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PART FOUR: THE LAW ON HOURS OF WORK

CONDITIONS OF EMPLOYMENT (BASED ON


BOOK III 4. What are the normal hours of work? What is the
OF THE LABOR CODE, AS AMENDED purpose of the law in imposing such standard?
COVERAGE
Under Article 83 of the Labor Code as amended,
1. How is the existence of Employer-Employee the normal hours of work of an employee shall not
relationship established? exceed 8 hours a day.

The following are the acts of the employer that The purposes of the law in imposing such standard
constitute the elements of an Employer-Employee are to safeguard the health and welfare of the
Relationship: laborer and to minimize unemployment by
compelling employers to utilize different work shifts.
1. selection and engagement of the employee;
2. the payment of wages; 5. Is there a special rule with respect to normal
3. power of dismissal; and working hours?
4. control test
Yes. For health personnel in cities and
NOTE: The above enumeration is also known as municipalities with a population of at least 1M or in
the “four-fold” test in establishing employment hospitals and clinics with a bed capacity of at least
relationship. 100, their regular office hours shall be 8 hours a day
for five days a week, or 40 hours a week, exclusive
2. Which among the above mentioned elements is the of time for meals.
most crucial or important indicia of an employer-
employee relationship? In case of exigencies, they may work for 6 days or
for 48 hours, but they shall be entitled to an
The last element, the “control test” is the most additional compensation of at least 30% of their
important index of the existence of the regular wage for work performed on the 6th day.
relationship.
6. Who are considered “health personnel”?
The CONTROL TEST refers to the employer’s
power to control or right to control the employee not The term “health personnel” includes resident
only as to the result of the work to be done but also physicians, nurses, nutritionists, dieticians,
as to the means and methods by which the same is pharmacists, social workers, laboratory technicians,
to be accomplished. paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
3. Who are covered by Title I, Book III of the Labor
Code as amended? 7. In certain situations, what if the work-shift is less
than eight (8) hours a day, as in the cases of part-
Art. 82 of the Labor Code as amended time workers?
unequivocally states that “Title I, Book III of the
Labor Code dealing with hours of work, weekly rest Art. 83 of the Labor Code, as amended, does not
periods, holidays, service incentive leaves and prohibit work less than the “normal hours of work”
service charges, covers all employees in all or work of less than eight (8) hours per day.
establishments, whether for profit or not, except the
following employees: What the law regulates is work hours exceeding
eight. The law prescribes the maximum but not the
a. Government employees minimum. Therefore, part-time work, or a day’s
b. Managerial employees work of less than eight (8) hours is not prohibited.
c. Officers and members of the managerial staff This part-time work is also authorized by the last
d. Field personnel part of Art. 124 of the labor Code, as amended.
e. Members of the family of the employer who and
dependent on him for support. 8. What is included in determining “Hours Worked”?
f. Domestic helpers
g. Persons in the personal service of another Hours worked shall include all time during which an
h. Workers paid by results. employee is required to be on duty or to be at a
prescribed workplace; all time during which an
The aforementioned employees are not entitled to: employee is suffered or permitted to work; and rest
periods of short duration during working hours. If a
 overtime pay meal period is less than twenty (20) minutes, it
 premium pay for rest days and holidays becomes only a rest period and is thus considered
 night shift differential pay as work time.
 holiday pay
 service incentive leave
 service charges 9. What are the principles in determining hours
worked?
4. The value of benefits is equal to the
Based on Book III of the Implementing Rules, compensation due them for the shortened meal
the following are the principles in determining period;
hours worked:
5. Overtime pay will become due and demandable
1. All hours are hours worked which the employee after the new time schedule; and
is required to give to his employer, regardless
of whether or not such hour are spent in 6. The arrangement is of temporary duration.
productive labor or involve physical or mental
exertion. THE LAW ON NIGHTSHIFT DIFFERENTIAL

2. An employee need not leave the premises of 11. What is Nightshift Differential?
the workplace in order that his rest period shall
not be counted, it being enough that he stops Nightshift Differential refers to the additional
working, may rest completely and may leave his compensation of not less than ten percent (10%) of
workplace, to go elsewhere whether within or an employee’s regular wage for every hour of work
outside the premises of his workplace. Rest done between 10:00 PM and 6:00 AM, whether or
periods of short duration shall be counted as not such period is part of the worker’s regular shift.
hours worked (an example of which are 10-
minute coffee breaks). 12. Leila works in a call center from 6:00 a.m. to 2:00
p.m. and was paid Php 200.00 per hour. After one
3. If the work performed was necessary, or it month, she was re-assigned and her shift was
benefited the employer, or the employee could changed to 10:00 p.m. to 6:00 a.m. Compute for the
not abandon his work at the end of his normal total pay plus night shift differential.
working hours because he had no replacement,
all time spent for such work shall be considered Since her entire shift is within the period covered by
as hours worked if the work is with the the nightshift differential, all the eight hours worked
knowledge of his employer or immediate by Leila shall have an additional 10%.
supervisor.
Her pay shall be computed as follows:
4. The time during which an employee is inactive NSD:
by reason of interruptions in his work beyond (10% x Php 200) x 8 Hours 160.00
his control shall be considered time either if the
imminence of the resumption of work requires 10:00 p.m. – 6:00 a.m. = 200 x 8 1,600.00
the employee’s presence at the place of work + NSD pay 160.00
or if the interval is too brief to be utilized Total Pay 1,760.00
effectively and gainfully in the employee’s own
interest. THE LAW ON OVERTIME WORK
13. Define overtime pay.
THE LAW ON MEAL PERIODS
Overtime pay refers to the additional compensation
10. Is it always required by law that in order to be non- of 25% when work is rendered on the regular
compensable, meal periods should not be less than working day of the employee or 30% when work is
one (1) hour? rendered on one’s work day, or on a special holiday
or regular holiday, of an employee’s regular wage
No. The employees may request that their meal for work performed beyond eight (8) hours within
period be shortened so that they can leave work the worker’s 24-hour workday.
earlier than the previously established schedule.
14. What is the rationale behind such additional
The following are the requisites to be complied with compensation? Can the right to overtime pay be
in order to have such arrangement: waived?

1. The employees voluntarily agree in writing to a The rationale behind overtime pay is the fact that
shortened meal period and are willing to waive when one is required to render overtime work, one
the overtime pay for such shortened meal exerts more effort, physical and/or mental that what
period; he usually exerts in a workday.

2. There will be no diminution whatsoever in the He is also delayed in doing other things he usually
salary and other fringe benefits of the does after working. It is the additional work, labor or
employees existing before the effectivity of the service employed and the adverse effects of his
shortened meal period; prolonged stay that justify and are the real reason
for said extra compensation.
3. The work of the employees does not involve
strenuous physical exertion and they are 15. How does the imposition of overtime pay promote
provided with adequate coffee breaks; employment?
The imposition of overtime pay promotes to avoid serious loss or damage to the employer
employment because it compels the employer to or some other cause of similar nature;
utilize several work shifts instead of requiring an
employee to work beyond 8 hours. d) When work is necessary to prevent loss or
damage to perishable goods;
Here, the employer can save money because
instead of paying an employee his regular wage e) Where the completion or continuation of the
plus the corresponding overtime pay of 25% or 30% work started before the eight hour is necessary
as the case may be, the employer will just be to prevent serious obstruction or prejudice to
required to pay another employee his regular wage. the business or operations of the employer; and

16. Because of an appointment with the dentist, Sam f) When it is necessary to avail of favorable
had to leave work early. Thus, he was undertime for weather or environmental conditions where
that day for three hours. The next day, he was performance or quality of work is dependent
required to stay for three hours after work in order thereon.
to prepare a presentation. On payday, Sam saw on
his pay slip that his pay was not deducted for his In the situations enumerated, the employer must
undertime. However, he also found out that he was still of course pay the corresponding overtime rate.
not paid overtime for the extra three hours he
worked for the preparation of the presentation.Is the 18. Is an express order from the employer to render
HR department correct in offsetting Sam’s overtime work essential in order for one to be
undertime from his supposed overtime pay? entitled to overtime pay?

No. Article 88 of the Labor Code as amended, No. Express instruction from the employer to the
otherwise known as “the non-offsetting rule,” employee to render overtime work is not required
provides that “Undertime work on any particular day for the employee to be entitled to overtime pay; it
shall not be offset by overtime work on any other is sufficient that the employee is permitted or
day. Permission given to the employee to go on suffered to work.
leave on some other day shall not exempt the
employer from paying the additional compensation However, written authority after office hours during
required in this chapter (overtime pay)”. rest days and holidays are required for entitlement
to compensation.
If such offsetting is allowed, it will be unfair for Sam
because undertime represent only his regular THE LAW ON WEEKLY REST PERIODS
hourly rate of pay while the overtime hours reflect
not only his hourly rate but as well as the 19. Explain the concept of rest day. Who determines
corresponding overtime pay. the rest day of an employee?

To offset two items that are not of equal value would It simply means that an employee should be
result in the undue deprivation of Sam’s overtime provided a rest period of not less than twenty-four
pay. (24) consecutive hours after every six (6)
consecutive normal workdays. (Art. 91 (a) Labor
17. Can an employer legally compel his employees to Code as amended)
render overtime work even against their will?
The determination of rest days is within the scope
As a general rule, an employee cannot be made to of management prerogative.
render overtime work against his will.
It is the employer who determines and schedules
However, the following situations give the employer the weekly rest day of an employee.
the right to compel an employee to render overtime
work as an exception to the general rule:

a) When the country is at war or when any national


or local emergency has been declared by the
National Assembly or the Chief Executive; 20. Is the management’s prerogative on rest days
absolute?
b) When it is necessary to prevent loss of life or
property or in case of imminent danger to public No. The second sentence of Article 91 (b) of the
safety due to an actual or impending Labor Code as amended provides that the
emergency in the locality caused by serious employer shall respect the preference of employees
accidents, fire, flood, typhoon, earthquake, as to their weekly rest day when such preference is
epidemic, or other disaster or calamity; based on religious grounds.

c) When there is urgent work to be performed on 21. Does it necessarily mean that whenever an
machines, installations, or equipment, in order employee’s preference on his weekly rest day is
based on religious grounds, the employer has no
choice but to always grant it? Service Incentive Leave (SIL) may not be waived.

No. When such preference will prejudice the On the other hand, vacation/sick leaves may even
operations of the undertaking and the employer be impliedly waived through acquiescence.
cannot normally result to other remedial measures,
the employer may so schedule the weekly rest day Service Incentive Leaves (SIL) may be commutable
that meets the employee’s choice for at least two to cash, while vacation/sick leaves cannot.
(2) days a month.
THE LAW ON PAYMENT OF WAGES
THE LAW ON SERVICE INCENTIVE LEAVE PAY
(SILP)? 26. With what should the employer pay the wages of his
employees?
22. What does the law on service incentive leave
provide? The employer must pay with legal tender. He
cannot pay his employees by means of promissory
It provides that every covered employee who has notes; vouchers; coupons; tokens; tickets; chits; or
rendered at least 1 year of service shall be entitled any object other than legal tender.
to a yearly service incentive leave of 5 days with
pay. However, payment by check or money order may
be allowed if the same is customary on the date of
23. In what instance is the right to Service Incentive effectivity of the Labor Code; necessary because of
Leave not available? special circumstances as determined by the
Secretary of Labor; or stipulated in the CBA.
The right is not available to those workers or
employees who are: Payment by check is also authorized where the ff
conditions are met:
a. already enjoying the said benefits; a. there is a bank or other facility for encashment
b. already enjoying vacation leave with pay for at within a radius of 1 kilometer from the
least five (5) days; workplace;
c. employed in establishments regularly
employing less than ten (10) employees; and b. the employer, or any of his agent or
d. employed in establishments exempted from representatives, does not receive any
granting this benefit by the Secretary of Labor. pecuniary benefit directly or indirectly from the
arrangement;
24. Mr. Garcill worked part-time in Comeleco
Corporation for more than one (1) year. Is he c. the employees are given reasonable time
entitled to Service Incentive Leave? during banking hours to withdraw their wages
from the bank which time shall be considered
Yes. Part-time workers are entitled to the full benefit as compensable hours worked if done during
of the yearly five (5) days Service Incentive Leave. working hours; and
The reason is that the law speaks of at least one (1)
year of service without any distinction for d. the payment by check is with the written
entitlement to said benefit. consent of the employees concerned if there is
no CBA authorizing the payment of wages by
25. Is Service Incentive Leave equivalent to Vacation bank checks.
and/or Sick leave?
27. When should wages be paid?
No. There are differences between service
incentive leave and vacation/sick leave. Wages must be paid at least once every two weeks
or twice a month at intervals not exceeding 16 days.
Service Incentive Leave (SIL) is a mandatory labor In case of force majeure or other circumstances
standard whereas the grant of vacation/sick leave beyond the employer’s control, payment must be
is voluntary; it results from the employer’s made immediately after such occurrence has
discretionary policy or from the CBA. ceased.
The Service Incentive Leave (SIL) is intended to
alleviate the economic condition of the workers for If the employee is engaged to perform a task which
it acts as replacement for regular income that would cannot be completed in 2 weeks and in the absence
not be earned during such instance. of CBA, the following rules shall govern:

One the other hand, vacation/sick leaves are a. Payment shall be made at intervals not
intended to afford a laborer a chance to get a much exceeding 16 days, in proportion to the amount
needed rest to replenish his worn out energies and of work completed;
acquire new vitality to enable him to meet him to
efficiently perform his duties and not merely to give b. Final settlement is made upon completion of the
him additional salary. work.
31. When is there labor-only contracting?
28. Where should wages be paid? There is labor-only contracting where the
person supplying workers to an employer does
Wages should be paid at or near the place of not have substantial capital or investment in the
undertaking. form of tools, equipment, machineries, work
premises, among others, and the workers
When payment cannot be effected at or near the recruited and placed by such persons are
place of work by reason of deterioration of peace performing activities which are directly related
and order conditions, or by reason of actual or to the principal business of such employer.
impending emergencies caused by fire, flood or
other calamity rendering payment thereat 32. What are the consequences of labor-onlt
impossible, payment may be made at any other contracting?
place.
The person acting as contractor shall be considered
Payment may also be made elsewhere when the merely as an agent of the employer and the latter
employer provides for free transportation to the shall be responsible to the workers in the same
employees back and forth. manner and extent as if the latter were directly
employed by him.
No employer shall pay his employees in any bar,
night or day club, drinking establishment, massage 33. What is job-contracting?
clinic, dance hall, or other similar places or in places
where games are played with stakes of money or It is an arrangement whereby a principal agrees to
things representing money except in the case of put out or farm out with a contractor or series of
persons employed in said places. contractor the performance or completion of a
specific job, work or service within a definite or
29. To whom should wages be paid? predetermined period, regardless of whether such
job, work, or service is to be performed or
Wages shall be paid directly to the workers to whom completed within or outside the premises of the
they are due. principal.

In case of force majeure rendering such payment 34. What are the elements of job contracting?
impossible, payment may be made through another
person provided said person is under written The following are the elements of job contracting:
authority given by the worker for the purpose.
a. the contractor or subcontractor carries on a
Payment through another person may also be distinct and independent business and
made when authorized under existing law, including undertakes to perform the job on his own
payments for insurance premiums of the employee account and under his own responsibility,
and union dues where the right to check-off has according to its own manner and method and
been recognized by the employer in accordance free from the control and direction of the principal
with a CBA or authorized in writing by the individual in all matters connected with the performance of
employees concerned. the work except as to the results thereof;

Where the employer is authorized in writing by the b. the contractor or subcontractor has substantial
employee to pay his wages to a member of his capital or investment; and
family, payment may be made to that person.
c. the agreement between the principal and
Payment may also be made to the heirs of the contractor or subcontractor assures the
worker. contractual employees entitlement to all labor
and occupational safety and health standards,
The employer may pay the wages of the deceased free exercise of the right to self-organization,
worker to the heirs without the necessity of intestate security of tenure and social and welfare
proceedings. benefits.

THE LAW ON LABOR-ONLY CONTRACTING 35. Who is an independent contractor?


(PROHIBITED) AND INDEPENDENT OR JOB An independent contractor is one who carries on a
CONTRACTING (PERMITTED) distinct and independent business and undertakes
to perform the job or to do a piece of work on its own
30. What are the two types of contractors under the account and under its own responsibility, according
law? What is the main difference between the two? to his own manner and methods and free from the
control and direction of the principal in all matters
The two types of contractors are the Labor-only connected with the performance of the work except
contractor and the Job contractor. Labor only as to the results thereof.
contracting is prohibited while job contracting is
allowed by law.
A television anchor is one example of an a. an order for stoppage of
independent contractor. (Jose Sonza vs. ABS-CBN work/suspension of operations shall be
[G.R. 138051 June 10, 2004] lifted or not.

A mere statement in a contract with a company that b. employer shall pay the employees
laborers who are paid according to the amount and concerned their salaries in case the
quality of work are independent contractors does violation is attributable to his fault
not change their status as mere employees in
contemplation of labor laws. The Secretary may require employers to keep
and maintain Employment Records as may be
THE LAW ON VISITORIAL, INSPECTION AND THE necessary in aid of his visitorial and
ENFORCEMENTPOWER OF THE SECRETARY OF enforcement powers (exercised through the
LABOR AND HIS DULY AUTHORIZED regional directors of DOLE).
REPRESENTATIVE
The exercise of the above mentioned powers
36. Describe briefly the Visitorial Power of the requires an existing employer-employee
Secretary of Labor. relationship.

The visitorial power of the Secretary of Labor or any 38. A, B and C are employees of ABC Corporation.
of his duly authorized representative refers to the They filed complaints for non-payment of salaries,
power to have access to employer’s records and which is in the nature of a labor standards violation
premises at any time of the day or night whenever case, in the amount of P 4,000.00, P 7,500.00 and
work is being undertaken therein. P 10,000.00, respectively.

It includes the right to copy therefrom, to question Does the Secretary of Labor have jurisdiction over
any employee & investigate any fact, condition or the claims of A, B and C?
matter which may be necessary to determine
violations or which may aid in the enforcement of Yes. The Secretary of Labor, through the Regional
the Code and of any labor law, wage order, or rules Director, has jurisdiction over the claims of A, B and
and regulations. C who are still presently employed by ABC
Corporation . Republic Act No. 7730 removed the
The Secretary’s “duly authorized representative” limit of P 5,000.00 in 1994 based on the Supreme
herein is the Regional Director, the Labor Court ruling ruling in Servandos, Inc. vs. The
Regulations Officer or the Labor Employment or Secretary of Labor, xxxxx..
Enforcement or Safety Officer.
39. What will be the procedure to be followed in the
37. Briefly describe the enforcement power of the case presented in the preceding problem?
Secretary of Labor.
The procedure shall be as follows:
This refers to the power of the Secretary of Labor to a. An inspection order will be issued by the
compel the employer to comply with labor Regional Director to a Labor Relations Officer.
standards upon findings of violations discovered in
the course of the exercise of his visitorial power. b. The Labor Relations Officer will then inspect the
premises of the employer, and ask that the
Among these powers are the power to: records be produced. He will also conduct
1. Issue Compliance Orders based on the findings inquiries from the employees.
of labor employment and enforcement officers
or industrial safety engineers made in the c. If the Labor Relations Officer finds that there
course of inspection were indeed violations of Labor Standard Laws,
he will furnish a report to the Regional Director
2. Issue Writs of Execution for the enforcement of and to the employer.
orders except in cases where the employer
contests the findings of the said labor officers d. If the employer does not do anything within the
and raises issues supported by documentary reglementary period within which to contest the
proofs which were not considered in the course findings, the Regional Director continues to
of inspection have jurisdiction over the claims.
3. Order Work Stoppage/Suspension of 40. What must the employer do in order to divest the
Operations when noncompliance with the law Regional Director of his jurisdiction over the case
or implementing rules and regulations poses and transfer it to the Labor Arbiter?
grave & imminent danger to the health and
safety of the workers in the workplace. In order to divest the Regional Director of his
jurisdiction, the employer must:
4. Conduct hearings within 24 hours to determine
whether: a. contest the findings of the Labor Relations
Officer;
b. raise the issue that there is a need to thresh out
evidentiary matters;
c. show that such evidentiary matters cannot be
obtained in the ordinary course of inspection.

THE JURISDICTION OF THE REGIONAL DIRECTOR


( ART. 129 Labor Code) AND THE LABOR ARBITER
(ART. 217 (a) (6), Labor Code) IN THE
ADJUDICATION OF MONEY CLAIMS.

41. Describe briefly the adjudicatory power of the


Secretary of Labor exercised through the Regional
Director.

The Regional Director or any of his duly authorized


hearing officer is empowered through summary
proceeding and after due notice, to hear and decide
cases involving recovery of wages and other
monetary claims and benefits, including legal
interests.

REQUISITES:
1. The claim is presented by an employee or
person employed in domestic or household
service or househelper;

2. The claim arises from employer-employee


relations;

3. The claimant does not seek reinstatement; and

4. The aggregate money claim of each employee


or househelper does not exceed P5, 000.00

In the absence of any of the above mentioned


requisites, it is the labor arbiter who shall have
exclusive jurisdiction over claims arising from
employer – employee relations, except claims for
employees’ compensation, SSS, medicare and
maternity benefits, pursuant to Article 217 of the
Labor Code as amended.

THE LAWS ON DISMISSALS, TERMINATION,


RETIREMENT AND
RELATED LAWS

BOOK VI. LABOR CODE,AS AMENDED


TERMINATION OF EMPLOYMENT

BOOK SIX
POST EMPLOYMENT

TITLE I

42. WHAT IS SECURITY OF TENURE?

SECURITY OF TENURE - the constitutional right


granted the employee, that the employer shall not
terminate the services of an employee except for
just cause or when authorized by law

42. WHAT ARE THE RELIEFS AVAILABLE TO AN


ILLEGALLY DISMISSED EMPLOYEE?
3. When the business has closed down;
REINSTATEMENT - Restoration of the employee
to the state from which he has been unjustly 4. Physical incapacity of the employee; and
removed or separated without loss of seniority
rights and other privileges. 5. Doctrine of Strained Relations - When the
employer can no longer trust the employee and
FORMS OF REINSTATEMENT: vice-versa, reinstatement could not effectively
1. ACTUAL OR PHYSICAL REINSTATEMENT serve as a remedy.
 the employee shall be admitted back to
work
6. This doctrine only applies only to positions
which require trust and confidence.
2. PAYROLL REINSTATEMENT
 the employee is merely reinstated in the
NOTE: Under the circumstances where the
payroll
employment relationship has become so strained to
preclude a harmonious working relationship, and
43. May a court order the reinstatement of a dismissed
that all hopes at reconciliation are nil after
employee even if the prayer of the complaint did not
reinstatement, it would be more beneficial to accord
include such relief?
the employee backwages and separation pay.
YES. So long as there is a finding that the employee
B. BACKWAGES – the relief given to an employee
was illegally dismissed, the court can order the
to compensate him for lost earnings during the
reinstatement of an employee even if the complaint
period of his dismissal.
does not include a prayer for reinstatement, unless,
of course, the employee has waived his right to
PERIOD COVERED BY THE PAYMENT OF
reinstatement.
BACKWAGES -
By law, an employee who is unjustly dismissed is
Backwages shall cover the period from the date of
entitled to reinstatement, among others.
dismissal of the employee up to the date of actual
reinstatement
The mere fact that the complaint did not pray for
reinstatement will not prejudice the employee,
How computed - Under existing law, backwages
because technicalities of law and procedure are
is computed from the time of the illegal
frowned upon in labor proceedings (General Baptist
dismissal up to time of actual reinstatement.
Bible College v. NLRC, 219 SCRA 549).
46. WHAT ARE DEEMED INCLUDED IN THE
44. What happens if there is an order of reinstatement
COMPUTATION OF BACKWAGES?
but the position is no longer available?
1. transportation and emergency
The employee should be given a substantially
allowances
equivalent position.
2. vacation or service incentive leave and
sick leave
If no substantially equivalent position is available,
3. 13th month pay.
reinstatement should not be ordered because that
NOTE: facilities such as uniforms, shoes,
would in effect compel the employer to do the
helmets and ponchos should NOT be included
impossible. In such a situation, the employee
in the computation of backwages.
should merely be given separation pay consisting of
one month salary for every year of service (1:1).
REASON: said items are given free, to be used
only during official tour of duty not for private or
45. UNDER WHAT CIRCUMSTANCES MAY A
personal use.
COMPANY NOT REINSTATE DESPITE ORDER
OF REINSTATEMENT?
47. WHAT CIRCUMSTANCES THAT MAY PREVENT
AWARD OF BACKWAGES?
1. Transfer of business ownership -There is no
law requiring a purchasing corporation to
1. death of the employee
absorb the employees of the selling
2. physical and mental incapacity
corporation.
3. business reverses
4. closure of business
A fortiori, reinstatement of unjustly dismissed
5. reinstatement of dismissed employ
employees CANNOT be enforced against the
6. confinement in jail
new owner UNLESS there is an express
agreement on the assumption of liabilities by
48. Which takes precedence in conflicts arising
the purchasing corporation:
between employer’s MANAGEMENT
PREROGATIVE and the employees’ right to
2. When reinstatement is rendered impossible
security of tenure?
due to the abolition of the position;
The employee’s right to security of tenure.
Thus, an employer’s management prerogative
includes the right to terminate the services of the
employee but this management prerogative is
limited by the labor code which provides that the
employer can terminate an employee only for a just
cause or when authorized by law.

This limitation is because no less than the


constitution recognizes and guarantees employee’s
right to security of tenure. (Art. 279, Labor Code;
Art. XIII, Sec. 3, Constitution)

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