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Labor Law

14 Apr

A Contractor is Presumed as Labor-Only Contractor

Diamond Farms, Inc. (DFI) and Diamond Farms Agrarian Reform Beneficiaries Multi-Purpose Cooperative (DARBMUPCO) entered into a Banana Production and Purchase Agreement (“BPPA”) to grow and cultivate only high grade quality exportable bananas to be sold exclusively to DFI. The BPPA is effective for 10 years. DARBMUPCO and DFI executed a “Supplemental to Memorandum Agreement” (“SMA”). The SMA stated that DFI shall take care of the labor cost arising from the packaging operation, cable maintenance, irrigation pump and irrigation maintenance that [...]

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12 Apr

Part Time Employees are Entitled to Retirement Benefits

Juanito Bernardo filed a complaint against DLS-AU for the payment of retirement benefits. Bernardo alleged that he started working as a part-time professional lecturer at DLS-AU (formerly known as the Araneta University Foundation) on June 1, 1974. Bernardo’s teaching contract was renewed at the start of every semester and summer. However, on November 8, 2003, DLS-AU informed Bernardo through a telephone call that he could not teach at the school anymore as the school was implementing the retirement age limit [...]

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12 Apr

DOLE Findings Should Contain Determination of Employer-Employee Relationship

Under Article 128 of the Labor Code, the Secretary of Labor, or any of his or her authorized representatives, is granted visitorial and enforcement powers for the purpose of determining violations of, and enforcing, the Labor Code and any labor law, wage order, or rules and regulations issued pursuant thereto. Indispensable to the DOLE’s exercise of such power is the existence of an actual employer-employee relationship between the parties. The power of the DOLE to determine the existence of an [...]

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11 Apr

Totality of Infractions Principle in Labor Cases

Cebu People’s Multi-purpose Cooperative (CPMPC) hired Carbonilla, Jr. as a Credit and Collection Manager and, as such, was tasked with the handling of the credit. and collection activities of the cooperative, which included recommending loan approvals, formulating and implementing credit and collection policies, and conducting trainings. Sometime in 2007, CPMPC underwent a reorganization whereby Carbonilla, Jr. was also assigned to perform the duties of Human Resources Department (HRD) Manager, i.e., assisting in the personnel hiring, firing, and handling of labor [...]

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09 Apr

Inability to Stop Over Withdrawals of Company Fund under one’s watch is Gross and Habitual Neglect of Duty

Balagtas Credit Cooperative and Community Development, Inc. (BCCCDI) initially hired Emma H. Quiro-quiro (Quiro-quiro) as accountant/bookkeeper in 1989. However, sometime in April 2010, BCCCDI terminated the employment of Quiro-quiro, who was then holding the concurrent posts of General Manager and Accountant, on the grounds of “gross negligence/violation of company rules” and “gross dishonesty.” The charges involve over withdrawal of Time Deposit (TD), Loss of borrower’s title, over computation of interest on TD placements, Unfair filing of delinquent accounts, Concealment of the [...]

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05 Apr

Abandonment of Work is a Matter of Intention and Cannot be Presumed from Indefinite Acts

In order for the employer to discharge its burden to prove that the employee committed abandomnent, which constitutes neglect of duty, and is a just cause for dismissal, the employer must prove that the employee failed to report for work or had been absent without valid reason; and had a clear intention to discontinue his or her employment The second requirement must be manifested by overt acts and is more determinative in concluding that the employee is guilty of abandonment. This is because [...]

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04 Apr

Registration or Remittance with SSS as employer is an admission of employment relationship

Tirso Enopia and others were hired as crew members of the fishing mother boat FIB MG-28 owned by respondent Joaquin “Jake” Lu who is the sole proprietor of Mommy Gina Tuna Resources [MGTR] based in General Santos City. The parties had an income-sharing arrangement wherein 55% goes to Lu, 45% to the crew members, with an additional 4% as “backing incentive.” They also equally share the expenses for the maintenance and repair of the mother boat, and for the purchase [...]

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03 Apr

DOLE Requires Companies to Include in their Code of Conduct/CRR the Analogous Causes for Termination

The Labor Code enumerates the ground for dismissal of employees under Article 297 [formerly Article 282]. The enumeration is general in nature which means it does not identify the particular acts that will be just cause for employee’s dismissal. In such general enumeration, the law provides other grounds similar to each in the list referred to as “analogous cause.” What is analogous to those enumerated is often a contested issue. Analogous causes must have an element similar to those found in [...]

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02 Apr

The DOLE Decision Should Contain Findings of Employer-Employee Relationship

The DOLE conducted a Complaint Inspection at the premises of DXCP Radio Station, which is owned by South Cotabato Communications Corporation. The inspection yielded a finding of violation of labor standards provisions of the Labor Code involving the nine (9) private respondents. Consequently, the DOLE issued a Notice of Inspection Result directing South Cotabato Communications Corporation, to effect restitution and/or correction of the alleged violations within five (5) days from notice. Due to South Cotabato Communications Corporation failure to comply [...]

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31 Mar

A Supervisory Employee is still Liable for his Failure to Perform his Duties when Company Property gets Stolen Under his Watch

Angelito Publico was employed to work at Cardinal Santos Memorial Center (CSMC) in 1989, and was the hospital’s Chief of Blood Bank Section, Laboratory Department when he was dismissed from employment by Hospital Managers, Inc. (HMI) in 2008. The dismissal was founded on Publico’s gross and/or habitual negligence, as penalized under the provisions of the HMI’s Code of Discipline for employees, and indicated in an inter-office memo that directed Publico to answer the charges. Prior to Publico’ s dismissal, HMI discovered [...]

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