7. Labor Law

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Labor Law

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Outline

Overview of Labor LawWho are covered by Labor Law?

Proper Recruitment of Employees

Employees Right/EmployersPrerogative

Woring !onditions

Rules on Wages and "ene#ts

$ermination of Employment

Labor Organi%ation

Labor !ase &tudy 'nalysis

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Overview

Why do we need to &tudy LaborLaws?

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Why do we need to &tudy LaborLaws?(gnorance of the law e)cuses no one

from compliance therewith* +Article3.-ew !ivil !ode.

$o now rights and obligations of theemployee and the employer*

Welfare of the Employee*

or a better organi%ation*

$o improve productivity*

$o avoid e)penses*

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Labor &tandard vs* LaborRelationsLabor &tandard

Prescribes the minimum terms andconditions of employment*

Labor Relations Regulates the relations between

employers and worers*

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PROTECTION-TO-LABOR CLAUSEUnder the Constittion

!TheStateshalla"ord#ll$rotectiontolabor%localando&erseas%or'ani(edandnor'ani(ed%and$ro)ote#lle)$lo*)entande+alit*o#e)$lo*)ento$$ortnities#orall. Itshall'aranteetheri'htso#allwor,erstosel#-or'ani(ation%collecti&ebar'ainin'andne'otiations%and$eace#lconcertedacti&ities%incldin'theri'httostri,einaccordancewithlaw.The*shallbeentitledtosecrit*o#tenre%h)aneconditions

o#wor,%andali&in'wa'e.The*shallalso$artici$atein$olic*anddecision-)a,in'$rocessesa"ectin'theirri'htsandbenetsas)a*be$ro&idedb*law.

!TheStateshall$ro)otethe$rinci$leo#sharedres$onsibilit*betweenwor,ersande)$lo*ersandthe$re#erentialseo#&olntar*)odesinsettlin'dis$tes%incldin'conciliation%and

shallen#orcetheir)talco)$liancetherewithto#osterindstrial$eace.

!TheStateshallre'latetherelationsbetweenwor,ersande)$lo*ers%reco'ni(in'theri'hto#labortoitsstshareinthe#ritso#$rodctionandtheri'hto#enter$risestoreasonableretrnsonin&est)ents%andtoe/$ansionand'rowth.0(Section

3(Labor),ArticleXIII[SocialJusticeandHumanRights]of the 0123!onstitution.

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PROTECTION-TO-LABOR CLAUSEUnder the Labor Code

a* $he &tate shall a4ord $rotectiontolabor%$ro)ote

#lle)$lo*)ent%ensree+alwor,o$$ortnitiesre'ardlesso#se/%raceorcreedandre'latetherelationsbetweenwor,ersande)$lo*ers* $he&tate shall assure the rights of worers to sel#-or'ani(ation%collecti&ebar'ainin'%secrit*o#

tenre%andstandh)aneconditionso#wor,.(Article3,LaborCode)

b* Labor contracts are not ordinary contracts as therelation between capital and labor is impressed withpublic interest*

c* (n case of doubt5 labor laws and rules shall beinterpreted in favor of labor*

d* Labor !ode applies to all worers5 whetheragricultural or non6agricultural*

e* 'pplicability of Labor !ode to government6owned orcontrolled corporations*

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'pplicability of the Labor!ode

Who are covered?7eneral Rule8 'pplies to all worers

E)ceptions8

0* 'rticle 29 of the Labor !ode e)cludes the following

worers from the coverage of the provisions woringconditions* 7overnment Employees5

:anagerial Employees5

ield Personnel5

:embers Of $he amilyOf $he Employer

;omestic

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E1PLO2ER-E1PLO2EERELATIONSIP

$he e)istence of employer6employee relationshipis necessary* Without this relationship5 the Labor!ode does not apply*

Basictestofemploymentrelationship.

+a. &election and engagement of employee=

+b. Payment of wages=

+c. Power of dismissal= and

+d. Power of control +the most important test.*

Two-tieredtestofemploymentrelationship. +0. Controltest6 the putative employers power to

control the employee with respect to the means andmethods by which the wor is to be accomplished= and

+9. !conomicrealit"test6 the underlying economicrealities of the activity or relationship*

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Caseswhereemploymentrelationshipdoesnotexist.

0* ' commission salesman is not an employee* (Abante,Jr#Lamadrid$earing%&artsCor'oration,Ro*+-.,/a"0-,0..1)

9* ' contract of agency does not give rise to an

employment relationship* (Se#illa#CA,Ro11*-023,A'ril*+,*--*4.SCRA*5*)

>* Woring scholars are not employees of the school*(Section*1,RuleX,$oo6III,RulestoIm'lementtheLaborCode7ilamerChristianInstitute#IntermediateA''ellate

Court,Ro5+**0,Aug*5,*0,0*0SCRA435)* (ndependent contractors or their employees do not have

any employer6employee relationship with the companywith which said independent contractors are dealing ortransacting business* (/a8nco9radingCor'oration#:'le,

RoL2355.,/arch0+,*54,5.SCRA*3

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Whatisthequantumofevidencerequiredtoproveemploymentrelationship?

$he @uantum of evidence re@uired toprove employment relationship is meresbstantiale&idence+eg5 (* ;* card5!ash Aouchers for salaries5 inclusion inpayroll5 reporting to &&&.*

Bsubstantial evidenceC that amount ofrelevant evidence which a reasonablemind might accept as ade@uate to Dustifythe conclusion*

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Employee ;e#ned

+f. ;!m'lo"ee< includes an" 'erson in the em'lo" o>an em'lo"er 9he term shall not be limited to theem'lo"ees o> a 'articular em'lo"er, unless the Codeso e?'licitl" states It shall include an" indi#idual@hose @or6 has ceased as a result o> or in

connection @ith an" current labor dis'ute or becauseo> an" un>air labor 'ractice i> he has not obtainedan" other substantiall" eui#alent and regularem'lo"ment Article 0*0

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Contract o#E)$lo*)ent4ACUITAL vs* L.1. CA1US EN6INEERIN656.R. No. 7

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Employees Right

Sel#-or'ani(ationCollecti&ebar'ainin'andne'otiations%

Peace#lconcertedacti&ities

Ri'httostri,einaccordancewithlaw

Secrit*o#tenre

)aneconditionso#wor,

Li&in'wa'e

Partici$atein$olic*anddecision-)a,in'$rocessesa"ectin'theirri'htsandbenets

4e $rocess

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Employers Prerogative

&election of Employee$ransfer of Employee

Prescribe Rules

;ischarge/$erminate Employee

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@ORIN6 CON4ITIONSBoo, III

Article>3-Nor)alhorso#wor,Article>:- orswor,ed

Article>- 1eal$eriods

Article>=- Ni'htshi#tdi"erential

Article>< - O&erti)ewor,

Article>> - Underti)enoto"setb*o&erti)eArticle>9 - E)er'enc*o&erti)ewor,

Article98 - Co)$tationo#additionalco)$ensation

Article97- Ri'httowee,l*rest$eriod

Article9?- @hene)$lo*er)a*re+irewor,onarest

da*Article93 - Co)$ensation#orrestda*%Snda*orholida*

wor,

Article9:- Ri'httoholida*$a*

Article9- Ri'httoser&iceincenti&elea&eand

Article9= - Ser&icechar'es.

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Nor)alhorso#wor,

0* DNor)alDhours of wor of employees 6eight +2. hours per day*9* D@or,da*Dmeans 9 consecutive6hour period which

commences from the time the employee regularly starts to wor*(t does not necessarily mean the ordinary calendar day from098 midnight to 098 midnight unless the employee starts towor at this unusual hour*

>* D@or,wee,Dis a wee consisting of 0F2 consecutive hours or3 consecutive 96hour wor days beginning at the same hour andon the same calendar day each calendar wee*

* Redctiono#ei'ht-horwor,in'da*6 not prohibited by lawprovided there is no reduction in pay of worers*

G* Shortenin'o#wor,wee,6 allowed provided employeesvoluntarily agree thereto= there is no diminution in pay= and onlyon temporary duration*

F* orso#wor,o#part-timewor,ers6 payment of wageshould be in proportion only to the hours wored*

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CompressedWor+Wee+CWW/

0* $he employees voluntarily agree to wor nine +1. hours a day from

:onday to riday=9* $here should be no diminution in the tae6home pay and fringe

bene#ts of the employees=

>* $he value of the bene#ts that will accrue to the employees underthe proposed wor schedule is more than or5 at least5 commensuratewith5 or e@ual to5 the one6hour overtime pay that is due them during

weedays based on the employees @uanti#cation=* $he one6hour overtime pay of the employees will become due and

demandable if ever they are permitted or made to wor on any&aturday during the e4ectivity of the new woring time arrangement5since the agreement between the employees and management is thatthere will be no &aturday wor in e)change for a longer wor day

during wee6days=G* $he wor of the employees does not involve strenuous physical

e)ertion and they are provided with ade@uate rest periods or co4eebreas in the morning and afternoon= and

F* $he e4ectivity of the proposed woring time arrangement should beof temporary duration as determined by the &ecretary of Labor and

Employment*

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0ourswor+ed0* The #ollowin' are the co)$ensable hors wor,ed

a* 'll time during which an employee is re@uired to be on duty or to be atthe employers premises or to be at a prescribed worplace= and

b* 'll time during which an employee is su4ered or permitted to wor*

9* Co"eebrea,sandrest$eriodo#shortdration6considered compensable hours wored*

>* @aitin'ti)e6 considered compensable if waiting is an

integral part of the employeeHs wor or he is re@uired or engagedby the employer to wait*

* Slee$in'while on duty is compensable if the nature of theemployees wor allows sleeping without interrupting orpreDudicing wor or when there is an agreement between theemployee and his employer to that e4ect* or e)ample5 a truc

helper may sleep after performing his tas and while his truc istraveling on its way to its assignment* "ut the same may not bedone by the driver*

G* @or,in'whileoncall6 compensable if employee is re@uiredto remain on call in the employers premises or so close thereto

that he cannot use the time e4ectively and gainfully for his ownpurpose*

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3* Tra&el ti)e

a9ra#el >rom home to @or66not compensable woring time

b9ra#el that is all in the da"Bs @or66 compensable hours wored*

c9ra#el a@a" >rom home6 compensable hours wored*

2* Attendancein lectures5 meetings5 and training periodssanctioned by employer 6considered hours wored*

1* Power interr$tions or brown6outs5 basic rules8

-"rown6outs of short duration not e)ceeding twenty +9. minutes 6compensable hours wored*

-"rown6outs running for more than twenty +9. minutes may notbe treated as hours wored provided any of the followingconditions are present8 a* $he employees can leave their worplace or go elsewhere whether within

or without the wor premises= or

b* $he employees can use the time e4ectively for their own interest*

0* 'ttendance in !"' negotiations or grievance meeting 6compensable hours wored*

00* 'ttendance in hearings in cases #led by employee 6 notcompensable hours wored*

09* Participation in stries 6 not compensable woring time*

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ealperiod

0* Every employee is entitled to not less thanone +0. hour +or F minutes. time6o4 forregular meals* "eing time6o45 it is notcompensable hours wored and employee is

free to do anything he wants5 e)cept to wor*(f he is re@uired to wor while eating5 heshould be compensated therefor*

9* (f meal time is shortened to not less than

twenty +9. minutes 6 compensable hourswored* (f shortened to less than 9 minutes5it is considered co4ee brea or rest period ofshort duration and5 therefore5 compensable*

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NI6T-SIFT 4IFFERENTIAL

0* -ight shift di4erential is e@uivalent to 0Iof employeeHs regular wage for each hour ofwor performed between 08 p*m* and F8a*m* of the following day*

9* ightshi>tdierentialando#ertime'a",distinguished6 When the wor of an employeefalls at nighttime5 the receipt of overtime pay

shall not preclude the right to receive nightdi4erential pay* $he reason is5 the payment of

the night di4erential pay is for the wor doneduring the night= while the payment of the

overtime pay is for wor in e)cess of theregular eight +2. woring hours*

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OGERTI1E @OR

0* Wor rendered a>ternormal eight +2. hours of wor iscalled overtime wor*

9* (n computing overtime wor5 Dregular@ageDor Dbasicsalar"Dmeans DcashDwage only @ithoutdeduction for>acilitiesprovided by the employer*

>* D&remium'a"Dmeans the additional compensationre@uired by law for wor performed within 2 hours on non6woring days5 such as rest days and special days*

* D:#ertime'a"Dmeans the additional compensation forwor performed beyond 2 hours* Every employee entitled to

premium pay is also entitled to the bene#t of overtime pay*G* (llustrations on how overtime is computed8

a* or overtime wor performed on an ordinary day5 the overtimepay is'lus 0+E o> the basic hourl" rate*

b* or overtime wor performed on a rest day or on a special day5 theovertime pay is'lus 3.E o> the basic hourl" rate @hich includes

3.Eadditional com'ensation

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E1ER6ENC2 OGERTI1E@OR

0* $he general rule remains that no employee may be compelled torender overtime wor against his will*

9* E)ceptions when employee may be compelled to render overtimewor8

a* When the country is at war or when any other national or local emergencyhas been declared by the -ational 'ssembly or the !hief E)ecutive=

b* When overtime wor is necessary to prevent loss of life or property or incase of imminent danger to public safety due to actual or impendingemergency in the locality caused by serious accident5 #re5 Joods5 typhoons5earth@uae5 epidemic or other disasters or calamities=

c* When there is urgent wor to be performed on machines5 installations ore@uipment5 or in order to avoid serious loss or damage to the employer orsome other causes of similar nature=v

d* When the wor is necessary to prevent loss or damage to perishablegoods=

e* When the completion or continuation of wor started before the 2th hour isnecessary to prevent serious obstruction or preDudice to the business oroperations of the employer= and

f* When overtime wor is necessary to avail of favorable weather or

environmental conditions where performance or @uality of wor is dependentthereon*

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@EEL2 REST PERIO4

0* Every employer shall give his employeesa rest period of not less than 9consecutive hours after every Fconsecutive normal wor days*

9* (f business is open on &undays/holidays5rest day may be scheduled on another day*

>* Preference of employee as to his rest dayshould be respected if based on religious

grounds** Waiver of compensation for wor on rest

days and holidays is not valid*

CO1PENSATION FOR @OR ON

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CO1PENSATION FOR @OR ONREST 4A2% SUN4A2 OR OLI4A2

a.Pre)i) $a* #or wor, on schedled rest da*.' covered employee who is made or permitted to wor on his scheduled rest

day shall be paid with an additional compensation of at least thirty percent+>I. of his regular wage*

b.Pre)i) $a* #or wor, on Snda* when it is e)$lo*eeHs rest da*.' covered employee shall be entitled to such additional compensation of thirty

percent +>I. of his regular wage for wor performed on a &unday only when

it is his established rest day*c.Pre)i) $a* #or wor, $er#or)ed on Snda*s and holida*s whene)$lo*ee hasno re'lar wor,da*s and no schedled re'lar restda*s.

Where the nature of the wor of the employee is such that he has no regularwordays and no regular rest days can be scheduled5 he shall be paid anadditional compensation of at least thirty percent +>I. of his regular wage for

wor performed on &undays and holidays*d.Pre)i) $a* #or wor, $er#or)ed on s$ecial holida*s now s$ecialda*sJ which#all on e)$lo*eeHs schedled rest da*.

Wor performed on any special holiday +now special day. shall be paid with anadditional compensation of at least thirty percent +>I. of the regular wage ofthe employee* Where such holiday wor falls on the employees scheduled rest

day5 he shall be entitled to additional compensation of at least #fty percent+GI. of his regular wage*

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OLI4A2 PA2

I thereof*

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Procla)ation No. =% s.?873

Kanuary 05 905 Wednesday -ew Mears ;ay +Regular

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Procla)ation No. =% s.?873Kanuary >05 905 riday !hinese -ew Mear +&pecial non6

woring day.ebruary 9G5 905 $uesday E;&' Revolutionanniversary +05 905 Wednesday Last day of the year+&pecial non6woring day.

&ource8 http8//www*gov*ph/90>/0/0/list6of6nationwide6holidays6

for690

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6ENERAL ELECTIONS

nder 'rticle 1 cQ of the Labor !ode5 the day designated bylaw for holding a general election is deemed a regular holiday*

$he case ofAssociatedLabornions[AL]29CLetrondo2/onteo,7*R* -o* 0001225 October 05 0115 9>3 &!R' F90Q;ecember 5 0119 was declared a ;s'ecialda"

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'dditional !ompensation

"asic Pay 0IRest ;ay Premium 6 0>I

&pecial I

&pecial holidays/scheduled restday 0GI

Regular I

-ight6shift ;i4erential plus 6 0I

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SERGICE INCENTIGE LEAGE0* Every covered employee who has rendered at least one +0.

year of service shall be entitled to a yearly service incentive leaveof #ve +G. days with pay*

9* :eaning of Done"earo>ser#iceD6 service within twelve +09.months5 whether continuous or broen5 reconed from the datethe employee started woring5 including authori%ed absences and

paid regular holidays5 unless the number of woring days in theestablishment as a matter of practice or policy5 or that providedin the employment contract5 is less than twelve +09. months5 inwhich case5 said period shall be considered as one +0. year for thepurpose of determining entitlement to the service incentive leave*

>* &ervice incentive leave is commutable to cash if unused at the

end of the year** $he basis of computation of service incentive leave is the

salary rate atthedateo>commutation

G* 7rant of vacation leave or sic leave may be consideredsubstitute for service incentive leave* +oteKthere is no provisionin the Labor !ode granting vacation or sic leave.*

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SERGICE CAR6ES

'pplies only to establishments collecting servicecharges5 such as hotels5 restaurants5 lodging houses5night clubs5 coctail lounges5 massage clinics5 bars5casinos and gambling houses5 and similar enterprises5including those entities operating primarily as private

subsidiaries of the government*

&ervice charges are distributed in accordance with thefollowing percentage of sharing8

a* !ight"28#e'ercent+2GI. for the employees to bedistributed e@ually among them= and

b* 7i>teen'ercent+0GI. for the management to answerfor losses and breaages and distribution to managerialemployees*

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&ource8http8//www*nwpc*dole*gov*ph/pages/ncr/cmwr*html

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!OL'

$he !OL' is part of the minimumwage5 but shall be e)cluded from thecomputation of wage related bene#ts5such as overtime pay5 nightdi4erential5 and 0>thmonth pay* (t shallhowever5 form part of the computationof mandatory contributions to the

&ocial &ecurity &ystem +&&&.5Phil

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W'7E&

0* ;age

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0>th6month pay

or the purpose of computing the 0>th6month pay shall include all

remunerations or earnings paid by theemployer for services rendered but does

not include allowances and monetarybene#ts which are not considered orintegrated as part of the regular or basic

salary5 such as the cash e@uivalent of

unused vacation and sic leave credits5overtime5 premium5 night di4erential andholiday pay and cost6of6living allowances*

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0>th6month pay

With respect to the issue that petitioner5 beinga managerial employee5 is not entitled tothirteenth month pay5 :emorandum Order -o*925 as implemented by the Revised 7uidelineson the (mplementation of the 0>th :onth PayLaw dated -ovember 0F5 01235 provides8

&ec* 0 of Presidential ;ecree -o* 2G0 is hereby

modi#ed to the e)tent that all employers arehereby re@uired to pay all theirran6 and 8le

em'lo"eesa 0>th month pay not later than;ecember 9 of every year* !RIM!

SALA7RACA #s &HILA/LI7! [R o *0*5*Necember 03, *-]

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PA21ENT OF @A6ES

Wages shall be paid not less often thanonce every two +9. wees or twice a monthat intervals not e)ceeding si)teen +0F.days* -o employer shall mae payment

with less fre@uency than once a month

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LA@ ON TER1INATIONOFE1PLO21ENT

SECURIT2 OF TENURE

(t is a right guaranteed by the 0123 !onstitution*

&ecurity of tenure does not e)clusively apply to

regular employment only* (t also applies toprobationary5 seasonal5 proDect and other forms

of employment during the e4ectivity thereof*

:anagerial employees also enDoy security oftenure* $he principle of security of tenure

applies not only to ran6and6#le employees butalso to managerial employees* +&LN9#s9olentino,Ro*13*5*,Se't0*,0..1)

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4UE PROCESS

A'abon&s.NLRC,56.R.No.7>=93No&e)ber7

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4UE PROCESSa.1i!hta!ainstself-incrimination.

(t is enshrined in the !onstitution that Bno person shall becompelled to be a witness against himself*C (Section*5,ArticleIII[$illo>Rights],*-5Constitution)

'.1i!httocounsel.

(f the investigation conducted by the employer is merely

administrative and not criminal in character5 the admissionsmade during such investigation may be used as evidence toDustify dismissal* (/anuel # C Construction Su''l", Ro*05++3,o#0-,*5,0-0SCRA 304)

c.1i!httoequalprotectionofthelaws.

E@ual protection clause are addressed only to the state orthose acting under color of its authority*

d.1i!hta!ainstunreasona'lesearchesandsei2ures.

$he right against unreasonable searches and sei%ures may

not be invoed against the employer*

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KstCases ToTer)inateE)$lo*)ent

ARTICLE ?>?. Termination 'y employer. - )n employermay terminate an employment for any of thefollowin! causes3

aJ Serios )iscondct or will#l disobedience b* thee)$lo*ee o# the law#l orders o# his e)$lo*er orre$resentati&e in connection with his wor,

bJ 6ross and habital ne'lect b* the e)$lo*ee o# hisdties

cJ Frad or will#l breach b* the e)$lo*ee o# thetrst re$osed in hi) b* his e)$lo*er or dl*athori(ed re$resentati&e

dJ Co))ission o# a cri)e or o"ense b* thee)$lo*ee a'ainst the $erson o# his e)$lo*er or an*i))ediate )e)ber o# his #a)il* or his dl*athori(ed re$resentati&es and

eJ Other cases analo'os to the #ore'oin'.

A h i d C T

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Athori(edCases ToTer)inateE)$lo*)ent

ARTICLE ?>3. Closure ofesta'lishment and reduction of

personnel. 4

la'or-savin! devices$

redundancy$

retrenchment to prevent losses or

the closin! or cessation ofoperation

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Athori(edCases ToTer)inateE)$lo*)ent

Termination due to the installation of la'or-savin! devices or redundancySe'aration 'a" eui#alent to at least his one (*) month'a" or to at least one (*) month 'a" >or e#er" "ear o>ser#ice, @hiche#er is higher

1etrenchment to prevent losses and in casesof closures or cessation of operations ofesta'lishment or underta+in! not due toserious 'usiness losses or *nancial reverses$

Se'aration 'a" eui#alent to one (*) month 'a" or atleast one2hal> (*O0) month 'a" >or e#er" "ear o> ser#ice,@hiche#er is higher

A >raction o> at least si? (4) months shall be consideredone (*) @hole "ear

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Athori(edCases ToTer)inateE)$lo*)ent

ARTICLE ?>:. 5isease as !round fortermination. - )n employer may terminatethe services of an employee who has 'eenfound to 'e su%erin! from any disease andwhose continued employment is prohi'ited'y law or is pre(udicial to his health as wellas to the health of his co-employees36rovided$ That he is paid separation payequivalent to at least one / month salary

or to one-half #,/ month salary for everyyear of service$ whichever is !reater$ afraction of at least six 7/ months 'ein!considered as one /

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;ue Process

$wo6fold due process re@uirement* +0. substantive aspect= and

+9. procedural aspect*

$win re@uirements of notice and hearing?

$he twin re@uirements of notice and hearing constitutethe essential elements of the procedural due processand neither of these elements can be eliminatedwithout running afoul of the procedural mandate*

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;ue Process

+'. FIRST @RITTEN NOTICE. +0. detailed narration of the facts and circumstances that will

serve as basis for the charge against the employees*

+9. specify which company rules5 if any5 are violated and/or whichamong the grounds under article 929 is being charged against theemployees*

+". EARIN6 *ve 8/ calendar days#ro) recei$tJ +0. e)plain and clarify their defenses to the charge against them=

+9. present evidence in support of their defenses= and

+>. rebut the evidence presented against them by themanagement*

+!. SECON4 @RITTEN NOTICE. +0. all circumstances involving the charge against the employees

have been considered= and

+9. grounds have been established to Dustify the severance of theiremployment*C

enuino #s LRC, [R os *10530233, Necember 1,0..5]

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Terminationofpro'ationaryemployment

Kust !ause under 'rticle 929'uthori%ed cause under 'rticle 92>

$win re@uirement of -otice and

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Abandon)ent

0* 7irstnotice asing theemployee to e)plain why heshould not be declared as having

abandoned his Dob= and

9* Secondnotice to inform him of

the employers decision todismiss him on the ground ofabandonment*

Termination d e to

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Terminationduetodisease'rticle 92 does not specify the standards of

due process to be followed in case anemployee is dismissed due to disease*

are liewise applicable to terminationdue to disease under 'rticle 92*

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Resignation

'n employee may terminatewithout Dust cause theemployment relationship bysimply serving a written

notice on the employer atleast one +0. month inadvance*

$he employer upon whomno such notice is servedmay hold the employeeliable for damages*

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Resignation

Kust causes which an employee may validly resignwithout serving any notice on the employer

0* &erious insult by the employer or his

representative on the honor and person of theemployee=

9* (nhuman and unbearable treatment accordedthe employee by the employer or hisrepresentative=

>* !ommission of a crime or o4ense by the

employer or his representative against the personof the employee or any of the immediate members

of his family= and

* Other causes analogous to any of the foregoing*

B d f f i ill l

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Burdenofproofinille!aldismissalcases

(n illegal dismissal cases5 the burdenof proving that the employee was notdismissed or if dismissed5 that thedismissal was not illegal5 rests on theemployer and failure to discharge thesame would mean that the dismissalis not Dusti#ed and5 therefore5 illegal*

(Lim6et6aiSons/illing,Inc#sLlamera,Ro*+0+*1,Jul"*0,0..+)

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E%ects of 9lle!al 5ismissal

0* Reinstatement without loss of seniority rightsand other privileges* (n case reinstatement is notpossible5 payment of separation pay in lieu thereofmay be awarded5 computed at one month or onemonth pay per year of service5 whichever is higher*

9* ull bacwages5 inclusive of allowances=

>* Other bene#ts or their monetary e@uivalent=

* ;amages +moral and e)emplary5 if the dismissalis with malice or e4ected in bad faith.=

G* 'ttorneys fees +0I of all monetary awards.*

F* Legal interest on separation pay and bacwages

BER6ONIO KR SEA AIRLINES

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BER6ONIO% KR. vs* SEA AIRLINES6.R. No. 79??< A$ril ?7% ?87:

(n a decision dated :ay >05 9G5 the L' found the petitionersillegally dismissed

On 'ugust 95 9G5 the petitioners #led before the L' a :otionfor issuance of Writ of E)ecution for their immediatereinstatement* On October 35 9G5 the L' granted

$he respondents moved to @uash the writ of e)ecution of the

reinstatement order*On ebruary 905 9F5 directed the petitioners to report for

wor on ebruary 95 9F in !lar ield5 'ngeles5 Pampangainstead of at the -'('6;omestic 'irport in Pasay !ity wherethey had been assigned* $he petitioners failed to report*

:eanwhile5 the respondents appealed with the -LR! the :ay>05 9G illegal dismissal ruling of the L'*5 the -LR! dismissedthe respondents*

&ea 'ir 'ppealed to the !' 6 ;ecember 025 93 Reversed*;(&:(&&'L A'L(;

'ppealed with &upreme !ourt* 'ugust 5 925 the !ourtdenied

BER6ONIO KR SEA

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BER6ONIO% KR. vs* SEAAIRLINES

(ssue8 !omputation of bacwages +ebruary 959F or ;ecember 025 93.

$he delay was due to the acts of the respondentsthat we #nd were unDusti#ed* We reiterate and

emphasi%e5 'rticle 99>5 paragraph >5 of the Labor!ode mandates the employer to immediately

reinstate the dismissed employee5 either by actuallyreinstating him/her under the conditions prevailingprior to the dismissal or5 at the option of theemployer5 in the payroll* $he respondentsH failure inthis case to e)ercise either option rendered themliable for the petitionersH accrued salary until the L'decision was reversed by the !' on ;ecember 035

92*

UNIGAC vs SORIANO

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UNIGAC vs* SORIANO6.R. No. 7>?8

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UNIGAC vs* SORIANO(ssue8 Legality of the ;ismissal/&tatus of the employee

L'"OR !O;E5 (mplementing Rules of "oo A(

+c. $he services of an employee who has been engaged onprobationary basis may be terminated only for a Dust orauthori%ed cause5 when he fails to @ualify as a regularemployee in accordance with the reasonable standardsprescribed by the employer*

+d. (n all cases of probationary employment5 the employershall mae nown to the employee the standards underwhich he will @ualify as a regular employee at the time ofhis engagement* Where no standards are made nown tothe employee at that time5 he shall be deemed a regularemployee*

(n this case5 petitioner failed to present ade@uate evidenceto substantiate its claim that respondent was apprised ofsaid standards*

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UNIGAC vs* SORIANO

Petitioners failure to specify thereasonable standards by whichrespondents alleged poor performancewas evaluated as well as to prove thatsuch standards were made nown tohim at the start of his employment5maes respondent a regular employee*

(n other words5 respondent is deemedto have been hired from day one as aregular employee*