Republic of the Philippines

DEPARTMENT OF LABOR AND EMPLOYMENT

Department Order No. 147-15,

Series of 2015
OUTLINE
I. BACKGROUND
II.SALIENT FEATURES
III.
GUIDING PRINCIPLE
IV.COVERAGE
V. DUE PROCESS: TERMINATION OF EMPLOYMENT
a) Just Causes
1. Substantive
2. Procedural
b) Authorized Causes
1. Substantive
2. Procedural
c) Other Causes
V. CONCILIATION-MEDIATION

D.O. No. 147-15, Series of 2015

PHILIPPINE LABOR & EMPLOYMENT PLAN
Rights at Work

Outcome: Strengthened compliance with Constitutionally

protected rights of workers

Issues: Outdated Labor Code

Increased insecurity of jobs

Strategies: Guarantee the rights and protection of workers

Review the Labor Code provisions on
contracting or sub-contracting and security of
tenure

D.O. No. 147-15, Series of 2015

UPDATES ON ADDRESSING SOT
12 pending SOT bills

Endorsement of House Bill No. 5415 (Contracting and

Subcontracting Bill), House Bill No. 5416 (Termination of
Employment Bill) and House Bill No. 5806 (Employment
Relations Bill)

Department Order No. 18-A, series of 2011

Department Order No. 131 (LLCS), series of 2013

D.O. No. 147-15, Series of 2015

Presidential Decree No. 442 - Labor
Code of the Philippines

Rule I, Implementing Rules and

Regulations of the Labor Code of the
Philippines, as amended

Jurisprudence

D.O. No. 147-15, Series of 2015

Source: National Labor Relations Commission, 2014 Annual Report D.O. No. 147-15, Series of 2015
 Cases Won by the Management and Labor in the
Commission Proper: 2004 - 2014

Won by Management Won by Labor

8,000 7,551
7,290
6,895 6,947
7,000

5,845
6,000 5,518
5,453 5,333
5,110 5,062 5,106
5,000

4,000

3,000

2,000

1,000

4,192 5,165 4,289 5,121 6,532 6,214 5,599 5,972 6,604 5,558 3,307
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: National Labor Relations Commission, 2014 Annual Report D.O. No. 147-15, Series of 2015
Source: National Labor Relations Commission D.O. No. 147-15, Series of 2015
 Average Time of Disposition
Labor Cases, 2010-2011

AVE. TIME TO AVE. TIME TO AVE. TIME TO

DISPOSE DISPOSE DISPOSE AVE. TIME TO DISPOSE
YEAR
(From filing to (From NLRC to (From CA to (From filing to SC)
NLRC) CA) SC)

2 years 2 years 4 years 8 years

2010
756.3 days (876.5 days) (1,419 days) (3,051 days)

2 years 3 years 4 years 9 years

2011
(784.1 days) (898.2 days) (1,560.4 days) (3,526.5 days)

D.O. No. 147-15, Series of 2015

• Workers:
• Loss of income/direct impact on family
• Litigation cost

• Employers:
• Loss of skills and experience
• Loss of capital and productivity
• Litigation cost

• Opportunity cost

D.O. No. 147-15, Series of 2015

COST DISMISSAL: EMPLOYEE
• Cost on litigation: (₱100,500.00)
• Ordinary Attorney’s Fee
• Paper fees = ₱ 1,000
• Appearance fees = ₱ 3,000/hearing
• Acceptance fee = ₱ 60,000
• Extraordinary Attorney’s Fee (10% of the Award)
• Php12,753.5 per case

• Cost on execution of judgment:

• Travel expenses (estimate) = ₱200.00 on travel expenses or
approximately ₱ 4,000.00 per case
• 5 years maximum effectivity of writ of execution

D.O. No. 147-15, Series of 2015

COST DISMISSAL: EMPLOYER
• Dismissal case that gets to higher court
costs large dismissal award
of 96 months

D.O. No. 147-15, Series of 2015

ILLEGAL DISMISSAL CASES ARE
NOT ONLY TOO MANY BUT ALSO
LENGTHY AND UNFORTUNATELY,
SO COSTLY
Department Order No. 147-15,
Series of 2015
Signed by the Secretary on 07 September 2015

Published in PDI and Phil. Star

on 03 October 2015
 TRIPARTITE CONSULTATIONS
• 3 Small Tripartite TWG • 3 TEC Meetings
Meetings
• TWG Members
• Approved by TIPC
• Employer Representatives 21 May 2015
• Labor Representatives

D.O. No. 147-15, Series of 2015

SALIENT FEATURES of D.O. NO. 147-15
• Specifying the standards on just and
authorized causes of termination of
employment based on jurisprudence

• Clarifying other grounds for termination such

as those provided in the CBA and
analogous causes which must be expressly
provided for in company rules and policies

D.O. No. 147-15, Series of 2015

SALIENT FEATURES of D.O. NO. 147-15

• Applying the Last In, First Out Rule

• Subjecting all issues of termination based on

just and authorized causes to mandatory
conciliation-mediation and Request for
Assistance before the SEADOs

D.O. No. 147-15, Series of 2015

GUIDING PRINCIPLES
• Right to security of tenure is guaranteed under the
Philippine Constitution and other laws and
regulations

• No employee shall be terminated from work except

for just or authorized cause and upon observance of
due process.

D.O. No. 147-15, Series of 2015

 COVERAGE
• Parties of work arrangements
where employer-employee
(er-ee) relationship exists

• Parties of legitimate
contracting/subcontracting
arrangements with existing
employer-employee
relationships

D.O. No. 147-15, Series of 2015

Just Cause of Termination
Substantive
a) Serious Misconduct
b) Willful Disobedience or Insubordination
c) Gross and Habitual Neglect of Duties
d) Fraud or Willful Breach of Trust
e) Loss of Confidence
f) Commission of a Crime or Offense
g) Analogous Causes

D.O. No. 147-15, Series of 2015

Just Cause of Termination
Procedural

a) First written notice

b) Hearing
c) Second written notice

D.O. No. 147-15, Series of 2015

Authorized Cause of Termination

Substantive

a) Installation of Labor-saving Devices

b) Redundancy
c) Retrenchment or Downsizing
d) Closure or Cessation of Operation
e) Disease

D.O. No. 147-15, Series of 2015

Authorized Cause of Termination
Procedural
1. Written notice to the employee and
the appropriate Regional Office of the
Department of Labor and Employment
(DOLE) at least thirty days (30) before
the effectivity of the termination,
specifying the ground or grounds for
termination.

2. Separation pay

D.O. No. 147-15, Series of 2015

Authorized Cause of Termination
Separation Pay
1. Installation of labor-saving devices – one (1) month pay
2. Redundancy –one (1) month pay
3. Retrenchment - (1) month pay or at least one-half (1/2) month pay
4. Closure or cessation of business operation not due to serious
business losses - one (1) month pay or at least one-half (1/2) month
pay
5. Disease - one (1) month pay or at least one-half (1/2) month pay

No separation pay for termination based on just cause except as expressly provided for in
the company policy or Collective Bargaining Agreement (CBA).

D.O. No. 147-15, Series of 2015

Authorized Cause of Termination

Quick Response Team

Conciliation-Mediation under SEnA

Compulsory Arbitration or Voluntary

Arbitration

D.O. No. 147-15, Series of 2015

Other causes of Termination
1. Company policy
2. Collective Bargaining Agreement
3. Use of Dangerous Drugs
4. Sexual Harassment

D.O. No. 147-15, Series of 2015

MANDATORY CONCILIATION-MEDIATION

Settlement agreement shall be

final and binding

Referral to compulsory
arbitration, or if both parties so
agree, to voluntary arbitration

Condition Precedent to
Compulsory Arbitration

D.O. No. 147-15, Series of 2015

End of Presentation

D.O. No. 147-15, Series of 2015