Labor Code of the Philippines

PRESIDENTIAL DECREE NO. 442, AS AMENDED A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE
The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work. (Art. 3) Art. 5. Rules and regulations. The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general circulation. (Art. 5)

LABOR LAW Labor law covers illegal recruitment, wages of workers, and rights of union members, collective bargaining, and employment termination. It also deals with the rights of employers, such as the right to make and enforce reasonable regulations, to reorganize and economize, and to lay off lazy and undisciplined employees. The state shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. There are numerous cases involving employee making claims against employers. However, I suggest that it is sound to know this basic doctrine that courts need to established to determine if one has an existing right. Fourfold test in determining existence of employer-employee relationship: 1. Selection and Engagement of the Employee (Hiring) - employer's power to select and engage an individual into a work contract. Manifests the employer's ability which creates an employer-employee relationship. 2. Payment of Wages (Compensation)

- an employee can well establish an employer-employee relationship wherein he is enlisted in the payroll of said employer. 3. Power of dismissal (Power to Dismiss) - exercising the power to dismiss or terminate an employee is apparent evidence that there exists an employer-employee relationship. For which there none, an employer cannot exercise said capacity otherwise. 4. Employer's power to control the employee with respect to the means and methods by which the work is to be accomplished. (Power of Supervison and Control)This is the so-called "control test" It is the most important element. In the absence of the power to control the employee with respect to the means and methods by which his work is to be accomplished, there is no employer-employee relationship between the parties. The existence of an employer-employee relationship cannot be avoided simply by repudiate(reject/not accept) it in the employment contract. It cannot say that the employee is an "independent contractor" when the terms of the agreement clearly show otherwise. The employment status of a person is defined and prescribed by law and not by what the parties say it should be. It is of relevant importance to determine employer-employee relationship because some businessmen try to avoid creating employer-employee relationship in their enterprises because it creates obligations related to social security, workmen's compensation, security of tenure, and unionization, and of course, benefits. http://www.philippinelegal.com/labor-law.html Philippine law 2011 (updated)

EMPLOYEE CLASSIFICATION REGULAR EMPLOYMENT written agreement to contrary notwithstanding and regardless of oral agreement of parties provided by law rm activities which are usually necessary or desirable to the usual business or trade of employer er Regular Employees 1. Casual Employment after 1 year of service whether continuous or broken (conditions Art. 280)

2. Probationary Employee allowed to work even after the completion of the probationary period (Art. 281) 3. Learner allowed or suffered to work during the first 2 months of learner period, if training is terminated by the employer before the end of the stipulated period. nt employment (no such thing as permanent employment since he can be terminated for cause) 1. PROJECT EMPLOYMENT or undertaking, completion or termination of which is DETERMINED AT THE TIME OF ENGAGEMENT OF EMPLOYEE been forewarned of the name of the project and the duration of the project or not the project has a direct relation to the business of the employer, not important, BUT: a. Employee MUST be informed of the name and duration of the project b. Project and the Principal business of employer are two separate things c. No attempt to deny Security of Tenure to worker 2. SEASONAL EMPLOYMENT ces to be performed seasonal in nature, employment is for the duration of the season CASUAL EMPLOYMENT seasonal 1. One (1) year service whether continuous or broken 2. With respect to activity employed 3. Employment shall continue while such activity exists (Regular in a limited sense) ** Project, Seasonal and Casual Employees may be doing a function that is by definition regular but are not regular because they fall in the exception PROBATIONARY EMPLOYMENT duration not exceed 6 months from the date the employee started working, unless covered by an apprenticeship agreement stipulating a longer period 1. Just causes 2. Fail to qualify as regular employee in accordance with reasonable standards made known by the employer to the employee at the time of engagement f Work beyond 6 months deemed Regular employee by automatic application of the law (even if there is no appointment [Kimberly Clark v. Drilon]

1. Observance Period - For the employer to know whether employee is qualified - For the employee to demonstrate to the employer his skills 2. Restrictive requires unfair to the worker abbreviate or shorten the period If agreed to extend for the benefit of worker Ex gratia

COVERAGE applies to all establishments or undertakings whether for profit or not. (Art 278 LC) EMPLOYEE CLASSIFICATION 1. Regular 2. EE has been engaged to perform activities which are usually necessary and desirable in the usual business or trade of the ER (Art. 280) 3. A casual employee who has rendered at least 1 year of service, whether continuous or broken, with respect to the activity in which he is employed and his employment shall continue while such activity exists (Art. 280) 4. A probationary employee who is allowed to work after the probationary period (Art. 281) 5. All learners who has been allowed or suffered to work during the first 2 months shall be deemed regular employees if training is terminated by the ER before the end of the stipulated period through no fault of the learner. [Art. 75 (d)] 6. Casual If not covered by the preceding paragraph (280 LC) 8. Project Employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of engagement of the EE (280 LC) 10. Seasonal The work or services to be performed is seasonal in nature and the employment is for the duration of the season. (280 LC) 12. Probationary Employment shall not exceed 6 months from the date the EE started working unless covered by apprenticeship agreement stipulating a longer period (281 LC)

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