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Labor Law

15 Aug

Service Charges Should Now be Shared by Covered Employees under R.A. 11360 and no Share to the Management

On August 7, 2019 Republic Act (R.A.) 11360 was enacted mandating that all service charges collected by hotels, restaurants and similar establishments be distributed completely and equally among the covered workers except managerial employees. This amends Article 96 of the Labor Code, as amended. See the PDF Version of R.A. 11360 Here The law does not include any share for the management. Previously, the distribution used to be 85% for the workers and 15% for the management. Draft and Formulate Your HR [...]

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10 Aug

Holiday Pay Sample Computation for Eid’l Adha (August 12, 2019); Proclamation 789 PDF

Holiday pay should be paid accordingly, particularly the regular holiday. On August 15, 2018 Presidential Proclamation No. 555 declared, among others, Eid’l Adha as a national holiday. The tenth day of Zhul Hijja, the twelfth month of the Islamic Calendar, was hereby declared as a national holiday for the observance of Eidul Adha. It is a tenth day in the month of Hajj or Islamic Pilgrimage to Mecca wherein Mulims pay homage to Abraham’s supreme act of sacrifice and signifies mankind’s [...]

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08 Aug

Remedy when Employee Refused to Receive the Notice to Explain (NTE)

The Notice to Explain or NTE is one of the documents required or needed to serve to an employee who is under investigation for violation of company rules. It is served whether or not the violation is punishable with light penalties or even dismissal. Light penalties refer to warning or suspension which is less grave than dismissal. The service of NTE is part of the procedural due process requirements. As opposed to substantive, procedural due process refers to the procedure involved in [...]

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05 Aug

Additional Charges in the Notice of Termination Require New NTE

The additional grounds cited in the notice of termination which were not mentioned in the NTE issued to the employee violated the right to be informed of the administrative charges against her. The NTE and the notice of termination did not state the specific acts that constituted breach of company policies resulting in loss of trust and confidence and the specific company policies that were violated. As opposed to substantive, procedural due process refers to the procedure involved in the [...]

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03 Aug

Sample Maternity Leave Policy under the Expanded Maternity Leave Law

The company has to implemented the provisions of R.A. 11210 or the Expanded Maternity Leave Law and its IRR. Below is the sample maternity leave policy which a company may adopt illustrating compliance with the mandate: General Principles The company adheres to the policy of the law granting protection to and promoting the rights and welfare of working women, taking into account their maternal functions, and to provide an enabling environment in which their full potential can be achieved. Coverage Any pregnant female [...]

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02 Aug

Sample Telecommuting Policy and Program

Telecommuting refers to a work arrangement that allows an employee in the private sector to work from an alternative workplace with the use of telecommunication and/or computer technologies. Being voluntary, the company has the right to refuse to make telecommuting available to an employee and to terminate a telecommuting arrangement at any time based on stipulations. Employees are not required to telecommute. Employees have the right to refuse to enter into telecommuting arrangement if the option is made available. Learn How [...]

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29 Jul

Company Policy that Restricts the Amount of Employee Loans to Not More than 50% of Monthly Take Home is an Interference in Disposal of Workers Wages

One of the benefits that the company gives its employees is the employee loans. However, it does not take long for employees who lack discipline to be saddled with debt. HR may look helpless in this situation since it is torn between disapproving the application and seeing the employee without the cash needed to probably buy basic necessities and granting the loan where an employee can fall deeper and deeper in the endless cycle of debt and consumption. Hence, companies cannot [...]

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26 Jul

How to Compute Cash Conversion of Service Incentive Leave or Vacation Leave of Above Minimum Employees

Under Article 95 of the Labor Code, as amended, every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave (SIL) of five days with pay. Now on sale at LVS Books Online and all branches of National Bookstore: Re-numbered and Updated Labor Code This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at least five days and those [...]

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23 Jul

Separation Pay Cannot be Awarded to Validly Dismissed Employee

Separation pay is awarded based on Labor Code or was ordered to be granted by the Court, as follows: Separation pay as provided in Articles 298 and 299 of the Labor Code. Separation pay in lieu of reinstatement. Separation pay as a form of financial assistance pursuant to any agreement, practice or policy of the company. Separation pay based on equity or social justice. (See page 346, Guide to Valid Dismissal of Employees, 2nd Edition by Atty. Villanueva) Separation pay based on equity or [...]

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