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Atty. Apollo X.C.S. Sangalang
PoL
Business Lawyer & Legal Coach
Dionarto Q. Noblejas
-versus-
Italian Maritime Academy Phils., Inc.,
Capt. Nicolo S. Terrei, Raceli B.
Fernandez, and Ma. Teresa R. Mendoza
G.R. No. 207888
June 9, 2014
Supreme Court of the Philippines
Philippine Spring Water Resources Inc.,
and Danilo Y. Lua
-versus-
Court of Appeals and
Juvenstein B. Mahilum
G.R. No. 205278
June 11, 2014
Supreme Court of the Philippines
Takata (Philippines) Corporation
-versus-
Bureau of Labor Relations and
Samahang Lakas Manggagawa ng Takata
(SALAMAT)
G.R. No. 196276
June 4, 2014
Supreme Court of the Philippines
Disclaimers
• No lawyer-client relationship.
• Consult your own legal counsel.
• Legal opinions differ.
• Respect the sub judice rule.
• Avoid conflict of interest.
This seminar is INTERACTIVE
LABOR LAW MADE EASY
1.  Learn something new DAILY
about Labor Law.
2.  Links to RESOURCES, SITES,
and EVENTS.
3.  Quick consultation for FREE
(thru private message).
LABOR LAW MADE EASY
(a Facebook page) https://www.facebook.com/legalcoach
LIKE
COMMENT
SHARE
TAG
Evolution of
Management Prerogative
Slavery
Serfdom
Employment
Evolution of Ownership
Slavery
Labor
Serfdom
Land
Employment
Capital
Law on Ownership
• “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).
Evolution of Labor Law
Slavery
Tribal
Serfdom
Feudal
Employment
Contractual
Law on Contracts
“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)
Did you know that…?
Evolution of HR
Slavery
Masters
Serfdom
Lords
Employment
Managers
Employer Power Equation
Ownership Contracts Power
Employer Power!
“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 (1) to reasonable returns on
investments, and (2) to expansion and
growth.” (Sec. 3, Art. XIII, Constitution)
Management Prerogative
1. Right to hire;
2. Right to fire;
3. Right to fix compensation &
benefits; and
4. Right to control.
What’s the problem?
What’s the problem?
Limitation No. 1
• Article 291 paragraph 2, Labor Code
• (Formerly Article 277)
Limitation No. 2
• Article 4, Labor Code
Full Protection Equation
Burden
of Proof
All
Doubts
E.A.P.G.
Did you know that…?
Pre-Employment
Employment
Post Employment
Courtship +
Engagement
Marriage
Separation +
Annulment
Placement
Selection
Recruitment
Marriage
Engagement
Courtship
Job Analysis
Job
Description
Advertise
Vacancies
Receive Job
Applications
Job
Interview
Background
Checks
Testing
Short-
Listing
Job Offer &
Acceptance
Happy
Ending
• Golden
Anniversary
Tragic
Ending
• Separation
• Law suits
MARRIAGE
Happy
Ending
• Retirement
• Resignation
Tragic
Ending
• Termination
• Labor case
• Other law suits
EMPLOYMENT
It all starts with a…?
Did you know that…?
Employee
• Labor Law
• Control
Independent
Contractor
• Civil Law
• No Control
Hiring Process
Labor
Law
Control
Labor Law
1.  Full protection
2.  Living wage
3.  Humane conditions of work
4.  Security of tenure
5.  Participation in policy and decision-making
6.  Just share in the fruits of production
1.  Self-organization and collective bargaining;
2.  Freedom of expression; and
3.  Strike and other peaceful concerted activities
Monetary Benefits
Minimum Wage Holiday Pay
Premium Pay Overtime Pay
Night Shift Differential Service Charges
Service Incentive Leave Maternity Leave
Paternity Leave Solo Parents Leave
VAWC Leave Special Leave for Women
13th Month Pay Separation Pay
Retirement Pay Compensation Benefit* (ECC)
PhilHEALTH Benefit* Social Security Benefit*
Pag-IBIG Benefit*
2014 Handbook
Non-Diminution of Benefits
What’s Control?
End
Means
Control
Test of Employment
Hire Fire
Pay* Control
4-Fold Test
Control Test
• The power to determine the end
results and the means of doing
the work is CONTROL.
• Only an employer has the power
of control over his employees.
• The power of control need not be
actually exercised.
Non-employment Options
Independent Contractors Job Contractors
Consultants Freelancers
Agents Industrial Partners
Corporate Officers Cooperative Members
Volunteers Interns
Did you know that…?
Job Analysis
Job
Description
Advertise
Vacancies
Receive Job
Applications
Job
Interview
Background
Checks
Testing
Short-
Listing
Job Offer &
Acceptance
Types of Employment
Private Sector Government
Regular (Nature) Casual
Regular (Term) Non-Regular
Rank-and-file Manager & Supervisor
Time-based Results-based
Private Sector Government
Labor Code and
other labor laws
Civil Service Law
Department of Labor
and Employment
Civil Service
Commission
CBA + Strike CNA + No Strike
Labor Standards Exempted from
Labor Standards
Regular Casual
Work is “Usually
Necessary or Desirable
in the Usual Business
or Trade of the
Employer”
Work is NOT “Usually
Necessary or Desirable
in the Usual Business
or Trade of the
Employer”
Security of Tenure No Security of Tenure
What’s Security of Tenure?
What’s Just Cause?
1.  Serious misconduct;
2.  Willful disobedience (or insubordination);
3.  Gross and habitual neglect of duties;
4.  Fraud;
5.  Willful breach of trust; and
6.  Crime against person of the employer or
his immediate family or representatives.
What’s other Just Cause?
1.  Loss of trust;
2.  Gross negligence coupled with a grave
consequence;
3.  Incompetence without improvement;
4.  Habitual commission of minor offenses;
and
5.  Unfit for continued employment based on
the “Totality of Infraction” doctrine.
What’s Authorized Cause?
1.  Installation of labor-saving devices;
2.  Redundancy;
3.  Retrenchment to prevent losses;
4.  Closing or cessation of establishment or
undertaking;
5.  Disease prejudicial to health; and
6.  Compulsory retirement.
What’s a Regularized Casual?
Regular Non-Regular
Work is “Usually Necessary
or Desirable in the Usual
Business or Trade of the
Employer”
Same
Security of Tenure Same
Tenure is until the age of
compulsory retirement
Tenure is until completion of
the project, ending of the
season, expiration of the
fixed-term or contract, or
cessation of the emergency
or temporary contingency
Non-Regular Security of Tenure (?)
Project Yes, but tenure expires upon
completion of the project.
Seasonal Yes, but tenure expires upon the
ending of the season.
Contractual or
Fixed-term
Yes, but tenure expires upon the
end of contract.
Temporary or
Emergency
Yes, but tenure expires upon the
cessation of the emergency or
contingency.
Regular Probationary
Work is “Usually Necessary
or Desirable in the Usual
Business or Trade of the
Employer”
Same
Security of Tenure Same
No Probationary Period Probationary Period of 6
months or less
Regular from Day 1 Regularized upon qualifying,
or if allowed to work beyond 6
months (whichever comes
earlier)
Hiring Process
Firing Process
Employee
Employee
Employee
P.R.P.A.
• Outsource
Hiring
Process
Job
Contractor
• Outsource
Work
Hiring Process
Job Contracting
Principal
EmployeeContractor
CONTROL
NO CONTROLNO CONTROL
Labor ONLY Contracting
Principal
EmployeeAgent
NO CONTROL
CONTROLNO CONTROL
Test of Employment
Hire Fire
Pay* Control
4-Fold Test
What’s Control?
End
Means
Control
Manpower Cooperative
Principal
EmployeeCooperative
CONTROL
NO CONTROLNO CONTROL
Self-Employed Cooperative
Principal
Self-
Employed
Cooperative
NO CONTROL
NO CONTROLNO CONTROL
Direct Contracting
Employer
Employee
5-5-5 Fixed-term
Labor Law
1.  Full protection
2.  Living wage
3.  Humane conditions of work
4.  Security of tenure
5.  Participation in policy and decision-making
6.  Just share in the fruits of production
1.  Self-organization and collective bargaining;
2.  Freedom of expression; and
3.  Strike and other peaceful concerted activities
Labor-Management
Cooperation
• Workers’ right
• Participate
• Policy & decision making processes
• Rights, benefits and welfare
• According to law
Unions and
Certification Elections
• Workers’ right
• Self-organization
• Peaceful Concerted Activities
• Strike
• According to law
Takata (Philippines) Corporation
-versus-
Bureau of Labor Relations and
Samahang Lakas Manggagawa ng Takata
(SALAMAT)
G.R. No. 196276
June 4, 2014
Supreme Court of the Philippines
Unfair Labor Practice
• Violation of workers’ right
• Self-organization & CBA
• Committed by employer or by union
• Defined in Labor Code
• Criminal, Civil or Administrative
Collective Bargaining
Agreement
• Negotiated contract
• Exclusive bargaining agent and
• Employer
• Terms and conditions of employment
• Grievance and Arbitration provisions
Level or Rank
• Corporate officer
• Manager
• Managerial staff
• Supervisor
• Rank-and-file
• Confidential
Mode of Payment
• Time-based
• Results-based
• Commission-based
• Piece-rate
• Pakyaw
• Mixed
Other Types of Employee
• Field personnel
• Personal assistant
• Domestic worker
• Home worker
• Working children
• Alien
Other Work Arrangements
•  Apprentice and learner
•  Intern and trainee
•  Self-employed worker or freelancer
•  Virtual assistant
•  Partner
•  Agent
•  Consultant and professional
Illegal Discrimination
• Women and pregnant women
• Marriage and married women
• Handicapped workers
• Single parents or solo parents
• HIV/AIDS positive workers
Other Hiring Practices
• Sexual harassment in the workplace
• Yellow dog contract
• Drug-testing
• Non-competition agreement
• Non-disclosure agreement
• Non-solicitation agreement
What’s the Essentials of
HR & Labor Law?
D.O.C.U.M.E.N.T.© 2013
How to D.O.C.U.M.E.N.T. © 2013
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.
Documentation X 3
• Pre-Employment Documentation.
• Employment Documentation.
• Pre-Termination & Post
Employment Documentation.
Model Employment Contract
• Written, dated, and signed
• Pre-employment & probation clauses
• Regular or non-regular status
• Obedience to company policies
• Starting wages & specific benefits
• Reference to job offer, handbook, etc.
Model Employee Handbook
• Written, dated, and signed receipt
• Code of discipline
• Code of ethics & performance criteria
• Resignation & clearance process
• Address changes & other policies
• Benefits common to all employees
Model 201 File
• Employment contract
• Job description and job offer sheet
• Pre-employment documentation
• Job application and bio-data sheet
• Acknowledgment receipts
• Certifications and test results
How to D.O.C.U.M.E.N.T. © 2013
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.
Open-Mindedness
• Be tolerant with your employees.
• Be receptive to new ideas and
possibilities.
• Be accepting of the outcome.
Clarity
• Clarity in written communication.
• Clarity in oral communication and
action.
• Clarity in purpose and objective.
Understand ER/LR
• Understand that:
1.  ER/LR is a “Game”.
2.  the “Rules of the Game”.
3.  the “Goals of the Game”.
Labor Relations Game
Unionism
and Right
to Strike
Labor
Standard
Social
Justice
Security of
Tenure
Shared Responsibility Model
Business
Labor
Progress
and
Development
Tripartite Model
Government
BusinessLabor
What is Social Justice?
Business Labor
Law
Law
Law
Law
Law
Rule of Law
Constitution
Laws (including Labor Laws)
Rules & Regulations
Jurisprudence
Public Policies
and Principles
of Equity
Contracts
Company
Policies
Elements of Labor Law
Labor
Law
Shared
Responsibility
Social
Justice
Rule of
Law
Anatomy of a Labor Dispute
Capitalist Worker
Win-Win Lose-Win
Win-Lose Lose-Lose
Conflict
Resolution
Scenarios
What’s the Essentials of
HR & Labor Law?
D.O.C.U.M.E.N.T.© 2013
How to D.O.C.U.M.E.N.T. © 2013
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.
Master HR
• ER/LR is essentially HR.
• HR is exemplified by MR.
• MR is enhanced by GR.
Embrace Best Practices
• Good Practices.
• Better Practices.
• Best Practices:
PROGRESSIVE
DISCIPLINE
Negotiate X 3
• Negotiate before a labor dispute.
• Negotiate during a labor dispute.
• Negotiate after a labor dispute.
Take advice only from experts
• Licensed or seasoned experts.
• Local labor law experts.
• Practical and trust-worthy experts.
How to D.O.C.U.M.E.N.T. © 2013
D ocumentation, documentation, documentation!!!
O pen-mindedness.
C larity.
U nderstand LR.
M aster HR.
E mbrace best practices: Progressive Discipline
N egotiate, negotiate, negotiate!!!
T ake advice only from experts.
Ethical Best Practices
•  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, Civil Code:
– “Article 19. Every person must, in the exercise
of his rights and in the performance of his
duties, act with justice, give everyone his due,
and observe honesty and good faith.”
Rotary’s 4-Way Test
How?
Truth
Fair
Goodwill and
Better Friendships
Beneficial
Good Faith Test
1.  Do no harm.
2.  Make things better.
3.  Respect others.
4.  Be fair.
5.  Be compassionate.
LABOR LAW MADE EASY
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COMMENT
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The Essentials of HR and Labor Law. July 24, 2014. Philippines.