Labor Law

Retirement Pay Under the Labor Code Sample Computation

Retirement has been defined as a withdrawal from office, public station, business, occupation, or public duty. [Brion vs. South Philippine Union Mission Of The Seventh Day Adventist Church, G.R. No. 135136 May 19, 1999] It is the result of a bilateral act of the parties, a voluntary agreement between the employer and the employee whereby the latter, after reaching a certain age, agrees and/or consents to sever his employment with the former. [Soberano vs. Secretary of Labor, 99 SCRA 558 [...]

Employer Employee Relationship Issue in a Labor Dispute

While the Labor Arbiter (LA) has no jurisdiction over dispute that does not arise from employer-employee relationship, the determination of whether such relationship exists lies with the LA also. In the case of Atok Big Wedge Company, Inc. vs. Gison (G.R. No. 169510, August 8, 2011), the Supreme Court (SC) held that well-entrenched is the doctrine that the existence of an employer-employee relationship is ultimately a question of fact and that the findings thereon by the Labor Arbiter and the [...]

Nature of Bonus as a Management Prerogative and Concept of Past Generosity Against Background of Losses

During Christmas season one of the benefits enjoyed is the Christmas Bonus. Is this a demandable and enforceable benefit? The Supreme Court (SC) said that a bonus is an amount granted and paid to an employee for his industry and loyalty which contributed to the success of the employer’s business and made possible the realization of profits. [Producers Bank of the Philippines vs. NLRC, G.R. No. 100701, March 28, 2001] It is an act of generosity granted by an enlightened employer [...]

Illegal Wage Deductions from Employee’s Salary Should be Reimbursed by Employer

There are employers who deduct from the wages of their employees. Some of these are illegal. In one case, the employer deduct from the wage constituting penalties for deliveries outside of the delivery hours, cell phone plans, bad orders and liquidation shortage. [Marby Food Ventures Corporation vs. Dela Cruz, G.R. No. 244629, July 28, 2020] It is clearly stated in Article 113 of the Labor Code that no employer, in his own behalf or in behalf of any person, shall make [...]

Sample 13th Month Pay Computation using NCR Minimum Wage for Year 2022

Sample computation of the 13th month pay mandatory benefit is shown here to guide both the employer and employee especially that the date of payment under the law is getting closer. Under P.D. 851, all employers are required to pay all their employees receiving a basic salary a 13th-month pay not later than December 24 of every year. Memorandum No. 28 modified Section 1 of P.D. 851 to the extent that all employees are hereby required to pay all their [...]

13th Month Pay Labor Advisory PDF for the Year 2022

13th month pay shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year. (See Guide on Employee Compensation and Benefits Vol. 2, 2nd Edition, by Atty. Elvin B. Villanueva citing Section 2, Rules and Regulations Implementing Presidential Decree No. 851). This shall apply only to rank-and-file employees. A rank-and-file employee must have worked for at least one (1) month to enjoy the 13th-month pay benefit. As clearly stated by law, except as provided in [...]

Notice Requirement and Compelling Economic Reason in Bona Fide Suspension of Operations

The suspension of employment under Article 301 of the Labor Code is only temporary and should not exceed six months, as the Supreme Court (SC) explained in PT&T Corp. vs. National Labor Relations Commission, it may be applied but only by analogy to set a specific period that employees may remain temporarily laid-off or in floating status. Six months is the period set by law that the operation of a business or undertaking may be suspended thereby suspending the employment [...]

Labor Advisory on the Voluntary Wearing of Face Mask

Pursuant to Executive Order No. 07 issued by President Ferdinand Romualdez Marcos, Jr. on 28 October 2022, Article 168 of the Labor Code of the Philippines, as amended, and Republic Act No. 11058. On the part of the Department of Labor and Employment (DOLE) it issued Labor Advisory 22, Series of 2022 as guidelines on the implementation of EO 7. See the salient points on Executive Order No. 07 and the PDF copy here (original file not mine). The said Labor Advisory [...]

Voluntary Wearing of Face mask in the Workplace

Malacañang issued Executive Order (EO) No. 07 allowing voluntary wearing of face masks in indoor and outdoor settings, reiterating the continued implementation of minimum public health standards during the state of public health emergency relative to the COVID-19 pandemic. This is pursuant to Section 15, Article II of the 1987 Constitution providing that the State shall protect and promote the right to health of the people and instill health consciousness among them. The decision arises from a result of continued immunization, [...]

Compensable Illness with SSS for Local Employment

The Labor Code defines sickness as “any illness definitely accepted as an occupational disease listed by the Commission, or any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions.” [Title II, ch. 1, att. 173(1), cited in the case of Social Security System vs. Simacas, G.R. No. 217866, June 20, 2022] To be compensable, the Implementing Rules of Presidential Decree No. 626 states that the sickness and the resulting death [...]

error: Content is protected !!