Labor Law

DOLE Encourages Employers to Adopt Transactional Accounts in Payment of Wages and Monetary Benefits

DOLE or the Department of Labor and Employment issued Labor Advisory 26, Series of 2020 on August 3, 2020 in an effort to promote the use of transaction accounts as a preferred mode of payment of wages and other monetary benefits on account of its advantages in terms of safety, security, and financial inclusivity. Under said advisory, the employers are encouraged to communicate to employees the benefits of using transaction accounts for receiving wages and other remunerations. Assist employees in [...]

Redundancy Due to Abolition of Position During COVID-19 Pandemic

Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. Succinctly put, a position is redundant where it is superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of workers, decreased volume of business, or dropping of a particular product line or service activity previously manufacture or undertaken by the enterprise. (See page 221, [...]

Separation Pay of Retrenched Employees Should Include Basic Salary and Regular Allowances

Separation pay is mandated to be paid to employees who were retrenched from service. Under Article 298 of the Labor Code, in case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at [...]

Separation Pay Cannot be Granted to an Employee Dismissed for Serious Misconduct

Separation pay is a benefit granted under Article 298 of the Labor Code for termination of employees due to authorized cause. These authorized causes are termination due to installation of labor-saving devices, redundancy, retrenchment, and closure not due to losses. Separation is also granted for employees retrenched or terminated after the company has taken bonafide suspension of operations under Article 301 of the Labor Code. The same is given to an employee terminated due to disease under Article 299 of [...]

Work Guidelines Applicable to Construction Companies During COVID-19 Pandemic

Work guidelines have been issued by various government agencies relating to company operations on account of COVID-19 pandemic. Recently, the DOLE and the DTI have issued Supplemental Guidelines in a Joint Resolution. The DPWH has also issued its own particularly applicable to construction companies. Below are the highlights of the DPWH issuance with primer made by the author on several government issuances which are the umbrella regulations with respect to COVID-19 work approaches. Executive Order No. (E.O.) 168, s. 2014 created [...]

Employment Guidelines Per DTI and DOLE Supplemental COVID-19 Memorandum

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Employment work guidelines have been issued in a joint memorandum by the DTI and the DOLE. Below are the salient points of the supplemental guidelines. DTI and DOLE Supplemental Guidelines On August 15, 2020, the DTI and DOLE issued Joint Memorandum Circular No. 20-04-A, Series of 2020, which provides for Supplemental Guidelines on Workplace Prevention and Control of COVID-19. Said DTI and DOLE Guidelines apply to [...]

Managerial Employees are not Entitled to Labor Standards Benefits VLOG

Managerial employees under Article 82 of the Labor Code, as amended are not entitled to labor standards benefits. In Atty. Elvin’s VLOG in his Youtube Channel, he explains the exemption of this class of employees. Likewise, he discusses the difference in the definition of the term in Art. 82 and Art. 219 [m]. Watch the video link below:  

Employment Contract that is Amended Lowering the Minimum Terms Under the Law is Not Binding on Employee

Employment contract is placed on a higher plane than ordinary contracts since it is imbued with public interest and, therefore, subject to the police power of the State. (See Leyte Geothermal Power Progressive Employees-Union-ALU-TUCP vs. Philippine National Oil Company-Energy Development Corp., 662 Phil. 225, 234 (2011).) The supremacy of the law over the nomenclature of the contract and its pacts and conditions is to bring life to the policy enshrined in the Constitution to afford full protection to labor. (Innodata [...]

Employment bond claims fall within the jurisdiction of the Labor Arbiter

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Employment bond which oftentimes refers to the amount of money to be paid by the employee to the employer for resignation prior to the end of stipulated period or for termination for cause is an employment related issue although the dispute usually occurs when the employee is not anymore connected. For instance, the employer and employee may agree on a minimum employment length in [...]

Employment contract is not entirely voided by a potestative condition imposed after the birth of the perfected agreement

Employment contract carrying a potestative condition is not entirely affected. A potestative condition is one the fulfillment of which depends exclusively upon the will of the debtor, in which case, the conditional obligation is void. If it pertains to the performance of the obligation and not on the birth of the perfected contract it shall affect only such provision and not the entire stipulations. Thus, the SC held in the case of Gemudiano vs. Naess Shipping Philippines, Inc. (G.R. No. 223825, [...]

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