A Survival Guide to Philippine Labor Law for Business Owners and Managers. How to Avoid Costly Illegal Dismissal Cases. By Atty. PoL Sangalang, Business Lawyer & Legal Coach Philippines.

2. Why this seminar?

3. Motto & Commitment of
Rotary

5. A vocational service project to:
• Promote peace and conflict
prevention/resolution in the workplace;
• Advance economic and community
development by way of helping business
owners and managers deal with labor
issues and concerns; and
• Instill integrity and ethics in our
businesses and in the managerial and HR
professions.

6. Free Legal Consultation
• Write down your questions (and your requests
for a copy of my slide presentation).
• Make it clear, brief, readable and on-topic.
• Put your name, company & email address.
• Give it to our seminar moderator TODAY.
• Or email it to Ariva! Events Management Inc.
• Or message me at my Facebook page:
BUSINESS LAWYER & LEGAL COACH
PHILIPPINES. (And please “LIKE.”)

8. Disclaimers
• This event does NOT create a lawyer-
client relationship between us.
• You are strongly advised to consult with
your own legal counsel, especially if you
already have a full-blown case.
• Note that legal opinions may differ, and
are given on a case-to-case basis.
• Let’s observe the sub judice rule.

10. 3 Types of Costs
• Monetary and Business Costs.
• Emotional, Mental or Psychological Costs.
• Social or Macro-Economic Costs.

11. 3 Kinds of Problem Employees
• EMPLOYEES WHO ARE:
–Defined under Article 282 Labor Code.
–Incompetent and others falling under
Causes Analogous.
–Not really problem employees.

12. Article 282, Labor Code
Problem employees are those who commit:
• Serious misconduct;
• Willful disobedience (or insubordination);
• Gross and habitual neglect of duties;
• Fraud;
• Willful breach of trust; and
• Crime against the person of the employer or
his immediate family or representatives.

13. Causes Analogous
• Loss of trust (for managers, supervisors,
confidential employees, fiduciary
employees, etc.);
• Gross incompetence;
• Gross negligence resulting to serious or
grave consequences;
• Unfit for continued employment based on
the “Totality of Infraction” doctrine.

14. (?)Problem Employee(?)
• Employee is not the problem (what then?);
• Problem employee, yes; but not (yet)
dismissible;
• Problem employee, yes; but can be severed
without firing him;
• Employee who lacks motivation;
• Employee who lack skills; and
• Non-employee;

15. 3 Ways to Terminate
• Efficient but not necessarily legal.
• Legal but not necessarily effective.
• Effective (which is necessarily legal).

16. Legal Way To Terminate
• Substantive Due Process.
• Procedural Due Process.
• Substantial Evidence.

17. Substantive Due Process
• Just Cause.
• Reasonableness.
• Good Faith.

18. Substantive Due Process
• JUST CAUSE:
–Under Article 282 of Labor Code.
–Under “Causes Analogous”.
–Must overcome “Security of
Tenure.”

19. Substantive Due Process
• REASONABLENESS:
–Penalty proportionate to the
offense.
–Not against Law or Public Policy.
–Business-related or employment-
connected.

20. Substantive Due Process
• GOOD FAITH:
–Good faith is presumed.
–Bad faith must be proven.
–But in labor law, it’s the reverse!
• Because all doubts in labor
disputes are resolved in favor of
employees.

21. Procedural Due Process
• Notice to Explain.
• Notice of Hearing.
• Notice of Termination.

22. Procedural Due Process
• NOTICE TO EXPLAIN:
– Describes the who, what, when, where,
why and the how much or manner of the
offense.
– Gives at least 5 DAYS for written answer.
– Specifies TERMINATION and other
penalties, if found guilty.

23. Procedural Due Process
• NOTICE OF HEARING:
–Gives opportunity for verbal answer.
–States the right to counsel or
representative of own choice.
–Conveys that procedure is not legalistic,
but there are rules.

24. Procedural Due Process
• NOTICE OF TERMINATION:
–Summarizes what happened since the
start of the process.
–Enumerates the basis of the decision.
–States the verdict clearly and advises
the next steps.

25. Substantial Evidence
• Proof of Substantive Due Process
• Proof of Procedural Due Process
• Proof of Good Faith (or No Bad
Faith)

26. Substantial Evidence
• PROOF OF SUBSTANTIVE DUE
PROCESS:
– The offense is defined and justified.
– There is penalty for the offense.
– Employee committed the offense.
• Affidavits of complainant & witnesses.
• Admissions of respondent.

27. Substantial Evidence
• PROOF OF PROCEDURAL DUE
PROCESS:
–Notices are in writing.
–Notices are served upon the employee.
–Hearings are recorded.

28. Substantial Evidence
• PROOF OF GOOD FAITH (or NO
BAD FAITH):
–Show effect on the Organization.
–Show effect on the Business.
–Show that you walked the Extra Mile.
• Because employers have the
BURDEN OF PROOF in labor
disputes.

29. Effective Way to Dismiss
• D. O. C. U. M. E. N. T.
• Because all doubts will be resolved
by the authorities in favor of the
employee’s Security of Tenure.
• Because the employer has the
burden of proving to the authorities
that the termination is valid and legal.

30. How to D.O.C.U.M.E.N.T.
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

31. Documentation X 3
• Pre-Employment Documentation.
• Employment Documentation.
• Pre-Termination & Post
Employment Documentation.

32. Open-Mindedness
• Be tolerant with your employees.
• Be receptive to new ideas and
possibilities.
• Be accepting of the outcome.

33. Clarity
• Clarity in written communication.
• Clarity in oral communication and
action.
• Clarity in your purpose and
objective.

34. Understand LR
• Understand that LR is a “Game”.
• Understand the “Rules of the Game”
of LR.
• Understand the “other aspects” of the
LR Game.

35. Master HR
• LR is essentially HR.
• LR is like MR.
• LR is enhanced by GR.

36. Embrace Best Practices
• Good Practices.
• Better Practices.
• Best Practices.

37. Negotiate X 3
• Negotiate before a labor dispute.
• Negotiate during a labor dispute.
• Negotiate after a labor dispute.

38. Take advice only from experts
• Licensed or seasoned experts.
• Local labor law experts.
• Practical and trust-worthy experts.

39. How to D.O.C.U.M.E.N.T.
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

40. HR Best Practices
• Progressive Discipline.
• Performance Improvement Plan.
• Outsourcing.

41. LR Best Practices
• Walk-In Settlement.
• SEnA (Single Entry Approach).
• Voluntary Codes of Good Practices.

42. Ethical Best Practices
• Rotary’s 4 Way Test.
• Rotary Code of Conduct:
– Be fair in all dealings with others and treat
them with the respect due to them as fellow
human being.
• Human Relations in the Civil Code.
– Chapter 2, Articles 19 – 36.

43. Whatever we say, think or do, let’s use the:

44. Rotary’s the 4-Way Test

45. Spiritual Best Practices
• Love GOD with all your heart, with all your
mind, with all your soul and with your
strength.
• Love your neighbor as yourself.
• Love yourself (…because whatever you
sow, you will reap).

46. THANK YOU!

48. Why this seminar?

49. Motto & Commitment of
Rotary

51. A vocational service project to:
• Promote peace and conflict
prevention/resolution in the workplace;
• Advance economic and community
development by way of helping business
owners and managers deal with labor
issues and concerns; and
• Instill integrity and ethics in our
businesses and in the managerial and HR
professions.

52. Free Legal Consultation
• Write down your questions (and your requests
for a copy of my slide presentation).
• Make it clear, brief, readable and on-topic.
• Put your name, company & email address.
• Give it to our seminar moderator TODAY.
• Or email it to Ariva! Events Management Inc.
• Or message me at my Facebook page:
BUSINESS LAWYER & LEGAL COACH
PHILIPPINES. (And please “LIKE.”)

54. Disclaimers
• This event does NOT create a lawyer-
client relationship between us.
• You are strongly advised to consult with
your own legal counsel, especially if you
already have a full-blown case.
• Note that legal opinions may differ, and
are given on a case-to-case basis.
• Let’s observe the sub judice rule.

56. Capitalism

57. Communism

58. Shared Responsibility
• The Capitalist class and the Proletariat
class are not natural enemies, although
they may often have seemingly conflicting
interests.
• Labor & Management, Employees &
Employers, are interdependent and
indispensible partners in nation-building,
and they need each other to foster
productivity and economic growth.

59. What is Social Justice?
• It is the weighing and balancing of the
welfare and interest of both employers and
employees under the Rule of Law.
• Justice is for the deserving party, whether
rich or poor.
• Our Constitution and our labor laws
merely extends sympathy and
compassion to employees.

60. Basis of Labor Laws?
• Doctrine of Shared Responsibility
• Social Justice
• Rule of Law
– Constitution
– Labor Code
– Other Social Legislations, such SSS Law.
– Jurisprudence

61. (?)Employer’s Rights(?)
• Law on Ownership, Civil Code:
“The owner has the right to enjoy and dispose of a
thing, without other limitations other than those
established by law.” (Art. 428, Civil Code).
• Law on Contracts, Civil Code:
“The contracting parties may establish such
stipulations, clauses, terms and conditions as may
be deemed convenient, provided they are not
contrary to law, morals, good customs, public order,
or public policy.” (Art. 1306, Civil Code)
•

62. (?)Employer’s Rights(?)
• Law on Management Prerogative:
“The State recognizes the indispensable role of
the private sector, encourages private
enterprises, and provides incentives to needed
investments.” (Sec. 20, Art. II, Constitution)
“The State…x x x… recognizing the right of
enterprises to reasonable returns on
investments, and to expansion and growth.”
(Sec. 3, Art. XIII, Constitution)
•

63. What is Management Prerogative?
• Right to hire employees of your own
choice;
• Right to fire (and discipline) them;
• Right to determine their pay and
benefits; and
• Right to control your employees.

64. (?)Department for Employers(?)
• Legislative Department
• Executive Department
• Judicial Department

65. Conflict Resolution Scenarios
• Win – Lose
• Lose – Win
• Lose – Lose
• Win – Win

66. 3 Kinds of Win Scenarios
• Win – Lose
• Compromise
• Win – Win

67. Why Win Legally?
• “Fear the Lord and judge with integrity, for the Lord our
God does not tolerate perverted justice, partiality, or
the taking of bribes. x x x
• You must always act in the fear of the Lord, with
faithfulness and an undivided heart. Whenever a case
comes to you x x x, you must warn them not to sin
against the Lord, so that He will not be angry at you
and them. Do this and you will not be guilty. x x x
• Take courage as you fulfill your duties, and may the
Lord be with those who do what is right”
• (2 Chronicles 19: 4-11 NTE)

68. Legal Way to Win
• D. O. C. U. M. E. N. T.
• Because all doubts will be resolved
by the authorities in favor of the
employee’s rights.
• Because the employer has the
burden of proving to the authorities
that he complied with labor laws.

69. How to D.O.C.U.M.E.N.T.
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

70. Documentation X 3
• Pre-Employment Documentation.
• Employment Documentation.
• Pre-Termination & Post
Employment Documentation.

71. Open-Mindedness
• Be tolerant with your employees.
• Be receptive to new ideas and
possibilities.
• Be accepting of the outcome.

72. Clarity
• Clarity in written communication.
• Clarity in oral communication and
action.
• Clarity in your purpose and
objective.

73. Understand LR
• Understand that LR is a “Game”.
• Understand the “Rules of the Game”
of LR.
• Understand the “other aspects” of the
LR Game.

74. Master HR
• LR is essentially HR.
• LR is like MR.
• LR is enhanced by GR.

75. Embrace Best Practices
• Good Practices.
• Better Practices.
• Best Practices.

76. Negotiate X 3
• Negotiate before a labor dispute.
• Negotiate during a labor dispute.
• Negotiate after a labor dispute.

77. Take advice only from experts
• Licensed or seasoned experts.
• Local labor law experts.
• Practical and trust-worthy experts.

78. How to D.O.C.U.M.E.N.T.
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices.
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.

79. Game Rules of LR
• Rule 1: Comply with labor laws (or “the
Rules of the Game”).
• Rule 2: Be aware of labor laws. Ignorance
of labor laws isn’t an excuse.
• Rule 3: Stay focused on your
entrepreneurial goals: profit (ROI), growth,
and expansion (or the “Goals of the
Game”). Be a sport.

80. Game Rules of LR
• Rule 4: Be aware of your inherent rights
as an owner. Know your natural strengths.
• Rule 5: Be aware of your opportunity to
design, by way of written contract, your
relationship with your employees.
• Rule 6: Be aware of your management
prerogatives, particularly your right to
control. So write down your policies.

81. Game Rules of LR
• Rule 7: Know that you have the upper
hand. So, be magnanimous about it.
• Rule 8: Accept that your employees will be
perceived as underdogs, and that people
will naturally root for their cause.
• Rule 9: Understand that labor laws are
there only to level the playing field, not to
cause you to lose.

82. Game Rules of LR
• Rule 10: Think of problem employees as
mere obstacles, not opponents. Your true
opponents are your competitors.
• Rule 11: All doubts will be resolved by the
authorities in favor of your employees.
• Rule 12: You have the burden of proving
that you have complied with the labor
laws. Your silence is an admission of guilt.

83. Game Rules of LR
• Rule 13: Your rights as employer, whether
arising from ownership, employment
contract, or management prerogative, are
not absolute.
• Rule 14: Mandatory labor law provisions,
fundamental social justice principles, and
State policies will prevail over your rights.
• Rule 15: Bad faith is always punished.

84. Game Rules of LR
• Rule 16: Good faith is always rewarded.
So make it a point to show that you are
always in good faith.
• Rule 17: Compromise is encouraged. But
quitclaims are frowned upon.
• Rule 18: Out of court settlements can be
dangerous. Better settle in-court.

85. Game Rules of LR
• Rule 19: In disciplining your employees,
you are required to act based on
evidence, but only substantial evidence.
• Rule 20: You are required to observed due
process, but only administrative due
process, in disciplining your employees.
• Rule 21: Your managers are employees
too. So be careful about who you trust.

86. Game Rules of LR
• Rule 22: Proceedings in labor cases
appear to be informal, but you must not be
lulled into complacency. Strictly follow the
rules. Better be safe than sorry.
• Rule 23: Take advantage of the voluntary
modes of dispute resolution. It is the
preferred mode in settling labor disputes.
• Rule 24: Labor officials are humans too.

87. More Game Rules?
• Visit my Facebook page: BUSINESS
LAWYER & LEGAL COACH PHILIPPINES
and “Like” to subscribe.
• Tune-in to EQUAL JUSTICE at
DZRJ810AM.
• Attend the Learning Sessions and other
events of Ariva! Events Management Inc.
• Join the Rotary Club of Makati McKinley.

88. Best Game Rule?
• The GOLDEN RULE:
• Love your employee as yourself.
• Love one another in your company
as Jesus Christ has loved you.

89. Thank You!