Outline of discussion

1. Career Planning & Development (The Individual and Organization’s Role)

2. Managing promotions and transfers
3. Managing fair treatment
4. How to discipline employees
5. Managing dismissal, layoff, termination
6. Retirement

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Discipline
the practice of training people to obey rules or a code of behavior, using punishment to correct
disobedience
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Discipline is the use of penalty to induce the desired improvement in performance or conduct. It
focuses on a specific job-related behavior or conduct. It may occur after counseling has proved
ineffective or if the conduct warrants immediate discipline.

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Discipline in the workplace is the means by which supervisory personnel correct behavioral
deficiencies and ensure adherence to established rules. The purpose of employee discipline is not to
embarrass or degrade an employee but to ensure that an employee performed in a manner that is
deemed acceptable by the organization.
● Often, a positive approach may solve the problem without having to discipline. However, if
unacceptable behavior is a persistent problem or if the employee is involved in
misconduct that cannot be tolerated, management may use discipline to correct the
behavior.

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In general, discipline should be restricted to the issuing of letter of warning, letters of suspension, or
actual termination. Employer should refrain from “disciplining” employees by such methods as
altering work schedules, assigning an employee to do unpleasant work, or denying vacation
requests.

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Disciplining employees is often unavoidable, but any such discipline should be rooted in the need to be
fair. According to the book of gary dessler in HRM ,The manager builds a fair discipline process on three
pillars: rules and regulations, a system of progressive penalties, and an appeals process.

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 ⊹ According to the book of Gary Dessler in HRM there are three pillars of discipline that every

manager needs to consider: Rules and Regulations

⊹ Progressive Penalties
⊹ Appeals Process

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⊹ Rules and Regulations

An acceptable disciplinary process begins with a set of clear disciplinary rules and regulations.

The purpose of the rules is to inform employees ahead of time what is and is not acceptable
behavior. Tell employees, preferably in writing, what is not permitted. The employee handbook should
contain the rules and regulations.

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The rules should cover problems such as theft, destruction of company property, drinking on the job,
and insubordination.

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Examples of rules include:

Poor performance is not acceptable. Each employee is expected to perform his or her work properly and
efficiently and to meet established standards of quality.
Alcohol and drugs do not mix with work. The use of either during working hours and reporting for work
under the influence of either are both strictly prohibited.

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A system of progressive penalties is the second pillar of effective discipline. The severity of the penalty
usually depends on the offense and the number of times it has occurred

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For example CSC Rules in Attendance

1. Absences – the monthly allowable total number of absences is two point five (2.5). Every
absence except maternity leave of sixty (60) days and scheduled leave which is deducted from
the leave credits shall be deducted 0.2 in performance evaluation. In excess of the limit shall be
dealt with as follows:
● Penalty:
● 1st Offense – Verbal warning (on Record)
● 2nd Offense – Memo to be issued in accordance to CSC Rules.
● (suspension to be decided by the legal / other disciplining
● committees).
● 3rd Offense – Expulsion from the service.
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Third and last pillar is the appeals process, the aim of an appeals process is to ensure that supervisors
mete out discipline fairly.
An appeals process is essential but is no panacea/cure-all. Often employers can mitigate the effects of
unfair discipline by catching it during an appeal. However, some supervisory behavior may be impossible
to overcome. For example, behaviors that attack the employee’s personal and/or social identity are
difficult to remedy.117 Remember that punishment is particularly objectionable when it seems
motivated by revenge.

⊹ Appeals Process
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The employee can file an appeal request with HR, submitting documentation and reasons why
they believe they should be granted an appeal. The HR is not obligated to grant this appeal but, if they
do, they should give the employee the chance to present their reasons why their punishment should be
lessened or revoked. The final decision will depend on the situation, evidence presented, and arguments
made.

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Examples of Misconduct which could result in discipline:

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Make sure the evidence supports the charge of employee wrongdoing. The evidence presented should
be appropriate to support claim of the employees wrong doing.

Adequately warn the employee of the disciplinary consequences of his or her alleged misconduct. You
have to issue warnings or inform the employee of the consequences of his/her actions.
Objectively investigate the matter before disciplining. Make sure that you are impartial when doing the
investigation.

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The investigation should produce substantial evidence of misconduct.

Apply applicable rules, orders, or penalties without discrimination. Employees have a right to be treated
fairly and not be discriminated against due to age, gender, national origin, sexual preference, race,
disability,

Maintain the employee’s right to counsel.

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⊹ Don’t rob your subordinate of his or her dignity, for instance by disciplining in public. Do it
privately and not infront of other people/colleagues so that they will not be embarrased.

⊹ Listen to what the person has to say. Listen to the other side of the story of the employee.

⊹ Get the facts. Don’t base your decision on hearsay evidence or on your general impression.

● Don’t act while angry.

A fair and just discipline process is based on rules and regulations, a system of progressive penalties, and
an appeals process. A number of discipline guidelines are important, including discipline should be in
line with the way management usually responds to similar incidents, management must adequately
investigate the matter, and do not rob a subordinate of his or her dignity.

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managing Dismissal, Layoff, and Termination

⊹ Employee separation
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⊹ is the process of ensuring that an employee who quits the company is exited in a structured and

⊹ The process of employee separation is taken quite seriously by many firms and there is a
orderly manner.

dedicated department to handle employee exits from the company.

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1. Voluntary separation – the employee quits the company on his or her own accord. The
employee stands to get most of the benefits and perks due to him or her.
2. Involuntary separation – the employee is asked to quit. The employee might get a separation
package or in instances where disciplinary of performance related exits take place, the
employee might not get anything at all.
There are three kinds of involuntary separation: Dismissal, Layoff and Termination

⊹ Involuntary termination of an employee’s employment with the firm.

Dismissal

⊹ An employee may question his or her dismissal based on substantive or procedural grounds.
The substantive aspect pertains to the absence of a just or authorized cause supporting the
dismissal.

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Ground for dismissal
● How to manage dismissal according to Gary Dessler books in HRM
● There are four bases for dismissal: unsatisfactory performance, misconduct, lack of
qualifications for the job, and changed requirements of (or elimination of) the job.
● Unsatisfactory performance refers to a persistent failure to perform assigned duties or to meet
prescribed standards on the job. Specific reasons include lack of productivity or poor-quality
work, excessive absenteeism, tardiness, or an adverse attitude.
● Misconduct is deliberate and willful violation of the employer’s rules and may include stealing,
rowdy behavior, sexual harassment, and physical violence or threats at work.

● Lack of qualifications for the job is an employee’s inability to do the assigned work, although he
or she wants to. Because this employee may be trying to do the job, it is reasonable to try to
salvage him or her—perhaps through further training or by assigning the employee to another
job.

● Changed requirements of the job is an employee’s incapability of doing the job after the nature
of the job has changed. Similarly, you may have to dismiss an employee when his or her job is
eliminated. Again, the employee may be industrious, so it is reasonable to retrain or transfer
this person, if possible.

● Insubordination, a form of misconduct, is sometimes the grounds for dismissal. The two basic
categories of insubordination are unwillingness to carry out the manager’s orders, and
disrespectful behavior toward the manager. (This assumes that the orders were legitimate, and
that the manager did not incite the reaction through his or her own extreme behavior.)
Examples of insubordination include the following:93
● 1. Direct disregard of the boss’s authority
● 2. Direct disobedience of, or refusal to obey, the boss’s orders, particularly in front of others
● 3. Deliberate defiance of clearly stated company policies, rules, regulations, and procedures
● 4. Public criticism of the boss
● 5. Blatant disregard of reasonable instructions
● 6. Contemptuous display of disrespect
7. Disregard for the chain of command 8. Participation i

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● A layoff, in which the employer sends workers home for a time for lack of work, is usually not a
permanent dismissal (although it may turn out to be). Rather, it is a temporary one, which the
employer expects will be short term. However, some employers use the term layoff as a
euphemism for discharge or termination.

⊹ Being laid off refers to a temporary or permanent termination of work contract by an

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employee because of reason relating to the business. A company may suspend just one worker
or a group of workers at the same time. Another point worth noting about layoff is that they do
not occur because of the employees’ fault. Often, it is because the organization wants to
downsize or it is experiencing issues with personnel management
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What are the REASONS FOR Layoffs

1. Cut back some costs. The most common reason for being laid off is the company needing to
cut costs in some way. This can arise from the fact that the company is not making enough
income to cover its expenses.
2. Staffing Redundancies. This occurs when a company needs to eliminate some positions due to
over-staffing, outsourcing or a modification to the roles. A company may want to eliminate
redundant positions in order to make its operations more efficient.
3. Relocation. Moving the company’s operations from one area to another can also bring about
the need to let go of some workers. Shutting down the initial location will not only affect the
workers who get laid off but the surrounding community’s economy as well. So, if a company is
planning to implement massive layoffs, it should show genuine concern for the employees by
providing them with resources to help them adjust.
4. Merger or buyout. If a business is bought out or decides to merge with another, the change
might lead to a change in the company’s leadership and corporate direction.
If there’s new management, the chances are that they’ll come up with new goals and plans, and
this can lead to layoffs. In such an instance, the new management will look at every employee’s position,
performance, and length of time spent with the company so as to decide who they will lay off.

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Alternatives to Lay-off
Laying off employees is stressful not just to those affected but also the HR department. In fact, it also
affects a company’s image, as outsiders are likely to think that the company is struggling to stay alive.
So, are there any alternatives to laying off workers? Yes, there are!
1. Encourage voluntary resignation or retirement.
If a company needs to reduce its workforce, why not just ask who wants to step down voluntarily? For
example, the owner can offer older workers a retirement package as an incentive. A voluntary
retirement program enables individuals to transition to retirement smoothly.
Adopting such a strategy benefits the company money in two ways. One, it helps the company owner
accomplish his goal of workforce reduction, and two, it saves him money since those who retire
voluntarily are often workers who earn the most in the company
The employees to be laid off are given pay packages to help them in their smooth transition.
1. Cut back on the extras. If a company is laying off workers to reduce costs, it can look for other
avenues of saving money. For example The company can freeze additional hiring, reduce or
remove bonuses and raises, and eliminate unnecessary travel. They can also postpone upgrades
on non-vital equipment.
2. Consider a virtual office. Keep only the most important staff onsite and send the rest of the
workers home to work remotely. Thanks to modern software, the company owner will still be
able to manage his employees remotely by conducting video conferences.
 3. Offer more unpaid time off. Offer more unpaid time off rather than eliminating workers’
position. For example, he can ask his employees to skip work on Fridays or offer them an
additional two weeks of vacation during the summer season.
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Last type of involuntary separation is Termination

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⊹ Right to security of tenure means that a regular employee shall remain employed unless his or
Termination of Employment

her services are terminated for just or authorized cause and after observance of procedural due
process.

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⊹ 1.
Grounds or Causes for an Employer to Dismiss an Employee:

⊹ 2.
Serious misconduct

⊹ 3.
Willful disobedience

⊹ 4.
Gross and habitual neglect of duty

⊹ 5.
Fraud or breach of contract

⊹ 6.
Commission of a crime or offense against the employer, his family or representative
Other similar causes

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⊹ 1.
Other Grounds for Terminating an Employment:

⊹ 2.
Installation of labor-saving devices

⊹ 3.
Redundancy

⊹ 4.
Retrenchment to prevent losses

⊹ 5.
Closure and cessation of business
Disease or illness

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● But Before terminating the services of an employee, the employer shall observe procedural
due process.
What are the components of procedural due process?

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A. In a termination for just cause, due process involves the two-notice rule:
1. A notice of intent to dismiss specifying the ground for termination, and given said employee
reasonable opportunity within which to explain his or her side;
2. A hearing or conference where the employee is given opportunity to respond to the charge,
present evidence or rebut the evidence presented against him or her
3. A notice of dismissal indicating that upon due consideration of all the circumstances, grounds
have been established to justify termination

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B. In a termination for an authorized cause

due process means a written notice of dismissal to the employee specifying the ground at least 30 days
before the date of termination. A copy of the notice shall also be furnished the Regional Office of the
Department of Labor and Employment (DOLE) where the employer is located.

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What is the sanction if the employer failed to observe procedural due process in cases of legal and

⊹ In cases of termination for just causes, the employee is entitled to payment of indemnity or
authorized termination?

⊹ in case of termination for authorized causes, 50,000 pesos (Jaka Food Processing vs. Darwin
nominal damages in a sum of not more than 30,000 pesos (Agabon vs. NLRC, 442 SCRA 573);

Pacot, 454 SCRA 119).

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⊹ The legality of a dismissal may be questioned before the Labor Arbiter of a Regional Arbitration
can an employee question the legality of his or her dismissal?Yes he/she can question

Branch of the National Labor Relations Commission (NLRC), through a complaint for illegal
dismissal. In establishments with a collective bargaining agreement (CBA), the dismissal may be
questioned through the grievance machinery established under the CBA. If the complaint is not
resolved at this level, it may be submitted to voluntary arbitration.
What is Collective Bargaining Agreement (CBA)?

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Collective Bargaining Agreement (CBA)
● In cases of illegal dismissal, it is the employer who has the duty of proving that the dismissal is
valid.
● In cases the employer denies dismissing the employee, it is The employees duty to elaborate,
support or substantiate his or her complaint that he or she was dismissed without valid cause
●

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On what Grounds can the Employee May Question his or her Dismissal?
● An employee may question his or her dismissal based on substantive or procedural grounds.
● The substantive aspect pertains to the absence of a just or authorized cause supporting the
dismissal.
● The procedural aspect refers to the failure of the employer to give the employee the
opportunity to explain his or her side.
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Rights Afforded to an Unjustly Dismissed Employee
An employee who is dismissed without just cause is entitled to any or all of the following:
● reinstatement without loss of seniority rights; Reinstatement means restoration of the
employee to the position from which he or she has been unjustly removed. Reinstatement
without loss of seniority rights means that the employee, upon reinstatement, should be
treated in matter involving seniority and continuity of employment as though he or she had
not been dismissed from work.

● in lieu of reinstatement, an employee may be given separation pay of one month pay for every
year of service (Golden Ace Builders, et. al vs. Jose Talde, May 5, 2010, GR No. 187200);
● full backwages, inclusive of allowances and other benefits or their monetary equivalent from the
time compensation was withheld up to the time of reinstatement; Full back wages refer to all
compensations, including allowance and other benefits with monetary equivalent that should
have been earned by the employee but was not collected by him or her because of unjust
dismissal. It includes all the amount he or she could have earned starting from the date of
dismissal up to the time of reinstatement.
● damages if the dismissal was done in bad faith (Aurora Land Project Corp. vs NLRC, 266 SCRA
48). When a Labor Arbiter rules for an illegal dismissal, reinstatement is immediately
executory even pending appeal by the employer
Reinstatement pending appeal may be actual or by payroll at the option of the employer.

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⊹ Separation pay is the amount given to an employee terminated due to installation of labor-
Separation pay

⊹ Separation pay may also be granted to an illegally dismissed employee in lieu of reinstatement.
saving devices, redundancy, retrenchment, closure or cessation of business or incurable disease.

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How much is the Separation pay
● In cases of installation of labor-saving devices or redundancy, the employee is entitled to receive
the equivalent of one month pay or one month for every year of service, whichever is higher.
● In cases of retrenchment, closure or cessation of business or incurable disease, the employee is
entitled to receive the equivalent of one month pay or one-half month pay for every year of
service, whichever is higher.
● In case of separation pay in lieu of reinstatement, the employee is entitled to receive the
equivalent of one month pay for every year of service.

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⊹ No. An employee is not entitled to separation pay when he or she resigns voluntarily, unless it
What if an employee resigned voluntarily, is he or she entitled to separation pay?

is a company practice or provided in the CBA (Hanford Philippines Inc. vs. Shirley Joseph, 454
SCRA 786, March 31, 2005).
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Retirement
Retirement refers to the time of life when one chooses to permanently leave the workforce
behind.

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⊹ Retirement may be availed by those who have rendered at least 15 years of service in
Republic Act No. 8291 (GSIS Act of 1997)Government employee

government and must be at least 60 years of age upon retirement. Also, they must not
be permanent total disability pensioners.

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● 2 option of Retirement Packages offered by GSIS
1. Option 1: 5-Year Lump Sum and Old Age Pension
● Under this option, retirees can get their five-year pension in advance. The
lump sum is equivalent to 60 months of the Basic Monthly Pension (BMP) payable
at the time of retirement. After five years, retirees will start receiving their monthly
pension.
●
1. Option 2: Cash Payment and Basic Monthly
● In Option 2, retirees will receive a Cash Payment equivalent to 18 times the
Basic Monthly Pension (BMP) payable upon retirement and then a monthly pension for
life, payable immediately after the retirement date.

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⊹ If period with paid premiums is less than 15 years:

Basic monthly pension(BMP) is computed as follows:

BMP = .375 x RAMC (Revalued Average Monthly Compensation)

RAMC=Php700 + AMC (Average Monthly Compensation)
AMC=Total Monthly Compensation received during the last 36 months of service divided by 36

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⊹ If period with paid premiums is 15 year and more:

⊹
BMP = .375 x RAMC BMP = .025 x RAMC x Period with Paid Premiums
BMP, however, shall NOT exceed 90% of the Average Monthly Compensation

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 ⊹ An Act Amending Article 287 of Presidential Decree
Republic Act No. 7641, December 9. 1992
No. 442, As Amended, Otherwise
Known as the Labor Code of the Philippines by Providing for Retirement Pay to Qualified Private
Sector Employees in the Absence of any Retirement Plan in the establishment.

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Who are Qualified to Receive Retirement Benefit?

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⊹ Those who apply for retirement, starting with age 60 to 65 years old, who have served the
Republic Act No. 7641

employer at least five years of full-time service.

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⊹ A member should have at least 120 monthly contributions prior to the semester of retirement. A
Social security system (SSS)

member has an option to avail to optional retirement at age 60 or the technical retirement at
age 65. However, for underground mine workers, optional retirement age is 55 and technical
retirement age is 60.

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⊹ A member who is 60 years old and above, but not yet 65, with 120 contributions or more may
continue paying as a Voluntary member up to 65 years old to avail of the higher amount of

⊹ If a member has less than 120 monthly contributions and is filling for a retirement benefit,
benefits.

he/she shall be given an option to continue paying the contributions as a Voluntary Member to
complete the 120 months to avail the full benefits thru monthly pension.

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like in GSIS, SSS also offers two types of retirement benefit
1. Monthly pension – a lifetime cash benefit paid to a retiree on a regular monthly basis. The SSS
member must have at least 120 months contribution upon prior to the semester of application
to qualify in the monthly pension.
2. Lump sum amount – is a one time payment granted to a retiree, if he/she hasn’t reached the
required 120 monthly contributions. The lump sum amount is equal to the total contributions
paid by the member and/or by his/her Employer, including interest earned.

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⊹ The monthly pension amount shall be the highest of:

How is the monthly pension computed?

1. 300 + (20% x AMSC) + (2% x AMSC) x (CYS – 10); or

2. 40% x AMSC
3. The minimum pension of P1,200, if with at least 10 CYS; or P 2,400 if with at least 20 CYS,

⊹ AMSC in the formula above is the Average Monthly Salary Credit

whichever is applicable.

⊹ CYS is the Credited Years of Service