LABOR LAWS

• Management Prerogative


  The freedom of the employer to regulate, according to his own discretion, and judgment, all aspects of employment or business
• Aspects of Management Prerogative

  • Right To Select And Discharge Employees – With Valid Cause
  • Promulgate Reasonable Employment Rules And Regulation
  • Designation Of Work To Employees
  • Transfer And Promote Employees
  • Control Company Operations
  • Install Money-Saving Devices
  • Re-Classify Or Abolish Positions
  • Sell Or Close Business
• Drug Testing


  General Rule: Cannot – Right To Privacy

  Exception: If Job Or Occupation Involve Public Safety
• Participation In Decision-Making Process

  Only If It Affects His [Rights, Duties, Welfare]
• Management prerogatives do not extend to business operations, but employees must at least be informed
• Limitations to management prerogative

  • Good faith
  • Employee rights
• Management rights are subject to limitations provided by

  • Law
  • Contract, whether individual or collective
  • General Principles of Fair Play and Justice
• Managerial Employee


  One who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspended, layoff, recall, discharge, assign or discipline employees
• Conditions of Valid Transfer

  • A transfer becomes unlawful where it is motivated by discrimination or bad faith or is effected as a form of punishment or is a demotion without sufficient cause
  • The employer must be able to show that the transfer is not unreasonable, inconvenient, or prejudicial to the employee
• The Supreme Court has recognized and upheld the prerogative of management to transfer an employee from one office to another within the business establishment, provided there is no demotion in rank or diminution of salary, benefits, and other privileges; and the action is not motivated by discrimination, made in bad faith
• Clearances required for business closure in the Philippines

  • Securities and Exchange Commission (SEC)
  • Bureau of Internal Revenue (BIR)
  • Local Government Unit (LGU)
  • Department of Labor and Employment (DOLE)
  • Social Security System (SSS)
  • PhilHealth
  • Pag-IBIG
• DOLE requirements for closure of business

  For companies that employ workers, you must send a letter to the Department of Labor and Employment (DOLE) at least a month before the planned date of a business closure. You will be required to pay employees a minimum of 1.5 months' worth of salary for every year of service of each employee.
• State policy on employment (Art. 12)

  • To Promote And Maintain A State Of Full Employment Through Improved Manpower Training, Allocation And Utilization
  • To Protect Every Citizen Desiring To Work Locally Or Overseas By Securing For Him The Best Possible Terms And Conditions Of Employment
  • To Facilitate A Free Choice Of Available Employment By Persons Seeking Work In Conformity With National Interest
  • To Facilitate And Regulate The Movement Of Workers In Conformity With National Interest
  • To Regulate The Employment Of Aliens, Including The Establishment Of A Registration And/Or Work Permit System
  • To Strengthen The Network Of Public Employment Offices And Rationalize The Participation Of The Private Sector In The Recruitment And Placement Of Workers, Locally And Overseas, To Serve National Development Objectives
  • To Issue Careful Selection Of Filipino Workers For Overseas Employment In Order To Protect The Good Name Of The Philippines Abroad
• Worker


  Any Member Of The Labor Force, Whether Employed Or Unemployed
• Private Fee-Charging Employment Agency


  Any Person Or Entity Engaged In The Recruitment Or Placement Of Workers For A Fee Which Is Charged Directly Or Indirectly, From The Workers Or ER‟s Or Both
• Private Recruitment Entity


  Any Person Or Association Engaged In The Recruitment And Placement Of Workers, Locally Or Overseas, Without Charging, Directly Or Indirectly, Any Fee From The Workers Or The ER‟s Or Both
• Allowed Private Agencies And Entities

  • Public Employment Agencies
  • POEA
  • Private Recruitment Entities
  • Private Employment Agencies
  • Shipping Or Manning Agents Or Representatives
  • Such Other Persons Or Entities As May Be Authorized By The Secretary
• The Private Employment Sector Shall Participate In The Recruitment And Placement Of Workers, Locally And Overseas, Under Such Guidelines, Rules And Regulations As May Be Issued By The Secretary Of Labor
• Prohibited Business Agencies And Entities

  • Direct Hiring By Members Of The Diplomatic Corps
  • Direct Hiring By International Organizations And Such Other ER‟s As May Be Allowed By The Secretary Of Labor
  • Travel Agencies And Sales Agencies Of Airline Companies Are Prohibited From Engaging In The Business Of Recruitment And Placement Of Workers For Overseas Employment, Whether For Profit Or Not
• Government Techniques Of Regulation – Private Recruitment And Placement Business

  • Licensing
  • Citizenship
  • Capitalization
  • Duration
  • Transferability
  • Fees
• Citizenship Requirement


  Only Filipino Citizens Or Only Corporations, Partnerships Or Entities At Least 75% Of The Authorized And Voting Capital Stock Of Which Is Owned And Controlled By Filipino Citizens Shall Be Permitted To Participate In The Recruitment And Placement Of Workers, Locally Or Overseas
• Capitalization


  Substantial Capitalization As Determined By The Secretary Of Labor (P1 M)
• Non-Transferability Of License Or Authority


  No License Or Authority Shall Be Used Directly Or Indirectly By Any Other Person Other Than The One In Whose Favor It Was Issued; Or At Any Place Other Than That Stated In The License Of Authority Nor Such License Or Authority Be Transferred, Conveyed Or Assigned To Any Other Person Or Entity
• Authority vs License


  Authority means a document issued by the Secretary of Labor and Employment authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity; while a License is the document issued to a person or entity to operate a private employment agency
• Duration of a License

  A License is valid for a period of 2 years from the date of issuance unless sooner cancelled, revoked or suspended for violation of the Labor Code or its IRR's
• Bonds


  All applicants for license or authority shall post such cash and surety bonds as determined by the Secretary of Labor to guarantee compliance with prescribed recruitment procedures, rules and regulations, and terms and conditions of employment as appropriate
• The purpose of bonds is to ensure that if the rights of overseas workers are violated by their employers, recourse would still be available to them against the local companies that recruited them for the foreign principal
• Workers Fees


  Any person applying with a private fee-charging employment agency for employment assistance shall not be charged any fee until he has obtained employment through its efforts or he has actually commenced employment. Such fee shall be always covered with the appropriate receipt clearly showing the amount paid. The Secretary of Labor shall promulgate the schedule of allowable fees
• Whenever the public interest requires, the Secretary of Labor may direct all persons or entities within the coverage of this title to submit a report on the status of employment, including job vacancies, details of job requisitions, separation from job, wages, other terms and conditions, and other employment data
• Employable Age


  • Children Below 15 Years Of Age Shall Not Be Employed

  Exceptions: Child works directly under the sole responsibility of his parents or legal guardian and where only members of the employer family are employed, provided certain conditions are met

  Child is employed in entertainment or information through cinema, theater, radio or television, provided certain conditions are met

  Any Person, Between 15 And 18 May Be Employed In Any Non-Hazardous Work. In Any Hazardous Work, The Employable Age Is 18 And Up
• Hazardous Work Places


  • Where the nature of work exposes the worker to dangerous environmental elements, contaminations or work conditions

  Stevedoring, Construction Work, Logging, Firefighting, Mechanized Farming And Similar Work

  Manufacture Or Handling Of Explosives And Other Pyrotechnic Products

  Where the workers are exposed to heavy or power-driven machinery or equipment or tools