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COMMISSION CAN BE FORFEITED BY EMPLOYER

If Agreed Upon in an Employment Agreement, Commission can be Forfeited upon Violation of Non-Compete Clause In an employment agreement, the Mr. Babiano agreed that in case of violation of the non-compete clause, his sales commission can be forfeited. During the time of his employment with Century Properties, he admitted having applied and worked for a competitor. Hence, his commission was forfeited as agreed upon. He filed a complaint claiming for his commission. But the Supreme Court declared that forfeiture was [...]

MINIMUM WAGE EARNERS WHO SUFFERED DEDUCTION FOR THE PERIOD JANUARY TO JULY 2008 ARE ENTITLED TO TAX REFUND

On July 6, 2008, R.A. 9504 took effect giving tax exemption on Minimum Wage Earners (MWE). The BIR required that those exempted should still pay tax from January 1, 2008 to July 5, 2008, or the so-called pro-rated application, prior to the effectivity of tax exemption law for MWE. Is the BIR correct in pro-rating the tax exemption? No. The Supreme Court said that there is no reason to make a distinction between the income earned prior to the effectivity of [...]

PREGNANCY OUT-OF-WEDLOCK IS NOT IMMORALITY TO CAUSE EMPLOYEE DISMISSAL

The Supreme Court, in the case of Capin-Cadiz vs. Brent Hospital and Colleges, Inc. (G.R. 187417, February 24, 2016) was presented with an issue on whether pregnancy out-of wedlock is immorality which can be used as ground for dismissal of an employee. The facts of the case reveal that Cadiz was the Human Resource Officer of Brent Hospital and Colleges, Inc. (Brent) at the time of her indefinite suspension from employment in 2006. The cause of suspension was Cadiz’s Unprofessionalism [...]

USING A FACTOR TO CONVERT MONTHLY PAY TO DAILY EQUIVALENT (Part 1)

Based on this new NCR daily minimum wage of P491.00, how is the monthly equivalent computed? Some employers refer to either 22 days or 26 days, depending on whether they require work on a Saturday or not. The proper way to determine is to use the factor or divisor. Thus, the equivalent monthly minimum wage shall depend upon the number of days considered as days worked in a year. This is known as the factor. Thus, factors like 313 days, 365 [...]

MINIMUM WAGE EARNERS DO NOT LOSE MWE STATUS EVEN IF GIVEN OTHER BENEFITS

The Supreme Court, in the case of Soriano vs. Secretary of Finance (G.R. No. 184450, January 24, 2017) resolved the query as to whether Sections 1 and 3 of RR 10-2008 are consistent with the law in declaring that a Minimum Wage Earner (MWE) who receives other benefits in excess of the statutory limit of P30,000 is no longer entitled to the exemption provided by R.A. 9504, is consistent with the law. The impact of MWEs not being exempted is that [...]

SAMPLE STATEMENTS OF LEADERSHIP IN CODE OF DISCIPLINE

One of the important components of Code of Discipline is the Statement of Leadership as it serves as a corporate compass for employees on company’s values and principles. Sample statements of leadership and management’s expression of a need in formulating the Code of Discipline: “It is the company policy to maintain harmonious relationship between the company and employees, officers and subordinates, and between and among employees. To this end, the Code of Discipline (Code) is issued as a form of disciplinary measure [...]

PROPORTIONALITY RULE IN EMPLOYEE DISCIPLINE

The penalty contained in the Code of Discipline should follow the rule of reasonable proportionality which dictates that the penalty that should be imposed should be directly proportional to the gravity of the offense committed, fully taking into account the attendant environmental circumstances in each case. In Caltex Refinery Employees Association vs. NLRC and in the subsequent case of Gutierrez vs. Singer Sewing Machine Company, it was held that even when there exist some rules agreed upon between the employer [...]

by Atty Elvin B Villanueva

CHARACTERISTICS OF A CODE OF DISCIPLINE (Second of Two Parts)

In continuation, other characteristics of a Code of Discipline are: It is lawful and is not contrary to any law, moral, good custom, public order or public policy. It is reasonable. It will not cause undue prejudice. It will not cause great inconvenience to employees. It is made known to employees. It has been communicated to employees, either through a document, online or intranet, or any other forms of transmitting the document. In this case, the employer may utilize written undertaking that [...]

CHARACTERISTICS OF A CODE OF DISCIPLINE (First of Two Parts)

The following are some of the characteristics of a Code of Discipline: The Code is not a standalone object in the workplace. It is integrated and even forming part of the company’s well being. It is aligned with the purpose of the organization. It allows employees to behave in a way that is consistent with the values of the organization and in line with its laws and regulations. Being a common expression of aspiration and guiding principles, it is a collaborative [...]

LIMITATIONS OF MANAGEMENT PREROGATIVES

As a matter of general principle, the Court upholds these management prerogatives so long as they are exercised in good faith for the advancement of the employer’s interest and not for the purpose of defeating or circumventing the rights of the employees under special laws and valid agreements. As long as the company’s exercise of management prerogatives is in good faith in order to advance its interests and not for the purpose of defeating or circumventing the rights of the [...]

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