Research Paper

in
Labor Law Review

By:

Chiara Mae M. Barsaga

Shiela T. Dela Victoria
Keith Russell A. Galvez
Ella Marie Padua
Marinel June S. Paler
Rosennova B. Perez

Professor:

Atty. Araceli Luyahan-Morcilla

 CHAPTER 1

INTRODUCTION

BACKGROUND OF THE STUDY

The Labor Code of the Philippines is the general labor law that regulates the
employment relationship in the Philippines. With this, it is deemed to be incorporated to all
employment contracts. The terms and conditions of all employment contracts should not fall
below the applicable labor standards as embodied in the Labor Code. The employment
contracts should not be used by the employers to avoid complying with the labor laws and any
contractual terms and conditions in violation of the Labor Laws will be considered null and void.

Just recently, the President of the Philippines issued Executive Order No. 51 for the
protection of the right to security of tenure of all workers based on social justice in the 1987
Philippine Constitution. It reiterates the prohibition provided in the Labor Code against Illegal
Contracting or Subcontracting. This is also in relation to the clamor of the laborers who would
want to end contractualization as they are working hard but not receiving enough or while they
work for eight hours with as much work as the regular employees, they do not enjoy the same
benefits that the latter receive, no leave incentives, no 13 th month pay and no security of
tenure.

Under the Labor Code of the Philippines, Art. 280 (2), it states that” xxxany employee
who has rendered at least one year of service, whether such service is continuous or broken,
shall be considered a regular employee with respect to the activity in which he is employed and
his employment shall continue while such activity exists.” Article 294 on the other hand,
provides for the kinds of employment arrangement which refers to Regular, Project, Seasonal
and Casual Employment. Article 295 makes express reference to Probationary Employment,
which provides a trial period, during which the employer observes the fitness, propriety and
efficiency of a probationer to decide whether he is qualified for permanent employment, while
the probationer seeks to prove to the employer that he has the qualifications to meet the
reasonable standards for permanent employment. If the employee was allegedly hired on a
probationary basis, but was not informed of the standards that would qualify him as a regular
employee, he is deemed a regular employee from the very start. Additionally, an employee who
is allowed to work beyond the probationary period shall be deemed regular. This probationary
period is usually fixed at six months or less. However, the parties to an employment contract
can agree to a longer period of probation Jurisprudence in the Philippines decided by the
Supreme Court recognize job security even in non-regular employees. However, a probationary
employee can be dismissed for failure to qualify as a regular employee in accordance with the
reasonable standards made known to him at the time of his engagement.

In relation to the foregoing, Title I of Book 3 of the Labour Code provides for minimum
conditions of employment in respect of hours of work, meal periods, night shift provisions,
overtime work, weekly rest periods, holidays and service incentive leaves. In addition,
employers must also pay their employees a 13th month pay and are required to remit the
contributions to SSS, PHIC and HDMF. The employee shall also be entitled to the minimum
wage prescribed for the region by the RTWPB.

With the abovementioned, this study is undertaken to determine whether there has
been compliance by the selected establishments in Butuan City to the provisions of the Labor
Code so as not to violate the rights of the workers in the said Code and in the 1987
Constitution, in general.

STATEMENT OF THE PROBLEM

This research paper aims to answer the following:

1. Are the establishments in Butuan City in compliance to the Labor Code with
regards to the security of tenure?

2. Do the workers earn the minimum wage?

3. What are the minimum conditions of employment in terms of;

a. Hours of Work
b. Meal Periods
c. Night Shift provisions
d. Overtime work
e. Weekly Rest Periods
f. Holidays
g. Service Incentive Leave
h. 13th Month Pay
i. Contribution to SSS, PHIC and HDMF
k. Other Bonuses
SIGNIFICANCE OF THE RESEARCH

This research study aims to benefit the following:

Laborers: This research will enable them to be aware of their rights under the Labor
Code of the Philippines and as such, they will be able to assert said rights to their employers to
improve their status.

Employers: This research will enable the employers to assess their practices and
customs and avoid violations of the Labor Code and other applicable laws.

LGU: This research will help the LGU in drafting policies and regulation to promote the
rights of the laborers and to press on with the implementation of the Labor Code.

Researchers: This research will help the researchers

SCOPE AND LIMITATIONS OF THE RESEARCH

This research paper focuses on 5 establishments located in Butuan City. The

establishments were randomly selected and they refer to various fastfood restaurants in the
City.
The conduct of this research is limited only on the problems stated above and on the
items on the researcher-made questionnaire. The respondents were randomly selected based
on their availability so as not to interrupt their working hours.
 CHAPTER 2

METHODOLOGY

RESEARCH DESIGN

The research is quantitative in design employing a survey questionnaire. It is descriptive

in nature as it establishes only associations between variable. It aims at surveying respondents
from a statistically valid sample of population of interest in order to infer from the sample
statistics the range of likely values in the broader population. Thus, it merely seeks to describe
the application of the Labor Code on the selected establishments in terms of the security of
tenure, the minimum wage and the availability of the minimum conditions in the employment
contract.

ENVIRONMENT, POPULATION and SAMPLE

This research study was conducted within the vicinity of Butuan City. It is a first class
highly urbanized City and the Regional Center of CARAGA Region. In fact, it is the commercial,
industrial and administrative center of Caraga. Butuan is also fast becoming a cosmopolitan
city. Famous food brands have also opened in the City such as Jolibee, McDonald’s, Chowking,
Greenwich, Mang Inasal, Red Ribbon, Goldilocks, KFC, etc.
The respondents of this research are the famous food brands which includes, Dunkin
Donuts, Bo’s Coffee, Chowking, McDonald’s, Boys Bar and Wine and Harley’s Place.

Dunkin' Donutsoperates as a coffee and baked goods restaurants that offers hot
regular/decaf/flavored coffee, iced coffee, donut, bagel, and muffin categories; and
frozen beverages, donuts, and sandwiches located in ______.

McDonalds is afast food company that offers __________ located in ______.

Chowking is a fast food restaurant that combines the Westenfastfood service

with Chinese menu predominantly selling noodle soups, dim sum and rice bowls with
toppings located in ________.

Bo's Coffee is a Filipino coffee and coffeehouse chainlocated in _______.

 Boy's Bar and Wine Room is a local business establishment that serves alcoholic
beverages, such as beer, wine, liquor, cocktails, and other beverages located in Jose
Rosales Ave, Butuan City, Agusan Del Norte.

Harley's Place Bar & Grillor the Pub, Filipino Restaurant, Bar & Grill is also a
local business establishment that also serves alcoholic beverages located at Capitol
Drive, Butuan City, Agusan del Norte.

RESEARCH INSTRUMENT

The researchers use a researcher made survey questionnaire. It is composed of series of

open ended and close ended questions pertaining to the following;
1. Position
2. Years of service
3. No. of hours of work/day
4. Employment Contract
5. Basic Benefits and Privileges
6. Copy of monthly pay slip

The said survey questionnaire was based on the readings and the literatures of the
researchers specially based on the provisions of the Labor Code.

ETHICAL CONSIDERATION
The researchers uphold the most important aspect in gathering and collecting the data.
The ethical consideration was observed in the conduct of the research with high respect to the
respondents’ privacy and confidentiality.

Respect for human dignity was the guiding principle of the researchers in gathering
information and responses of the respondents. Prior to the conduct of the survey, the
researcher asked their permission to participate upon learning of the purpose and objectives of
the said research.

During the administration of the instrument, respondents were given enough time to
answer the items in the survey form. The researcher facilitated the questions and clarifications
raised by the respondents during the process.
DATA GATHERING PROCEDURE

The researchers followed carefully the appropriate process in data gathering to ensure
the accuracy and reliability of the research.

First, the researchers drafted a survey questionnaire and made sure that the necessary items
are present. The questionnaire was based on the statement of the problem and on the Labor
Code of the Philippines with respect to security of tenure, minimum wage and the minimum
conditions in an employment. Second, establishments were identified randomly taking into
consideration the availability of the respondents that would answer the survey questionnaire.
And also, the researchers considered the interruptions that the survey may make on their
working hours. Thus, decided to randomly select the respondents based on their vacant time.
Third, after identifying the establishments, the researchers then went to the area and ask
permission from the respondent to take part in this research by assuring of the confidentiality
of the data and upon orientation on the purpose of the research. After giving their consent, the
survey form was given for the respondent to fill it out. Fourth, after the ample time given to the
respondent, the survey form was retrieved. Lastly, the survey forms collected were then
subjected to analysis.
 CHAPTER 3

RESULTS AND ANALYSES

This chapter will discuss the results and analyses of the gathered data through the
survey questionnaire:

Compliance to the Labor Code with regards to the Right to Security of Tenure

Through survey questionnaires, the researchers have collected

relevant data in determining whether the respondents are classified
as regular employees.

Table 1

Respondent Position Years of Regular Copy of

(Employee) service Employee Monthly
Payslip
Boy’s Bar Cook 5 years After 6 
and Wine month
contract as
trainee
Dunkin 1 year and Starting from 
Donuts 8 months the first day
of service
McDonalds 3 years After 6 
months
Chowking 1 year x 
Boss Coffee 5 years and Starting from 
8 months the first day
of service
Harley’s 2 years and x -
Place 7 days

Position - cook, service crew, waiter, supervisor, barista

Years of service - ranging from one (1) year to five (5) years
and eight (8) months
 Employment Contract- five out of six respondents signed an
employment contract

FINDINGS

As shown in Table 1, respondents of Chowkingand the Harley’s

Place are not regular employees despite rendering of services for
one (1) year and two (2) years and seven (7) days, respectively.

Hence, there is incompliance with the provisions of the Labor

Code above-mentioned with respect to the employees of Chowking
and the Harley’s Place.

Under the Labor Code of the Philippines, Art. 280 (2), it states
that” xxxany employee who has rendered at least one year of
service, whether such service is continuous or broken, shall be
considered a regular employee with respect to the activity in which
he is employed and his employment shall continue while such
activity exists.”
Minimum Wage of the Region

The researchers have gathered data and have determined

whether there is compliance to the mandatory minimum wage rate
as shown in the Table below.

Table 2

Respondent No. of Salary per Salary per

working Day Month(given 26
hrs./day days per month)
Boy’s Bar and 8 P305 P7,930/month
Wine
Dunkin Donuts 8 P269.23* P7,000/month
McDonalds 8 P264* P6,864/ month
Chowking 8 P305 P7,930/month
Boss Coffee 8 P350 P9,100/month
Harley’s Place 10 P200* P5,200/month

No. of hours - five out of six respondents worked for eight

(8) hours a day, while the other respondent worked for ten (10)
hours a day

*Below Minimum Wage Earner -three (3) out of six (6)

respondents are earning below the minimum wage

FINDINGS

In reference to the preceding data collected, respondents

working in Dunkin Donuts, McDonalds and Harleys Place are earning
below the minimum wage rate of P305.00. Thus, there is
incompliance with the statutory minimum wage rate.
According to the National Wages and Productivity Commission,
Wage Order No. RXIII-15, the Minimum Wage Rate on the 3rd
Tranche effective on May 01, 2018 isP305.00.
Minimum conditions of employment in terms of;

a. Hours of Work

b. Meal Periods

c. Night Shift provisions

d. Overtime work

e. Weekly Rest Periods

f. Holidays

g. Service Incentive Leave

h. 13th Month Pay

i. Contribution to SSS, PHIC and HDMF

k. Other Bonuses
 CHAPTER 4

CONCLUSION AND RECOMMENDATION