Labor Law

Holiday Pay Rules with Sample Computation for Independence Day Holiday June 12, 2022 Using NCR New Minimum Wage

Holiday pay should be paid accordingly, particularly the regular holiday. On 29 October 2021 a Proclamation No. 1236 was issued, declaring, among others, June 12, 2021 (Sunday) as a regular holiday nationwide. See PDF copy of Proclamation No. 1236 here. On 8 June 2022, the Department of Labor and Employment (DOLE) issued a Labor Advisory 14, Series of 2022 providing for rules on the payment of wages for the regular holiday on 12 June 2022. View the PDF file of the Labor [...]

Doctrine of Command Responsibility for Managerial Employees and Breach of Trust by Rank and File Employees

In the case of a Chief Purser of a passenger ship, the established facts show that although he did not participate in the commission of anomalies, he was still liable due to his failure to detect those irregularities. (See Vicente C. Etcuban, Jr. vs. Sulpicio Lines, Inc., G.R. No. 148410, January 17, 2005.) Interestingly, jurisprudence has made a connection between neglect of duty and loss of trust and confidence involving a managerial employee or a rank-and-file holding a fiduciary position. In [...]

Loss of Trust and Confidence Based on Employee Position

Loss of trust and confidence is premised on the fact that the employee holds a position whose functions may only be performed by someone who has the confidence of management. Such employee may be managerial or rank-and-file, but the nature of his position determines the requirements for a valid dismissal. With respect to a managerial employee, the mere existence of a basis for believing that such employee has breached the trust of his employer would suffice for his dismissal. Proof beyond [...]

Classes of Positions of Trust

In a case involving breach of trust and confidence, it is required that the employee being investigated holds a position of trust. There are two classes of positions of trust. The first class consists of managerial employees and the second. class consists of cashiers, auditors, property custodians, etc. (Abelardo P. Abel vs. Philex Mining Corporation, G.R. No. 178976, July 31, 2009 citing Mabeza vs. National Labor Relations Commission, G.R. No. 118506, April 18, 1997, 271 SCRA 670, 682.) Managerial employees are [...]

Loss of Trust and Confidence as Ground for Termination Must have Reasonable Grounds

For loss of trust and confidence to constitute a sufficient ground for termination, the employer must have a reasonable ground to believe, if not to entertain the moral conviction, that the employee was responsible for the misconduct, and that the nature of his participation therein rendered him absolutely unworthy of the trust and confidence demanded by his position. As can be deduced from Article 297 of the Labor Code, as amended, the breach of trust and confidence must be willful. [...]

Fraud and Loss of Trust and Confidence

A managerial employee is conferred with full trust and confidence by his employer. While as a manager he could exercise some discretion, such does not cover acts of betrayal of trust and confidence of his employer. He cannot reimburse his family’s personal travel expenses out of company funds. His act amounted to fraud or deceit which led to the loss of trust and confidence of his employer. An employee, the Officer-in-Charge of the company in its boutique misappropriated the amount [...]

Claim of Abandonment vs Claim of Illegal Dismissal

Contrasting allegations may be presented in court involving employee who claims to have been verbally dismissed from service and employer who denies having done so and instead alleges that the employee abandoned his job. If so, how it should be resolved? In the August 2013 case of MZR Industries vs. Colambot, the Supreme Court held, in sum: The Court recognized the rule that in illegal dis- missal cases, the employer bears the burden of proving that the termination was for a valid [...]

Abandonment Requires Notice

Abandonment is a ground for dismissal of employees under Article 297 of the Labor Code, as amended. Being considered as within the context of gross and habitual neglect of duty. However, while abandoning employee is usually not physically available, he should still be served the notices for the dismissal. There is no such thing automatic termination for abandonment. An employee whom the employer deems to have abandoned his work cannot be automatically terminated. Due process is required in order for the [...]

Filing of Illegal Dismissal as Against Denial of Termination in Abandonment Cases

Substantial evidence proffered by the employer that it had not terminated the employee should not be ignored on the pretext that the employee would not have filed the complaint for illegal dismissal if he had not really been dismissed. The Court held that such non sequitur reasoning cannot take the place of the evidence of both The lapse of time between the dismissal of an employee for abandonment and the filing of a complaint for illegal dismissal is not a [...]

How to Correct Wage Distortion

Wage Distortion is a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation. Wage distortion means the disappearance or virtual disappearance of pay differentials between lower and higher positions in an enterprise because of [...]

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