Tag - Labor Code

Holiday Pay Rules with Sample Computation for Independence Day Holiday June 12, 2022 Using NCR New Minimum Wage

Holiday pay should be paid accordingly, particularly the regular holiday. On 29 October 2021 a Proclamation No. 1236 was issued, declaring, among others, June 12, 2021 (Sunday) as a regular holiday nationwide. See PDF copy of Proclamation No. 1236 here. On 8 June 2022, the Department of Labor and Employment (DOLE) issued a Labor Advisory 14, Series of 2022 providing for rules on the payment of wages for the regular holiday on 12 June 2022. View the PDF file of the Labor [...]

Loss of Trust and Confidence Based on Employee Position

Loss of trust and confidence is premised on the fact that the employee holds a position whose functions may only be performed by someone who has the confidence of management. Such employee may be managerial or rank-and-file, but the nature of his position determines the requirements for a valid dismissal. With respect to a managerial employee, the mere existence of a basis for believing that such employee has breached the trust of his employer would suffice for his dismissal. Proof beyond [...]

Classes of Positions of Trust

In a case involving breach of trust and confidence, it is required that the employee being investigated holds a position of trust. There are two classes of positions of trust. The first class consists of managerial employees and the second. class consists of cashiers, auditors, property custodians, etc. (Abelardo P. Abel vs. Philex Mining Corporation, G.R. No. 178976, July 31, 2009 citing Mabeza vs. National Labor Relations Commission, G.R. No. 118506, April 18, 1997, 271 SCRA 670, 682.) Managerial employees are [...]

Fraud and Loss of Trust and Confidence

A managerial employee is conferred with full trust and confidence by his employer. While as a manager he could exercise some discretion, such does not cover acts of betrayal of trust and confidence of his employer. He cannot reimburse his family’s personal travel expenses out of company funds. His act amounted to fraud or deceit which led to the loss of trust and confidence of his employer. An employee, the Officer-in-Charge of the company in its boutique misappropriated the amount [...]

Claim of Abandonment vs Claim of Illegal Dismissal

Contrasting allegations may be presented in court involving employee who claims to have been verbally dismissed from service and employer who denies having done so and instead alleges that the employee abandoned his job. If so, how it should be resolved? In the August 2013 case of MZR Industries vs. Colambot, the Supreme Court held, in sum: The Court recognized the rule that in illegal dis- missal cases, the employer bears the burden of proving that the termination was for a valid [...]

Abandonment Requires Notice

Abandonment is a ground for dismissal of employees under Article 297 of the Labor Code, as amended. Being considered as within the context of gross and habitual neglect of duty. However, while abandoning employee is usually not physically available, he should still be served the notices for the dismissal. There is no such thing automatic termination for abandonment. An employee whom the employer deems to have abandoned his work cannot be automatically terminated. Due process is required in order for the [...]

Filing of Illegal Dismissal as Against Denial of Termination in Abandonment Cases

Substantial evidence proffered by the employer that it had not terminated the employee should not be ignored on the pretext that the employee would not have filed the complaint for illegal dismissal if he had not really been dismissed. The Court held that such non sequitur reasoning cannot take the place of the evidence of both The lapse of time between the dismissal of an employee for abandonment and the filing of a complaint for illegal dismissal is not a [...]

How to Correct Wage Distortion

Wage Distortion is a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation. Wage distortion means the disappearance or virtual disappearance of pay differentials between lower and higher positions in an enterprise because of [...]

Evidence Required in Abandonment Cases

Abandonment of work is a ground for dismissal under Article 297 of the Labor Code, as amended. However, is mere claim of abandonment already substantial evidence to support the dismissal? The issue of whether the employee has abandoned his work is factual. The law does not enumerate what specific overt acts can be considered as strong evidence of the intention to sever the employer-employee relationship. Failure of the employer to present attendance record even when this was readily available to it could [...]

Separation Pay Cannot be Awarded to Employee Dismissed for Gross and Habitual Neglect of Duty; Other issues on this ground

Gross and habitual neglect of duty is one of the grounds for dismissal under Article 297 of the Labor Code, as amended. In certain termination, employee is entitled to payment of separation pay. This applies to grounds found under Article 298 of the Labor Code such as installation of labor saving devices, redundancy, retrenchment, and closure. But this does not apply to dismissal due to the fault of the employee like those grounds in Article 297. In one case, in view of [...]

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