volunteers

Interns

Did you know that

Job titles as well as

contractual disclaimers
are NON-binding?

Types of Employment
Private Sector

Government

Regular (Nature)

Casual

Regular (Term)

Non-Regular

Rank-and-file

Manager & Supervisor

Time-based

Results-based

Private Sector
Labor Code and other
labor laws
Department of Labor
and Employment

Government
Civil Service Law
Civil Service
Commission

CBA + Strike

CNA + No Strike

Labor Standards

Exempted from Labor

Standards

Regular

Casual

Work is NOT Usually

Work is Usually
Necessary or Desirable
Necessary or Desirable
in the Usual Business
in the Usual Business
or Trade of the
or Trade of the
Employer
Employer
Security of Tenure

No Security of Tenure

What is Security of Tenure?

TERMINATION OF EMPLOYMENT
ONLY ON THE GROUNDS OF:

1. JUST CAUSE; OR
2. AUTHORIZED CAUSE

What is Just Cause?

1.
2.
3.
4.
5.
6.

Serious misconduct;
Willful disobedience (or insubordination);
Gross and habitual neglect of duties;
Fraud;
Willful breach of trust; and
Crime against person of the employer or
his immediate family or representatives.

Other Kinds of Just Causes

1. Loss of trust;
2. Gross negligence coupled with a grave
consequence;
3. Incompetence without improvement;
4. Habitual commission of minor offenses;
and
5. Unfit for continued employment based on
the Totality of Infraction doctrine.

What is Authorized Cause?

1.
2.
3.
4.

Installation of labor-saving devices;

Redundancy;
Retrenchment to prevent losses;
Closing or cessation of establishment or
undertaking;
5. Disease prejudicial to health; and
6. Compulsory retirement.

Whats a Regularized Casual?

A CASUAL EMPLOYEE WHO

RENDERED AT LEAST 1 YEAR
OF SERVICE, WHETHER
CONTINUOUS OR BROKEN, IS
CONSIDERED REGULARIZED.

Regular

Non-Regular

Work is Usually Necessary Same

or Desirable in the Usual
Business or Trade of the
Employer
Security of Tenure

Same

Tenure is until the age of

compulsory retirement

Tenure is until completion

of the project, ending of
the season, expiration of
the fixed-term or contract,
or cessation of the
emergency or temporary
contingency

Non-Regular

Security of Tenure (?)

Project

Yes, but tenure expires upon

completion of the project.

Seasonal

Yes, but tenure expires upon the

ending of the season.

Contractual or
Fixed-term

Yes, but tenure expires upon the

end of contract.

Temporary or
Emergency

Yes, but tenure expires upon the

cessation of the emergency or
contingency.

Regular

Probationary

Work is Usually
Same
Necessary or Desirable in
the Usual Business or
Trade of the Employer
Security of Tenure

Same

No Probationary Period

Probationary Period of 6
months or less

Regular from Day 1

Regularized upon qualifying,

or if allowed to work beyond
6 months (whichever comes
earlier)

How you

HIRE

determines how
you FIRE!

Hiring Process

Job Contracting

NO CONTROL

NO CONTROL

CONTROL

Labor ONLY Contracting

NO CONTROL

CONTROL

NO CONTROL

Test of Employment

Whats Control?

Direct Contracting

5-5-5

Fixed-term

Manpower Cooperative

NO CONTROL

NO CONTROL

CONTROL

Self-Employed Cooperative

NO CONTROL

NO CONTROL

NO CONTROL

Labor Law
1.
2.
3.
4.
5.
6.

Full protection
Living wage
Humane conditions of work
Security of tenure
Participation in policy and decision-making
Just share in the fruits of production
1. Self-organization and collective bargaining;
2. Freedom of expression; and
3. Strike and other peaceful concerted activities

Labor-Management
Cooperation

Workers right
Participate
Policy & decision making processes
Rights, benefits and welfare
According to law

Unions and
Certification Elections

Workers right
Self-organization
Peaceful Concerted Activities
Strike
According to law

Takata (Philippines) Corporation

-versusBureau of Labor Relations and
Samahang Lakas Manggagawa ng Takata
(SALAMAT)
G.R. No. 196276
June 4, 2014
Supreme Court of the Philippines

Unfair Labor Practice

Violation of workers right

Self-organization & CBA
Committed by employer or by union
Defined in Labor Code
Criminal, Civil or Administrative

Collective Bargaining
Agreement

Negotiated contract
Exclusive bargaining agent and
Employer
Terms and conditions of employment
Grievance and Arbitration provisions

Level or Rank

Corporate officer
Manager
Managerial staff
Supervisor
Rank-and-file
Confidential

Mode of Payment

Time-based
Results-based
Commission-based
Piece-rate
Pakyaw
Mixed

Other Types of Employee

Field personnel
Personal assistant
Domestic worker
Home worker
Working children
Alien

Other Work Arrangements

Apprentice and learner

Intern and trainee
Self-employed worker or freelancer
Virtual assistant
Partner
Agent
Consultant and professional

Illegal Discrimination
Women and pregnant women
Marriage and married women
Handicapped workers
Single parents or solo parents
HIV/AIDS positive workers

Other Hiring Practices

Sexual harassment in the workplace

Yellow dog contract
Drug-testing
Non-competition agreement
Non-disclosure agreement
Non-solicitation agreement

How to D.O.C.U.M.E.N.T. 2013

D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand Labor Law principles.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

Embrace Best Practices

Good Practices.

Better Practices.

Best Practices:
WRITTEN EMPLOYMENT
CONTRACT

Model Employment Contract

Written, dated, and signed

Pre-employment & probation clauses
Regular or non-regular status
Obedience to company policies
Starting wages & specific benefits
Reference to job offer, handbook, etc.

Model Employee Handbook

Written, dated, and signed receipt

Code of discipline
Code of ethics & performance criteria
Resignation & clearance process
Address changes & notification
Common benefits listed

Model 201 File

Employment contract
Job description and job offer sheet
Pre-employment documentation
Job application and bio-data sheet
Acknowledgment receipts
Certifications and test results

How to D.O.C.U.M.E.N.T. 2013

D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand Labor Law principles.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

Negotiate X 3
Negotiate before a labor dispute.
Negotiate during a labor dispute.
Negotiate after a labor dispute.

Take advice only from experts

Licensed or seasoned experts.
Local labor law experts.
Practical and trust-worthy experts.

Whats the Essentials of

HR and Labor Law?

D.O.C.U.M.E.N.T.
GOOD FAITH

2013

Best of the Best HR Practice

Human Relations, Civil Code:

Article 19. Every person must, in the

exercise of his rights and in the
performance of his duties, act with
justice, give everyone his due, and
observe honesty and good faith.

Rotarys
4-Way
Test

Good Faith Test

1. Do no harm.
2. Make things better.
3. Respect others.
4. Be fair.
5. Be compassionate.

WHAT IS GOOD FAITH?

GOOD FAITH
SIMPLY MEANS

FAITH IN GOD

LABOR LAW MADE EASY

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