Labor and The Constitution
Labor and The Constitution
Labor and The Constitution
RIGHTS OF EMPLOYEE
1. EQUAL WORK OPPORTUNITIES FOR ALL - The State shall protect labor, promote full employment,
provide equal work opportunity regardless of gender, race, or creed; and regulate relations
between employees and employers.
2. SECURITY OF TENURE - Every employee shall be assured security of tenure. No employee can be
dismissed from work except for a just or authorized cause, and only after due process. Just cause
refers to any wrongdoing committed by an employee; authorized cause refers to economic
circumstances that are not the employee’s fault.
3. WORK DAYS AND WORK HOURS - An employee must be paid their wages for all hours worked. If
their work hours fall between 10:00 p.m. and 6:00 a.m., they are entitled to night shift pay in
addition to their pay for regular work hours. If they work over eight hours a day, they are entitled
to overtime pay.
4. WEEKLY REST DAY - A Day-off of 24 consecutive hours after six (6) days of work should be
scheduled by the employer upon consultation with the workers.
5. WAGE AND WAGE-RELATED BENEFITS - Wage is the amount paid to an employee in exchange for
the service that they rendered to their employer. Wage may be fixed for a given period.
6. PAYMENT OF WAGES - Wages should be paid directly to the employee in cash, legal tender, or
through a bank.
Wages shall be given not less than once every two weeks or twice within a month at intervals not
exceeding 16 days.
7. FEMALE EMPLOYEES - Women are prohibited from engaging in night work unless the work is
allowed by the following rules: industrial undertakings from 10 p.m. to 6 a.m., commercial/non-
industrial undertakings from 12 m.n. to 6 a.m., or agricultural takings at night provided that she
has had nine consecutive hours of rest.
Welfare facilities, such as separate dressing rooms and lavatories, must be installed at the
workplace.
8. EMPLOYMENT OF CHILDREN - The minimum employment age is 15 years of age. Any worker
below 15 years of age should be directly under the sole responsibility of parents or guardians
provided that work does not interfere with the child’s schooling or development.
The minimum age of employment is 18 years for hazardous jobs, and 15 years for non-hazardous
jobs. Hazardous jobs are
9. SAFE WORKING CONDITIONS - Employers must provide workers with every kind of on-the-job
protection against injury, sickness or death through safe and healthful working conditions.
10. RIGHTS TO SELF-ORGANIZATION AND COLLECTIVE BARGAINING - Every worker has the right to
self-organization, i.e., to form or to join any legitimate workers’ union, free from interference of
their employer or the government. All workers may join a union for the purpose of collective
bargaining and are eligible for union membership on the first day of their employment.
Collective bargaining is a process between two parties, namely the employer and the union,
where the terms and conditions of employment are fixed and agreed upon. In collective
bargaining, the two parties also decide upon a method for resolving grievances. Collective
bargaining results in a contract called a Collective Bargaining Agreement (CBA).
The employees' compensation benefit (or disability benefit) is a compensation package for public
and private sector employees and their dependents in the event of work-related injury, sickness,
disability or death. EC is a purely employer-based contribution benefit.
LABOR LAW
Branch of law which governs the relationship between workers and employers.
Employer Employee
• The employer and the worker must recognize that their relationship is not merely contractual, but is
impressed with public interest.
• They are partners in a joint undertaking. Neither must abuse one another. They must recognize their
rights and obligations towards each other, and to the public.
EMPLOYEES CLASSIFIED
1. Regular employees – workers whose work is usually necessary or desirable in the usual business
or trade of an employer.
2. Probationary employees – workers who are given time to show their skill and qualifications for
the position they seek, before they become regular employees.
• The period of probationary employment is six (6) months unless a longer period is agreed
upon.
3. Seasonal employees – workers who are employed only during a particular season of the year.
4. Contract or project employees – workers who are employed for a specific period only and
perform a specific work.
5. Casual employee workers – work is only incidental to the business of an employer.
• A casual employer can become a regular employee after one (1) year of service, whether
continuous or broken, but only for the same position and when there is a need for such a
position.
Determinants of an employer and employee relationship
Four-Fold Test
1. The selection and engagement of the employee
2. The payment of wages
3. The power of dismissal
4. Control Test
▪ Means & method of work
▪ Guidelines of work
Economic Dependence
The proper standard of economic dependence is whether the worker is dependent on the alleged
employer for his continued employment in that line of business.
PRIVATE SECTOR EMPLOYMENT
Termination of Employment
The right of security of employment is of great value not only to workers, but also their families.
Employment is the basis for stability in income and ultimately, in life itself.
Security of Tenure
• Security of tenure is the guarantee provided for by the Constitution and the Labor Code, that no
worker can be terminated from employment except for cause provided for by the law. (Article XIII,
Section 3 of the 1987)
• This guarantee means that an employer does not have a right to fire and terminate the service of an
employee at will.
CAUSE OF TERMINATION
JUST CAUSE AUTHORIZED CAUSE OTHER CAUSE
Serious misconduct or willful
Installation of labor-saving devices Suffering from
disobedience
disease
Gross and habitual neglect of duty Excess of workers or redundancy
Retrenchment for preventing
Fraud or willful breach of trust
business losses
Retirement
Commission of a crime against employer
Closing or cessation of operations
or family
BEFORE TERMINATION
Just Cause
1. Inform employee in writing of The employer must provide written notice to the employee
cause for termination stating the reason(s) for termination.
2. Allow time for employee to The employee must be given adequate time to respond to the
respond and defend charges and present their defense, with or without legal
representation, as chosen by the employee.
Note: The employer must have sufficient evidence to justify
the termination.
Employee Protection in Business Technology-related Termination
1. Inform employee and DOLE in The employer must notify both the employee and the
writing one month in advance Department of Labor and Employment (DOLE) in writing at
least one month prior to termination.
2. Pay separation or termination pay The terminated employee is entitled to receive separation or
termination pay from the employer. This compensation
acknowledges the termination of their employment.
TERMINATION PAY
Cause of Termination
Installation of labor-saving devices At least one (1) month pay or at least one (1) month pay
Excess of workers or redundancy for every year of service, whichever is higher.
Retrenchment for preventing business losses At least one (1) month pay or one-half (1/2) month pay
Closing or cessation of operations for every year of service, whichever is higher
Note: In all causes, services of at least six (6) months must be considered as one (1) year.
SUFFERING FROM DISEASE
Grounds for Termination
An employer can terminate employment if the employee is suffering from a disease, under
the following circumstances:
1. A competent public health doctor certifies that the disease cannot be cured within six (6)
months even with proper treatment.
2. Continued employment is prohibited by law.
3. Continued employment is prejudicial to the health of the employee or their co-employees.
[284]
Employee Protection
When employment is terminated due to disease, the employee is entitled to:
Termination or separation pay equivalent to at least one (1) month's pay, or one-half (1/2)
month's pay for every year of service, whichever is higher.
A fraction of at least six (6) months of service must be considered as one (1) year. [284]
RETIREMENT
Grounds for Termination
Retirement is a ground for termination of employment. A worker can be retired under the
following circumstances:
Compulsory retirement upon reaching the age of sixty (60), but not exceeding sixty-five (65)
years, provided the employee has worked for at least five (5) years.
Voluntary retirement subject to agreed-upon age and service requirements between the
employer and employee, either through contract or otherwise
Retirement Pay
Workers are entitled to retirement pay, which is at least one-half (1/2) month's pay for every
year of service.
A contract of employment or Collective Bargaining Agreement may stipulate a larger amount
of separation pay. [278]
RIGHT TO SELF-ORGANIZATION
The right to self-organization is very important and of great value to workers. Workers organize a union
for several reasons, such as:
1. Economic – to improve their economic conditions as a group)
2. Social – to associate with their fellow workers
3. Political – to participate in the process of government
The right to self-organization cannot be exercised for purposes against the law. Workers, as a
group, must first organize a union before the bargain, as a group (speaking through their union), with their
employer.
• Article 3, 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.
• Article 8, 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.
• All workers have the right to organize either for purposes of collective bargaining or mutual aid and
protection even if their employer is not organized for profit.
• All workers employed in commercial, industrial and agricultural enterprises, and in religious,
charitable, medical and educational institutions can exercise the right to self-organization for the
purpose of negotiating wages, hours of work, and other terms of employment.
• All workers, whether looking for employment, self-employed, or those whose employment are not
continuous, or are without definite employers, and rural workers can exercise the right to self-
organization for their common benefit support and protection.
2. Confidential employees – do not have the right to self-organization if they act as, or assist
executives who plan, decide, influence or give direction to, or carry out, implement, or execute
employer policies in matters affecting labor-management relations.
• The confidential employees' act or access to labor management matters is a necessary or
required part of their function and not only incidental. The basis of the prohibition is to avoid
conflict of interest.
• Confidential employees have the right to self-organization for their welfare and mutual aid
protection but not for the purpose of collective bargaining.
• Workers may freely choose not to exercise the right to self-organization for any reason.
• Workers have the right or freedom of choice.
• The law does not compel workers to exercise their right. The final choice of whether or not to exercise
the right to self-organization, however, rests solely with the worker.
• A worker can be forced to join the majority union when there is a union security provision in a
Collective Bargaining Agreement, i.e., an agreement between an employer and a union requiring
union membership as basis for hiring and continuing employment.
• Both the Constitution and the Labor Code recognize the importance and value of the labor union
as an organization of workers, both laws also acknowledge that labor unions have an important
role to perform in the task of nation-building, i.e., labor unions strengthen, advance, promote,
and protect worker's rights and welfare.
• Workers gain strength and confidence by joining and associating with their fellow workers when
arranging with their employers, as a group, matters or subjects affecting their employment.
• A labor union is the organization that is best able to negotiate for the workers all matters or
subjects of their employment.
➢ Without a union, a worker acting individually cannot negotiate with an employer, or is
weak if asked to do so.
Labor Union
• A labor union is an association of employees.
• As one of its purposes, it negotiates with an employer through group bargaining, concerning
wages, hours of work, and other terms and conditions of employment.
The remedy of a worker whose right is violated by the union / when a labor union commits an act or
acts which violate the rules for the administration of the labor union
A worker or group of workers can file a complaint with the Bureau of Labor Relations of the DOLE.
The Bureau, after notice and hearing, can issue all orders to protect the workers.
• The determination of the size and composition of an appropriate bargaining unit or the purpose
of collective bargaining is a necessary requirement in determining the sole bargaining union.
• Without a defined appropriate bargaining unit, the process of determining whether a group of
workers want or do not want a union cannot take place.
• Absent a union of the workers' choice, the workers cannot collectively bargain with an employer
over the conditions of their employment.
An appropriate bargaining unit, or a collective bargaining unit is a grouping of workers who have
common or mutual interest in matters that affect their employment, the appropriate bargaining unit can
be composed of all or less than all the employees of a given employer.
The unit can be employer or worker place - wide and be composed of all the employees or
employees of a department only, or employees of a section only, or a combination of one or more
departments or sections.
2. Workers who will be covered by and the beneficiaries of a Collective Bargaining Agreement which
states the terms and conditions of their employment.
The following factors are considered in fixing or ascertaining whether or not a unit is appropriate:
2. Geography or location of the workplace in relation to other workplaces of the employer; and
3. Relation of one business establishment with other business establishments owned by the said
employer.
• The weight or importance of a factor is a question of circumstance, time, and place of the work
environment.
• The usual or favored method of unit determination is the test of community or mutuality of worker
interest.
i.e., group or combined workers who have the same interest in wages, hours of work, and
other terms and conditions of employment.
• This is the grouping that will best protect and promote the worker's right to self-organization and
collective bargaining.
• The factors earlier considered a determining the appropriateness of a unit can change over a period
of time; hence, the need to inquire whether an earlier unit can be changed or remain as it was before.
whether they want to be represented by a labor organization for the purpose of collective
bargaining, and if so, which among the several unions participating in the election.
o The Workers may also vote if they do not want to be represented by a labor union.
o The law recognizes the Workers' freedom of choice whether to be represented by a union
or not.
Scenario Description
Majority Vote for Union that obtains majority (50% +1) of valid votes in certification election
Union becomes certified exclusive bargaining representative.
Vote Against Union If workers vote against union representation, no union will be certified as
Representation exclusive bargaining representative.
Held when neither union nor no union option gets majority of valid votes in
Run-off Election
certification election.
If none of the choices get majority and all contending unions combined have
Run-off Election
50% of votes, only two unions with highest votes participate in run-off. No
Participants
union choice excluded from run-off ballot.
COLLECTIVE BARGAINING
• The law on labor standards provides only the minimum terms and conditions of employment.
• Collective bargaining is the process or procedure through which workers can obtain improved or
additional benefits.
• The right to collective bargaining is guaranteed to workers by both the Constitution and the Labor
Code.
• Collective bargaining is a procedure or process where workers, acting as a group, through a union,
negotiate or bargain with their employer on all of their employment relations.
• The Constitution and the Labor Code guarantee the right of workers to collective bargaining.
STRIKE/LOCKOUT CLASSIFIED
1. Economic Strike - a joint act of workers to force a concession which the law does not compel an
employer to give.
2. Unfair Labor Practice Strike - declared when the cause of the action is an alleged act of unfair labor
practice by an employer.
PICKETING
• Picketing is a form of speech guaranteed to workers by both the Constitution and the Labor Code.
• The purpose of picketing is to inform the workers and the public of the existence of a dispute with an
employer over the terms and conditions of employment and to ask for sympathy and understanding.
• Picketing can take place even absent an employer-employee relationship between the picketers and the
employer.
• Picketing cannot be prohibited but can be regulated in the interest of other parties and the public.
• The law recognizes and guarantees only peaceful picketing, hence, in all instances, the use of violence
and coercion is absolutely prohibited.
• Conciliation and mediation are processes to help both employers and unions to peacefully and
voluntarily settle their dispute.
• Arbitration is a process of resolving a labor controversy without the use of strike or lockout.
• Mediation, conciliation, and arbitration are the most favored means, both by the Constitution and the
Labor Code, as modes or procedure of dispute settlement.
CONCILIATION AND MEDICATION
• A Conciliation and mediation are processes or aids, either by a government or private agencies, to
help or assist the employer and union solve peacefully their dispute or controversy.
• The NCMB, either upon the invitation of the employer or the union or both or on its own initiative,
will assist the parties in resolving their dispute.
• The NCMB is a government 21 agency attached to the DOLE.
• The employer and the union can also, jointly and voluntarily seek the assistance of a private agency
to help resolve their disputes. [250 (c-e)]
TYPE OF
DESCRIPTION
ARBITRATION
• Occurs automatically by operation of law
• Dispute resolution mandated for disputes in industries absolutely necessary to
national interest
Compulsory
• Resolution by government agency, authorized by President or Secretary of Labor
Arbitration
and Employment
• National Labor Relations Commission can act as compulsory arbitration agency
with authorization
• Dispute settlement voluntarily agreed upon by employer and union
• Involves unresolved grievances in interpretation or implementation of Collective
Voluntary Bargaining Agreement or company personnel policy
Arbitration • Other disputes may also be submitted for voluntary arbitration
• Conducted by single arbitrator or panel selected jointly by employer and union or
by NCMB following procedures in CBA
UNFAIR LABOR PRACTICE
An unfair labor practice is an act committed by either an employer or a labor union or its officers or agents
which violates the rights of workers to self-organization or collective bargaining.
1. The right is violated by an employer when it interfaces, restrains, coerces employees in the
exercise of their twin rights to self-organization and collective bargaining.
2. A union can also commit an unfair labor practice when it restrains or coerces workers in the
exercise of their twin rights to self-organization and collective bargaining.
3. The law does not define "interfere", "restrain" and "coerce."
• Interfere means to object, hinder, or restrict workers in the exercise of their rights.
• Restrain means to restrict workers in the exercise of their rights.
• Coerce means to prohibit by force and without regard for the workers' desire to exercise their
rights.
4. The following are an example of unfair labor practices by employers:
• Requiring employees not to join a labor union as a condition for employment or continuing
employment
• Forming, dominating, or contributing financial or other forms of support to a labor
organization.
2. An unfair labor practice violates the civil rights of workers and employees and is a criminal offense
against the state. [212(k); 247- 249]
1. Civil Aspect - either the union or the employer, can file a complaint for unfair labor practice with
the Labor Arbiter, or voluntarily agree to submit the case to a Voluntary Arbitrator for resolution.
• Both the Labor Arbiter or Voluntary Arbitrator can order the violating party to comply with
the law. [217(a)(1); 262]
2. Criminal Aspect - either the union or the employer can file a criminal case with the courts of law.
• The court can impose the penalty of either a fine or imprisonment or both.
• An alien can be deported after serving the penalty of imprisonment.
• The criminal case can be filed only after the resolution of the civil aspects of the case. [247;
288-290]
LABOR RELATIONS IN THE GOVERNMENT SERVICE
➢ Employees in the government service are those employed by the national government, or local
government and government-owned and controlled corporations created by a special law. [1]
➢ The Constitution (Article IX-B, Sec. 2[5]) and Executive Order No. 180 guarantee the right of
government employees to self-organization to advance and protect their interest, and the right to
form, with appropriate government authorities, labor government committees, work councils, and
other forms of worker participation arrangement. [2]
o Basically, government workers can't be treated unfairly just because they're part of a labor
union. They can't be refused a job or be told to quit their union to keep working. It's about
making sure they're not penalized for being part of a union.
The following do not have right to self- organization because of the nature of the work and duty.
1. Members of the Armed Forces 3. Jail Guards
2. Police Officers and Policemen 4. Firemen
A Government employee cannot collectively bargain with the government because their wages, hours
of work and other terms and conditions of employment are already set by the Civil Service Law and
other allied laws. Government employees can bargain with the government all other terms and
conditions of employment that are not provided for by law.
RECRUITMENT AND PLACEMENT WORKERS
• A worker generally files an application with, and his hired directly by an employer. This is a
common form of hiring
• A local or overseas employer may directly hire or request for a referral of workers either through
government agencies or private free-charging employment agencies or private recruitment
entities. [25; 13(c) and (e)]
• The business of recruitment and placement of workers is regulated by the Labor Code of the
Philippines and the Migrant Workers and Overseas Filipino Act of 1995. [12-39 and 8042]
ILLEGAL RECRUITMENT
• Illegal recruitment is a criminal offense committed by an individual, or a private fee charging
employment agency or a private recruitment entry.
• The offense can be committed either under the Labor Code (workers recruited for local or
Philippine employment) or the Migrant workers and Overseas Filipino Act of 1995 (workers
recruited for employment abroad). [38 and R.A. No. 9042, Sec. 6]
Profits is not important to any of the acts. There is a presumption of recruitment and 27 placement activity
when the offender promises to two (2) or more workers employment in consideration of money or anything
of value.
WAGES
• A Wage is the compensation paid to an employee for work done or to be done, or for services
rendered or to be rendered.
• Wage includes a fair and reasonable value for board, lodging and other facilities customarily
provided to the employee by the employer.
• The fair and reasonable value of board, lodging and other facilities is determined by the DOLE and
does not include profit to the employer or anyone connected with the employer.
WAGE RATE
• Wage rate may be determined on any of the following basis:
1. Time = hourly, daily and monthly;
2. Task = specific work to be done, e.g., cleaning a garden of a special area
3. Piece = piecework, e.g., for every shirt or dress of an article
4. Commission = an agreed percentage of the sale price of an article.
MINIMUM WAGE
• A minimum wage or statutory wage is the wage set be law.
• It is the lowest amount that an employer must pay to an employee.
• The minimum wage is set or fixed by a Regional Tripartite Wages and Productivity Board.
• The minimum wage is applicable only to a particular geographic area, which may be region,
province or provinces, municipality or municipalities, or even a particular industry. [99]
HOWEVER,
• Wages may be paid only to a duly authorized representative of an employee through a written
authority where direct payment to an employee cannot be made by reason of force majeure.
• The DOLE determines the instance when payment can be made to an employee’s
representative.
• Where the employee dies, his/her wages should be paid to the heirs through the DOLE.
NOTES:
• Employer cannot force or oblige an employee to buy merchandise or service from an employer-
owned establishment, or that owned by any other person.
• An employer requires an employee to make a deposit to answer for any loss or damage to tools,
materials, or equipment supplied by the employer but only where the practice of deposits is a
recognized one or is desirable, and in accordance with the rules and regulations of the DOLE.
o An employer can make deductions from the deposit made by an employee to pay for any
loss or damage to the tools, materials, or equipment only:
▪ After the employee has been given an opportunity to explain the loss or damage
▪ After the employee’s responsibility has been fully established. [115]
HOURS OF WORK
• An employee’s normal hours of work is eight (8) hours a day.
• A work is counted from the time an employee begins to work, and extends for twenty-four (24)
hours thereafter.
• An employer is required to give an employee a regular meal period of at least (60) minutes.
HOURS WORKED
1. All the time that a worker is required by an employer to be at a designated work place.
2. All the time that an employee was suffered or permitted to work
3. Rest periods of short duration during working hours.
OVERTIME WORK
• Overtime work is work performed in excess of a work day of eight (8) hours.
• Thus, if the employee’s work shift is from 8:00 A.M. – 12:00 NOON, and 1:00 P.M. to 5:00 P.M.,
then all work performed after 5:00 P.M. up to 8:00 A.M. the next day is overtime work.
• An employer must be paid additional compensation (overtime compensation) for work performed
after eight (8) hours.
o The rate of overtime compensation is provided for by law.
o Overtime work performed an employee’s day of work, on a rest day, or a holiday is paid
at different rates.
o Overtime compensation cannot be waived by a worker.
o An employer cannot work for more than eight (8) hours in one day without overtime
No Offsetting
This overtime work must be compensated at the rate provided for by law.
NIGHT SHIFT
• A night differential pay is additional pay of not less than ten percent (10%) of the daily regular wage
for work performed between 10:00 P.M. and 6:00 A.M. the next day.
• An employee working during these hours must be paid a night differential pay.
• An employee is entitled to rest day of twenty-four (24) consecutive hours after every six (6)
consecutive normal work days.
• An employee cannot be compelled to work on the rest day.
• Rest day work is voluntary.
HOLIDAYS
• Holidays are paid non-working days to allow the workers to observe and think of the importance
or significance of the event being commemorated and install civic consciousness.
• The holidays may either be regular holidays or nationwide special days. [Sec. 1, E.O. 203]
HOLIDAY PAY
• A Holiday pay is that which an employer must pay all employees for all the regular holidays and
regular special days.
• Holidays are paid non-working days.
• Service incentive is granted by law in recognition of the service of a worker as there is no law that
provides for paid vacation leave.
• A service incentive leave of five (5) days with pay is granted to an employee annually after one (1)
year of service.
PATERNITY LEAVE
• Society expects that husband must give aid and comfort to his wife during childbirth.
A Paid paternity leave of seven (7) days is granted to a male employee who is legally married to
his wife on the occasion of childbirth.
• This leave is allowed only for up to four (4) deliveries. [Sec. 2, R.A. No. 8187]
WOMEN WORKERS
• A Women employees must have the same terms and conditions of employment as that of men
when they are similarity situated.
• This means that no discrimination in any form is allowed on the basis of gender. Specifically, it
means:
o Equal pay and fringe benefits for equal work, or work of equal value, between women and
men employees
o There shall be no discrimination with respect to promotion, training study, and scholarship
based solely on account of their gender.
WOMEN WHO WORK IN NIGHT CLUBS, COCKTAIL LOUNGES, MASSAGE CLINICS, BARS
• These women workers are considered employees for purposes of labor and welfare laws after the
DOLE has determined that they work 35 under the effective supervision and control of the
employer for a considerable period of time whether they work with or without pay.
MINORS
EFFECT ON MEMBERSHIP IN THE SSS AND GSIS IF THE EMPLOYEE IS SEPARATED FROM EMPLOYMENT
A. Social Security System (SSS)
• A member separated from employment will be credited with all contributions paid and entitled
to benefits.
• The employee may continue contributions to maintain full benefits. The said rule applies to the
self-employed whose business income is interrupted. [Sec. 1 and 11-A, R.A. No. 1161 as
amended by R.A. No. 8282]