Human Resource Management, Constitutional and Legal Framework. Mostly tackles about the Labor Law which comprises the law on termination, health safety and insurances, right to strike and right to lockout , Sexual Harassment and Etc.

1. HUMAN
RESOURCE
MANAGEMENT
II. Constitutional
and Legal
Framework
By: John Edward Estayo

2. Learning Outcomes
At the end of this Presentation, we will be able to:
 Gain knowledge on the Labor Code and The
Constitution.
 Be preventive on other disputes and allegations
and legal implications.
 Be informed on the rights on health, safety, and
Compensation of employees
 Understand the different concepts of the Law on
Unfair Labor Practice (ULP), Strikes, Termination
and the Anti-Sexual Harassment.

3. I. Understanding the
constitutional and Legal
Framework
 Protection of the Rights of Labor
 Legal Aspects of Human resource
HR manager and the CEO

4. I. Understanding the
constitutional and Legal
Framework
 Companies that are at the losing end of
legal suits.
 “Preventive Lawyering”
“An Ounce of prevention is better than a
Pound of Cure”

5. I. Understanding the
constitutional and Legal
Framework
 Responsibility of management to be
come educated in labor laws.
 “Ignorantia legis, nimenem excusat.
-Ignorance of the law excuses no one.
 “Police Power”

6. II. Constitutional Basis
“State affirms labor as a primary
socio-economic force. It shall
protect the right of workers and
promote their welfare” (Article II
Section 18)

7. II. Constitutional Basis
 Article XIII section 3 expands the Labor policy
by providing that:
• The State shall afford full protection to labor
• It shall guarantee the rights for self organization
• The State shall promote principle of shared
responsibility.
• The state shall regulate the relations between
workers and employers.

8. III. Labor Code
 Martial Law
 Six Major Parts
1. Pre-Employment
2. Human Resources Development Program
3. Conditions of Employment
4. Health, Safety and Social Welfare Benefits
5. Labor Relations
6. Post-Employment

9. IV. Kinds of Employees -
Definitions
“The Employer”
“The Employee”

10. Types of Employees according to
role
1. Managerial Employees
2. Supervisory Employees
3. Rank and File employees

11. Types of Employees in terms of
Tenure
1. Regular Employee
2. Project Employee
3. Casual Employee
4. Probationary Employee
5. Fixed Contract Employee as settled in
Jurisprudence

12. V. Health, Safety and Social
Welfare Provisions
 Requirements
1. To keep Medicines and Equipment in the
employer’s Establishment
2. Full time registered nurse >50 Employees
<200
3. Full time registered nurse, Part time physician
and a dentist and an emergency Clinic >200
<300

13. V. Health, Safety and Social
Welfare Provisions
 Requirements
4. For >300 employees, Full time Physician and
dentist and a full time registered nurse as well
as dental clinic and an infirmary or emergency
hospital with one bed capacity for every 100
employees
5. Trainings for industrial medicine and
occupational safety and health
6. Provide adequate and immediate attention to
the sick and injured.

14. VI. Employee Compensation and
State Insurance Fund
 Tax Exempt for employee compensation in
the event of work-connected disability
 State Insurance Fund
• Employees Compensation Commission
o Sec. Labor and employment
o GSIS Gen Mngr.
o SSS Admin
o Chairman of PMCC
o Executive Director of the ECC

15. VI. Employee Compensation and
State Insurance Fund
 State insurance fund is liable for
compensation except Disability or Death was
due to:
• Employees’ Intoxication
• Willful intention to injure or kill himself or another
• Notorious negligence*

16. VI. Employee Compensation and
State Insurance Fund
 25% penalty percentage of the lump
sum equivalent of the income benefit is
to be paid to the State Insurance Fund.

17. VII. LABOR RELATIONS
MANAGEMENT
PREROGATIVES
LABOR RIGHTS
Power to mange Right to participate in decision making
Power to hire Union security rights
Power to Fire Security of Tenure
Power to Transfer Employees Right to refuse
Power to Promote/ Demote Right to question
Power to Layoff/Lockout Right to question if the basis is unfair
Power to Lay down Policies Right to participate in decision making
Power to Discipline Right to due process
Power to set working hours Right to file grievance
Fair Return in Investments and
Expansion
Right to just share in Fruits of Production

18. VII. LABOR RELATIONS
 “Give and Take” attitude
 “Win-win situation
 Powers of management and Labor
rights are neither absolute.
 JUST SHARE IN FRUITS OF
PRODUCTION Employer Vs. Employee
 Allowance on the allocation of fruits of
production

19. VIII. Unfair Labor Practice (ULP)
 ULPs are offences committed by an employer or
labor organization.
 An employer commits ULP when he/she:
1. Interferes, restrains, coerces employees
their right to exercise self-organization
2. Requires a condition that an employee is
not to join a labor org. or shall withdraw
from where he belongs.
3. Contracts out services or functions being
performed.
4. Initiates, Dominates or interferes with the
formation of the organization.

20. VIII. Unfair Labor Practice (ULP)
 An employer commits ULP when he/she:
5. Discriminates in regards to wages,
number of hours of work and others.
6. Dismisses, Discharges or otherwise
prejudice or discrimination.
7. Violates duty to bargain collectively
8. Pays negotiation or attorney’s fees to
the union
9. Violates a Collective Bargaining
Agreement (CBA)

21. IX. Strikes and Work
Stoppages/Lockouts
 Right to strike is not absolute and neither
is the right of employers to lockout.
Employees can only strike on 2 grounds
1. Deadlock in Collective Bargaining
2. Unfair Labor Practice (ULP)

22. IX. Strikes and Work
Stoppages/Lockouts
Conditions before a strike can be staged:
 Strike notice is to be filed 30 days before the
intended strike in case of deadlock in CBA; 15
days in case of ULP
 Strike must be approved by a secret balloting
by the members of the bargaining unit. NCMB
of DOLE must be notified 24 hours before
such meeting, then the result of the voting at
least 7 days before the strike.

23. IX. Strikes and Work
Stoppages/Lockouts
Since Strikes are only limited to two
grounds a)Deadlock in CBA b)ULP; then
there are also procedures to be followed
before a union strike.
Even if legal conditions are met a
strike could still be illegal if it was
attended to in picketing and/or when any
criminal acts are committed within the
strike.

24. X. Law on Termination
Just Causes of Termination:
1. Serious Misconduct or Wilful
Disobedience.
2. Gross and Habitual neglect of his duties.
3. Fraud or wilful breach.
4. Commission of a crime or offense to his
employer or immediate family member.
5. Or other causes analogous to the
foregoing.

25. X. Law on Termination
Conditions:
 Installation of Labor-Saving devices or
redundancy provided the terminated employee 1
month pay for every year of service.
 Retrenchment to prevent losses or closing or
cessation of the establishment or undertaking ;
that the employee to be retrench is given one-
half (1/2) month pay per year of service.
6 months is rounded of to 1 whole year.

26. X. Law on Termination
Other Authorized Causes
Labor Code allows disease as ground for
termination under the ff. conditions:
 when one suffers a disease wherein his
continued employment is prohibited by law,
when the nature of disease is not cured
even with proper treatment for 6 months.
the terminated employee is entitled to ½
month pay per year of service.

27. X. Law on Termination
Other Authorized Causes
Labor Code allows disease as ground for
termination under the ff. conditions:
 Retirement pay law. For employees that
reaches the age of 60 but not more that
65 is provided with retirement pay.
Employee is awarded with 22days pay per
year of service.

28. XI. Wage Rationalization Law
 The Idea was to regionalize wage fixing to
reflect the prevailing cost of living in a
particular region.
Standard Criteria for a minimum wage fixing:
1. Demand for living wages.
2. Wage adjustment vis-͘á-vis consumer price
index.
3. Cost of living
4. Needs of workers and their families

29. XI. Wage Rationalization Law
Standard Criteria for a minimum wage fixing:
5. Need to induce Industries to invest to
countryside
6. Improvements of standards of living
7. Prevailing wage levels
8. Fair return of capital Invested and Capital to
pay of employers
9. Effects of Employment Generation
10. Equitable distribution of income and wealth

30. XII. Anti-Sexual Harassment Law
Sexual Harassment is defined as any work,
education, or training-related sexual
harassment committed by:
 An employer
 Employee
 Manager, Supervisor
 Agent of the employer
 Teacher, Instructor, Professor
 Coach, Trainer
 Or other persons having authority

31. XII. Anti-Sexual Harassment Law
Sexual Harassment is punishable, upon
conviction by:
 Imprisonment of not less than one(1) month
nor not more that six(6) months,
 Or a fine not less than P10,000 nor more than
P20,000,
 Or both such fine and imprisonment.

32. THANK YOU!