Legal Issues in Human Resources

Management
EDUC 215
PERSONNEL MANAGEMENT IN EDUCATION
“HR departments have always had to
contend with legal issues. In the face
of an evolving social landscape,
however, there is greater pressure to
adhere to the letter of the law.”

-Leslie Sherman, Freelance Writer-

 The Importance of Understanding HR Legal Issues
 HR professionals must have a comprehensive understanding of
relevant and updated HR law and its corresponding regulations.

 These HR employment laws regulate:

- hiring and firing - workplace safety
- benefits and pay - confidentiality
- serve to protect against discriminatory practices
- harassment.

 They also provide guidance in the event of workplace conflict or

complaints.
 HR Management Responsibilities
 An effective HR manager has knowledge and experience of all
compliance issues:
-benefits and compensation - discrimination and harassment
- health and safety - confidentiality
- leave entitlements - employee labor rights
 They must be capable of designing and implementing internal
guidelines that take these legal requirements into consideration.
 Aware of standard practices and procedures in the event an
employee, or ex-employee, files a complaint or lawsuit.
 Hiring the right person for this position not only ensures regulatory
compliance but it also contributes to the overall success of the
company
EMPLOYMENT LAWS FOR HR
PROFESSIONALS

“Ignorantia legis, nimenem excusat”

-Ignorance of the law excuses no one-
 Data Privacy Act
The Data Privacy Act (RA 10173)
 What is The Data Privacy Act of the Philippines?

The Data Privacy Act (DPA), or Republic Act No. 10173 was
passed by the Philippines Congress in 2012 and finally
implemented five years later in 2016. RA 10173 assures the “free
flow of information to promote innovation and growth”(Republic Act.
No. 10173, Ch. 1, Sec. 2) while protecting the users’ fundamental
rights to privacy.
 Data Privacy Act
The Data Privacy Act (RA 10173)
 How is it implemented?

RA 10173 protects and maintains the right of customers to

confidentiality by setting a legal list of rules for companies to
regulate the collection, handling, and disposal of all personal
information.
 Data Privacy Act
The Data Privacy Act (RA 10173)
 What happens if I do not comply?

Improper/unauthorized processing, handling or disposal of

personal information can be penalized by imprisonment up to six
years and a fine of not less than Five hundred thousand pesos
(PHP 500,000).
 Benefits

1. Employee minimum wage and additional pays - due to varying

factors like holidays or overtime

2. Leave benefits - which are paid absence from work

3. Mandatory government contributions

 Wage and compensations Benefits
1. Employee minimum wage*
Region Region Minimum Wage Increase
NCR 500.00 - 537.00
CAR 340.00 - 350.00
Region I 282.00 - 340.00
Region II 345.00 - 370.00
Region III 304.00 - 420.00
Region IV-A 303.00 - 400.00
Region IV-B 294.00 - 320.00
Region V 310.00

Region VI 310.00 - 395.00

Region VII 351.00 - 404.00
Region VIII 295.00 - 325.00
Region IX 303.00 - 316.00
Region X 331.00 - 365.00
Region XI 381.00 - 396.00
Region XII 315.00 - 336.00
Region XIII 320.00
 Wage and Compensation Benefits

2. Overtime pay

The employee who renders service beyond the schedule

indicated in the contract will be given additional compensation
equivalent to his regular wage including at least 25% premium.
 Wage and Compensation Benefits
3. Premium Pay
A premium pay is an overtime pay for rest days and official holidays. Employee
shall be paid an additional compensation from the rate of the first eight hours on a
holiday or rest day plus at least 30%.
1. Regular Holidays 2. Special Holidays 3. Double Holidays
- Christmas Day - ASEAN Summit - (Eid’l Adha) and regular
- Independence Day - regional events holiday (Ninoy Aquino Day)
- New Year’s Day.
- National Heroes Day
- Holy Week
 Wage and Compensation Benefits
4. Night Shift Differential
Also known as night shift pay, it applies to employees who work
between 10:00 PM and 6:00 AM.
An additional 10% premium is applied for every hour at work.

5. 13th Month Pay

      All rank and file employees are entitled to receive 13 th month

pay regardless of the nature of their employment and irrespective of
the methods by which their wages are paid, provided they worked
for at least one (1) month during a calendar year.
       It should be given to the employees not later than December 24
of every year.
 Wage and Compensation Benefits
6. Separation pay

Separation pay is also part of the Labor Code and is given to employees
terminated from the company. The only exception are those terminated because of
misconduct or crime involvement.

7. Retirement pay

      It
is the amount given an employee who has reached the age of 60 years for
optional retirement and 65 years old for compulsory and who has served the
company for at least 5 years in the service.
 Leave Benefits

1. Service Incentive Leave

Article 95 of the Labor Code says that an employee who has

worked for a year is entitled to five (5) SILs with full pay. These can
be used for vacation leave or sick leave.
 Leave Benefits
2. Parental leaves

A. Maternal – any pregnant woman employee who has worked with the
company for at least six months will be granted a maternity leave of at
least two weeks prior to her due date (expected date of delivery) and
four weeks after normal delivery or miscarriage with full pay based on
her regular salary.
 Leave Benefits
2. Paternal – the R.A No. 8187, or Paternity Leave Act of 1996, grants
seven (7) days of fully paid leave to married fathers. This is effective
up to the first four deliveries of the legitimate spouse.

3. Solo Parent – Solo or single mothers and fathers have seven days
leave with pay for every year of service, on top of other leave
privileges, e.g. Maternity or Paternity Leave.
 Leave Benefits
3. Special Leave Benefits for Women

Magna Carta for Women – this entitles women who underwent

surgery due to gynecological disorders to two months’ leave with full
pay, as stipulated in R.A. 9710 or the Magna Carta of Women. This
applies to employees who have rendered at least six months of
service with the company.

Leave for women and their children who are victims of violence –
victims of violence against women, as stipulated in R.A. 9262 or the
Anti-Violence Against Women and Their Children Act of 2004, are
entitled to 10 days leave with full pay.
 Leave Benefits
4. Bereavement Leave
This is a 3 days additional time off from work to mourn for the death of
immediate family members such as mother, father, siblings, and
children. It must be noted that this is not a paid leave.

5. De Minimis Benefits
These are either relatively small amounts of money or leave credits
that are optional for employers to grant. Examples are calamity leave,
rice subsidy, transportation/clothing/laundry allowance, daily meal
allowance, other goods that are not monetary.
 Mandatory Government Contributions

1. SSS
The Social Security System serves as an insurance program set by
the government for all wage earners from the private institutions (the
counterpart for government employees is GSIS) in the country.

The benefits given by SSS are for sickness, maternity, disability,

retirement benefit (pension), death cash grant, funeral grant, and salary
loan.
 Mandatory Government Contributions
2. PhilHealth
This serves as a health insurance program for private employees providing
financial aid and service privileges for health care.

The PhilHealth benefits include:

a. Inpatient benefits (hospitalization, facility fees, and physician/surgeon fees)

b. Outpatient benefits (day surgeries, radiotherapy, hemodialysis, outpatient blood
transfusion, primary care benefits)
c. Z benefits (financial/medical aid for the patients with cancer and in need of surgeries)
d. SDG related (Malaria package, HIV-AIDS package, anti-Tuberculosis treatment,
voluntary surgical contraception procedures, and animal bites treatment)
 Mandatory Government Contributions
3. Pag-IBIG
Also known as the Home Development Mutual Fund (HDMF), Pag-IBIG
is another form of national savings program and the financing office for
affordable shelter.

Pag-IBIG lets you have the following benefits: housing loan, multi-
purpose loan, calamity loan, secured savings.
 Anti-discrimination Act
 The Labor Code prohibits discrimination against women on account
of their gender, and against children on account of their age.
The Magna Carta of Women (Republic Act No. 9710, as amended)
prohibits discrimination against women and expressly imposes liability
for damages on the person directly responsible for such discrimination.
The Anti-Age Discrimination in Employment Act (Republic Act No.
10911) prohibits discrimination on account of age, and imposes
penalties for violation of the Act.
The Magna Carta for Persons with Disability (Republic Act No.
7277, as amended) provides that a qualified employee with disability
shall be subject to the same terms and conditions of employment as a
qualified able-bodied person.
 Anti-discrimination Act
 The Solo Parents’ Welfare Act (Republic Act No. 8972) prohibits
an employer from discriminating against any solo parent employee
with respect to the terms and conditions of employment on account
of the employee being a solo parent.
 The Indigenous Peoples’ Rights Act (Republic Act No. 8371)
prohibits discrimination against Indigenous Cultural Communities or
Indigenous Peoples with respect to recruitment and conditions of
employment on account of their descent.
 The Anti-Sexual Harassment Act (Republic Act No. 7877)
prohibits sexual harassment in the workplace.
 Anti-discrimination Act
 The Mental Health Act (Republic Act No. 11036) requires
employers to develop appropriate policies and programmes on
mental health in the workplace designed to, among others, raise
awareness on mental health issues, correct the stigma and
discrimination associated with mental health conditions, identify and
provide support for individuals at risk and facilitate access of
individuals with mental health conditions to treatment and
psychosocial support.
 Anti-discrimination Act
 The Philippine HIV and AIDS Policy Act (Republic Act No.
11166) also prohibits the rejection of job application, termination of
employment, or other discriminatory policies in hiring, provision of
employment and other related benefits, promotion or assignment of
an individual solely or partially on the basis of actual, perceived or
suspected HIV status.
This law also states that policies and practices that discriminate on
the basis of perceived or actual HIV status, sex, gender, sexual
orientation, gender identity and expression, age, economic status,
disability and ethnicity are deemed inimical to national interest.
 Anti-harassment Act
Republic Act 7877: The Anti-Sexual Harassment Act of 1995

What is Sexual Harassment?

Under RA 7877, work, education, or training related sexual
harassment is “committed by an employer, employee, manager,
supervisor, agent of the employer, teacher, instructor, professor, coach,
trainor, or any person who,
having authority, influence or moral ascendancy over another in a work
or training or education environment, demands, requests or otherwise
requires any sexual favor from the other, regardless of whether the
demand, request or requirement for submission is accepted or not by the
object of said act.”
 Anti-harassment Act
Republic Act 7877: The Anti-Sexual Harassment Act of 1995
How is work-related sexual harassment committed?
Work-related Sexual Harassment is committed when:
1. The sexual favor is made as a condition in the hiring or in the employment, re-
employment or continued employment of said individual, or in granting said
individual favorable compensation, terms, conditions, promotions, or privileges;
or refusal to grant the sexual favor results in limiting, segregating or classifying
the employee which in any way would discriminate, deprive or diminish
employment opportunities or otherwise adversely affect said employee
2. The above acts would impair the employee’s rights or privileges under existing
labor laws; or
3. The above acts would result in an intimidating, hostile or offensive environment
for the employee.
 Anti-harassment Act
Republic Act 7877: The Anti-Sexual Harassment Act of 1995
How is education or training-related sexual harassment committed?

Education or Training-related Sexual Harassment is committed:

1. Against one who is under the care, custody or supervision of the offender;
2. Against one whose education, training, apprenticeship, or tutorship is entrusted
to the offender;
3. When the sexual favor is made a condition to the giving of a passing grade, or
granting of honors and scholarships, or the payment of a stipend, allowance or
other benefits, privileges, or considerations; or
4. When the sexual advances result in an intimidating, hostile or offensive
environment for the student, trainee or apprentice.
 Anti-harassment Act
Republic Act 7877: The Anti-Sexual Harassment Act of 1995

What are the penalties for offenders?

Any person who violates the provisions of the law shall be penalized
by imprisonment of not less than one (1) month nor more than six (6)
months, or a fine of not less than Ten Thousand Pesos (P10,000) nor
more than Twenty Thousand Pesos (P20,000), or both such fine and
imprisonment at the discretion of the court.
 REPUBLIC ACT NO. 11058
“AN ACT STRENGTHENING COMPLIANCE WITH OCCUPATIONAL
SAFETY AND HEALTH STANDARDS AND PROVIDING PENALTIES FOR
VIOLATIONS THEREOF”

RIGHTS OF WORKERS UNDER REPUBLIC ACT NO. 11058:

 
1.  Workers’ Right to Know.

The right to safety and health at work shall be guaranteed. All

workers shall be appropriately informed by the employer about all types
of hazards in the workplace, provided access to training and education
on chemical safety, electrical safety mechanical safety, and
ergonomical safety.
 REPUBLIC ACT NO. 11058
2. Workers’ Right to Refuse Unsafe Work.

The worker has the right of refusal to work without threat or reprisal from the
employer if, as determined by the DOLE, an imminent danger situation exists in
the workplace that may result in illness, injury or death, and corrective actions to
eliminate the danger have not been undertaken by the employer.

3. Workers’ Right to Report Accidents.

  Workers and their representatives shall have the right to report accidents,
dangerous occurrences, and hazards to the employer, to the DOLE and other
concerned government agencies exercising jurisdiction as the competent
authority in the specific industry or economic activity.
 REPUBLIC ACT NO. 11058
 4. Workers’ Right to Personal Protective Equipment (PPE).

  Every employer, contractor or subcontractor, if any, shall provide his

workers, free of charge, protective equipment for their eyes, face, hands and
feet, and free, and lifeline, safety belt or harness, gas or dust respirators or
masks, protective shields whenever necessary by reason of the hazardous
work process or environment, chemical, radiological, mechanical and other
irritants or hazards capable of causing injury or impairment in the function of
any part of the body through absorption, inhalation or physical contact. The
cost of the PPE shall be part of the safety and health program which is a
separate pay item.
Legal Issues Faced in Human Resources
 Confidentiality
 One of the basic principles in HR is maintaining confidentiality.
 All the sensitive data on your employees should be considered
confidential.
- social security numbers - background checks
- health records - performance
- work-place injury reports
 Employers should develop procedures for safeguarding this data, as
well as notifying their workforce if a data breach occurs.
 HR must also protect the confidentiality of data which is available only
to the management staff, such as strategies or proprietary data.
 Employee Benefits

The most important benefits are:

Salary,
Annual leave and sick leave,
Parental leave,
Long service leave.
 Workplace Discrimination
 Workplace discrimination laws ensure employees
are protected against 
discrimination in the workplace at all stages of
employment.

- recruitment
- employment
- terms and conditions
- training pay and benefits
- promotion and transfer opportunities
dismissal andcan
 -Discrimination redundancy.
be based on gender, race,
sexual orientation, and religion. Employers must
ensure there is no discrimination based on marital
and family status, disability, and veteran status.
 Workplace Discrimination
 If an employee feels that they were
discriminated against and suffered an
adverse action such as employment
termination or lack of promotion, they
are entitled to file a discrimination
lawsuit.
 Workplace Safety
 Personal injuries are common, as well as different
charges and lawsuits addressing a company’s
negligence to provide safety in the workplace.
 HR professional needs to make certain your
company is doing its best to create a culture of
safety at work as well as that all the staff received
proper training on such issues. 
 Document everything and to make sure all the
regulations and practices are in compliance with
applicable laws. 
 Harassment
 Companies must create anti-harassment policies
that strive to create and maintain a work
environment in which people are treated with
dignity, decency and respect.
 These policies must be made readily available to
all new and existing employees.
 Training should also be provided to all managers
to ensure they are able to detect potential cases
of harassment and conduct, fair, impartial and
thorough investigations in the event a claim is
made by an employee.
 Labor Rights
 There are many other rights employees are entitled to apart from
the benefits we’ve mentioned earlier.
 One of those rights is overtime pay, which usually brings a
premium. Unpaid overtime hours are often a reason for a lawsuit,
as a company needs to provide mechanisms for monitoring
overtime working hours, as well as to ensure employees are paid
for them.
 Another common reason for a lawsuit is wrongful termination of
employment, as an employee may bring such charges if they think
termination is a result of retaliation, for example.
 The best way to prevent unpleasant consequences is to be sure
you have accurate records, which can prove the termination was
legal. If the termination was a case of redundancy, your employee
may be entitled to redundancy pay, so you will need to follow the
whole process through.
How to Handle Legal Issues: Avoiding
Lawsuits
 How to avoid employee lawsuits

 Implement policies and procedures in line with any changes to

employment laws and regulations.
 Ensure you communicate all policies and they are readily
available to existing employees
 Include training on company policies and procedures as part of
the new employee onboarding process.
 Ensure employees are aware of their rights.
 Train employees on safety and correct working environment
practices.
 Document everything from employee reviews, performance
evaluations and attendance records.
 “It is important to keep yourself informed about all
the legal HR issues your company can face so that
you can have the right procedures in place and handle
tough situations in a fair and lawful manner, for the
benefits of your employee and your company, too.”
- JACOB WILSON-
 References:
 Legal Issues Affecting HR Managers (Know Your HR Law)
@ https://factorialhr.com/blog/legal-issues-hr-law/ retrieved on February 14, 2021 @ 9:31 AM

 5 Legal Issues Faced in Human Resources

@ https://www.legalreader.com/5-legal-issues-faced-human-resources/ retrieved on Feb. 14, 2021 @ 9:37 AM
 Rights Of Workers Under Republic Act No. 11058 Or “An Act Strengthening Compliance With Occupational Safety And
Health Standards And Providing Penalties For Violations Thereof”
@ https://www.alburolaw.com/rights-of-workers-under-republic-act-no-11058-or-an-act-strengthening-compliance-wit
h-occupational-safety-and-health-standards-and-providing-penalties-for-violations-thereof
retrieved on February 18, 2021 @ 3:33 PM.
 Employee Benefits in the Philippines: Complete List, Guide, and FAQs
@ https://www.ecomparemo.com/info/heres-a-full-list-of-mandatory-benefits-for-regular-employees-in-the-philippines

retrieved on February 18, 2021 @ 1:09 PM

 Q&A: Labour & Employment Law in Philippines
@ https://www.lexology.com/library/detail.aspx?g=cd04c62c-1e09-46d7-bdbb-02e6491aff87 retrieved Feb. 14, 2021
@ 9:27 AM
 Republic Act 7877: The Anti-Sexual Harassment Act of 1995
@ https://pcw.gov.ph/republic-act-7877-faqs/ retrieved February 18, 2021 @ 2:56 PM
 The Data Privacy Act (RA 10173): Here’s What You Need To Know
@ https://sprout.ph/blog/data-privacy-act/ retrieved February 18, 2021 @ 12:23 AM
 Daily Minimum Wage Rate
@ https://nwpc.dole.gov.ph/ retrieved on February 25, 2021 @ 8:57 AM
Legal Issues in Human Resources
Management