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Labor Law

22 May

Redundancy Requires Good Faith in the Exercise of Prerogative

Redundancy exists when an employee’s position is superfluous, or an employee’s services are in excess of what would reasonably be demanded by the actual requirements of the enterprise. For the implementation of a redundancy program to be valid, the employer must comply with the following requisites: (See page 172, Guide to Valid Dismissal of Employees, 2nd Edition) Written notice served on both the employees and the Department of Labor and Employment at least one month prior to the intended date of [...]

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17 May

Preventive Suspension Extension with Sample Notice of Extension

Preventive suspension is a disciplinary measure for the protection of the company’s property pending investigation of any alleged malfeasance or misfeasance committed by the employee. (See page 238, Guide to Valid Dismissal of Employees 2nd Edition by Atty. Elvin B. Villanueva citing Philippine Airlines, Inc. vs. NLRC, G.R. No. 114307, July 8, 1998 citing Globe-Mackay Cable and Radio Communication v. NLRC, 206 SCRA 701 (1992) The Implementing Rules provides that no preventive suspension shall last longer than thirty (30) days. [...]

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16 May

Wage Distortion and Use of Pineda Formula for Wage Distortion Correction based on Wage Order No. NCR-22

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. (See pp. 143-144 Solutions and Remedies on Wage Order and Minimum Wage by Atty. Elvin B. Villanueva citing Section 3, [...]

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15 May

Preventive Suspension Must Not Be for Indefinite Period

Preventive suspension is a disciplinary measure for the protection of the company’s property pending investigation of any alleged malfeasance or misfeasance committed by the employee. For more discussion on preventive suspension please read Guide to Valid Dismissal of Employees 2nd Edition (pp. 303-316). The employer may place the worker concerned under preventive suspension if his continued employment poses a serious and imminent threat to the life or property of the employer or of his co-workers. The Implementing Rules provides that: “Sec. 3. Preventive suspension.—The employer [...]

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09 May

Holiday Pay On Election Day (May 13, 2019); Sample Computation Based on NCR Minimum Wage of PhP537

Holiday pay should be paid to employee who is required or made to report to work during a special non-working day. The Malacañang issued Proclamation No. 719 declaring May 13, 2019 (Monday), the National and Local Elections, as special (non-working) holiday to “enable the people to properly exercise their right to vote. The following are the rules governing pay to employees during special day and the illustrative computations based on NCR Minimum Wage of P537.00 pursuant to similar rules issued by [...]

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06 May

Expanded Maternity Leave Benefits Granted Under R.A. 11210 and its IRR

Expanded Maternity leave is one of the benefits granted to qualified female employees in both public and private sectors. R.A. 11210 was enacted which generally increased the number of days leave to 105 subject to additional days under certain situations. Recently, the Implementing Rules and Regulations has been issued by the Department of Labor and Employment. Under Section 2 of the IRR, the following benefits are granted under the 105-day Expanded Maternity Law (EMLL) in the private sector: View the Complete PDF [...]

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02 May

13th Month Pay Sample Computation of Employee in NCR who Resigned Before the Year Ends

13th Month Pay is one of the mandatory benefits that should be given to covered employees. Under P.D. 851 all employers are required to pay all their employees, regardless of the nature of their employment, a 13th-month pay not later than December 24 of every year. The question is should this cover all employees such as even those holding supervisory and managerial positions? On August 13, 1986, President Aquino issued Memorandum Order No. 28 modifying P.D. 851 to the extent that [...]

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02 May

Fraud as Ground for Employee Dismissal Under Willful Breach of Trust – Sample Notice of Dismissal for Overpricing Receipts

Fraud, in its general sense, is deemed to com- prise anything calculated to deceive, including all acts, omissions, and concealment involving a breach of legal or equitable duty, trust, or confidence justly reposed, resulting in damage to another, or by which an undue and unconscientious advantage is taken of another. It is a generic term embracing all multifarious means which human ingenuity can devise, and which are resorted to by one individual to secure an advantage over another by [...]

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30 Apr

Labor Day 2019 Holiday Pay Rules Based on NCR Minimum Wage

Labor Day is one of the regular holidays. Hence, a holiday pay should be granted accordingly. May 1, 2019, being Labor Day is a Regular Holiday pursuant to Proclamation No. 555. The Presidential Proclamation was issued on August 15, 2018 declaring May 1, 2019 as regular holiday (Labor Day). On April 29, 2019, the DOLE issued Labor Advisory No. 06, Series of 2019 providing for the rules for pay on regular holidays. Thus, based thereon, below are the illustrative computations: If the employee in NCR did not work [...]

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