Labor

STANDARDS
The employment relationship is governed
by human and labor relations

Industry

+
Employer Workers

Productivity
 Where does the employer-
employee relationship start?

Contract of Employment
 The 4-Point Test of an
Employer-Employee Relationship

1. selection of employees 
2. payment of wages
3. power to dismiss
4. power to control employee’s conduct, 
output and means of delivering the 
output
 Rights of the Employee

1. Right to self-organization
2. Right to join a union or disaffiliate from it
3. Right to collective bargaining and
negotiation
4. Right to Strike
5. Right to be given an opportunity to be heard
in disciplinary cases
Rights of the
Employer
 Rights of the Employer

1. Right to reasonable returns on

investments, expansion, & growth
2. Right to select person to be hired
3. Right to adopt, implement, modify,
amend, or revoke reasonable
employment regulations
4. Right to transfer employees
 Rights of the Employer

5. To determine work assignments,

working methods, time , place, &
manner of work, tools to be used
and processes to be followed
(TERMS & CONDITIONS OF
EMPLOYMENT)
 Rights of the Employer

6. Right to determine standard of work and

levels of efficiency
7. To introduce new or improved methods,
facilities and devices
- e.g. labor-saving devices
8. To create, merge, divide, reclassify &
abolish dept.s or positions in the company
 Rights of the Employer

9. Right to sell or close business

10. Right to lockout in a labor

dispute

11. Right to suspend or terminate

employees
 Labor
Standards
 LABOR STANDARDS
 OVERTIME PAY  MEAL & REST PERIODS

  RETIREMENT PAY
NIGHT
DIFFERENTIAL  PATERNITY &
MATERNITY LEAVES
 HOLIDAY PAY
 LIMITS ON
 SERVICE EMPLOYMENT OF
INCENTIVE LEAVE WOMEN & MINORS
 MINIMUM WAGE-  SEXUAL HARASSMENT
RULES
 13TH MONTH PAY
 OCCUPATIONAL
 WEEKLY REST HEALTH AND SAFETY
PERIODS RULES
 SEPARATION PAY
BY THE EMPLOYER BY THE EMPLOYEE
 ACTUAL CONSTRUCTIVE
(Termination) (Constructive Dismissal)
JUST CAUSES FOR TERMINATION

1. Serious Misconduct
2. Gross and Habitual Neglect of
Duty
3. Fraud or Willful Breach of Trust;
Loss of Confidence
4. Commission of a Crime or
Offense by Employee
5. Other Analogous Cases
Authorized Causes for Termination

•Redundancy - employees’ positions are

“superfluous” because their work is duplicated or
unnecessary (e.g. installation of labor saving devices,
merger of two companies, streamlining of
operations)

•Retrenchment - serious and imminent losses

force the employer to let some employees go

•Closure/Cessation of Business - the

employer stops doing business
If termination is of Authorized
Cause:

 Payment of separation pay

 Provide written notice to concerned
employee thirty (30) days before the
effectivity of the termination
 Notice of Termination to DOLE thirty
(30) days prior effectivity
Pursuant to Art. 279 LC, when
an employee is illegally
terminated, he has the right to:

1) Reinstatement
2) Backwages
3) Damages
4) Attorney’s Fees