EMPLOYMENT AND

UNEMPLOYMENT

By: Stephanie A. Ballaho

Ph. D. Dev. Mngt (Educational Administration)
Ateneo de Zamboanga University (ADEZU)
Employment Rate
Is one indicator used in determining the four(4) phases
of business cycle. Prosperity for instance is determine
if there is full employment. There is full employment
when there is available job for every person who is
willing and able to work. This definition does not
necessarily mean zero unemployment. Even if about 6%
of the labor force are unemployed, this can still be
considered as full employment (Fajardo, 1990).
Unemployment is categorized as follows:
1. Frictionalunemployment
2. Structural unemployment
3. Cyclical unemployment
4. Seasonal unemployment
5. Societal unemployment
Employer
Includes any person acting in the
interest of an employer, directly or
indirectly; the term shall not
include any labor organization or
any of its officers or agents except
when acting as employer.
Employee
Includes any person in the employ of an employer.
The term shall not be limited to the employees of a particular
employer, unless the Code so explicitly states.
It shall include any individual whose work has ceased as a result
of or in connection with any current labor dispute or because of
any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.
Any employee, whether employed for a definite period or not
shall, beginning on his first day of service, be considered as an
employee for purposes of membership in any labor union. (Art.
277 par. C)
Art. 276 Government
Employees
Association of Court of Appeals Employees v.
Ferrer-Calleja, 203 SCRA 596 (1991)
The terms and conditions of employment in the
government service are governed by law. Any
understanding between the top officials of a
government agency and the union which
represent the rank-and-file is subordinate to
the law governing the particular issue or
situation.
Davao City Water District v. Civil Service
Commission, 201 SCRA 593 (1991)

By governing owned or controlled corporation with

original charter, we mean government owned or
controlled corporation created by a special law and not
under the Corporation Code of the Philippines.
It is clear that what has been excluded from the
coverage of the CSC are those corporations created
pursuant to the Corporation Code.
Government Employees Not Allowed To
Unionize

1.Members of the Armed Forces

2.Police Officers/Policemen
3.Firemen
4.Jail Guards
High level employees
One whose functions are normally
considered policy determining,
managerial or one whose duties are
highly confidential in nature.
Employees of International
Organizations
International Catholic Migration Commission v.
Calleja, 190 SCRA 130 (1989)

Labor organizations in the International Catholic

Migration Commission (ICMC) and International Rice
Research Institute (IRRI), both international
organizations, filed a petition for certiorari election.
ICMC and IRRI claimed immunity.
International Catholic Migration Commission v.
Calleja, 190 SCRA 130 (1989)
Held:
The grant of immunity from local jurisdiction to ICMC and IRRI is
clearly necessitated by their international character and respective
purposes. The objective is to avoid the danger and partiality and
interference by the host country in their internal workings. The
exercise of jurisdiction by the DOLE in these instances would defeat
the very purpose of immunity, which is to shield the affairs of
international organizations, in accordance with international practice,
from political pressure or control by the host country to the prejudice
of member states of the organization, and to ensure the unhampered
performance of their functions.
International Catholic Migration Commission v.
Calleja, 190 SCRA 130 (1989)
The immunity granted being from every form of legal process
except in so far as in any particular case they have expressly
waived in their immunity, it is inaccurate to state that a
certification election is beyond the scope of that immunity for the
reason that it is not a suit against ICMC. A certification election
cannot be viewed as independent or isolated process. It could
trigger off a series of events in the collective bargaining process
together with related incidents and/or concerted activities, which
could inevitably involve ICMC in the legal process, which includes
any penal, civil and administrative proceedings.
Special Groups of Employees
1. Managerial& Supervisory Employees
Under Art. 245, managerial employees are not
eligible to join, assist or form any labor
organization.
Supervisory employees shall not be eligible for
membership in a labor organization of the rank-
and-file employees but may join, assist or form
separate labor organizations of their own.
Special Groups of Employees
Manager- one who is vested with the power or
prerogative to lay down an executed management
policies and/or to hire, transfer, suspend, lay-off,
recall, discharge, assign or discipline employees.

Note that the management policies must pertain

exclusively to labor relations.
Special Groups of Employees
Supervisor- one, who, in the interest of the employer,
effectively recommends managerial actions.

Power to recommend
Must be both:
1. Effective, and
2. Requires the Use of Independent Judgement
Special Groups of Employees
2. Confidential Employees
Confidential employees are also prohibited from
forming, joining or assisting any labor organization.
A confidential employee is one who is entrusted with
confidence on delicate matters, or with custody,
handling, or care and protection of the employers
property. (National Asso. Of Trade Unions (NATU)-
Republic Planters Bank Supervisors Chapter v. Honorable
Ruben Torres, 1994)
Leave and Retirement Benefits
Study Leave
Indefinite Leave
Salary increase upon retirement
Vacation Leave (VL)/ Sick Leave (SL)- not required by law and
depends on voluntary employer policy or collective bargaining.
Solo Parent Leave (RA 8972: Solo Parents Welfare Act of 2000)
Leave under RA 9262 (Anti-Violence Against Women and their
Children Act of 2004)
Art. 279 Security of Tenure
Applies to all establishment or undertakings whether for
profit or not.
Project employees have no security of tenure.
Full backwages are computed from the time wages are
withheld up to the time the employee is actually
reinstated.
In the case of project employees, you cannot demand
wages for the time when there is no project. Thus, 279
does not apply to project employees.
Art. 282 Just Cause for Termination by Employer
Grounds:
1. Serious
misconduct or Willful Disobedience by the employee
of the lawful orders of his employer or representative in
connection with his work (work-related).
2. Gross and Habitual Neglect by the employee of his duties.
3. Fraudor willful breach by employee of the trust reposed in
him by his employer or duly authorized representative (not
mere suspicion).
Art. 282 Just Cause for Termination by Employer
4. Commission of a crime or offense by the
employee against the person of his employer or
any immediate member of his family or duly
authorized representative
5. Other analogous cases.
Analogous Cases:
Violation of Safety Rules
Gross inefficiency
Wrongful acts of employee against the company
Violation of code of discipline
Failure to heed an order not to join an illegal picket
Immorality
Sexual harassment
Art. 283 Authorized Causes for Termination

Grounds:
1. Introduction of labor-saving devices
2. Redundancy
3. Retrenchment
4. Closure of business as a result of grave financial
loss
5. Closure not due to losses
Redundancy
Redundancy exists where the services of an employee are in
excess of what is reasonably demanded by the actual
requirements of the enterprise.
A position has become superfluous as an outcome of a number of
factors such as overhiring of workers, decreased volume of
business, dropping of a particular product line or service activity
previously manufactured or undertaken by the enterprise (thus it
only requires superfluity not duplication of work)
A redundancy SHOULD NOT have been created by the
EMPLOYER.
Validity of a Redundancy Program
The employer must comply with the following requisites to
ensure the validity of the redundancy program:
1. A written notice served on both the employees and the
Department of Labor and Employment (DOLE) at least one
month prior to the intended date of retrenchment.
2. Payment of separation pay equivalent to at least one month pay
for every year of service, whichever is higher.
3. Good faith in abolishing the redundant positions.
4. Fair and reasonable criteria in ascertaining what positions are to
be declared redundant and accordingly abolished.
Retrenchment
Resorted primarily to avoid or minimize business losses.

Standards to Justify Retrenchment

1. The losses expected should be substantial and not merely de
minimis in extent.
2. The substantial loss apprehended must be reasonably imminent.
3. It be reasonably necessary and likely to effectively prevent the
expected losses. The employer should have taken other
measures prior or parallel to retrenchment to forestall losses.
Retrenchment
Standards to Justify Retrenchment
4. Thealleged losses if already realized, and the expected
imminent losses must be proved by sufficient and
convincing evidence. (Oriental Petroleum & Minerals
Corp. v. Fuentes, 14 October 2005)
Differencebetween redundancy and retrenchment: In
redundancy, company has no financial problems; in
retrenchment, company suffers from financial
problems.
Closure Not Due to Losses
In cases of closure not due to losses, it must NOT
be in BAD FAITH.
If the dismissal is based on a just cause under Art.
282 but the employer failed to comply with the
notice requirement, the sanction to be imposed
upon him should be tempered because the
dismissal process was, in effect, initiated by an
act imputable to the employee.
Closure Not Due to Losses
Ifthe dismissal is based on an authorized cause under
Article 283 but the employer failed to comply with the
notice requirement, the sanction should be stiffer
because the dismissal process was initiated by the
employers exercise of his management prerogative.
Constructive Dismissal
1. No formal dismissal
2. Theemployee is placed in a situation by the employer
such that his continued employment has become
UNBEARABLE.
Muchas gracias !!!