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LABOR LAW

CHAPTER 1: The Constitution & Protection to Labor materials and locally produced goods, and adopt
measures that help make them competitive.
Principles of Social and Distributive Justices as found in
the Constitution 3. Art. XIII (on Social Justice and Human Rights),
Sec. 1:

1. Article II (State Policies), Section 9: SECTION 1. The Congress shall give highest
priority to the enactment of measures that
SECTION 9. The State shall promote a just and protect and enhance the right of all the people
dynamic social order that will ensure the to human dignity, reduce social, economic, and
prosperity and independence of the nation and political inequalities, and remove cultural
free the people from poverty through policies inequities by equitably diffusing wealth and
that provide adequate social services, promote political power for the common good.
full employment, a rising standard of living, and
an improved quality of life for all. 4. Art. XIII (on Labor), Sec. 3:

2. Article XII (National Economic Patrimony), SECTION 3. The State shall afford full protection
Sections 1,6 and 12: to labor, local and overseas, organized and
SECTION 1. The goals of the national economy unorganized, and promote full employment and
are a more equitable distribution of equality of employment opportunities for all.
opportunities, income, and wealth; a sustained
increase in the amount of goods and services It shall guarantee the rights of all workers to self-
produced by the nation for the benefit of the organization, collective bargaining and
people; and an expanding productivity as the key negotiations, and peaceful concerted activities,
to raising the quality of life for all, especially the including the right to strike in accordance with
underprivileged. law. They shall be entitled to security of tenure,
humane conditions of work, and a living wage.
The State shall promote industrialization and full They shall also participate in policy and decision-
employment based on sound agricultural making processes affecting their rights and
development and agrarian reform, through benefits as may be provided by law.
industries that make full and efficient use of
human and natural resources, and which are The State shall promote the principle of shared
competitive in both domestic and foreign responsibility between workers and employers
markets. However, the State shall protect and the preferential use of voluntary modes in
Filipino enterprises against unfair foreign settling disputes, including conciliation, and shall
competition and trade practices. enforce their mutual compliance therewith to
foster industrial peace.
In the pursuit of these goals, all sectors of the
economy and all regions of the country shall be
The State shall regulate the relations between
given optimum opportunity to develop. Private
workers and employers, recognizing the right of
enterprises, including corporations,
labor to its just share in the fruits of production
cooperatives, and similar collective
and the right of enterprises to reasonable
organizations, shall be encouraged to broaden
returns on investments, and to expansion and
the base of their ownership.
growth.

5. Art. 3, Labor Code: Declaration of Policy


SECTION 6. The use of property bears a social
function, and all economic agents shall
ART. 3. Declaration of basic policy. - The State
contribute to the common good. Individuals and
shall afford protection to labor, promote full
private groups, including corporations,
employment, ensure equal work opportunities
cooperatives, and similar collective
regardless of sex, race or creed and regulate the
organizations, shall have the right to own,
relations between workers and employers. The
establish, and operate economic enterprises,
State shall assure the rights of workers to self-
subject to the duty of the State to promote
organization, collective bargaining, security of
distributive justice and to intervene when the
tenure, and just and humane conditions of work.
common good so demands.

SECTION 12. The State shall promote the


preferential use of Filipino labor, domestic
CONSTITUTIONAL RIGHTS OF WORKERS  The Constitution provides that the State must
afford full protection to labor
1. Right to property and due process of law
 Thus, when conflicting interests arise between
labor and capital- labor must be favored
 Employment is not merely a contractual
relationship Exception to the General Rule:
 It is considered a property right
 Constitutional policy of providing full protection
 Under the Constitution, employment is a
to labor is not intended to oppress or destroy
property right because it will determine whether
management or the capital
or not a family will have food on their table, roof
 Thus, when the Employer is right- the court will
over their heads and education for their children
always favor him

2. Right to self-organization
CHAPTER 2: GENERAL LABOR CONCEPTS
3. Right to security of tenure, collective bargaining,
strike, and to concerted activities CONSTRUCTION (interpretation) IN FAVOR OF LABOR
4. Right to just and humane conditions of work,
such as:  In interpreting the provisions of the Labor Code
a. Right to regular workdays/hours – the workingman’s welfare must be primordial
b. Right to overtime work/premium pay and paramount consideration
c. Right to weekly rest periods
d. Right to service incentive leave pay
e. Right to holiday pay/ 13th month pay Re: Employment Contracts

 Most Employment Contracts are Contracts of


5. Right to a living wage Adhesion
- Therefore, all doubts and ambiguities must
Living wage: the amount of family income needed be resolved in favor of labor
to provide for the family’s food and non-food Contract of Adhesion, meaning:
expenditures with sufficient allowance for
savings/investments for social security. An adhesion contract is a contract drafted by one party
(usually a business with stronger bargaining power) and
Purpose: to enable the family to live and maintain a signed by another party (usually one with weaker
decent standard of human existence beyond mere bargaining power, usually a consumer in need of goods
subsistence level. or services).
6. Right to participate in policy and decision making The second party typically does not have the power to
 DOCTRINE OF CO-DETERMINATION – negotiate or modify the terms of the contract. Adhesion
Employees have the right to participate contracts are commonly used for matters involving
in policy-making affecting their rights, insurance, leases, deeds, mortgages, automobile
duties, welfare and benefits purchases, and other forms of consumer credit.

7. Right to just share in the fruits of production MANAGEMENT PREROGATIVES IN RELATION TO


(profit) TERMINATION OF EMPLOYMENT

 In termination cases, the burden of proof rests


LABOR CONTRACTS ARE IMPRESSED WITH PUBLIC on the employer to show that the dismissal is for
INTEREST just cause
- When there is no showing of a clear, valid
 Courts Must be vigilant in protecting the rights of and legal cause for the rumination of
the working class employment, the law considers the matter a
 Labor is entitled to humane conditions of work case of illegal dismissal.
and equality of employment opportunity
Note: in case an employee files a case against illegal
dismissal, he must prove first that there was really a
PRINCIPLES OF SOCIAL DISTRIBUTIVE JUSTICE: dismissal made by the employer.
BALANCING OF INTEREST IN CASE THE WORKERS’ AND
MANAGEMENT’S RIGHTS COLLIDE

General Rule: Worker’s right must be favored


“NO WORK NO PAY” PRINCIPLE NON- DIMUNUTION OF BENEFITS

 If there is no work performed by the employee, Art. 100, Labor Code. Prohibition against elimination or
there can be no wage or pay diminution of benefits. — Nothing in this Book shall be
construed to eliminate or in any way diminish
supplements, or other employee benefits being enjoyed
“No work No pay” principle, when not applicable? at the time of promulgation of this Code.

 when the laborer was able, willing and ready to


work but was illegally locked out, suspended or General Rule:
dismissed, or otherwise illegally prevented from
working No diminution of salary or benefits
 thus, the principle does not apply when the
Exceptions:
employee himself was forced out of job.
 In such case, the employee is entitled to back (a) When employee consents to the deduction
wages and other economic benefits
(b) To correct an error

Exception to the exception:


“LAST IN, FIRST OUT” (LIFO) RULE
If the error is left uncorrected for a reasonable period of
 When there are 2 or more employees occupying
time, it ripens into a company policy and employees can
the same position in the company affected by
demand for it as a matter of right.
retrenchment program, the lase one employed
will necessarily be the first to go.

Requisites for voluntary employer practice such that the


 This rule applies to termination of employment
same cannot be unilaterally withdrawn anymore:
in the line of work
1. It should have been practiced over a long period
of time; and
Note: this rule is not absolute. The employer/company
can validly create rules and regulations involving
2. It must be shown to have been consistent and
retrenchment.
deliberate.

As to length of time required to ripen into a corporate


“ONE UNION- ONE COMPANY” POLICY policy:

General Rule: there should only be one union in one the test of long practice has been enunciated thus: where
employer unit the company agreed to continue giving a benefit knowing
fully well that said employees are not covered by the law
 Reason: ends of unionism are better served if all requiring payment of said.
the rank-and-file employee, with substantially
the same interests and who invoke their right to
self-organization, are part of a single unit so that
Elements for diminution of benefits:
they can deal with their employer with just ONE
YET POTENT VOICE. (1) the grant or benefit is founded on a policy or has
ripened into a practice over a long period of time;
Exception: when there are compelling reasons which
would deny a certain class of employees the right to self (2) the practice is consistent and deliberate;
-organization
(3) the practice is not due to error in the construction or
application of a doubtful or difficult question of law; and
“EQUAL PAY FOR EQUAL WORK” PRINCIPLE (4) the diminution or discontinuance is done unilaterally
by the employer.
 Persons who work with substantially equal
qualifications, skill, effort and responsibility,
under similar conditions, should be paid similar
salaries CHAPTER 3: EMPLOYER-EMPLOYEE RELATIONSHIP
 If an employer accords his employees the same CONCEPT OF EMPLOYER-EMPLOYEE (EE) RELATIONSHIP
position and rank, the presumption is that these
employees perform equal work.  This relationship is contractual in nature
 It arises from the agreement of the parties
 This relationship is impressed with public shall be paid in accordance with the provisions of this
interest that labor contracts must yield to Code.
common good
In the event that the contractor or subcontractor fails to
pay the wages of his employees in accordance with this
Code, the employer shall be jointly and severally liable
“FOUR-FOLD TEST” – to determine the existence of
with his contractor or subcontractor to such employees
Employer-employee (EE) relationship
to the extent of the work performed under the contract,
In determining whether an EE relationship exists, the in the same manner and extent that he is liable to
following must be considered: employees directly employed by him.

1. Who has the power to select and engage the


employee?
Elements of a valid Job Contracting
2. Who pays the wages?
3. Who hold the power of dismissal? 1. Contractor carries a valid, distinct and
4. Who has the power to control the employees’ independent business and undertakes the job or
conduct? service on his own account, under his own
responsibility and using his own manner and
method.
Control Test - He must be free from the control and
direction of the principal in relation to the
 This is one of the most important factors in the performance of the work or service
four-fold test 2. Contractor has his own substantial capital or
 Under this, an employer-employee relationship investment in the form of tools, equipment,
exists where the employer has a right to control machinery, work and premises, and
the conduct of the employee in relation to his 3. The agreement between the principal and
work contractor assures the contractual employees
Economic reality test entitlement to ALL rights and benefits.

 The economic realities prevailing within the


activity or between the parties are examined, TRILATERAL RELATIONSHIP in legitimate contracting
taking into consideration the totality of (1) the principal which decides to farm out a job or
circumstances surrounding the true nature of service to a contractor or subcontractor,
the relationship between the parties.
 This test is appropriate when there is no written (2) contractor or subcontractor which has the capacity to
agreement or contract on which to base the independently undertake the performance of the job,
relationship. work or service, and

(3) the contractual workers engaged by the contractor or


subcontractor to accomplish the job work or service.
Note:

1. Insurance agents are not employees of the


insurance companies “LABOR ONLY” Contracting
- In the absence of evidence that rules or Where the contractor or sub-contractor merely recruits,
regulations were promulgated or issued supplies or places worker to perform a job, work or
which effectively controlled or restricted the service for a principal
agent’s choice of methods or the methods
themselves of selling insurance For labor-only to exist , either of the following must
2. Caddies are not employees in absence of control exist:

1. Contractor or sub-contractor does not have


substantial capital or investment to actually
CHAPTER 4: JOB CONTRACTING AND LABOR ONLY perform the job, work or service under its own
CONTRACTING ARRANGEMENTS account and responsibility; and the employees
recruited or placed by such contractors are
JOB CONTRACTING
performing activities which are DIRECTLY
Article 106. Contractor or subcontractor. Whenever an RELATED to the main business of the principal
employer enters into a contract with another person for
the performance of the former’s work, the employees of OR
the contractor and of the latter’s subcontractor, if any,
2. The contractor has no control over the conduct  An owner of a business is given considerable
or the work to be done by his employees leeway in managing his business
In such cases, the person or intermediary shall be
considered merely as an agent of the employer who shall
ELEMENTS FOR A VALID EXERCISE OF MANAGEMENT
be responsible to the workers in the same manner and
PREROGATIVE
extent as if the latter were directly employed by him.
1. Exercised in good faith
 This is prohibited by law
2. For the advancement of the employer’s interest
3. Not for the purpose of defeating or
Effect of labor-only contracting and valid job circumventing the rights of the employees under
contracting agreements special laws or under valid agreements

1. Labor-only contracting
- Illegal
Note: Exercise of management prerogative is not
- Employer is deemed the DIRECT employer
unlimited. It may be limited by law, contracts or
and is made liable to the employees of the
agreements.
contractor for a more comprehensive
purpose (wages, benefits, etc.) Examples of exercise of management prerogative
Note: a finding that a contractor is “labor-only” 1. Hiring of personnel and size of workforce
contractor is equivalent to declaring that there is an EE 2. Terms and conditions upon hiring
relationship between the principal and the employees of Ex:
the “labor-only” contractor. a. Stipulations against
marriage and/or other
2. Job Contracting
qualifications
- Legal
b. Non-compete and
- The employer is considered an INDIRECT
exclusivity clauses
employer
c. Qualifications
- Indirect employer is made solidarily liable
3. Discipline of employees
with the contractor t the employees of the
4. Transfer of employees
latter for a more limited purpose (payment
of UNPAID wages, 13th month pay, service
incentive leave pay).
- No EE relationship between the owner TRANSFER OF EMPLOYEES
(indirect employer) and the employees of General Rule: the employer has the right to transfer or
the contractor. assign an employee in pursuance of its legitimate
business interest subject only to the condition that it is
not motivated by discrimination or bad faith
When are the workers deemed to be performing
activities which are directly related to the main business  It is the prerogative of the management to
of the principal? transfer an employee where he can be most
useful to the company
 Where the duties performed by the workers are
dependent and integral steps in or aspects of Note: an employee who refuses to be transferred when
essential operations of the principal such transfer is valid, is guilty of INSUBORDINATION

Note: if you are confused to whom an employee has an Is there an instance where a transfer is considered
EE relationship, always apply the CONTROL TEST. constructive dismissal?

 Yes
 When the transfer is unreasonable, inconvenient
CHAPTER 5: MANAGEMENT PREROGATIVES or prejudicial to the employee, and
 Involves a demotion of rank or diminution of
MANAGEMENT PREROGATIVE, meaning
salaries, benefits, and other privileges
 Employer’s highly discretionary right to manage  However, the mere fact that the transfer is
all aspects of employment. inconvenient does not make the transfer illegal
 These are acts by which one directing a business
is able to control the variables thereof so as to
enhance the chances of making a profit Note: Transfer, even if due to promotion cannot be done
without employee’s consent
Abolishment of positions and/or downsize personnel  It is an act of generosity
complement  A bonus is not demandable and enforceable
obligation, except when it is made part of the
 This is a management prerogative
wage, salary or compensation
 However, the management must prove that the
 But, if the bonus is integrated in the CBA, it
abolished positions were unnecessary
becomes a demandable right
- It becomes a contractual obligation

Adoption of redundancy/ retrenchment program to


streamline operations resulting in the reduction of
Change of working hours
manpower complement in order to minimize or avert
losses  Within the management prerogative
 Working hours may be changed at the discretion
of the company
Redundancy

 as when the position of the EE has been found to


be excessive or unnecessary in the operation of CHAPTER VI: CLASSIFICATION OF EMPLOYMENT
the enterprise; NOTE: classification of employees for compensation
 a reasonably redundant position is one rendered purposes is essentially an exercise of management
superfluous by any number of factors, such as prerogative.
overhiring of workers, decreased volume of
business, dropping of a particular product line Classification as to nature of employment
previously manufactured by the company, or
 Pertains to the job or work rendered by the
phasing out of service activity previously
employee in relation to the usual trade or
undertaken by the business.
business of the employer
Retrenchment 1. Regular
2. Probationary
 It is the termination of employment effected by 3. Project
management during periods of business 4. Term
recession, industrial depressions, seasonal 5. Seasonal
fluctuations, lack of work or considerable 6. Casual
reduction in the volume of the employer’s
business. Classifications as to rank

 Pertains to the hierarchy in the positions of the


employees
General standards for when retrenchment is preventive 1. Managerial
rather than curative — 2. Supervisory
(a) Losses expected are substantial and not merely de 3. Rank-and-file
minimis in extent;

(b) Apprehended losses are reasonably imminent, can be General rule:


perceived objectively and in good faith;
 Employment is deemed regular, absent any
(c) Retrenchment must be reasonably necessary to evidence to the contrary
prevent the expected losses—measure of last resort; and
Exception:
(d) Expected or actual losses must be proved by sufficient
and convincing evidence. 1. Probationary
2. Term
Note: Reduction of work days may be considered 3. Project
constructive retrenchment 4. Seasonal
5. Casual

Grant of Bonuses is a management prerogative Exception to the exception:

Bonus – is an amount granted and paid to an employee  Probationary employee allowed to work after
for his industry and loyalty which contributed to the the probationary period
success of the employer’s business and made possible  Casual workers rendering services for more than
the realization of profits one year
When is a casual employee considered a regular Elements
employee?
1. The employee, upon his engagement is made to
 He has rendered at least ONE YEAR of service undergo a trial period
 Whether such service be continuous or broken 2. During which the employer determines his
fitness to qualify for regular employment based
on the standards made known to him at the time
of his engagement

REGULAR EMPLOYMENT

 Those who are hired for activities which are General rule:
necessary or desirable in the usual trade or  Probationary period is 6 months
business of the employer
Exceptions:
When is an employee considered a regular employee?
1. Learnership/apprenticeship period
 When the employee has been engaged to 2. Three years in case of teachers
perform activities, which are usually necessary 3. When parties agree to a longer term by virtue of
or desirable to the usual trade or business of the company policy or when the same is required by
employer nature of the work
 This is regardless to any contract or agreement
entered into by the parties Extension to the 6 months probationary period

Exceptions: General Rule:

 Where the employment has been fixed for a An employee who is allowed to work after the
specific project or undertaking, the completion probationary period shall be considered a regular
of which has been determined at the time of the employee
engagement of the worker; or Exceptions:
 Where the job, work or services to be performed
is seasonal in nature, and the employment if for 1. Agreement between the employer and the
the duration of the season employee to extend the probationary period
2. Longer period stipulated in employment
Test in determining regular employment: reasonable contract. Provided that such longer period is
connection rule established to be company policy or necessary
 Primary test is the reasonable connection because of the nature of the work
between the particular activity performed by the Training Period with Probationary period
employee in relation to the usual business or
trade of the employee  This results to double probation
 The test is whether the particular activity is  Thus, the probation period may exceed 6 months
usually necessary or desirable in the usual trade  In such case, when an employee’s services are
or business of the employer. continued after the training, the employer in
 The connection can be determined by effect recognized that she had passed probation
considering of the work performed and its and was qualified to be regular employee
relation to the scheme of the particular business
Apprentices/apprenticeship
or trade in its entirety
Apprenticeship - is a training within employment with
compulsory related theoretical instruction involving a
Probationary employees contract between an apprentice and an employer on an
approved apprenticeable occupation.
 Those who are hired generally for regular
positions but are placed on a probationary status Apprentice - is a person undergoing training for an
for a period of 6 months approved apprenticeable occupation during an
 He may become regular once he has qualified as apprenticeship agreement.
such in accordance with the reasonable Apprenticeship Agreement - is a contract wherein a
standards made known to him at the time of prospective employer binds himself to train the
hiring apprentice who in turn accepts the terms of training for
 They are considered regular if they are allowed a recognized apprenticeable occupation emphasizing the
to work beyond the probationary period. rights, duties and responsibilities of each party
Apprenticeable Occupation - is an occupation officially 4. (4) A commitment to employ the learners if they
endorsed by a tripartite body and approved to be so desire, as regular employees upon completion
apprenticeable by the authority. of the learnership. All learners who have been
allowed or suffered to work during the first two
Qualifications of apprentice (2) months shall be deemed regular employees if
training is terminated by the employer before
1. At least 15 years of age [as amended by R.A.
the end of the stipulated period through no fault
7610], provided that if he is below 18 years, he of the learners.
shall not be eligible for hazardous occupation; 5. (5) The learnership agreement shall be subject to
2. Possess vocational aptitude and capacity for inspection by the Secretary of Labor and
appropriate tests; Employment or his duly authorized
3. Possess the ability to comprehend and follow representative.
oral and written instructions.
4. Physically fit for occupation Three-year probationary period for teachers
 This is provided in the manual of regulations for
private school
Apprenticeship terms and conditions
Teachers on probationary status on fixed term
 Apprenticeship agreements, including the wage contracts
rates of apprentices, shall conform to the rules  The lapse of an employee’s probationary
issued by the Secretary of Labor and employment for a fixed term, without the
Employment. latter’s subsequent appointment as a regular
 The period of apprenticeship shall not exceed six employee, will effectively sever the EE
relationship between the parties
months.
 Apprenticeship agreements providing for wage
rates below the legal minimum wage Standards and quality required from the probationary
 75% below minimum wage employee

 This is a management prerogative


 The management has all the right to determine
Learners
who are qualified or not
 refers to persons hired as trainees in semi-skilled  The employer must inform the employee of such
and other industrial occupations which are non- standards and qualifications at the time of hiring
apprenticeable. Learnership programs must be  In the absence of such, the employee may be
approved by the authority. considered a regular employee at the time when
 which may be learned through practical training the employee was dismissed by the company
on the job in a relatively short period of time
which shall not exceed three (3) months.
Security of Tenure of Probationary employees

 Within the 6 months period, probationary


When learners may be hired
employees are entitled to security of tenure
1. No experienced workers are available;  This is limited to the period of probation
2. The employment of learners being necessary to
Note: A probationary employee if found unfit for the job,
prevent the curtailment of employment
may be dismissed for cause at any time before the
opportunities; and
expiration of the period, provided there is due process
3. The employment will neither create unfair
competition in terms of labor costs nor impair The probationary employees may be terminated only
working standards. on two grounds
Terms and conditions of employment 1. for just cause
Any employer desiring to employ learners shall enter into 2. when he fails to qualify as a regular employee
a learnership agreement with them, which agreement
shall include:
TERM or fixed term EMPLOYMENT
1. The names and addresses of the learners;
2. the duration of the learnership period, which Nature
shall not exceed three (3) months;
3. The wages or salary rates of the learners which  a contract of employment for a definite period
shall begin at not less than seventy-five percent terminates by its own terms at the end of such
(75%) of the applicable minimum wage; and period
Criteria or Elements Meaning and scope of the term “PROJECT”

1. the fixed period or employment was knowingly Two types of activities


and voluntarily agreed upon by the parties
1. It could refer to a particular job or undertaking
- without force or intimidation
- Which is within the regular or usual business
2. it satisfactorily appears that the employer and
of the employer
employee dealt with each other on more or less
- But which is distinct and separate and
equal terms
identifiable as such from the other
- with no moral dominance being exercise by
undertakings of the company
the employer to the employee
Ex. Particular construction job or project of a
Note: even if a fixed term employment is allowed, it construction company
won’t be held legal if it appears that the period has been
imposed to preclude the acquisition of tenurial security 2. It could also refer to a particular job or
by the employee. undertaking that is not within the regular
business of the corporation
 This occurs when tenure is made at the pleasure
- Such job or undertaking must also be
or the employer, and
identifiably separate and distinct from the
 When the parties were not on equal footing ordinary or regular business operations of
- Thus, there is a presumption that the term the employer
contract was entered into to circumvent the Ex. A steel making company hires for a
right to security of tenure coconut harvesting project
o Obviously, it is not ordinary or usual
for a steel company to harvest
Termination of term employee, nuances: coconuts
1. Lack of notice or termination is not necessary Indicators of project employment
- Remember that the contract of employment
is for a definite term Either one or more of the following circumstances:
2. Non-renewal of appointment for a definite and 1. Duration of the specific undertaking for which
renewable period does not involve dismissal but the worker is engaged is reasonably determined
an expiration of term 2. Such duration, as well as the specific work or
3. If the contract is for a fixed term and the service to be performed, is defined in an
employee is dismissed without just cause prior to employment agreement and is made clear to the
the expiration of said contract, employee at the time of hiring
- The employee is entitled to the payment of 3. The work or service is in connection with the
his salaries corresponding to the unexpired particular project for which he is engaged
portion of the employment contract 4. The employee, while not employed and
engagement, is free to offer his services to other
employers
PROJECT EMPLOYMENT 5. Termination of his employment is reported to
Test for determining project employment DOLE
6. An undertaking in the employment contract by
 Whether or not the employee was assigned to the employer to pay completion bonus to the
carry out a specific project or undertaking, the project employee
duration of which were specified at the time the
employee was engaged for that project

Note: there must be a proof that the employee was duly IMPORTANT MATTERS IN RELATION TO THE
informed of his status as project employee. Without CONSTRUCTION INDUSTRY
such, he shall be considered a regular employee. Two kinds of employees (construction):
PROJECT EMPLOYEE REGULAR EMPLOYEE 1. Purely project employees of the construction
The services are Legally entitled to remain company, who are hires on a project-to-project
coterminous with the in the service of his basis
project and may be employer until the service 2. Those part of the construction corporation’s
terminated upon the end is terminated by one or
labor pool.
or completion of the another of the recognized
project for which he was modes of termination of Purely Project Employees
hired service under the Labor
code Effects:
1. Not entitled to separation pay if terminated as a - Employers are required by law to submit a
result of completion of the project or any phase report of termination to DOLE every time
thereof in which they are hired; services of an employee is terminated due to
- But: they are entitled to separation pay in the completion of each project
case their services are terminated before the
completion of the project
2. No prior clearance for termination is necessary, Project employee becomes a regular employee, when:
but termination must be reported to DOLE
1. There is a continuous rehiring of project
employees even after the cessation of a project
and
Employees from Labor Pool
2. The tasks performed by the employee are vital,
 Those employed without reference to any necessary and indispensable to the usual
particular project. business or trade of the employer

Note: they me further classified into regular and/or


probationary
SEASONAL EMPLOYEMENT
Effects:
Nature
1. They have the right to organize and to
 Those who are called to work from time to time
collectively bargain, or join rank and file union of
according to the occurrence of varying need
the construction company;
during a season, and are laid off after completion
2. Completion of project or phase will not sever EE
or the required phase of work for the season
relationship, as they are to be considered
employees for an indefinite term.

Seasonal worker when deemed regular employee?


Requirement to qualify as a member of a work/labor  If worked for more than one season
pool  Thus, you are only a seasonal worker if you only
work for ONE season
 The worker must still be considered an employee
if the construction company while in the work Seasonal workers during the off-season are merely
pool considered on leave
- In other words, there must be a proof that
the employee was under an obligation to be  The fact that workers do not work continuously
always available on call and that he was not for one whole year but only for the duration of
free to offer his services to other employers. the season does not detract from considering
them in regular employment

Length of service
Note: Seasonal employees are entitled to separation pay
 The length of service or the re-hiring of
construction workers on a project-to-project
basis does not confer upon them regular CASUAL EMPLOYMENT
employment status
 Their rehiring it only a natural consequence of  not regular, project or seasonal employee.
the fact that experienced construction workers
are preferred Requirements to become Regular employee:
1. one (1) year service, continuous or broken
Note: evidence of gaps in worker’s employment 2. with respect to activity employed
histories, may prove that the employment is solely for 3. employment shall continue while such activity
specific projects. exists
Ex. Employee was hired on an “off and on basis” note: the status of regular employment attaches to the
casual employee on the day immediately after the end of
his first year of service
In addition: Failure of the employer to report to the
When is there casual employment?
nearest employment office the termination of workers
every time a project is completed proves that the
employees are not project employees  When it is irregular, unpredictable, sporadic and
brief in nature, and outside the usual business of
- Hence, they are considered regular the employer
Supervisory Employees

Are seafarers casual or regular employees? Supervisory employees are those who, in the interest of
the employer, effectively recommend such managerial
 They are contractual employees for a fixed term
actions if the exercise of such authority is not merely
 This is governed by the contracts they sign routinary or clerical in nature but requires the use of
independent judgment.

EMPLOYEE CLASSIFICATION AS TO RANK  A supervisor is deemed a member of the


managerial staff
Managerial  Reason: he oversees the operation of the
 Those vested with powers or prerogatives to lay business of the company and the performance of
down and execute management policies, and the workers
 To hire, transfer, suspend, lay-off, recall Note: a foreman is a supervisor
employees.
- The term FOREMAN implies that the
employee is the representative of the
Employees are considered of managerial level and not management over the workers and the
entitle to benefits relating to hours of work and other operation of the management
conditions of employment if they meet all of the Rank-and-file employees
following conditions:
 refers to an employee whose functions are
1. Their primary duty consists of the management neither managerial nor supervisory in nature.
of the establishment in which they are
employed, or of a department or subdivision
thereof;
2. They customarily and regularly direct the work
od two or more employees therein
3. They have the authority to hire or fire other
employees of lower rank or their suggestions as
to the hiring, firing and promotion or any other
change of status of other employees are given
particular weight

Officers or members of a managerial staff shall likewise


be exempted from benefits relating to hours of work
and other conditions of employment if they perform the
following:

1. Primary duty consists of the performance of


work directly related to the management
policies of their employer
2. Customarily and regularly exercise discretion
and independent judgement
3. Regularly and directly;
a. Assist a proprietor or managerial employee
whose primary duty consists of the
management of the establishment in which
they are employed, or of a department or
subdivision thereof or
b. Execute under general supervision work
along specialized or technical lines requiring
special training, experience or knowledge; or
c. Execute under general supervision
assignments and tasks, and
4. Who do not devote more than 20% of their hours
worked in a workweek to activities which are not
directly and closely related to the performance
of the work described under the LABOR CODE