Chapter 4

The Actual workplace

Learning Objectives:
At the end of this chapter students will be able to:
o Differentiate between Labor standards and Labor
Relations.
o Describe the relationships between employees and
employer.
o Enumerate and discuss the classification and types of
employment.
o Explain the important concepts of Law affecting
employment such as: worker’s rights, working hours,
termination of employer-employee relationship.
Labor Law
Includes all the rules of law governing the
conditions under which persons may work under
the control of other persons called employers.
 Distinctions between Labor Standards and
Labor Relations
v Labor Standards – prescribe the terms and conditions
of employment as affecting wages or monetary benefits,
hours of work, cost of living allowances, occupational
health, safety and welfare of the workers.

v Labor Relations – is used to denote all matters arising

out of employer-employee relationship involving the
concerted action on the part of the workers which is usually
related with collective bargaining and negotiation process.
*all about how workers and employers work together, especially when employees come together as a group to negotiate things like
salaries, benefits, and working conditions. It’s basically about teamwork, discussions, and agreements between employers and
employees to ensure fair treatment and good working conditions. The goal is to keep both sides happy and avoid conflicts.
 Social Legislations Law
which is governing the employer-employee
relationship while the employee is ”not at work” due
to hazards of the worker and his family, because the
hazards beyond his control which immobilize him from
working.
 Classifications of Labor Laws
1. Protective Legislation – designed to protect the weaker
party to the employment contract (e.g. Anti-sexual
Harassment Laws, Child Labor Laws, Laws protecting
women Against Discrimination)
2. Welfare or Social Legislation – is intended to remove or reduce
the insecurity of the workers while the latter is not at work due
to hazards arising from employment. (e.g. SSS Law, GSIS Law,
Philhealth/R.A. 7875, Workers Compensation Act)
3. Diplomatic Legislation – designed to settle labor disputes
through pacific modes. (e.g. Laws providing for a
conciliation, mediation, grievance machinery or arbitration)
 Classifications of Labor Laws
4. Administrative Legislation – creates labor bodies or
agencies for administrative purposes. (e.g. POEA, DOLE,
NLRC or TESDA)
5. Labor Standards Legislation – prescribe minimum requirements
relating to wages, hours of work, cost of living allowances and
other monetary and other monetary welfare benefits including
occupational, safety and health standards.

6. Labor Relations Legislation – is used to denote all matters arising

out of employer-employee relationship involving the concerted action on
the part of the workers which is usually related with collective bargaining
and negotiation process.
 Classification of Employees
1. Special Workers *These employees have unique roles that may not fit traditional classifications. They could be
apprentices, trainees, or workers with specific conditions.

2. Casual employees *Hired for temporary or short-term work that is not essential to the employer’s regular
business. If they work for a year or more, they may be considered regular employees

3. Specific Project or Seasonal Employees *These employees are hired for a

particular project or for seasonal work.
Their employment ends when the project

4. Probationary if they meet the employer’s standards. If they pass, they

*New hires who are undergoing a trial period to determine is completed or the season is over

become regular employees

5. Regular *Workers who perform tasks that are necessary for the business and have continuous employment
6. Managerial *Employees in leadership roles who make decisions and oversee operations. They usually have different
rights compared to rank-and-file employees.
 Dissimilarity among Apprentice and Learners
Apprentices Learners
They are trained in an apprenticeable They are trained in non-apprenticeable
occupation occupation
Employers who avail the tax deduction They are always paid at not less 75% of
scheme pay in their apprentices minimum the applicable minimum wage.
wage instead of not less than 75% of the
applicable minimum wage.
If the training is a prerequisite to A learner employed in piece or incentive-
graduation or a requirement in taking the rate jobs during the training period is paid
government board examination, the hiring in full for the work done.
of apprentices without compensation is
authorized.
Apprentices may be employed even when Learners may be employed only when
there are experienced workers available. there no experienced workers available,
the purpose which is to preclude
curtailment of job opportunities.
 5 Types of Employment
1. Regular or Permanent Employees - are persons who perform
activities, which are usually necessary or desirable in the usual business
or trade of the employer. Any employee who has rendered at least one
(1) year of service whether such service is continuous or broken, will be
considered regular employee with respect to the activity in which he is
employed and his employment will continue while such activity exist.
2. Term or Fixed employment - When the service of the employee
to the employer is for a definite period of time which in effect must be
terminated upon the expiration or end of the said period.
Conditions:
1. The parties must knowingly and voluntarily agree on the contract without
any vices of consent, not attended by any force, duress, or improper pressure
2. It must be established the dealing with each other of the employer and the
employee on more or less equal terms with no dominance exercised by the former
over the latter.
 5 Types of Employment
3. Project Employment - when one employee is hired for a specific
undertaking in which employment duration is specified by the scope of
work and/or length of the project.

4. Seasonal employment - is only for a certain time or seasons of the

year and the employment is only for that specific duration. Example:
Summer Jobs, Christmas Break jobs
5. Casual Employment - pertains to the kind of employment that is
not usually necessary or primarily related to the employer’s trade. The
obligation of the employer over the employees terminate as soon as the
contract expires.
 Other Types of Employment
1. Managerial - A person can considered as an employee with
managerial position after meeting the following conditions:
1) He is primarily managing the establishment in which he is employed
or of a department or subdivision thereof;
2) He customarily and regularly directs the work of two or more
employees therein;
3) He has authority to hire or fire other employees of lower rank.
2. Domestic servants - as persons in the personal service of another
are those who perform services in the employer’s home which are
usually necessary or desirable for the maintenance and employment
thereof or minister to the personal comfort, convenience or safety of the
employer as well as the members of his employer’s household.
 Other Types of Employment

3. Field Personnel - Are non-agricultural employees who regularly

perform their duties away from principal place of business or branch
office of the employer and whose actual hours of work in the field cannot
be determined with reasonable certainty.
 The Workers’ Rights
The 1987 Constitution has provided the following rights of the employees:
1. Right to self-organization
2. Right to collective bargaining
3. Right to security of tenure
4. Right to just and humane conditions of work. This refers to
their wages and equal renumeration for work of equal
value, safe and healthy working conditions, equal
opportunity to promotion and rest, leisure and reasonable
limitation of working hours, such as:
4.1 The right to regular working hours
4.2 The right to regular working days
4.3. The right to overtime work
4.4 The right to weekly rest period
 The Workers’ Rights
The 1987 Constitution has provided the following rights of the employees:

4.5 The right to additional compensation on

scheduled rest day/special holiday.
4.6 The right to compensation for holiday work; and
4.7. The right to hospitalization
5. Right to peaceful concerted activities
6. Right to Strike
7. Right to a living wage
8. Right to participate in policy and decision-making
process
9. Right to just share in the fruits of production
 Employer’s Rights
The 1987 Constitution has provided the following rights of the employees:
1. Reasonable return of investment
2. Expansion and growth
3. Exercise management prerogative
3.1 to lay down and execute management policies;
3.2 to hire
3.3 to transfer
3.4 to discipline
3.5 to dismiss
3.6 Retrenchment- it exists during the period of business
recession, industrial depression, or seasonal fluctuations.
 Employer’s Rights
The 1987 Constitution has provided the following rights of the employees:
3.7 to declare redundancy. It exists where the services of
an employee are in excess of what is reasonably
demanded by the actual requirements of the enterprise.
3.8 to cease operations. The management may cease
business operations or undertaking even if it is not
suffering form serious business losses or financial
reverses as long as he pays his employees their
termination pay in the amount corresponding to their
length of service.
3.9 to sell the company
3.10. to abolish positions
Termination of Employer-Employee Relationship
An employer cannot terminate the service of an employee except for just or
authorized causes as provided by Articles 279,282,283, and 284 of the Labor Code
of the Philippines.
Just Causes for the termination of employee’s contract:
1. Serious misconduct or willful disobedience by the employee
2. Gross habitual neglect by the employee of his duties
3. Fraud or willful breach by the employee of the trust reposed
in him by his employer or duly authorized representative.
4. Commission of a crime or offense against the person of his
employer or anu immediate member of the his family and his
duly authorized representative.
5. Other Causes Analogous to the foregoing.
Termination of Employer-Employee Relationship
An employer cannot terminate the service of an employee except for just or
authorized causes as provided by Articles 279,282,283, and 284 of the Labor Code
of the Philippines.
Authorized Causes for the termination of employee’s contract:
1. Redundancy – when the services of the employee are in excess of
what is reasonably demanded by the actual requirements of the
enterprise

2. Retrenchment – reduction in the workforce to forestall business losses

or stop the hemorrhaging of capital
3. Installation of Labor saving device
4. Closure or Cessation of operation of the establishment or
undertaking due to financial losses.
 Some Labor Code Provisions Concerning Hours of
Work, Rest Periods, Holiday Pay, Leaves and Service
Charges
Art 83 . Normal Hours of Work. The normal hours of work of any
employee shall not exceed eight (8) hours a day.
Art 84 . Hours of Work. It shall include:
(a) at all times during which an employee is required to be
on duty or be at a prescribed workplace, and
(b) at all times during which an employee is suffered or
permitted to work.
Rest period of short duration working hours shall be counted
as hours worked
 Some Labor Code Provisions Concerning Hours of
Work, Rest Periods, Holiday Pay, Leaves and Service
Charges
Art 85. It is the duty of every employer to give his employees
regardless of sex, not less than 60 minutes time off for their regular
meals. These meal periods are not, however, compensable hours of
work. The regular meals are breakfast, lunch, and supper. Coffee
breaks or rest periods running from five (5) to twenty (20) minutes
are not included; they are considered as compensable working
time.
 Some Labor Code Provisions Concerning Hours of
Work, Rest Periods, Holiday Pay, Leaves and Service
Charges
Art 86. Night Shift Differential. Every employee shall be paid a night
shift differential or not less than ten percent (10%) of his regular
wage for each hour of work performed between ten o’clock in the
evening and six o’clock in the morning. All employees are entitled
to night shift differential pay except the following:
a. Government employees including those employed in government-
owned or controlled corporations with original charters;
b. Employees of retail and service establishment regularly employing not
more than five (5) workers.
c. Domestic helpers;
d. Persons in the personal service of another;
 Some Labor Code Provisions Concerning Hours of
Work, Rest Periods, Holiday Pay, Leaves and Service
Charges
e. Managerial employees
f. Officers and members of a managerial staff;
g. Field personnel and other employees whose time and
performance is unsupervised by the employer;
h. Workers who are engaged on task or contract basis, purely,
commission basis, or those who are paid with fixed amount for
performing work irrespective of the time consumed in the
performance in the performance thereof (Sec 1, Rule II, Book
III, Rules Implementing the Labor Code) and
i. Members of the family of the employer who are dependent
upon him for support (Article 82 of the Family Code).
 Some Labor Code Provisions Concerning Hours of
Work, Rest Periods, Holiday Pay, Leaves and Service
Charges
Article 87. Overtime work. Work may be performed beyond eight (8)
hours a day provided that the employee is paid for the overtime work, an
additional compensation equivalent to his regular wage plus at least twenty
five (25%) thereof. Work performed beyond eight hours on a holiday or rest
day shall be paid an additional compensation equivalent to the rate of the first
eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.
Article 96. Service Charge. All service charges collected by the hotels,
restaurant and similar establishments shall be distributed at the rate of eighty-
five (85%) for all covered employees and fifteen percent (15%) for the
management. The share of the employees shall be equally distributed among
them. In case the service charge is abolished, the share of the covered
employee shall be considered integrated in their wages.
 RA 7877 otherwise Known as the
Anti- Sexual Harassment Act of 1995
RA 7877 provides that the following must be present in order for an act in a
work-related or employment environment be considered as sexual harassment:
1. The sexual favor is made as a condition in the hiring or in the
employment, re-employment or continued employment of said
individual, or in granting said individual favorable compensation,
terms, conditions, promotions, or privileges; or the refusal to
grant the sexual favor result in limiting, segregating or
classifying the employee which in a way would discriminate,
deprive or diminish employment opportunities or otherwise
adversely affect said employee;
 RA 7877 otherwise Known as the
Anti- Sexual Harassment Act of 1995
RA 7877 provides that the following must be present in order for an act in a
work-related or employment environment be considered as sexual harassment:
2. The said acts would impair the employees’ right or privileges
under existing labor laws, or;
3. The said acts would result in an intimidating, hostile, or
offensive environment for the employee.
Penalties for the commission of the Crime. RA 7877, Sec 7 - Any
person who violates the provisions of the law shall, upon conviction, be
penalized by imprisonment of not less then one (1) month nor more than six
(6) months, or a fine of not less then ten thousand pesos (10,000.00) nor
more than twenty thousand pesos (20,000.00), or both such fine and
imprisonment at the discretion of the court.
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