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Labor Law

18 Jul

Compensation and Benefits on Statutory Standpoint

Compensation and benefits program inside the company is a challenging task. Not only the this plan should attract, retain, and motivate employees but it must also comply with what is provided by law. The objective generally is just to pay according to the purpose and not to underpay or overpay. The post below is based on the book Guide on Employee Compensation and Benefits Volume One. The law on compensation and benefits mandated under the Labor Code provides only the minimum requirements. Companies [...]

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16 Jul

Serious Misconduct: Cases Where Supreme Court Held as Serious Misconduct

Serious misconduct is one of the grounds for employee dismissal. While the law and jurisprudence provided the requisites, it is often difficult to exactly identify situations involving serious misconduct. Thus, as a guide, below are the instances where the Supreme Court held that acts involved serious misconduct. The post is based on the book Guide to Valid Dismissal of Employee Second Edition. A series of irregularities may constitute serious misconduct. Thus, in Gustilo vs. Wyeth Phils.  where the employee committed the [...]

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13 Jul

Serious Misconduct Requisites to be Just Cause of Dismissal

Serious misconduct is one of the grounds for termination of employee. However, there are requisites which must be present before this can be validly used as substantive basis for dismissal. The following post is based on the book Guide to Valid Dismissal of Employees Second Edition (pp. 116-) by Atty. Elvin B. Villanueva. The misconduct, to be serious within the meaning of the Labor Code must be of such grave and aggravated character and not merely trivial or unimportant. Such misconduct, however [...]

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12 Jul

Misconduct can Result in Employee Discipline

Misconduct covers a wide range of behavior that is considered punishable under the company’s code of discipline. The post below is based on the book Guide to Valid Dismissal of Employees Second Edition (pp. 114-115). As provided under Article 282, the misconduct referred to must be serious in nature. The Supreme Court defines misconduct as follows: “Misconduct is improper or wrong conduct. It is the transgression of some established and definite rule of action, a forbidden act, a dereliction of duty willful in character, [...]

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11 Jul

Termination of Employee must be based on Lawful Ground

Termination is one of the most disputed aspect of employment relationship. Workers who have been through this experience had untold suffering while employers who made a mistake of illegally terminating employees have paid substantial amount of money. Just cause for the dismissal of employees or authorized cause for termination must be observed prior removal. For the HR practitioner involved in employer relations, it is paramount to know the basic concept of each ground for dismissal enumerated in Article 282 [now Article 297] [...]

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09 Jul

Transfer of Employee and Constructive Dismissal

Transfer of employee, no doubt, is part of management prerogatives. However, this should be done due to exigencies of business and in good faith. Otherwise, this can result in constructive dismissal. The managerial prerogative to transfer personnel must be exercised without grave abuse of discretion, bearing in mind the basic elements of justice and fair play. Having the right should not be confused with the manner in which that right is exercised. Read the book on 44 Rules on Employee Transfer [...]

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07 Jul

Constructive Dismissal

Constructive dismissal is an illegal form of dismissal which does not involve any written or verbal statement that the employee is dismissed from service. But the treatment on the employee by the employer is inhumane, prejudicial, and inconvenient such that the former is left with no choice but to involuntarily quit his work. The post below is based on the book Guide to Valid Dismissal of Employees Second Edition. Constructive dismissal is defined as quitting or cessation of work because continued [...]

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06 Jul

Regular Employment Rules (Part 3 of 3)

Regular employment has two kinds: 1. Performance of activities which are usually necessary or desirable in the usual business or trade of the employer;  and, 2. Rendering service at least one (1) year of service whether continuous or broken with respect to the activity workers are employed. This is the final part of the post on regular employment based on the book Guide to Valid Dismissal of Employees Second Edition by Atty. Villanueva. In tandem with Article 2811 of the Labor Code, Article [...]

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06 Jul

Regular Employment Rules (Part 2 of 3)

Regular employment is a form of employment where employees are accorded the security of tenure under Article 279 [now 294] of the Labor Code, as amended. Get an updated/re-numbered copy of the Labor Code 2017 by Atty. Elvin Why is it important to know whether the position is regular or not? Regular employees can only be dismissed based on just or authorized cause or those provided under the Labor Code. Non-regular workers may be separated from the company for failure to [...]

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04 Jul

Regular Employment Rules (Part 1 of 3)

Regular employment is one of the forms of employment under Article 280 [now Article 295] of the Labor Code, as amended. The rules are discussed below. Get an updated copy of the re-numbered Labor Code 2017 The discussion is based on the book Guide to Valid Dismissal of Employees Second Edition (pp. 92-94). The nature of one’s employment does not depend on the will or word of the employer. Nor on the procedure of hiring and the manner of designating the employee, [...]

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