LABOR LAW COMPLIANCE

LABOR LAWCOMPLIANCE SYSTEMAN INTRODUCTION

Atty. Jericho B. Del PuertoBusiness Law and Legal ConsultantJDP Cosulting Ltd. Co.www.legalaspects.ph

INTRODUCTIONwhat is the labor law compliance system?

WHAT IS LLCS ABOUT?The Labor Laws Compliance System (LLCS) refers to the in-tegrated framework of voluntary compliance and enforce-ment of labor laws and social legislations issued pursuant to the rule-making, visitorial and enforcement power of the DOLE Secretary.

The LLCS is designed to assist employers with their labor law compliance.

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Section 1(p), Rule I.

WHO IMPLEMENTS THE LLCS?Assessment ChecklistNotice of ResultsWSO Recommendations

Work Stoppage Order (WSO)Mandatory ConferenceCertificates of Compliance


3 MODES OF IMPLEMENTING THE LLCS

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Section 1 and 1(o), Rule III.

Joint Assessment Compliance Visit Occupational Safety& Health Standards

The employer or management itself requests assistance fromDOLE to assess their establish-ment for labor law compliance.

Initiated via:

1. SENA Referral*

2. Labor Complaint

*Single Entry Approach

Initiated via:

1. Existence of Imminent Danger

2. Dangerous Occurrences

3. Accident Resulting in Disabling Injury 4. OSHS violations committed in plain view or in the presence of the LLCO

CERTIFICATE OF COMPLIANCE (COC)

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 1, Rule VII.

COC on General Labor Standards (GLS)

COC on Occupational Safety and Health Standards (OSHS)

COC Labor Standards for Public Transport Utilities (PTU)

COC for Domestic Ships or Vessels (DSV)

2-year Assessment Free Compliance Visit Occupational Safety& Health Standards

1. For 2 years, the establish-ment enjoys presumption that it is labor law compliant.

2. Hence, no assessment will be made for that establish-ment – unless a labor com-plaint is filed.

1. If OSHS violations are found, the LLCO will issue recommen-dations to the employer who will address them immediately to avoid dangerous occurrences or disabling injury.

2. The employer will learn pro-tective gears needed (e.g.p hard hat, gloves,etc.).

1. The employer will learn of the basic HR forms needed for em-ployment (e.g. payroll, employ-ment contract, company policy, etc.)

2. Statutory Monetary Benefits will be clarified.

3. Recommendations by the LLCO will help in formulating HR policies.

WHY GET A CERTIFICATE OF COMPLIANCE?

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 1, Rule VII.

DOLE offers the following services for labor law compliance:

1. Kapatiran;

2. Labor and Employment Edu-cation Service;

3. Basic Occupational Safety and Health;

4. Family Welfare Program;

5. Labor-Management Cooper-ation;

6. Productivity Improvement Programs; and

7. Other Programs as may be formulated to ensure compliance with labor laws.

TOOLBOX OF PROGRAMS AND SERVICES

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 4, Rule III.

EMPLOYMENT RECORDSThe employers are required to keep and maintain all employ-ment records in and about the premises of all establish-ments/workplaces for a period of at least three (3) years.

(NOTE: It is suggested to keep the employment records for at least 10 years since counting of the prescriptive period for monetary claims and non-monetary claims depend on date of denial, whether express or implied, by the employer.)

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Section 6, Rule III.

JOINT ASSESSMENT1st mode of labor law compliance system

COVERAGEThe Joint Assessment or “Assessment” is initiated by the em-ployer who requested DOLE for assistance with their Labor Law Compliance. The Assessment covers all private establish-ments, including their branches and workplaces.

Note: Those with valid Tripartite Certificate of Compliance with Labor Standards (TCCLS) are not covered by the Assessment.

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Section 1, Rule IV.

The following establishments and workplaces will be prioritized:

1) Those engaged in hazardous work;

2) Those employing child em-ployees;

3) Those engaged in contracting and subcontracting arrangements;

4) Those engaged in domestic shipping using Philippine registered ships or vessels; and

5) Those employing 10 or more employees.

PRIORITY ESTABLISHMENTS AND WORKPLACES

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 2, Rule IV.

-Labor Law Compliance Officer (LLCO) visits and assesses the establishment for compliance.-LLCO will inspect employment records, interview employees, and inspect premises.

-w/ Letter and Authority to Assess

-If compliant, LLCO will issue an Assessment Checklist, and Notice of Results recom-mending issuance of COCs.-If non-compliant, employer will be giventhe proper remediation period to comply.

Employer requests DOLE tobe assessed.

-Once compliance is validated, RegionalDirector issues Certificates of Compliance.

-For non-compliant establishments, they will be given the proper remediation period.

-If continued, Work Stoppage Order (WSO) is issued. Criminal action is filed.

PROCEDURE OF JOINT ASSESSMENT


COMPLIANCE VISIT2nd mode of labor law compliance system

COVERAGEThe Compliance Visit or “Visit” covers the following instances:

1. SEnA Referral;* or2. When a complaint is filed against the establishment.

Unlike Joint Assessment which is initiated by the employer who wants to be voluntarily assessed for labor law compliance, Compliance Visit is one wherein the employer is assessed due to reasons not attributable to him.

*Singe Entry Approach (SEnA)

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 1, Rule V; cf. DOLE D.O. No. 107, S. 2010

-Labor Law Compliance Officer (LLCO) visits and assesses the establishment for compliance.-LLCO will inspect employment records, interview employees, and inspect premises.

-w/ Letter and Authority to Assess

-If compliant, LLCO will issue an Assessment Checklist, and Notice of Results recom-mending issuance of COCs.-If non-compliant, employer will be giventhe proper remediation period to comply.


-Once compliance is validated, RegionalDirector issues Certificates of Compliance.

-For non-compliant establishments, they will be given the proper remediation period.

-If continued, Work Stoppage Order (WSO) is issued. Criminal action is filed.

PROCEDURE OF COMPLIANCE VISIT


OCCUPATIONAL SAFETYAND HEALTH STANDARDSINVESTIGATION3rd mode of labor law compliance system

COVERAGEThe Occupational Safety and Health Standards Investigation or“Investigation” upon report of the either the following:

1. Existence of Imminent Danger;

2. Dangerous Occurrences;

3. Accident resulting to Disabling Injury; and

4. Occupational Safety and Health Standards violations committed in plain view or in the presence of the LLCO.

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 1, Rule VI

-If LLCO is allowed entry, he issuesRecommendations.-If unabated, LLCO issues Notice of Results, Report w/ WSO recommendation.

-If LLCO is not allowed entry, he issues Recommendations to File Criminal Action and WSO issuance.-If abated or once compliance is made, heissues a Compliance and Validation Report.


NOTE: This procedure is only for:

(1) existence of imminent danger,

(2) dangerous

occurrences, and

(3) accident resulting in

disabling injury.

-If unabated, RD issues Work StoppageOrder (WSO) w/n 24 hours.-Mandatory Conference will be held.-After compliance, RD issues lifts WSO and issues COCs.

-If unabated, RD issues Work StoppageOrder (WSO) w/n 24 hours.-Mandatory Conference will be held.-After compliance, RD issues lifts WSO and issues COCs.

PROCEDURE OF OSHS INVESTIGATION


NOTE: This is the procedure for Occupational Safety and Health Standards in Plain View or in the Presence of the LLCO:

1) If it poses imminent danger to the life and limb of the employees-Same as earlier (cf. Imminent Danger Situations/Dangerous Occurrences)

2) If it pertains to personal protective equipment: immediate correction

3) If it pertains to deficiencies other than those mentioned above-Employer + Employee = Action Plan (w/ LLCO Assistance), 3 mos. implementation-Employer: Status Report on Compliance for RD-After compliance: Compliance and Validation Report (LLCO)-Non-compliance: Notice of Result with Compliance Order recommendation-RD: Compliance Order

PROCEDURE OF OSHS INVESTIGATION

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. E.2, Rule VI

REMEDIATION &CONSEQUENCESremedial procedures

10-DAY REMEDIAL PERIOD: MONETARY BENEFITSFor deficiency involving monetary and/or social welfare benefits, the establishment has to institute corrective measures within ten (10)days from receipt of the Assessment Checklist. Otherwise, a Noticeof Results indicating the noted deficiency will be issued by the LLCO.

Upon institution by the establishment of the required corrective measures, the LLCO will recommend to the Regional Director the issuance of Certifi-cate(s) of Compliance. Based on the documents of compliance submitted, the DOLE Regional Director will then validate the findings of the LLCO and issue the Certificate(s) of Compliance.

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 4 (E.1), Rule

OCCUPATIONAL SAFETY AND HEALTH STANDARDS1) If it poses imminent danger to the life and limb of the employees,the LLCO will recommend to the establishment the necessary corrective action to immediately abate the imminent danger/dangerous occurrence. If abated, the LLCO will submit areport to the Regional Director.If not abated, the LLCO will issue a Notice of Results to the establishment and submit a report tothe Regional Director on the existence of imminent danger/dangerous occurrence and/or other labor standards violations and recommend a Work Stoppage Order (WSO) within twenty-four (24) hours. Upon receipt of such recommendation, the Regional Director will immediately validate and issue a WSO, copy furnished the DOLE Secretary. The LLCO shall serve the WSO within twenty-four hours from receipt thereof. After 24 hours from service, the Regional Director will conduct a mandatory conference to determine whether the imminent danger/dangerous occurrence still exist. The mandatory conference will not exceed seventy-two (72) hours).

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 4 (E.1), Rule

OCCUPATIONAL SAFETY AND HEALTH STANDARDS2) If it pertains to personal protective equipment, the correction should be immediately effected;

3) If it pertains to deficiencies other than those mentioned above, the employer and the employees will have to formulate an Action Plan with the assistance of the LLCO.

Such Action Plan should be formulated within ten (10) days from receipt of the assessment checklist. Within ten (10) days from the formulation of the Action Plan, theemployer will submit a status report on its compliance with the Regional Office. TheAction Plan has to be implemented within the remediation period which will not exceed three (3) months.

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 4 (E.2.2 and 2.2.3), Rule IV.

CONSEQUENCESCriminal Prosecution

There are criminal liabilities for non-compliance with labor laws.

For LLCS, employers who refuse access to employment records and work premises to LLCOs may be held criminally liable.

If an offense is committed by a corporation/juridical person, the guilty officer/s are liable.

3 mos. to 3 yrs. imprisonment – Labor Code Violations

6 yrs. & 1 day to 12 yrs. – SSS Law violations

… to name a few (other labor laws have different sentence)

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 4 (F), Rule IV; cf. Labor Code, Minimum Wage Law, SSS Law,

CONSEQUENCESFines and Penalties

A non-compliant establishment may be imposed with fines and penalties

P1,000.00 to P10,000.00 – Labor Code Violations

Double indemnity – Minimum Wage Violations

… to name a few (other labor laws have different fines and penalties)

RULES ON LABOR LAWS COMPLIANCE SYSTEM (“LLCS Rules”). Sec. 4 (F), Rule IV; cf. Labor Code, Minimum Wage Law, SSS Law,

“THE LABOR LAW COMPLIANCE SYSTEMMAY HELP BUSINESSES AVOID LABORCOMPLAINTS.”

-Atty. Jericho B. Del Puerto

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