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Labor Code

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Labor Code

  1. 1. Protection to Labor in the 1987 CONSTITUTION and the LABOR CODE as amended
  2. 2. BASES Constitution The Labor Code, as amended Contracts (EMPLOYMENT CONTRACTS)
  3. 3. CONSTITUTION STATE POLICY . Section 18. The State affirms labor a primary social economic force. It shall protect the rights of workers and promote their welfare.
  4. 4. CONSTITUTION Article Xlll – Labor  Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.  It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.
  5. 5. CONSTITUTION Continuation …… Article Xlll – Labor  The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.  The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.
  6. 6. LABOR CODE OF THE PHILIPPINES, as amended . ARTICLE 3. Declaration of basic policy. The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work.
  7. 7. LABOR CODE OF THE PHILIPPINES, as amended ARTICLE 4. Construction in favor of labor. All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor. .
  8. 8. A CONTRACT IS A MEETING OF MINDS BETWEEN TWO PERSONS WHEREBY ONE BINDS HIMSELF, WITH RESPECT TO THE OTHER, TO GIVE SOMETHING OR TO RENDER SOME SERVICE. (ARTICLE 1305 CIVIL CODE OF THE PHIL) CONTRACT
  9. 9. OBLIGATIONS ARISING FROM CONTERACTS HAVE THE FORCE OF LAW BETWEEN THE CONTRACTING PARTIES AND SHOULD BE COMPLIED WITH IN GOOD FAITH. ( ARTICLE 1159 CIVIL CODE OF THE PHILIPPINES) OBLIGATION
  10. 10. THERE MUST BE OFFER AND ACCEPTANCE. there must a clear offer and clear acceptance for a contract to be binding. CONSIDERATION is the price paid by one party for the promise of the other THE CAPACITY TO CONTRACT – parties to the contract must be over 18 years, of sound mind. THERE MUST BE NO FORCE, MISREPRESENTATION OR FRAUD. persons should not be forced to sign. a fraud may involve forging someone’s signature. THERE MUST BE AN OBVIOUS INTENTION TO CREATE LEGAL RELATIONS. this is based on the actions of the parties e.g. offer, acceptance and consideration. A CONTRACT MUST BE LEGAL- thus, agreements made between parties concerning illegal drugs and any other illegal activity is not a contract. CHARACTERISTICS OF A CONTRACT
  11. 11. 1) MUTUALITY OF CONTRACTS 2) OBLIGATORY 3) ENFORCEABILITY 4) CONTRACTS
  12. 12. Employment contract ESTABLISHING EXISTENCE OF ER-EE RELATIONSHIP This is the starting point for the application of the Philippine Labor Code. It refers to the consent of both the employer and the employee whereby the latter agrees to provide services to the former in consideration of payment of salary or wage.
  13. 13.  Employment contract – EMPLOYER and EMPLOYEE  The contract shall be in writing and shall include the following:  1) Specific description of job, work or service;  2) Place of work and terms and conditions of employment, including a statement of wage rate applicable to the individual contractual employee; and  3) The term and duration of employment, which shall be coextensive with the contract of the principal and subcontractor, or with the specific phase for which the contractual employee is engaged 13 EMPLOYMENT CONTRACT
  14. 14. It is clear that seafarers are considered contractual employees. They can not be considered as regular employees under Article 280 of the Labor Code. Their employment is governed by the contracts they sign every time they are rehired and their employment is terminated when the contract expires. Their employment is contractually fixed for a certain period of time. They fall under the exception of Article 280 whose employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of engagement of the employee or where the work or services to be performed is seasonal in nature and the employment is for the duration of the season. (MILLARES v NLRC 14 Employment status of a seafarer
  15. 15.  In the Contract of Employment entered into with private respondent, petitioners covenanted strict and faithful compliance with the terms and conditions of the Standard Employment Contract approved by the POEA/DOLE which provides:  1. The employment of the seaman shall cease upon expiration of the contract period indicated in the Crew Contract unless the Master and the Seaman, by mutual consent, in writing agree to an early termination . . . . 15 Employment contract
  16. 16.  Clearly, under the foregoing, the employment of a Filipino seaman may be terminated prior to the expiration of the stipulated period provided that the master and the seaman (a) mutually consent thereto and (b) reduce their consent in writing.  (marsaman v nlrc/ CAJERAS G.R. No. 127195 , 25 August 1999 16 Employment contract
  17. 17.  Whether employed locally or overseas, all Filipino workers enjoy the protective mantle of Philippine labor and social legislation, contract stipulations to the contrary notwithstanding. This pronouncement is in keeping with the basic public policy of the State to afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, and regulate the relations between workers and employers.  PNB vs CABANSAG, G.R. No. 157010 , 21 June 2005 17 Employment contract
  18. 18.  REPATRIATION. If the vessel is outside the Philippines upon the expiration of the contract, the seafarer shall continue his service on board until the vessel's arrival at a convenient port and/or after arrival of the replacement crew, provided that, in any case, the continuance of such service shall not exceed three months. The seafarer shall be entitled to earned wages and benefits as provided in his contract.  UNICA vs ANSCOR SWIRE SHIP MANAGEMENT CORPORATION G.R. No. 184318 , 12 Feb. 2014 18 EMPLOYMENT CONTRACT
  19. 19.  Clearly, the agency and Modern Metal committed a prohibited practice and engaged in illegal recruitment under the law. Article 34 of the Labor Code provides:  Art. 34. Prohibited Practices. It shall be unlawful for any individual, entity, licensee, or holder of authority:  x x x x  (i) To substitute or alter employment contracts approved and verified by the Department of Labor from the time of actual signing thereof by the parties up to and including the periods of expiration of the same without the approval of the Secretary of Labor. 19 Alteration of an employment contract
  20. 20.  Further, Article 38 of the Labor Code, as amended by R.A. 8042, defined "illegal recruitment" to include the following act:  (i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment.  PERT/CPM MANPOWER EXPONENT CO.vs VINUYA, et.al G.R. No. 197528 ,05 September 2012  20 Alteration of an employment contract
  21. 21. RIGHTS OF EMPLOYEE 1.Just and humane condition of work 2.Living wage/minimum wage 3.Hours of work 4. Days of rest 5.Freedom of Association/organization 6.Social Security Protection 7.Freedom of religion or belief 8.Freedom of expression 9.Access to justice and remedies 10. Security of Tenure
  22. 22. A. SECURITY OF TENURE Refers to the right of an employee to keep his job and not to be terminated except only for causes allowed under the law.  security of tenure refers to the right of an employee not to be terminated from employment unless his/her termination is for a just and authorized cause and effected after compliance with due process of law.
  23. 23. CONDITIONS FOR THE RIGHT TO SECURITY OF TENURE TO APPLY  Existence of employer-employee relationship  Just and authorized causes  Due process – is the right to be heard.
  24. 24. IV. TERMINATION OF EMPLOYMENT
  25. 25. Resignation Abandonment 25 TERMINATION BY EMPLOYEE
  26. 26.  Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and one has no other choice but to dissociate oneself from employment.  It is a formal pronouncement or relinquishment of an office, with the intention of relinquishing the office accompanied by the act of relinquishment. 26 RESIGNATION: CONCEPT
  27. 27.  . An employee voluntarily resigns when he finds himself in a situation where he believes that personal reasons cannot be sacrificed in favor of the exigency of the service; thus, he has no other choice but to disassociate himself from his employment. 27 RESIGNATION : CONCEPT
  28. 28.  Records show that upon his repatriation from Taiwan, respondent immediately went to petitioner’s office and confronted its representative, Lorenza Ching, about the assignment given to him which was contrary to the agreed position of caretaker, for which he specifically applied. He demanded that he be reimbursed the P30,000 he paid as downpayment. When refused, he lodged a complaint with the POEA. He also immediately filed a complaint for illegal dismissal before Labor Arbiter Cresencio R. Iniego, upon his arrival in his hometown, indicating that respondent did not voluntarily resign, but was forced to resign, which was tantamount to a dismissal.11 Petitioner did not refute respondent’s contentions regarding these incidents. Further, it failed to prove the legality of the dismissal, despite the fact that the burden of proof lies on the employment and recruitment agency. Thus, the presumption stands to the effect that respondent was illegally dismissed by his employer. 28 RESIGNATION : CONCEPT ATHENA MANPOWER V VILLANOS G.R. 151303 , 15 APRIL 2005,
  29. 29. In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, the worker shall be entitled to the full reimbursement of his placement fee with interest at twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or for three (3) months for every year of the unexpired term, whichever is less. 29 Section 10 of R.A. No. 8042, or The Migrant Workers and Overseas Filipinos Act of 1995,
  30. 30. In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, the worker shall be entitled to the full reimbursement of his placement fee with interest at twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or for three (3) months for every year of the unexpired term, whichever is less. 30 Section 10 of R.A. No. 8042, or The Migrant Workers and Overseas Filipinos Act of 1995,
  31. 31.  JUST CAUSE – refers to a wrongdoing committed by the employee on the basis of which the aggrieved party may terminate the employer- employee relationship.  AUTHORIZED CAUSE - refers to a cause brought about by changing economic or business conditions of the employer. 31 TERMINATION BY EMPLOYER
  32. 32.  Furthermore, Morales was not accorded due process. Under Article 277(b) of the Labor Code, the employer must send the employee who is about to be terminated, a written notice stating the cause/s for termination and must give the employee the opportunity to be heard and to defend himself. There was no showing that Al Sandos warned Morales of her alleged poor performance. Likewise, Morales was not served the first notice apprising her of the particular acts or omissions on which her dismissal was based together with the opportunity to explain her side. The only notice given to Morales was the letter dated December 14, 2002 informing her that she was already terminated. UNIVERSAL STAFFING SERVICES, INC. VS NLRC and Morales G.R. 177576 , 21 July 2008 32 ILLEGAL TERMINATION
  33. 33.  Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;  Gross and habitual neglect by the employee of his duties; 33 JUST CAUSES OF TERMINATION
  34. 34.  Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;  Gross and habitual neglect by the employee of his duties; 34 JUST CAUSES OF TERMINATION
  35. 35.  Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;  Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and  Other causes analogous to the foregoing. 35 JUST CAUSES OF TERMINATION
  36. 36.  Misconduct is improper or wrong conduct. It is the transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, willful in character, and implies wrongful intent and not mere error in judgment.  The misconduct to be serious must be grave and aggravated in character and not mere trivial or unimportant.  Misconduct must be in connection with the work of the employee to constitute just cause for his separation  Sexual Harassment is a serious misconduct. 36 SERIOUS MISCONDUCT
  37. 37.  In order that willful disobedience by an employee may constitute a just cause for terminating his employment, the orders, regulations, or instructions of the employer or representative must be:  1) reasonable and lawful;  2) sufficiently known to the employee; and  3) in connection with the duties which the employee has been engaged to discharge. 37 WILLFUL DISOBEDIENCE
  38. 38.  Neglect of duties must not only be gross but also habitual.  Gross negligence means absence of that diligence that an ordinary prudent man would use in his own affairs.  Gross and habitual neglect by the employee of his duties tends to prejudice the employer’s interest .  EXAMPLE: ABANDONMENT 38 NEGLECT OF DUTIES
  39. 39.  Fraud is any act or omission, or concealment which involves a breach of legal duty, trust, or confidence justly reposed, and is injurious to another.  Fraud must be committed against the employer or representative and in connection with the employee’s work.  There should be willfulness or wrongful intent. 39 FRAUD
  40. 40.  Employee concerned holds a position of trust and confidence.  It is the breach of this trust that results in the employer’s loss of confidence in the employee.  Personnel occupying positions of responsibility like cashiers, managers, supervisors, salesmen, bank tellers and the like. 40 LOSS OF CONFIDENCE
  41. 41. Employee’s commission of a crime or offense against:  a) the person of his employer; or  b)any immediate member of the family by affinity or consanguinity within the fourth civil degree. 41 COMMISSION OF A CRIME OR OFFENSE
  42. 42. Introduction of labor saving device; Redundancy Retrenchment Closure or Cessation not due to serious business losses; Disease 42 AUTHORIZED CAUSES
  43. 43. AUTOMATION is the reduction of the number of workers in a company made necessary by the introduction of machinery with a view to effecting more economy and efficiency in its method of production. 43 AUTOMATION OR INTRODUCTION OF LABOR SAVING DEVICE:
  44. 44. Redundancy – exist where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. 44 REDUNDANCY
  45. 45. Retrenchment to prevent losses: 1)losses expected should be substantial and not merely de minimis in extent; 2) substantial loss must be imminent 3) reasonable necessary and likely to prevent the expected losses; 4) expected imminent losses must be proven by sufficient and convincing evidence 45 RETRENCHMENT
  46. 46. CESSATION OF OR WITHDRAWAL FROM BUSINESS OPERATIONS MUST BE DONE IN GOOD FAITH AND WITH VALID REASON. 46 CLOSURE/CESSATION OF BUSINESS NOT DUE TO BUSINESS LOSSES
  47. 47.  The employee is found to be suffering from disease; and  employees continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co- employees.  REQUIREMENTS:  A) the disease cannot be cured within a period of six (6)months despite proper medical treatment; and  B) certification by a competent public physician 47 DISEASE AS A GROUND FOR TERMINATION
  48. 48. - Money claims under R.A.10022 Section 3.Joint and Several Liability. The liability of the principal/employer and the recruitment/placement agency on any and all claims under this Rule shall be joint and several. This liability shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. The performance bond to be filed by the recruitment/ placement agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners, as the case may be, shall themselves be jointly and severally liable with the corporation or partnership for the aforesaid claims and damages Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment or modification of the contract made locally or in a foreign country.
  49. 49. Section 5.Effect of Illegal Termination and/or Deduction. In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, or any unauthorized deduction from the migrant worker's salary, the worker shall be entitled to the full reimbursement of his placement fee with interest of twelve per cent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or three (3) months for every year of the unexpired term, whichever is less. - Money claims under R.A.10022 .
  50. 50.  Section 1.Primary Responsibility for Repatriation. The repatriation of the worker or his/her remains, and the transport of his/her personal effects shall be the primary responsibility of the principal, employer or agency that recruited or deployed him/her abroad. All costs attendant thereto shall be borne by the principal, employer or the agency concerned 50 Section 1, Rule XIII of R.A. No. 10022 or The Migrant Workers and Overseas Filipinos Act of 1995, as amended
  51. 51. In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, the worker shall be entitled to the full reimbursement of his placement fee with interest at twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or for three (3) months for every year of the unexpired term, whichever is less. (Italics ours) 51 Section 10 of R.A. No. 8042, or The Migrant Workers and Overseas Filipinos Act of 1995,
  52. 52. SINGLE ENTRY APPROACH (SENA) Issuances DOLE Department Order No. 107-10 Rules of Procedure on SEnA Republic Act No. 10396: An Act Strengthening Conciliation-Mediation As A Voluntary Mode Of Dispute Settlement For All Labor Cases, Amending For This Purpose Article 228 Of Presidential Decree No. 442, As Amended, Otherwise Known As The "Labor Code Of The Philippines"
  53. 53. “whatever you do, work at it with all your heart, as working for the lord, not for men” COL. 3;23 THANK YOU FOR LISTENING GOD BLESS!

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