Labor Law

Retrenchment without Notice Grants Employees Award of Nominal Damages

Retrenchment is a management prerogative consistently recognized and affirmed by this Court. It is, however, subject to faithful compliance with the substantive and procedural requirements laid down by law and jurisprudence. [EMCO Plywood Corporation vs. Abelgas, 427 SCRA 496, 511 (2004)] Article 283 of the Labor Code provides, that the employer may also terminate the employment of any employee due to the installation of labor saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of [...]

How to Compute Holiday Pay for November 1, 2022

Special days under R.A. 9492 include the last day of the year obviously falling on December 31. On December 28, 2017, R.A. 10966 was declared as a special non-working holiday in the entire country to commemorate the Feast of Immaculate Concepcion of Mary. With this, it connects with the holidays declared under Proclamation No. 1236 declaring 1 November 2022 (All Saint’s Day) and 2 November 2022 (All Soul’s Day). 2 November 2022 is a special working day. Here is a copy [...]

Employment Contract as Contract of Adhesion and the Dangers of Default Interpretations in Favor of Employees

A contract of adhesion, wherein one party imposes a ready-made form of contract on the other, is not strictly against the law. A contract of adhesion is as binding as ordinary contracts, the reason being that the party who adheres to the contract is free to reject it entirely. (Cabanting vs. BPI Family Savings Bank, Inc., February 17, 2016, G.R. No. 201927) Further, in labor context, a contract of adhesion is defined as one in which one of the parties [...]

How to Compute Special Day Pay for October 31, 2022

Special days under R.A. 9492 include the last day of the year obviously falling on December 31. On December 28, 2017, R.A. 10966 was declared as a special non-working holiday in the entire country to commemorate the Feast of Immaculate Concepcion of Mary. On 11 October 2022, the President declared October 31, 2022 (Tuesday) as Nationwide Special Day. With this, it connects with the holidays declared under Proclamation No. 1236 declaring 1 November 2022 (All Saint’s Day) and 2 November 2022 [...]

Effects of a Fixed Term Contract that is Vague or Ambiguous

The employment status of a person is defined and prescribed by law and not by what the parties say it should be. In this regard, Article 295 of the Labor Code “provides for two types of regular employees, namely: (a) those who are engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer (first category); and (b) those who have rendered at least one year of service, whether continuous or [...]

Supremacy of the Labor Laws over the Nomenclatures in Employment Contracts

The supremacy of the law over the nomenclature of the contract and the stipulations contained therein is to bring to life the policy enshrined in the Constitution to afford full protection to labor.  Labor contracts, being imbued with public interest, are placed on a higher plane than ordinary contracts and are subject to the police power of the State. (GMA Network, Inc. vs. Pabriga, .R. No. 176419. November 27, 2013) Thus, in a claim of complainants that they are regular [...]

Presumption of Regular Employment and Acceptability of Fixed Term Engagement

The employment status of a person is defined and prescribed by law and not by what the parties say it should be. (Regala vs. Manila Hotel Corporation, G.R. No. 204684, October 05, 2020) In this regard, the Supreme Court (SC) heldin Regala that, Article 295 of the Labor Code provides for two types of regular employees, namely: (a) those who are engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer (first [...]

Regular Employment and Necessity to be Covered by Employment Contract

Most business owners, HR practitioners, and managers know that when an employee is of regular status he does not need a written contract to be entitled to the benefits. This brings the issue of whether it still makes sense to execute a written agreement that such an employee is already of regular status. It is my view that there is still a need to execute the Regular Employment Contract with employee who is able to attain the regular status. The reason [...]

Admission by Silence in Labor Case

Admission by silence can be taken against the one who slept on the right to speak against the declaration. Thus, when an illegal dismissal case is filed against the company, but the company denies having dismissed the employee, should the company first prove that there was no illegal dismissal in this case? The rule is that “in illegal dismissal cases, the burden of proof is on the employer in proving the validity of dismissal. However, the fact of dismissal, if disputed, [...]

Casual Employment and the Importance of Having a Good Contract

An employment shall be deemed to be casual if the employee has not been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, regular, project, or seasonal employee. It is one of the exceptions to the rule on regular employment under Article 295 which states that the provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to [...]

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