Tag - labor law

Sample Project Employment Contract in Filipino / Tagalog

Project employment is one of the exceptions to regular employment under Article 295 of the Labor Code, as amended. As a rule, an employment is deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer. However, employment may be made for a particular project or undertaking the duration of which is made known to the employee at the time of engagement. The “project” [...]

Specification of the Project Must Better Seen in Project Employment Contract

Under Article 295 of the Labor Code, as amended, an employment is deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer. The “project” for the carrying out of which “project employees” are hired would ordinarily have some relationship to the usual business of the employer. (Toyo Seat Philippines Corporation vs. Velasco, G.R. No. 240774, March 03, 2021) Exceptionally, the “project” undertaking might [...]

Mindset in Crafting Project Employment Contract with Partial Sample Template

Employers should be careful in crafting project employment contract as to ensure that there is no ambiguity in the terms agreed upon and the legal requirements are all present. Under Article 295 of the Labor Code, as amended, an employment is deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer. There is an exception. One of which is where the employment has [...]

Standards to Observe in Alleging Offenses in the Notice to Explain

Issuance of the Notice to Explain (NTE) is one of the steps required in employee dismissal. At least, insofar as avoiding payment of indemnity is concerned for violation of procedural due process. Not observing the proper NTE may also impress upon the tribunal the haphazard nature of the employer in issuing such legal requirement. The last thing that an employer, as respondent in a case, wants is to have a wrong impression in the eyes of the labor tribunal. So, should [...]

Diminution in Rank or Diminution of Responsibilities

Diminution is usually associated with benefits. However, in a Supreme Court (SC) decision, the concept of diminution in rank or diminution of responsibilities was established. In the case of Isabela-I Electric Coop, Inc. vs. Del Rosario (July 17, 2019, G.R. No. 226369), the SC discussed diminution in rank of employee whose position was changed from Internal Audit Manager to Area Manager. Although the employee’s position bears the appellation “manager,” the responsibilities he used to discharge as manager in his former position [...]

Resignation and Illegal Dismissal

While the rules on resignation is settled, especially under Article 300 of the Labor Code, as amended, in actual situations, resignation is a confused subject matter especially if attended with claim of illegal dismissal. So, what is the legal perspective on this matter? It is good to revisit the 2020 case of Italkarat 18, Inc. vs. Gerasmio, G.R. No. 221411, September 28, 2020. The Supreme Court (SC) held that the fact of dismissal must first be proven, especially considering the existence [...]

Affidavit as Evidence in Labor Cases

Affidavit may be admissible in evidence even in labor cases. Case in point is the holding of the Supreme Court in the case of JR Hauling Services vs. Solamo, (G.R. No. 214294, September 30, 2020) The employer in such case holds the employees liable for the shortages in the delivery of broilers, sale of live chickens and other relate irregularities in the farm. The employer, on this point, bring to fore sworn statements or affidavits of several individuals to corroborate the fact [...]

Good Faith of the Employer is Required in Redundancy Program

Under Article 298 (formerly 283) of the Labor Code, redundancy is recognized as an authorized cause for dismissal, viz.: Article 298 [283]. Closure of Establishment and Reduction of Personnel. – 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 the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving [...]

Employer may Resort to Redundancy since it has no legal obligation to keep more employees than are necessary

Redundancy exists when the service capability of the workforce is in excess of what is reasonably needed to meet the demands of the business enterprise. A position is redundant where it had become superfluous. Superfluity of a position or positions may be the outcome of a number of factors such as over-hiring of workers, decrease in volume of business, or dropping a particular product line or service activity previously manufactured or undertaken by the enterprise. A valid redundancy program must comply [...]

Redundancy Scheme is Ineffective if there is no Power to Terminate Services

Redundancy is one of the grounds to terminate services under authorized cause in Article 298 of the Labor Code, as amended. Termination letter is usually signed by the individual holding the authority to execute the act. However, in the case of Alfredo American Power Conversion Corporation, et al. vs. Lim, G.R. No. 214291, January 11, 2018, the Supreme Court held, in part, that the termination is ineffective where there is no authority to effect redundancy. In this case, the employee, Lim [...]

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