THE LABOR CODE MADE EASY

Atty. PoL Sangalang’s

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3 TRIVIA ABOUT THE LABOR CODE

It’s a martial law era Presidential Decree, but it’s authored by a non-lawyer.

It’s all about Employment, but it’s mainly about traditional or industrial work arrangements.

It’s the principal source of Labor Law, but it’s not the only source.

3 FACTS ABOUT EMPLOYMENT

Ignorance of Labor Law isn’t an excuse.

Employment is a Contract; but it’s a contract so impressed with public interest that it must yield to the common good.

Ownership of the enterprise makes the employment relations lopsided in favor of employers.

3 FUNDAMENTALS OF LABOR LAW

It’s ultimate purpose is to place employees at an equal footing with their employers.

It’s all about minimum standards and basic requirements.

In case of doubt, it’s to be interpreted in favor of employees (Article 4, Labor Code).

3 BASIC RIGHTS OF EMPLOYEES

Freedom from Slavery (Constitution). Enhanced by Security of Tenure. Enhanced by Due Process.

Self-Organization (Constitution & Labor Code).

Labor Standards (Labor Code & other statutes). Non-discrimination and equal opportunity. Terms and conditions of employment.

3 BASIC RIGHTS OF EMPLOYERS

Ownership (Constitution and Civil Code). ROI, expansion and growth (fruits). Use and abuse; and sell and dispose.

Contracts (Constitution and Civil Code). Includes Selection and Termination.

Control (or Management Prerogative).

3 SOURCES OF LABOR LAW

The State (i.e. Labor Code and other statutes, rules & regulations, jurisprudence, etc.).

The Parties (i.e. contracts, company policies, CBAs, compromise, quitclaims, etc.)

Principles of Equity (e.g. good faith, reasonableness, proportionality, non-diminution of benefits, unjust enrichment, etc.)

3 CASES IN POINT (SOURCES OF LABOR LAW)

BPI Employees Union versus BPI, G.R. No. 174912, July 24, 2013.

BPI’s policy of contracting out cashiering and bookkeeping services was considered as a valid exercise of management prerogative which is further authorized by the Central Bank in CBP Circular No. 1388, Series of 1993.

Rules & regulations are labor law sources.

3 CASES IN POINT (SOURCES OF LABOR LAW)

Zuellig Pharma Corp. versus Sibal, et. al., G.R. No. 173587, July 15, 2013.

The collective bargaining agreement (CBA) is the law between the parties.

The complaining employees are not entitled to the monetary equivalent of their unused sick leave credits because the CBA, the existing company policies, and the quitclaims do not cover them.

Contracts are labor law sources.

3 CASES IN POINT (SOURCES OF LABOR LAW)

Abbott Laboratories Phils. versus Alcaraz, G.R. No. 192571, July 23, 2013.

Abbott was held liable for P30,000 as indemnity because it failed to comply with its own procedural process in terminating probationary employees.

But the company officers were not held liable because there was no proof that they acted in bad faith or were motivated with ill-will.

Principles of equity are labor law sources.

3 TIPS ON ENHANCING KNOWLEDGE

Engage labor law like you’re playing a game.

Read the Bible and live the Golden Rule.

D.O.C.U.M.E.N.T. (© 2013)

HOW TO D.O.C.U.M.E.N.T. (© 2013)D ocumentation, documentation,

documentation!!! O pen-mindedness.C larity.U nderstand LR.M aster HR.E mbrace best practices.N egotiate, negotiate, negotiate!!!T ake advice only from experts.

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