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Labor Law

30 Mar

Lone Grant of Optional Retirement may not Establish Company Practice

Maureen Perez wanted to retire from employer CII. But it was denied. She asked CII to reconsider its stand and she cited names of former employees who were allowed to optionally retire and who were given separation pays even if they were managerial employees. Still, CII was not convinced. Perez filed a complaint with the NLRC for discrimination, moral damages and attomey’s fees against and praying for separation pay in the form of optional retirement benefits, either under the Retirement [...]

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28 Mar

In Case Where there was No Dismissal and No Abandonment of Work, the Employee Should be Reinstated

If Reinstatement is not Possible, Grant Separation Pay The employer denies having dismissed the employee and the worker also denies having abandoned his work. How should this situation be resolved? This is the case of Dee Jay’s Inn and Cafe vs. Rañeses. The Court held in this case that where the employee was neither found to have been dismissed nor to have abandoned his/her work, the general course of action is for the Court to dismiss the complaint, direct the employee to [...]

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27 Mar

GAMBLING AS GROUND FOR DISMISSAL

Dante M. Sarosal, Francisco Dumagal. Jr., Nelson E. Francisco, Elmer C. Saromines and Samuel D. Coronel were employed by Universal Canning on various capacities. They were caught by the company’s Purchasing Officer, Falconieri Almazan, playing cards at the company’s premises during working hours. The incident was immediately reported by Almazan to the Personnel Officer, Ma. Lourdes Losaria, who immediately conducted an investigation to determine the names and of those who were involved in the gambling activities. On the same day, they [...]

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26 Mar

PAY RULES DURING HOLYWEEK

Two days of the Lenten season are considered regular holidays. Maundy Thursday and Good Friday are paid twice whenever the employee reports for work.          However, there are employees who prefer to be absent to spend time with their loved ones, usually in the provinces. How should the holiday pay be computed and other related benefits? If the employee works on both days, then he should be paid twice his daily rate. If he does not work, he is generally entitled [...]

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25 Mar

Transfer that Results in Promotion may be Refused by Employee

The employer wants to transfer the employee to another position. However, such position results in promotion of employee. Is it still management prerogative such that the employee can be charged with insubordination for refusal? The Supreme Court held that the offer of transfer is, in legal contemplation, a promotion, which the employees validly refused. Such refusal cannot be the basis for employees’ dismissal from service. Citing Coca-Cola Bottlers Philippines, Inc. vs. Del Villar the management has the prerogative to transfer or assign [...]

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23 Mar

Merger of Companies does not result in Implied Dismissal of Employees; Hence, there is no Separation Pay

The merger of Unocal Corporation with Blue Merger and Chevron does not result in an implied termination of the employment of union members. Assuming the company is a party to the merger, its employment contracts are deemed to subsist and continue by “the combined operation of the Corporation Code and the Labor Code under the backdrop of the labor and social justice provisions of the Constitution. The union insists that this is contrary to its freedom to contract, considering its members [...]

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22 Mar

Terminated due to Mismatched Feng Shui Aura with Employer

Loreta Yung, an administrative manager at Wensha, complained that she was terminated because her aura is a mismatch to that of her employer. Wensha however, denied having terminated her on this ground. Wensha insisted that Loreta was terminated for loss of trust and confidence. However, the Supreme Court found Loreta’s complaint credible. There is consistency in her pleadings and evidence. In contrast, Wensha’s pleadings and evidence, taken as a whole, suffer from inconsistency. Moreover, the affidavits of the employees of Wensha only pertain [...]

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21 Mar

Effect of Acquittal from Criminal Case on Labor Case

The company dismissed the employee for theft. The latter filed and illegal dismissal case. However, the company filed a criminal case against the employee. The worker was acquitted in the criminal case. Should the dismissal of employee be also be considered as without basis thus, illegal? The Supreme Court held that the filing of the complaint by the public prosecutor is sufficient ground for a dismissal of an employee for loss of trust and confidence. Related: Loss of Trust and Confidence The evidence [...]

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20 Mar

Distributor Guidelines to Increase Sales and Maximize Profits cannot be considered as Labor-Only Contracting

Nestle Philippines, Inc. (NPI) engaged Ocho De Septiembre, Inc. (ODSI) as its distributor. Complainants alleged that on various dates, ODSI and NPI hired them to sell various NPI products in the assigned covered area. After some time, respondents demanded that they be considered regular employees of NPI, but they were directed to sign contracts of employment with ODSI instead. When complainants refused to comply with such directives, NPI and ODSI terminated them from their position. Thus, complainants were constrained to file [...]

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