Labor-Management

Relations:
Rights, Responsibilities and
Remedies

Outline
1.
2.
3.
4.
5.
6.
7.
8.
9.

Ee-Er Relations: Nature and Test

Framework of Relationship: Goals and
rights
Employees types and tenure
Management rights
Employees statutory rights
Employees collective rights
Due process in employee
discipline/termination
Remedies: Administration of Labor
Justice
Social Dialogue

Ee-Er Relations

Nature
Voluntary,

employer and employee

without force or compulsion agree:
that employee shall, in exchange for
wages, render work or services to the
employer.
that employer shall, in exchange for
services/work rendered, pay the
employee his/her wages in accordance
with law.

Agreement

or implied.

in writing or oral, expressed

Test determining Ee-Er

relations
selection

and engagement of the

employee
payment

of wages
power of dismissal
the power to control the

employees conduct

1.3 Types of Employees

Regular
Probationary
Casual
Project
Seasonal
Fixed Term

Contractual

EMPLOYER-EMPLOYEE RELATIONS:
Framework of
Rights and Obligations
Powers

Industrial Peace
based on Social
Justice

Government

Capital

Labor

s
r
e
ork

Law/
CBA

Employers
Prerogatives

Rights

Livelihood
From the Notes of USEC Josephus B. Jimenez

Profit

Balancing these Rights is the Big

Challenge

The Employer
has

Managem
entPrerog
atives

The employee has

Individual
and
Collective
Based on
Rights
The Constitution

Labor Code
Contract of Employment

Management
Prerogatives
Dfn: rights and privileges of decision
and action flowing from managerial
control in running the affairs of the
business/company
Nature: discretionary
Scope: all aspects of the business

Scope of Mgt. Prerogatives

Two aspects:
1. Operational Aspect which means the
freedom of the employer to direct the
operations of its business as it sees fit.
2. Personnel Aspect which means the
freedom to prescribe policies and rules
regarding personnel actions.

Department of Labor & Employment

Limitations of Management
Prerogatives
The exercise of management prerogatives
must be:
1. Not contrary to law, public policy,
public morals
2. Limited as provided in the employment
contract, CBA, employment policy/practice
3. Limited as to the general principles of
fair play and justice (exercised humanely,
in good faith; and if a penalty, it must be
just and commensurate with the offense
committed by the employee)

Managements
Obligations/Responsibilities

Managements
Obligations/Responsibiliti
es

Department of Labor & Employment

1. The policies should not be contrary to

law, public order and public policies and
are not enforced with grave abuse of
discretion.
2. Pay workers according to the minimum
wage law or contract. In case of contract, it
should not be below the minimum set by
law.
3. Observe labor standards laws & social
legislations.
4.

Provide workers with just and humane

Managements
Obligations/Responsibiliti
es

Department of Labor & Employment

5.
Inform workers of the company
personnel
policies
and
disciplinary
measures then enforce in case of
violation
provided due process is
accorded.
6.
Re-assignment or transfer
should not result in diminution
of
benefits, loss of seniority rights or unfair
labor practice or should not constitute
union busting.

7. Termination on authorized or just causes

only
after
complying
with
notice/procedural due process.

Rights & Obligations of

Employees

Employees statutory rights

NORMAL HOURS WORK

MEAL & REST PERIODS

OVERTIME PAY

NIGHT SHIFT DIFFERENTIAL

MINIMUM WAGE
8188, 9178)

MATERNITY & PATERNITY

LEAVES

STANDARDS ON EMPLOYMENT
OF WOMEN & MINORS

(RAs 6727,

HOLIDAY PAY

WEEKLY REST PERIODS

SERVICE INCENTIVE
LEAVE

(12 DAYS)

RA 7877 Anti Sexual

Harassment

RA 9262 VAWC (10 days leave)

RA 9231 Child Labor

RA 9710 Magna Carta of

Women (2mos. leave for
gynecological surgery)

RA 10151 Allowing night work

Lactation Station/Break (RA

10028)

13TH MONTH PAY

SERVICE CHARGES

Social Welfare Benefits

RA 8972 (7 days solo parent

leave)

RETIREMENT PAY

Social Security (SSS), plus E.C.

Medicare (PhilHealth)

Pag-IBIG (HDMF)

Employees statutory rights

HEALTHY AND SAFE

WORKPLACE

PROPER VENTILLATION

AIRBORNE
CONTAMINANT CONTROL

PPE

FIRE PROTECTING
EQUIPMENT/FACILITY

ADEQUATE
AILES/PASSAGEWAYS
GOOD HOUSEKEEPING

EMERGENCY EXITS

MATERIALS STORAGE AND

HANDLING

MACHINE GUARDING

ADEQUATE LIGHTING

NOISE POLLUTION
CONTROL

PROPER OFFICE
SPACING

EMERGENCY MEDICINES

HEALTH PERSONNEL

MEDICAL FACILITIES
(200 & ABOVE)

RADIATION EXPOSURE
CONTROL

Department of Labor & Employment

Employees Collective
Rights
Right to

Self-organization (association or
union)
Collective bargaining/negotiation
Engage in peaceful concerted
activities in accordance with law
Participate in policy and decisionmaking processes affecting rights
and benefits as may be provided

Department of Labor & Employment

Employees Collective
Rights
Right to

Free access to the Courts and

quasi-judicial bodies and
speedy disposition of their
cases
Labor education thru seminars,
dialogues and information,
education and communication
materials

Department of Labor & Employment

Employees Obligations/
Responsibilities
1.
2.
3.

To work in exchange of compensation

under managerial control
Follow company rules and policies.
Observe proper care in the use of
facilities, avoid wastages and contribute to
productivity (e.g., waste of time, ideas,
materials and supplies, machinery and
equipment, manpower, waste due to
accidents, waste due to non-cooperation
and
defective workmanship causing
breakage or spoilage).

Department of Labor & Employment

Employees Obligations/
Responsibilities

4.
For union members & officers,
follow the
provisions of CBL and the
Law
(Art. 241 and 242, Labor Code)
5. For unions, duty to negotiate in good
faith
(Art. 250 to
253-A).
6. To follow the procedure provided for by
law
on strikes and lockouts and submit
to the
intervention
of DOLE if
necessary.
7. To observe good faith and recommend
reasonable and sensible solutions to
issues
submitted before the Labor-

Security of Tenure,
Termination &
Procedural
Due Process

Department of Labor & Employment

1. Security of Tenure
Regular
Probationary
Casual
Project
Seasonal
Fixed Term
Contractual

Just or authorized cause+ due

process
Just/authorized cause+due
process; failure to hurdle
reasonable standards;
expiration of probationary
period
No reason required
Just/authorized cause+due
process; completion of the
project
Just/authorized cause+due
process; end of season
Just/authorized cause+due
process; expiration of the
term
Just/authorized cause+due
process; expiration of the
contract; expiration of the
service contract or phase
thereof

2. Termination of
Employment

Department of Labor & Employment

Aspects of due process

Substanti
ve
Procedur
al

2. Termination of
Employment

Department of Labor & Employment

SUBSTANTIVE =
Cause/Grounds

PROCEDURAL =
Opportunity to

be heard

Process/

Department of Labor & Employment

2. Termination of
Employment

Sources of Grounds for

Termination
Law (Arts.282-284, LCP)
Contract (CBA,
Employment Contract)
Company Rules &
Regulations

2. Termination of
Employment

Department of Labor & Employment

JUST CAUSE vs. AUTHORIZED CAUSE

JUST CAUSE refers to a wrongdoing
committed by the employer or employee on
the basis of which the aggrieved party may
terminate
the
employer-employee
relationship.
AUTHORIZED CAUSE refers to a cause
brought about by changing economic or
business conditions of the employer.

2. Termination of
Employment

Department of Labor & Employment

Just Causes of Termination

Serious Misconduct

Gross and Habitual Neglect of Duty

Fraud or Willful Breach of Trust; Loss of

Confidence

Commission of a Crime or Offense

by Employee

Other Analogous Cases

Department of Labor & Employment

3.

Punishabl
e act or
omission

Procedural Due Process

Initial
factfinding

To
charge
OR not
to
charge?
To put
on prev.
suspension?

Formal
investiga
-tion

Decisio
n and
Penalt
y

Department of Labor & Employment

Effects of Termination:
Legal
JUST CAUSE

With due process

Without due process

With just
cause

Dismissal legal

Dismissal
legal,
but
employee entitled to
NOMINAL
DAMAGES
(tempered)
(Agabon v. NLRC)

Without just
cause

Dismissal
illegal,
employee entitled to:
1. Separation pay in lieu
of reinstatement
2. Backwages
3.
Damages
and
attorneys fees if in bad
faith

Dismissal
illegal,
employee entitled to:
1. Reinstatement
2. Separation pay in
lieu of
reinstatement
3. Backwages
4.
Damages
and
attorneys fees if in bad
faith

Department of Labor & Employment

Effects of Termination:
Legal
AUTHORIZED
CAUSE

Authorized
cause

With Notice

Without Notice

Dismissal
legal, Dismissal legal, but
employee entitled to: employee entitled to:
SEPARATION PAY
1. SEPARATION PAY
2.
NOMINAL
DAMAGES
(stiffer)
(JAKA
Food
Processing Corp. v.
Pacot, et al., G.R. No.
151378, 28 March
2005- closure due to
business losses)

Department of Labor & Employment

Effects of Termination:
Legal
AUTHORIZED
CAUSE

Not
authorized
cause

With Notice

Without Notice

Dismissal
illegal,
employee entitled to:
1. Reinstatement
2. Separation pay in
lieu
of
reinstatement
3. Backwages
4.Damages
&
attorneys fees if in
bad faith

Dismissal
illegal,
employee entitled
to:
1. Reinstatement
2. Separation pay in
lieu
of
reinstatement
3. Backwages
4.
Damages
&attorneys fees if
in bad faith

Administration of
Labor Justice:
Remedies
1.
2.
3.

Compulsory arbitration
Plant-level dispute settlement
mechanisms
Alternative dispute resolution

Department of Labor & Employment

Compulsory Arbitration
is by Jurisdiction

Hearing officer
DOLE Regional Director
Med-Arbiter/BLR Director
Election Officer
Conciliator and Mediator
Voluntary Arbitrator/Panel of VA
Labor Arbiter
NLRC
SOLE
President
Courts

The ADR and the

Labor Dispute
Settlement
Mechanisms
1.
2.

ADR Concepts
Plant-Level Dispute Settlement
Mechanisms

Department of Labor & Employment

Three sequential
principles in handling
labor disputes:

Prevention is better than resolution.

If prevention is impossible, the parties

themselves should resolve the dispute.

If the parties cannot solve their dispute,

third party intervention with involvement
of the disputing parties should be utilized.

From the Notes of NCMB OIC Rey Ubaldoc

Department of Labor & Employment

Dispute Resolution
ADJUDICATION

AVOIDANCE

Alternative Dispute Resolutions

FACILITATION
PARTNERING
NEGOTIATION
JOINT-PROBLEM SOLVING
GRIEVANCE HANDLING
EARLY NEUTRAL EVALUATION
CONCILIATION
MEDIATION
VOLUNTARY ARBITRATION

Alternative Dispute
Resolution
Generally refers to any process or
procedure used to resolve a dispute
or controversy, other than by
adjudication or litigation.

Alternative Dispute
Resolution

A voluntary mode of dispute

settlement

Promotes shared responsibility

between workers and employers

Promotes workers participation in

the decision and policy-making
processes affecting their rights,
duties and welfare

Cooperative &
= Non-Adversarial
Mechanisms

Siguion Reyna Montecillo & Ongsiako

Workplace Cooperation and

Partnership
Facilitation
Partnering
Consensus-Building
Processes
Workplace Cooperation

Cooperative &
= Non-Adversarial
Mechanisms

Siguion Reyna Montecillo & Ongsiako

Workplace Dispute
Settlement Mechanism
Joint-Problem Solving
Grievance Handling
Negotiation
Collective Bargaining

Joint
Problem-Solving
Is an interactive process involving two
or more parties who seek to reach
agreement over problems which exist
between them by identifying the
causes of their differences,
differences
generating alternative solutions to
their differences and jointly agreeing
viable solutions to their differences.

Interest-Based Problem
Solving

a problem solving process

conducted in a principled way
that creates effective solutions
while improving the relationship.

an alternative style of negotiating

and/or problem-solving.

Department of Labor & Employment

Mandated Workplace
Mechanism for ADR

Labor Management
Committee/Council
Grievance Machinery
Committee on Decorum and
Investigation
Health and Safety Committee
Family Welfare Committee

Department of Labor & Employment

ADR Conciliation and

Mediation

Single Entry Approach (SEnA)

Request

for assistance by either parties

30 day period to settle
Venue (in any DOLE and attached
agencies)
Coverage and limitations
Referral to proper venue in case of nonsettlement

Department of Labor & Employment

Social Dialogue (Tripartism)

Venue for workers and employers
advance their respective interest in an
equal footing with government
participating as the third party
balancing their interests.
NTIPCs, National ITCs, Regional
TIPCs/ITCs and sub-committees,
Local ITCs

Sound Employment
Relations

Harmonious LR

Motivated Workforce
Good Human Relations Productivity
Profitability
Better terms & conditions
of employment