Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

EMPLOYER-EMPLOYEE RELATIONSHIP he existen!e of em"loyer#em"loyee relationshi" is $etermine$ by the "resen!e of the follo%in& elements' namely( a) sele!tion an$ en&a&ement of the em"loyee b) "ayment of %a&es !) "o%er to $ismiss $) "o%er to !ontrol em"loyee*s !on$u!t CONSTITUTIONAL GUARANTY OF TENURE he "oli!y of the state is to assure the ri&ht of %or+ers to ,se!urity of tenure)- he &uaranty is an a!t of so!ial .usti!e) he &reat mass of the "o"ulation is almost %holly $e"en$ent on their em"loyment for their li/elihoo$) 0hen a %or+er losses his .ob1 his family fa!es $e"ri/ation1 if not star/ation) 2en!e1 the $eman$ for .ob se!urity) 3oth the !onstitution an$ the labor !o$e enun!iate the ri&ht of the %or+er to se!urity of tenure) SECURITY OF TENURE 4n !ases of re&ular em"loyment1 the em"loyer shall not terminate the ser/i!es of an em"loyee ex!e"t for a .ust !ause or %hen authori5e$ by the Labor 6o$e) An em"loyee %ho is un.ustly $ismisse$ from %or+ shall be entitle$ to reinstatement %ithout loss of seniority ri&hts an$ other "ri/ile&es an$ to his full ba!+%a&es1 in!lusi/e of allo%an!es1 an$ to his other benefits or their monetary e7ui/alent !om"ute$ from the time his !om"ensation %as %ithhel$ from him u" to the time of his a!tual reinstatement) RIGHTS OF EMPLOYEES IN THE PUBLIC SERVICE Em"loyees of &o/ernment !or"orations establishe$ un$er the 6or"oration 6o$e shall ha/e the ri&ht to or&ani5e an$ to bar&ain !olle!ti/ely %ith their res"e!ti/e em"loyers) All other em"loyees in the !i/il ser/i!e shall ha/e the ri&ht to form asso!iations for "ur"oses not !ontrary to la%) L4M4 E8 P9RP:;E( he extent of the &o/ernment em"loyees* ri&ht to self#or&ani5ation $iffers si&nifi!antly from that of em"loyees in the "ri/ate se!tor) he latter*s ri&ht of self#or&ani5ation1 i)e) ,to form1 .oin or assist labor or&ani5ations for "ur"oses of !olle!ti/e bar&ainin&1- a$mitte$ly in!lu$es the ri&ht to $eal an$ ne&otiate %ith their res"e!ti/e em"loyers in or$er to fix the terms an$ !on$itions of em"loyment an$ also1 to en&a&e in !on!erte$ a!ti/ities for the attainment of their ob.e!ti/es1 su!h as stri+es1 "i!+etin& an$ boy!otts) 3ut the ri&ht of &o/ernment em"loyees to ,form1 .oin or assist em"loyees* or&ani5ations of their o%n !hoosin&- un$er E):) No) 1<0 is not re&ar$e$ as existin& or a/ailable for ,"ur"oses of !olle!ti/e bar&ainin&1but sim"ly ,for the furtheran!e an$ "rote!tion of their interests)-

Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

0hile there is no 7uestion that the !onstitution re!o&ni5es the ri&ht of &o/ernment em"loyees to or&ani5e1 they1 ho%e/er1 $o not ha/e the ri&ht to stri+e1 be!ause su!h mass a!tion %ill result in tem"orary sto""a&e or $isru"tion of "ubli! ser/i!e) SUBSTANTIAL EVIDENCE 4t is true that a$ministrati/e 7uasi#.u$i!ial bo$ies li+e the NLR6 are not boun$ by the te!hni!al rules of "ro!e$ure in the a$.u$i!ation of !ases) 2o%e/er1 the e/i$en!e "resente$ before the NLR6 must at least ha/e a mo$i!um of a$missibility for it be &i/en "robati/e /alue) Not only must there be some e/i$en!e to su""ort a fin$in& or !on!lusion1 but e/i$en!e must be substantial) ;ubstantial e/i$en!e is more than a mere s!intilla) 4t means su!h rele/ant e/i$en!e as a reasonable min$ mi&ht a!!e"t as a$e7uate to su""ort a !on!lusion) JURISDICTION OF VOLUNTARY ARBITRATIORS OR PANEL OF VOLUNTARY ARBITRATORS he =oluntary Arbitrator or Panel of =oluntary Arbitrators shall ha/e ori&inal an$ ex!lusi/e .uris$i!tion to hear an$ $e!i$e( 1) all unresol/e$ &rie/an!es arisin& from the inter"retation or im"lementation of the 6olle!ti/e 3ar&ainin& a&reement' 2) those arisin& from the inter"retation or enfor!ement of !om"any "ersonnel "oli!ies' 3) u"on a&reement of the "arties1 all other labor $is"utes in!lu$in& unfair labor "ra!ti!es an$ bar&ainin& $ea$lo!+s' >) em"loyment termination $is"utes arisin& from 63A or "ersonnel "oli!y im"lementation) DISEASE AS GROUND FOR TERMINATION An em"loyer may terminate the ser/i!es of an em"loyee %ho has been foun$ to be sufferin& from any $isease an$ %hose !ontinue$ em"loyment is "rohibite$ by la% or is "re.u$i!ial to his health as %ell as to the health of his !o#em"loyees( Provided1 hat he is "ai$ se"aration "ay e7ui/alent to at least one (1) month or to one#half (1?2) month salary for e/ery year of ser/i!e1 %hi!he/er is &reater) A fra!tion of at least six (@) months bein& !onsi$ere$ as one (1) %hole year)

Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

REGULAR AND CASUAL EMPLOYMENT Not%ithstan$in& the "ro/isions of %ritten a&reement an$ re&ar$less of the oral a&reement of the "arties1 an em"loyment shall be $eeme$ to be( 1) REGULAR - %here the em"loyee has been en&a&e$ to "erform a!ti/ities %hi!h are usually ne!essary or $esirable in the usual business or tra$e of the em"loyer1 EXCEPT: a) %here the em"loyment has been fixe$ for a s"e!ifi! "ro.e!t or un$erta+in& the !om"letion or termination of %hi!h has been $etermine$ at the time of the en&a&ement of the em"loyee' or b) %here the %or+ or ser/i!es to be "erforme$ is seasonal in nature an$ the em"loyment is for the $uration of the season) 2) CASUAL if it is not !o/ere$ by the "re!e$in& "ara&ra"h) Provided1 that1 any em"loyee %ho has ren$ere$ at least one year of ser/i!e1 %hether su!h ser/i!e is !ontinuous or bro+en1 shall be !onsi$ere$ a re&ular em"loyee %ith res"e!t to the a!ti/ity in %hi!h he is em"loye$ an$ his em"loyment shall !ontinue %hile su!h a!ti/ity exists) REGULAR EMPLOYMENT BY NATURE OF WORK 0hat $etermines %hether a !ertain em"loyment is re&ular or !asual is not the %ill an$ %or$ of the em"loyer1 to %hi!h the %or+er often a!!e$es1 mu!h less the "ro!e$ure of hirin& the em"loyee or the manner of "ayin& his salary) 4t is the nature of the a!ti/ities "erforme$ by the %or+er in relation to the "arti!ular business or tra$e of the em"loyer) As "ro/i$e$ by la%1 an em"loyment shall be $eeme$ to be re&ular %here the em"loyee has been en&a&e$ to "erform a!ti/ities %hi!h are usually ne!essary or $esirable in the usual business or tra$e of the em"loyer1 ex!e"t %here the em"loyment has been fixe$ for a s"e!ifi! "ro.e!t or un$erta+in& the !om"letion or termination of %hi!h has been $etermine$ at the time of the en&a&ement of the em"loyee or %here the %or+ or ser/i!es to be "erforme$ is seasonal in nature an$ the em"loyment is for the $uration of the season) RIGHT TO SECURITY OF TENURE CANNOT BE CONTRACTED AWAY he ri&ht to se!urity of tenure !annot be blotte$ out by an em"loyment !ontra!t) 4n tryin& to .ustify the em"loyee*s $ismissal1 the em"loyer $i$ not !ite any of the .ust or authori5e$ !auses) 4nstea$1 it merely insiste$ that the $ismissal %as authori5e$ in the em"loyment !ontra!t that the em"loyee /oluntarily si&ne$) 6)A) Pan&aniban( A !ontra!t of em"loyment is imbue$ %ith "ubli! interest) ruly1 the !ontra!tin& "arties may establish su!h sti"ulation1 !lauses1 terms an$ !on$itions as they %ant1 an$ their a&reement %oul$ ha/e the for!e of la% bet%een them) 2o%e/er1 the em"loyer must not o/erloo+ the 7ualifi!ation that those terms an$ !on$itions a&ree$ u"on must not be !ontrary to la%1 morals1 !ustoms1 "ubli! "oli!y or "ubli! or$er)
3

Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

0hether the em"loyee is "robationary1 !ontra!tual1 re&ular or e/en !asual1 the em"loyment !ontra!t1 more often than not1 is "re"are$ by the em"loyer) his fa!t %or+s a&ainst the em"loyer1 in a sense1 be!ause obs!urity in the !ontra!t is $eeme$ his fault) he !i/il la% rule on inter"retation of !ontra!ts a""lies) 4t "ro/i$es that ,the inter"retation of obs!ure %or$s or sti"ulation in a !ontra!t shall not fa/our the "arty %ho !ause$ the obs!urity)his rule of inter"retation is a""li!able to !ontra!ts of a$hesion %here there is alrea$y a "re"are$ form !ontainin& the "ro/isions of the em"loyment of !ontra!t) he em"loyee ,takes it or leaves it.- he "resum"tion is that there %as an im"osition by one "arty a&ainst the other an$ that the em"loyee si&ne$ the !ontra!t out of ne!essity)

he fi/e#month "erio$ s"e!ifie$ in "ri/ate res"on$ents* em"loyment !ontra!ts ha/in& been im"ose$ "re!isely to !ir!um/ent the !onstitutional &uarantee on se!urity of tenure shoul$1 therefore1 be stru!+ $o%n or $isre&ar$e$ as !ontrary to "ubli! "oli!y or morals) REGULAR JOBS CONTRACTED OUT

6ontra!tin& out of a .ob1 %or+ or ser/i!e that results in termination of re&ular em"loyees an$ re$u!tion of %or+ hours or re$u!tion of s"littin& of the bar&ainin& unit is allo%e$ %hen( a) $one in &oo$ faith' an$ b) .ustifie$ by exi&en!ies of the business) PROJECT EMPLOYEE Proj !" #$%o& is one %hose em"loyment has been fixe$ for a s"e!ifi! "ro.e!t or un$erta+in&1 the !om"letion or termination of %hi!h has been $etermine$ at the time of the en&a&ement of the em"loyee or %here the %or+ or ser/i!es to be "erforme$ is seasonal in nature an$ the em"loyment is for the $uration of the season) PROJECT EMPLOYEES NOT ENTITLED TO SEPARATION PAY Pro.e!t em"loyees are not entitle$ to termination "ay if they are terminate$ as a result of the !om"letion of the "ro.e!t or any "hase thereof in %hi!h they are em"loye$1 re&ar$less of the number of "ro.e!ts in %hi!h they ha/e been em"loye$ by a "arti!ular !om"any) 0hat is re7uire$ is for the !om"any to re"ort it to the nearest Publi! Em"loyment :ffi!e for statisti!al "ur"oses) REGULAR SEASONAL EMPLOYEES R '(%)r * )*o+)% #$%o& * are those !alle$ to %or+ from time to time1 the nature of their relationshi" %ith the em"loyer is su!h that $urin& off#season1 they are tem"orarily lai$ off but $urin& summer season1 they are reem"loye$ or %hen their ser/i!es may be nee$e$) hey are not1 stri!tly s"ea+in&1 se"arate$ from the ser/i!e by are merely !onsi$ere$ as on lea/e of absen!e %ithout "ay until they are reem"loye$) heir em"loyment status is ne/er se/ere$ but only sus"en$e$)
>

Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

FIXED PERIOD OR EMPLOYMENT FOR A TERM WHEN VALID he Labor 6o$e $oes not "ros!ribe or "rohibit an em"loyment !ontra!t %ith a fixe$ "erio$1 "ro/i$e$ the same is entere$ into by the "arties %ithout any for!e1 $uress or im"ro"er "ressure bein& brou&ht to bear u"on the em"loyee an$ absent any other !ir!umstan!e /itiatin& !onsent1 or %here it satisfa!torily a""ears that the em"loyer an$ em"loyee $ealt %ith ea!h other on a more or less e7ual terms %ith no moral $ominan!e %hate/er bein& exer!ise$ by the former o/er the latter) INVALID FIXED-TERM EMPLOYMENT P(r ,oo-* Pr ! - +" ./-#o+"0 !o+"r)!"()%*1 4t !oul$ not be su""ose$ that "ri/ate res"on$ent an$ all other so#!alle$ ,!asual- %or+ers of the "etitioner +no%in&ly an$ /oluntarily a&ree$ to the B#month em"loyment !ontra!t) 6annery %or+ers are ne/er on e7ual terms %ith their em"loyers) Almost al%ays1 they a&ree to any terms of an em"loyment !ontra!t .ust to &et em"loye$ !onsi$erin& that it is $iffi!ult to fin$ %or+ &i/en their or$inary 7ualifi!ations) 4n$ee$1 to the unem"loye$1 se!urity of tenure has no /alue) 4t !oul$ not then be sai$ that em"loyer an$ em"loyees ,$ealt %ith ea!h other on a more or less e7ual terms %ith no moral $ominan!e %hate/er bein& exer!ise$ by the former o/er the latter)3y hirin& em"loyees only for a "erio$ of B months1 the em"loyer "re/ents the em"loyees from attainin& the status of a re&ular em"loyee) 4t %as a !lear !ir!um/ention of the em"loyees* ri&ht to se!urity of tenure1 an$ to other benefits li+e minimum %a&e1 !ost#of# li/in& allo%an!e1 si!+ lea/e1 holi$ay "ay an$ 13 th month "ay) PRETERMINATION OF FIXED-PERIOD EMPLOYMENT: ILLEGAL DISMISSAL A fixe$#"erio$ em"loyee is not re&ular be!ause his .ob1 as anti!i"ate$ an$ a&ree$1 %ill exist only for a s"e!ifie$ "erio$ of time) 4n other %or$s1 it is not "ermanent) 3ut he is $eeme$ re&ular in t%o senses( (1) the nature of his %or+ is ne!essary or $esirable in the "rin!i"al business of the em"loyer' an$ (2) he en.oys se!urity of tenure $urin& the limite$ time of his em"loyment) 3efore the en$ of the a&ree$ "erio$ he !annot be remo/e$ %ithout a /ali$ !ause) PROBATIONARY EMPLOYMENT Probationary em"loyment shall not ex!ee$ six (@) months from the $ate the em"loyee starte$ %or+in&1 unless it is !o/ere$ by an a""renti!eshi" a&reement sti"ulatin& a lon&er "erio$) he ser/i!es of an em"loyee %ho has been en&a&e$ on a "robationary basis may be terminate$ for a .ust !ause or %hen he fails to 7ualify as a re&ular em"loyee in a!!or$an!e %ith reasonable stan$ar$s ma$e +no%n by the em"loyer to the em"loyee at the time of his en&a&ement) An em"loyee %ho is allo%e$ to %or+ after a "robationary "erio$ shall be !onsi$ere$ a re&ular em"loyee) A $ro2)"3o+)r& #$%o& is one %ho is on trial by an em"loyer $urin& %hi!h the em"loyer $etermines %hether or not he is 7ualifie$ for "ermanent em"loyment) A
B

Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

"robationary a""ointment is ma$e to affor$ the em"loyer an o""ortunity to obser/e the fitness of a "robationary em"loyee %hile at %or+1 an$ to as!ertain %hether he %ill be!ome a "ro"er an$ effi!ient em"loyee) RIGHTS OF PROBATIONARY EMPLOYEE: TERMINATED ONLY FOR CAUSE 4n all !ases in/ol/in& em"loyees en&a&e$ on "robationary basis1 the em"loyer shall ma+e +no%n to the em"loyee at the time he is hire$1 the stan$ar$s by %hi!h he %ill 7ualify as a re&ular em"loyee) 4f an em"loyee hire$ alle&e$ly on "robationary basis %as not informe$ of the stan$ar$s that shoul$ 7ualify her as a re&ular em"loyee1 the em"loyee is $eeme$ to ha/e been hire$ from $ay one as a re&ular em"loyee) PROBATION OF TEACHERS A!!or$in& to the Manual Re&ulations for Pri/ate ;!hools establishe$ by the 8e"artment of E$u!ation1 ,Full time tea!hers %ho ha/e ren$ere$ three !onse!uti/e years of satisfa!tory ser/i!es shall be !onsi$ere$ "ermanent)he le&al re7uisites1 therefore1 for a!7uisition by a tea!her of "ermanent em"loyment1 or se!urity of tenure1 are as follo%s( (a) he tea!her is a full#time tea!her' (b) he tea!her must ha/e ren$ere$ three (3) !onse!uti/e years of ser/i!e' an$ (!) ;u!h ser/i!e must ha/e been satisfa!tory) WHEN PROBATIONARY EMPLOYEE BECOMES REGULAR 4t is an elementary rule in the la% on labor relations that a "robationary em"loyee en&a&e$ to %or+ beyon$ the "robationary "erio$ of six months1 or for any len&th of time set forth by the em"loyer1 shall be !onsi$ere$ a re&ular em"loyee)

TERMINATION OF EMPLOYMENT ART4 5654 TERMINATION BY EMPLOYER: JUST CAUSES An em"loyer may terminate an em"loyment for any of the follo%in& !auses( (a) ;erious mis!on$u!t or %ilful $isobe$ien!e by the em"loyee of the la%ful or$ers of his em"loyer or re"resentati/e in !onne!tion %ith his %or+' (b)Cross an$ habitual ne&le!t by the em"loyee of his $uties' (!) Frau$ or %ilful brea!h by the em"loyee of the trust re"ose$ in him by his em"loyer or $uly authori5e$ re"resentati/e' ($)6ommission of a !rime or offense by the em"loyee a&ainst the "erson of his em"loyer or any imme$iate member of his family or his $uly authori5e$ re"resentati/e' an$ (e) :ther !auses analo&ous to the fore&oin&)
@

Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

EFFECT IF NO JUST CAUSE OF TERMINATION An em"loyee %ho is un.ustly $ismisse$ from %or+ shall be entitle$ to reinstatement %ithout loss of seniority ri&hts an$ other "ri/ile&es an$ to his full ba!+%a&es1 in!lusi/e of allo%an!es1 an$ to his other benefits or their monetary e7ui/alent !om"ute$ from the time his !om"ensation %as %ithhel$ from him u" to the time of his a!tual reinstatement) ART4 5674 CLOSURE OF ESTABLISHMENT AND REDUCTION OF PERSONNEL AUTHORI8ED CAUSES he em"loyer may also terminate the em"loyment of any em"loyee $ue to( (1)the installation of labor#sa/in& $e/i!es1 (2)re$un$an!y1 (3)retren!hment to "re/ent losses' or (>)the !losin& or !essation of o"eration of the establishment or un$erta+in& unless the !losin& is for the "ur"ose of !ir!um/entin& the "ro/isions of the Labor La%1 by ser/in& a 9r3"" + +o"3! on the %or+er an$ the Ministry of Labor an$ Em"loyment at least one (1) month before the inten$e$ $ate thereof) 4n !ase of termination $ue to( (1)the installation of labor sa/in& $e/i!es or (2)re$un$an!y1 the %or+er affe!te$ thereby shall be entitle$ to a se"aration "ay e7ui/alent to at least his one (1) month or to at least one (1) month "ay for e/ery year of ser/i!e1 %hi!he/er is hi&her) A fra!tion of at least six (@) months shall be !onsi$ere$ as one (1) %hole year) 4n !ase of( (1)retren!hment to "re/ent losses or (2)!losure or !essation of o"erations of establishment or un$erta+in& not $ue to serious business losses or finan!ial re/erses1 the se"aration "ay shall be e7ui/alent to one (1) month "ay or at least one#half (1?2) month "ay for e/ery year of ser/i!e1 %hi!he/er is hi&her) A fra!tion of at least six (@) months shall be !onsi$ere$ as one (1) %hole year) CLOSURE OF BUSINESS BY EMPLOYER 6losure of the business by the o%ner is allo%e$ no only in !ase the business is losin& be!ause !losure is a business "rero&ati/e of su!h o%ner) 4f the business is not
D

Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

losin& but its o%ner1 for reasons of his o%n1 %ants to &et out of the business1 he1 in &oo$ faith !an la%fully $o so anytime) Aust as no la% for!es anyone to &o into business1 no la% !om"els anybo$y to stay in business) 3ut the em"loyees shoul$ be "ai$ their se"aration "ay1 in the !ase %here the !losure of business is not $ue to business losses or finan!ial re/erses1 to at least one (1) month or to at least one (1) month "ay for e/ery year of ser/i!e1 %hi!he/er is hi&her) A fra!tion of at least six (@) months shall be !onsi$ere$ as one (1) %hole year) CLOSURE OF BUSINESS DUE TO SERIOUS BUSINESS LOSSES 0here1 ho%e/er1 the !losure %as $ue to business losses1 the Labor 6o$e $oes not im"ose any obli&ation u"on the em"loyer to "ay se"aration benefits) he &rant of se"aration "ay is a statutory obli&ation on the "art of the em"loyer an$ a $eman$able ri&ht on the "art of the em"loyee1 ex!e"t only %here the !losure or !essation of o"erations %as $ue to serious business losses or finan!ial re/erses an$ there is suffi!ient "roof of this fa!t or !on$ition) PROCEDURE OF CLOSURE OF BUSINESS 9n$er the Labor 6o$e1 !essation of business o"erations not $ue to business re/erses must meet three (3) re7uirements namely( (a) ser/i!e of a %ritten noti!e to the em"loyees an$ the M:LE at least one (1) month before the inten$e$ $ate thereof' (b)the !essation of or %ith$ra%al from business o"erations must be bona fide in !hara!ter' an$ (!) "ayment to the em"loyees of termination "ay amountin& to at least one (1) month "ay or one#half (1?2) month "ay for ea!h year of ser/i!e1 %hi!he/er is hi&her) A fra!tion of at least six (@) months is !onsi$ere$ as one (1) %hole year) PROCEDURE TO TERMINATE EMPLOYMENT Substantive due process man$ates that an em"loyee !an only be $ismisse$ base$ on .ust or authori5e$ !auses) Procedural due process re7uires further that he !an only be $ismisse$ after he has been &i/en an o""ortunity to be hear$) STANDARDS OF PROCEDURAL DUE PROCESS 4) For termination of em"loyment base$ on JUST CAUSES1 the follo%in& re7uisites must !on!ur(
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Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

(a) A %ritten noti!e ser/e$ on the em"loyee s"e!ifyin& the &roun$ or &roun$s for termination1 an$ &i/in& to sai$ em"loyee reasonable o""ortunity %ithin %hi!h to ex"lain his si$e' (b)A hearin& or !onferen!e $urin& %hi!h the em"loyee !on!erne$1 %ith the assistan!e of !ounsel if the em"loyee so $esires1 is &i/en o""ortunity to res"on$ to the !har&e1 "resent his e/i$en!e or rebut the e/i$en!e "resente$ a&ainst him' an$ (!) A %ritten noti!e of termination ser/e$ on the em"loyee in$i!atin& that u"on $ue !onsi$eration of all !ir!umstan!es1 &roun$s ha/e been establishe$ to .ustify his termination) 4n !ases of termination1 the fore&oin& noti!es shall be ser/e$ on the em"loyee*s last +no%n a$$ress) 44) For termination of em"loyment base$ on AUTHORI8ED CAUSES1 the re7uirements of $ue "ro!ess shall be $eeme$ !om"lie$ %ith u"on ser/i!e of a %ritten noti!e to( (a) the em"loyee' an$ (b)the a""ro"riate Re&ional :ffi!e of the 8e"artment of Labor an$ Em"loyment at least thirty (30) $ays before the effe!ti/ity of the termination1 s"e!ifyin& the &roun$ or &roun$s for termination) 4f termination is brou&ht by the !om"letion of the !ontra!t or "hase thereof1 no "rior noti!e is re7uire$) 4f the termination is brou&ht about by the failure of an em"loyee to meet the stan$ar$s of the em"loyer in the !ase of "robationary em"loyment1 it shall be suffi!ient that a %ritten noti!e is ser/e$ to the em"loyee %ithin a reasonable time from the effe!ti/e $ate of termination)

444) 4=)

WHEN HEARING NOT RE:UIRED No hearin& is nee$e$ if the em"loyee has a$mitte$ his &uilt) here must be a$mission of &uilt) 4f the em"loyee merely narrate$ an$ ex"laine$ %hat he $i$1 %ithout a$mittin& his &uilt1 then !on$u!tin& a hearin& is re7uire$' other%ise1 there is failure of $ue "ro!ess) PREVENTIVE SUSPENSION he em"loyer may "la!e the %or+er !on!erne$ un$er "re/enti/e sus"ension if his !ontinue$ em"loyment "oses a * r3o(* )+- 3##3+ +" "0r )" "o "0 %3, or $ro$ r"& o, "0 #$%o& r or o, 03* !o-9or; r*4 PERIOD OF SUSPENSION Pre/enti/e sus"ension1 bein& only an interme$iate "rote!ti/e measure1 !annot last for an in$efinite "erio$) he 6o$e*s im"lementin& rules "ro/i$e that no "re/enti/e sus"ension
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Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

shall last lon&er than thirty (30) $ays) After that "erio$1 the em"loyer shall reinstate the %or+er in his former "osition or in a substantially e7ui/alent "osition1 or the em"loyer may exten$ the "erio$ of sus"ension1 "ro/i$e$ that $urin& the "erio$ of exten$e$ sus"ension1 he "ays the %a&es an$ other benefits $ue to the %or+er) 4n su!h !ase1 the %or+er shall not be boun$ to reimburse the amount "ai$ to him $urin& the extension if the em"loyer $e!i$es1 after !om"letion of the hearin&1 to $ismiss the %or+er) hirty#$ay "re/enti/e sus"ension a""lies to em"loyment in &eneral) For "ro.e!t an$ non"ro.e!t em"loyees in the !onstru!tion in$ustry1 the "re/enti/e sus"ension !annot be lon&er than 1B $ays) 3eyon$ that1 the em"loyee is entitle$ to %a&es an$ other benefits) PREVENTIVE SUSPENSION EXCEEDING 7< DAYS CONSTRUCTIVE DISMISSAL After the 30#$ay "erio$ of sus"ension1 the em"loyee must be reinstate$ to his former "osition be!ause sus"ension beyon$ this maximum "erio$ amounts to !onstru!ti/e $ismissal) Co+*"r(!"3= D3*#3**)% is %hen an em"loyee 7uits $ue as a result of in!reasin&ly intolerable %or+ !on$itions !reate$ by the em"loyer that %oul$ be beyon$ the limits of any reasonable em"loyee to en$ure) WHERE DISMISSAL IS VALID BUT DUE PROCESS WAS NOT OBSERVED he $ismissal shoul$ be u"hel$) 0hile the "ro!e$ural infirmity !annot be !ure$1 it shoul$ not in/ali$ate the $ismissal) 2o%e/er1 the em"loyer shoul$ be hel$ liable for non# !om"lian!e %ith the "ro!e$ural re7uirements of $ue "ro!ess) 4n other %or$s1 the em"loyer shoul$ be san!tione$ in the nature of in$emnifi!ation or "enalty an$ shoul$ $e"en$ on the fa!ts of ea!h !ase1 ta+in& into s"e!ial !onsi$eration the &ra/ity of the $ue "ro!ess /iolation of the em"loyer) CONSE:UENCES OF ILLEGAL DISMISSAL An em"loyee %ho is un.ustly $ismisse$ from %or+ shall be entitle$ to reinstatement %ithout loss of seniority ri&hts an$ other "ri/ile&es an$ to his full ba!+%a&es1 in!lusi/e of allo%an!es1 an$ to his other benefits or their monetary e7ui/alent !om"ute$ from the time his !om"ensation %as %ithhel$ from him u" to the time of his a!tual reinstatement) he !onse7uen!es are any one or more of the follo%in&( se"aration "ay1 ba!+%a&es1 reinstatement1 $ama&es1 in$emnity1 an$ attorney*s fees) BACKWAGES AND REINSTATEMENT are t%o reliefs &i/en to an ille&ally $ismisse$ em"loyee) hey are se"arate an$ $istin!t from ea!h other) 2o%e/er1 in the e/ent that reinstatement is no lon&er "ossible1 se"aration "ay is a%ar$e$ to the em"loyee) hus1 the a%ar$ of se"aration "ay is in lieu of reinstatement an$ not of ba!+%a&es) 4n other %or$s1 an ille&ally $ismisse$ em"loyee is entitle$ to( (1) either reinstatement1 if /iable1 or se"aration "ay if reinstatement is no lon&er /iable1 an$ (2) ba!+%a&es)
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Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

BACKWAGES 3a!+%a&es1 in &eneral1 are &rante$ on &roun$s of e7uity for earnin&s %hi!h a %or+er or em"loyee has lost $ue to his ille&al $ismissal) 3a!+%a&es "resu""oses ille&al termination) 4t is restitution of earnin&s un$uly %ithhel$ from the em"loyee be!ause of ille&al termination)

REINSTATEMENT Reinstatement1 on the other han$1 means restoration to a state of !on$ition from %hi!h one ha$ been remo/e$ or se"arate$) 0hen situations arise %here reinstatement is neither "ossible nor a$/isable su!h as %hen the em"loyee*s "osition no lon&er exists1 or the !om"any has !lose$ $o%n1 or se/erely straine$ relations has set in bet%een em"loyer an$ em"loyees of a !onfi$ential !a"a!ity1 "ayment of se"aration "ay may be or$ere$) SEPARATION PAY ;e"aration "ay is the amount that an em"loyee re!ei/es at the time of his se/eran!e from the ser/i!e an$ is $esi&ne$ to "ro/i$e the em"loyee %ith ,the %here%ithal $urin& the "erio$ that is loo+in& for another em"loyment);e"aration "ay is &rante$ %here reinstatement is no lon&er a$/isable be!ause of !ertain situations su!h as %hen the em"loyee*s "osition no lon&er exists1 or the !om"any has !lose$ $o%n1 or se/erely straine$ relations ha/e set in bet%een the "arties) BACKWAGES =*4 SEPARATION PAY Payment of ba!+%a&es is a form of relief that restores the in!ome that %as lost by reason of unla%ful $ismissal' se"aration "ay1 in !ontrast1 is oriente$ to%ar$s the imme$iate future1 the transitional "erio$ the $ismisse$ em"loyee must un$er&o before lo!atin& a re"la!ement .ob) DAMAGES Any a%ar$ of moral $ama&es may be a%ar$e$ by the Labor Arbiter &roun$e$ on the 6i/il 6o$e) Mor)% -)#)' * may be a%ar$e$ to !om"ensate one for $i/erse in.uries su!h as mental an&uish1 besmir!he$ re"utation1 %oun$e$ feelin&s an$ so!ial humiliation) As a rule1 moral $ama&es are re!o/erable only %here the $ismissal or sus"ension of the em"loyee %as atten$e$ by ba$ faith or frau$1 or !onstitute$ an a!t o""ressi/e to labor1 or %ere $one in a manner !ontrary to morals1 &oo$ !ustoms or "ubli! "oli!y) E> #$%)r& -)#)' * may be a%ar$e$ only if the $ismissal %as sho%n to ha/e been effe!te$ in a %anton1 o""ressi/e or male/olent manner)
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Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

he a%ar$ for )""or+ &?* , * is .ustifie$ if the !laimant is !om"elle$ to liti&ate %ith thir$ "ersons or to in!ur ex"enses to "rote!t his interest by reason of an un.ustifie$ a!t of the "arty a&ainst %hom it is sou&ht)

TERMINATION BY EMPLOYEE ART4 56/4 (a) An em"loyee may terminate %ithout .ust !ause the em"loyee#em"loyer relationshi" by ser/in& a %ritten noti!e on the em"loyer at least one (1) month in a$/an!e) he em"loyer u"on %hom no su!h noti!e %as ser/e$ may hol$ the em"loyee liable for $ama&es) (b) An em"loyee may "ut an en$ to the relationshi" %ithout ser/in& any noti!e on the em"loyer for any of the follo%in& .ust !auses( 1) ;erious insult by the em"loyer or his re"resentati/e on the honor an$ "erson of the em"loyee' 2) 4nhuman an$ unbearable treatment a!!or$e$ the em"loyee by the em"loyer or his re"resentati/e' 3) 6ommission of a !rime or offense by the em"loyer or his re"resentati/e a&ainst the "erson of the em"loyee or any of the imme$iate members of his family' an$ >) :ther !auses analo&ous to any of the fore&oin&) SEPARATION PAY IN VOLUNTARY RESIGNATION he &eneral rule is that an em"loyee %ho /oluntarily resi&ns from em"loyment is not entitle$ to se"aration "ay1 unless there is a sti"ulation for "ayment of su!h in the em"loyment !ontra!t or 6olle!ti/e 3ar&ainin& A&reement (63A)1 or "ayment of the amount is san!tione$ by establishe$ em"loyer "ra!ti!e or "oli!y) RETIREMENT FROM THE SERVICE ART4 56@4 RETIREMENT Any em"loyee may be retire$ u"on rea!hin& the retirement a&e establishe$ in the !olle!ti/e bar&ainin& a&reement or other a""li!able em"loyment !ontra!t) 4n !ase of retirement1 the em"loyee shall be entitle$ to re!ei/e su!h retirement benefits as he may ha/e earne$ un$er existin& la%s an$ any !olle!ti/e bar&ainin& a&reement an$ other a&reements( Provided, however, that an em"loyee*s retirement benefits un$er any !olle!ti/e bar&ainin& an$ other a&reements shall not be less than those "ro/i$e$ herein) 4n the absen!e of a retirement "lan or a&reement "ro/i$in& for retirement benefits of em"loyees in the establishment1 an em"loyee u"on rea!hin& the a&e of sixty (@0) years or more1 but not beyon$ sixty#fi/e (@B) years %hi!h is hereby $e!lare$ the !om"ulsory retirement a&e1 %ho has ser/e$ at least fi/e (B) years in the sai$ establishment1 may retire an$ shall be entitle$ to retirement "ay e7ui/alent to at least one#half (1?2) month salary for
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Notes on Labor Relations for the Final Examination (2013) by Pauline Mae Araneta

e/ery year of ser/i!e1 a fra!tion of at least six (@) months bein& !onsi$ere$ as one %hole year) 9nless the "arties "ro/i$e for broa$er in!lusions1 the term ,one#half (1?2) month salaryshall mean fifteen (1B) $ays "lus one#t%elfth (1?12) of the 13 th#month "ay an$ the !ash e7ui/alent of not more than fi/e (B) $ays of ser/i!e in!enti/es lea/es) An un$er&roun$ minin& em"loyee u"on rea!hin& the a&e of fifty (B0) years or more1 but not beyon$ sixty (@0) years %hi!h is hereby $e!lare$ the !om"ulsory retirement a&e for un$er&roun$ mine %or+ers1 %ho has ser/e$ at least fi/e (B) years as un$er&roun$ mine %or+er1 may retire an$ shall be entitle$ to all the retirement benefits "ro/i$e$ for in this Arti!le) Retail1 ser/i!e an$ a&ri!ultural establishments or o"erations em"loyin& not more than ten (10) em"loyees or %or+ers are exem"te$ from the !o/era&e of this "ro/ision) =iolation of this "ro/ision is hereby $e!lare$ unla%ful an$ sub.e!t to the "enal "ro/isions "ro/i$e$ un$er Arti!le 2<< of this 6o$e) PRESCRIPTION OF OFFENSES AND CLAIMS ART4 5A<4 OFFENSES :ffenses "enali5e$ un$er the Labor 6o$e shall "res!ribe in three (3) years) All unfair labor "ra!ti!es shall be file$ %ith the a""ro"riate a&en!y %ithin one (1) year from a!!rual of su!h unfair labor "ra!ti!e' other%ise1 they shall be fore/er barre$) ART4 5AB4 MONEY CLAIMS All money !laims arisin& from em"loyer#em"loyee relations shall be file$ %ithin three (3) years from the time the !ause of a!tion a!!rue$) ACTION FOR REINSTATEMENT PRESCRIBES IN FOUR YEARS he "erio$ of "res!ri"tion mentione$ in the Labor 6o$er refers to an$ is limite$ to money !laims1 all other !ases of in.ury to ri&hts of a %or+in& man bein& &o/erne$ by the 6i/il 6o$e) 2en!e1 an a!tion for reinstatement "res!ribes is in four (>) years1 for the in.ury to the em"loyee*s ri&hts as "ro/i$e$ in the 6i/il 6o$e)

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