The document amends the implementing rules and regulations of Book VI of the Philippine Labor Code regarding just and authorized causes for termination of employment. It outlines guiding principles recognizing workers' right to security of tenure except for just or authorized cause as determined by due process. The rules apply to all employer-employee work arrangements and legitimate contracting. An employer-employee relationship is determined by a four-fold test focusing on control, with the "control test" being most crucial. Terms like "authorized causes" and "just causes" are also defined in relation to relevant articles of the Labor Code.
The document amends the implementing rules and regulations of Book VI of the Philippine Labor Code regarding just and authorized causes for termination of employment. It outlines guiding principles recognizing workers' right to security of tenure except for just or authorized cause as determined by due process. The rules apply to all employer-employee work arrangements and legitimate contracting. An employer-employee relationship is determined by a four-fold test focusing on control, with the "control test" being most crucial. Terms like "authorized causes" and "just causes" are also defined in relation to relevant articles of the Labor Code.
The document amends the implementing rules and regulations of Book VI of the Philippine Labor Code regarding just and authorized causes for termination of employment. It outlines guiding principles recognizing workers' right to security of tenure except for just or authorized cause as determined by due process. The rules apply to all employer-employee work arrangements and legitimate contracting. An employer-employee relationship is determined by a four-fold test focusing on control, with the "control test" being most crucial. Terms like "authorized causes" and "just causes" are also defined in relation to relevant articles of the Labor Code.
The document amends the implementing rules and regulations of Book VI of the Philippine Labor Code regarding just and authorized causes for termination of employment. It outlines guiding principles recognizing workers' right to security of tenure except for just or authorized cause as determined by due process. The rules apply to all employer-employee work arrangements and legitimate contracting. An employer-employee relationship is determined by a four-fold test focusing on control, with the "control test" being most crucial. Terms like "authorized causes" and "just causes" are also defined in relation to relevant articles of the Labor Code.
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Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT Intramuros, Manila
DEPARTMENT ORDER NO. N7-1S-
Series of 2015
AMENDING THE IMPLEMENTING RULES AND REGULATIONS OF BOOK VI
OF THE LABOR CODE OF THE PHILIPPINES, AS AMENDED
SECTION 1. Pursuant to Article 5 of the Labor Code of the Philippines, as
amended, on the rule-making power of the Secretary of Labor and Employment, the following Rules governing the application of the just and authorized causes of termination of employment under Articles 297-299 of the Labor Code, as amended, are hereby issued as follows:
RULE I-A APPLICATION OF JUST AND AUTHORIZED CAUSES OF TERMINATION
Section 1. Guiding Principles. The workers' right to security of tenure is
guaranteed under the Philippine Constitution and other laws and regulations. No employee shall be terminated from work except for just or authorized cause and upon observance of due process.
Section 2. Coverage. This Rules shall apply to all parties of work
arrangements where employer-employee relationship exists. It shall also apply to all parties of legitimate contracting/subcontracting arrangements with existing employer- employee relationships.
Section 3. Employer-Employee Relationship. To ascertain the existence of
an employer-employee relationship, the four-fold test shall apply, to wit: (1) the selection and engagement of the employee; (2) the payment of wages; (3) the power of dismissal; and (4) the power to control the employee's conduct, or the so-called "control test." The so-called "control test" is commonly regarded as the most crucial and determinative indicator of the presence or absence of an employer-employee relationship. Under the control test, an employer-employee relationship exists where the person for whom the services are performed reserves the right to control not only the end achieved, but also the manner and means used to achieve that end.1
Section 4. Definition of Terms. The following terms as used in this Rules,
shall mean:
(a) "Authorized Causes" refer to those instances enumerated under Articles
298 [Closure of Establishment and Reduction of Personnel] and 299 [Disease as a Ground for Termination] of the Labor Code, as amended. These are causes brought
1 David vs. Macasio, G.R. No. 1954661, July 2, 2014.