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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 [...]

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 [...]

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