August 7, 2017

Art. 297. Termination by employer. An employer may terminate an employment for any of the
following causes:
1. Serious misconduct or willful disobedience by the employee of the lawful orders of his
employer or representative in connection with his work;

2. Gross and 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 by the employee against the person of his employer or
any immediate member of his family or his duly authorized representatives; and

5. Other causes analogous to the foregoing.

JUST CAUSE

Note, if any of the employee commits any of those offenses for just cause, his
services will be terminated. Mao nay just cause, naay sala ang empleyado.

(Willful) insubordination means you do not follow your boss. He committed theft
against the companys property, you misappropriated the money of the company, or breach
of trust of confidence. You (are) suppose to safe keep the money of the company, imong
gitagauan. Basta any offenses against the Labor Code, mao nay just cause.

AUTHORIZED CAUSE

Example Redundancy, sobra ang tao. Example, napulo (10), then 30 kabuok imong tao,
you should (cut) down your manpower, that is redundancy.

Redundancy Concept
Redundancy is one of the authorized causes for termination of employment under Article
283 of the Labor Code of the Philippines.

Redundancy exists where the services of an employee are in excess of what is reasonably
demanded by the actual requirements of the enterprise. A position is redundant where it
superfluous, and superfluity of a position or positions may be the outcome of a number of
factors, such as over hiring of workers, decreased of volume business, or dropping of a
particular product line or service activity previously manufactured or undertaken by the
enterprise. (http://www.laborlaw.usc-law.org/2010/01/24/redundancy/)

Retrenchment, supposing there are imminent losses. To save the company from going
bankruptcy, magtanggal na lang ta og tao, so that is retrenchment. Or install saving devices,
for example, instead of hiring/employing 20 workers, you will buy a machine to take care of
the work of (those) 20 workers. So para isave sa cost, mag-install ka og device. Kini, take
note, wala kay bayad ani, tanggalon ka pero with pay ni siya.

I was actually worried.. Naa koy amigo na gitanggal sa trabaho, unsa akong buhaton? So
the first thing to do, unsa ang rason? Mao to siya ang just cause og authorized cause. Kini naa
ni siyay notice. Ang due process ani, moa ni, this is mentioned under Department Order 174.

So due process, kini naa ni first notice. What is this first notice? Notice to terminate.
Under the implementing rules, you will be notified, that your services will be terminated,
because of the following offenses. Please explain in writing why your services will not be
terminated. In other words, you are given the chance to explain, that is due process. Second,
if the management decides to terminate you (the employee), you are on the second notice.
So mao ni siyas due process sa just cause. There are two (2) notices in due process under the
just cause. Due process under just cause (is), there is a substantial reason for your
termination, and the procedural requirements have been complied with.

Diri ta sa authorized cause. Sa authorized cause, dili ka pa-explainon nganong tanggalon

ang imong services. For example, nalugi na ang kompanya, dili na ka pa-explainon, Huy
Pedro, explain in writing why your services should not be terminated for retrenchment, dili
ana. This is 30-day notice required to employee under Department of Labor. And due process
sa kaning authorized cause, naay 30 days notice to the employee under the Department of
Labor. This is to give time to the employee, to find work or to prepare. Diri walay bayad ni
diri (just cause), diri naay bayad (authorized cause).

Under 298. 299, 297. If the employee is also suffering from ailment, that it cannot be
cured within 6 months, even with proper treatment, you will be terminated with pay also.
Pwede pud ka tanggalon. For example an employee suffering from Tuberculosis. Imong
silingan diha sige og ubo-ubo, that is contagious. Or your seatmate is suffering from mental
disorder, mukatawa lang kalit. Mao nay pinaka-kuyaw. Kanang TB-TB pwede pa ka
manampong, pero kanang mungisi.

I was informed na ang kanang mga Amerikano kay naay small tolerance of pain, inom
dayon og tambal. Kita, like in my case, naa koy lu-as kaniadto, sige na ko og ka-luas tungod
sa skwela oy. Daghan kayo ko sakit kaniadto. Stress ba. Ingon pa akong doctor pigaan mo
lang yan ng kalamansi perting hapdosa oy, makaluha lagi ka. Ang uban tawas, perting
sakita. Libat pud ta ani.

So sickness is also a ground for termination of employment. Kini naa gyapon ni bayad.
Sa kaning authorized cause, ang bayad ani, half-month salary period per year of service.
Except for redundancy, 1 month salary ang bayad ani. Take note, dili na siya 15 days, ang
half-month salary dili equivalent to 15 days, because you do not work 30 days. So 26 man,
divided by 2, 12.5 (days) ni siya. That is why if you are reading cases, naa gyud nay illegal
dismissal, diba no? I think 90% of that naay illegal dismissal. And the court will resolve in
just cause, and then later on what are those benefits which the complainant or the respondent
or petitioner is entitled to. So at this point, kaila man mo kinsay petitioner, kaila man mo
kinsay respondent. Sa labor case ang complainant, diri sa taas, versus, employer. Mao na siya
sa caption sa kaso. Pero usahay kung mapildi ang employer, diri na siya sa ibabaw, siya na
puy petitioner. Ang complainant mahimong respondent. Mausab ang caption sa kaso. But
while the case is pending in the Labor Arbiter and it goes to NLRC, the same ang title sa
kaso, the same ang caption. Pero pag-abot nimo sa Court of Appeals, under Rule 65 (Rules of
Court), kinsa toy nagdala sa kaso, mao toy ibutang na pangalan diri. Why? Because that is
another case. Pero the decision of Court of Appeals, idala sa Supreme Court, parehas ra ang
title, kay imo lang man gi-elevate.

CHAPTER 5

Let us go to Chapter 5, what is important here is the distinction of the powers of

National Wages and Productivity Commission. the commission provides for the rules in
determining in the making of wage order. But it is the Regional Board (RTWPB) who will
determine or fix the minimum wage. Take note also, that minimum wage lang ang pwede
itaas sa wage board, it is not across the board.

So Regional Tripartite Wages and Productivity Board (RTWPB), its power is to make
rules and regulations that will be implemented, that will be used as a guide in determining the
minimum wage. So it is the RTWPB who will fix the minimum wage.

So if you are listening to the radio or watching TV now, there is now a call from unions,
for the President to call on this wage board to increase the minimum wage. Ako gusto pud ko
nga dako og sweldo ang mga tao, kinsa man gud daw ang dili gusto og dakong sweldo? Ang
problema lang, if you will increase the minimum wage, everything will increase. So kung
manira ang kompanya, daghan na pud ang unemployed. Supposing the budget of P200M,
this will be the salary of, I think, mga 1000 people also. Unya ang income sa kompanya,
P500M. For example there is a call, o sige increasan nato ning atong sweldo. Now the
labor cost would increase to P300M for 1000 people also, the same lang ang income, asa man
nimo na pangitaon? Diba mudako imong cost? So P200M na lang ang imong pwede gamiton
for other expenses. Wala pay labot ang electricity, taxes, kana. So there is really a possibility
that expenses would increase, manirado.

So muingon na lang ang empleyado, Sir dili na namo kaya mag-operate. We will cut
down the workers from 1000 to 500. We will pay, so that is the authorized cause. So manira,
dawat gyapon ko (employee) og kwarta. Problema lang, pila ra man nang separation pay?
After the separation pay is received, palit dayon og TV didto nga smart, palit dayo og habal-
habal, kay maayo na lang ni negosyo. I heard some people say, after retirement nako diri
negosyo ko. Retire na gani ka, munegosya ka pa. Daghan og namatay ana. In that case, in a
company that I worked before, the company declared a retrenchment. Imagine from a worker
who has been working for 20 years, reporting from 7:00 am to 3:00 pm, nikalit lang
munegosyo? Mu-buy and sell, unsa ang nahibaw-an ana?

Kamo, working student man mo. Pag negosyo daw mo og karenderya. Wala man ta
kabalo unsay balaod. Law Students Canteen Association, unsa man pagpadagan ana? It is not
easy to increase the minimum wage. I also represent for the employers, unsa man
magpadayon ta bisag ginagmay? Under the Labor Code, employer is not compelled to pay if
it can no longer be able to pay. The case of Apex Mining Corporation, it originated here in
Davao City. Niabot sa Supreme Court, niingon ang Supreme Court, You cannot squeeze
water from a parched land. Wala na daw kay matiti na ba sa uga nga yuta. Because the
company is insolvent, dili gyapon makabayad.

I have a case also, sagingan. Ang sagingan kay naigo bitaw og kanang mga disease,
perting paita, good bye capital. Mas labaw pa na sa Moko disease. Sakit na sa saging,
murag kanang sa tao ba, mabiyaan og uyab. And do you know how contagious it is? Kana
ganing kani punuan sa saging, og isa ka-punuan nga naay moko disease, itusok ang stick sa
pikas, igo ang pikas. I-uproot na tanan. So ing-ana ang moko disease. So mao lagi na atong
mga igsuon sa kalihukan. I think this should be a holistic approach.

So take note of the powers and functions of the commission, as against the power of
RTWPB. What to remember is, the RTWPB is the one who determines and fix the minimum
wage applicable in the region. That is why each region has its own board. Because the people
who comprise the wage board are from the same region. So kasabot na sila kung unsay naa
diha, So in Manila, the minimum wage is higher than in Davao, because according to them,
the standard of living in Manila is taas, mahal man gyud didto. If you are watching TV, ang
talong og ang sayote, kung taga-Lumondao ka, puniton ra man na sa daplin. Sa Marilog,
puniton ra na sa dalan ba. Pag-abot sa Manila, tag-singkweta man siguro ang kilo ana.
Kaniadto tulo-diyes lang na ba. Karon, tulo-baynte na man.

Ay you have not gone yet to Magallanes, kay mga dalaga pa man mo, mall pa mo. Ang
pamaliton ninyo mga (chicherya). Inig kaminyo ninyo, inyong pamilion kay mga okra,
talong, ana na man diba? Pana-panahon lang na, kung mulakaw mo, catwalk, pero og
maminyo na, mulakaw nga murag walay tao. Sus, hinumdumi lang ninyo, inyong boyfriend
karon, sweet pa kaayo, asa man ka gikan?... Sus pagkaminyo, tara uban ta og palengke
Sus kaduol ra anang palengke, siyaro wala pa ka katul-tol nga ikapila na ka sige og balik-
balik dira. Exaggerated lang. So mamili gani mo og future husband ninyo, pamili gyud mo
(og tarong), too good to be true is not true. That is not part of the Labor Standards.

ARTICLE 123

So take note also, under Article 123, it is also a requirement, it was also ask in the bar,
that public hearing must be done. The second paragraph of Art. 123:

Art. 123 par. 2. In the performance of its wage-determining functions, the Regional
Board shall conduct public hearings/consultations, giving notices to employees and
employers groups, provincial, city and municipal officials and other interested parties.

So without following these rules, there is no notice, the wage board will just issue a wage
order without conducting a hearing, it is not in accordance with Article 123. And take note,
under Art. 123, the aggrieved party may file an appeal to the Commission (National Wages
and Productivity Commission), within ten (10) calendar days, and if you make an appeal, an
appeal will not stop the implementation of the Wage Board unless you put up a bond. For
example your company is affected by the increase of the minimum wage, so you do not want
to increase in the mean time, you are required to put up a bond. Ing-ani pud diay ang real
situation, unsaon man pud ning Pinoy nga, we do not like to participate in public hearings,
unya na mureklamo kung epektibo na ang balaod. For example kanang ADA, daghan kayo
nagreklamo, but if there was a public hearing, walay nangapil. Aron epektibo na, dili na ka
maka-text-text, drive-drive. It is also dangerous. Pwede siguro mag-holding hands, ay dili
pud pwede no? So at point to appeal there must be a bond. Art. 123 again, was ask in the bar.

RA 6727

And what is the intention of RA 6727? It is to rationalize wages, first by providing full
time board to police wages round-the-clock. During the term of President Marcos, the wage
was increased through the issuance of Presidential Decree, walay daghang storya. Unlike
now, there is House of Congress, there is House of Representatives, in your political law,
himo na sila og balaod, paghuman ana pirmahan sa Presidente. During the time of Marcos,
wala na siya. Presidential Decree lang ni Marcos, balaod na na siya. Example, that
Presidential Decree on 13th Month Pay. Under many laws issued by Marcos are still effective
until now.

Frequency of Wage Order

So the frequency of wage order, dili pud taga-bulan, taga-bulan na lang sige og increase.
Pwede ba gud diay nang naay negosyo sa wage increase? Because not everybody can
comply. Suroyan na lang tanan establishment . You can be harassed if you are not a labor law
compliant. If you violate some laws, it is easy to harass a businessman. Unsa man ka, wala
man ka nisunod? There are many ways of killing a cat, dili sa nako na itudlo sa inyo ron kay
studyante pa man mo. You will know that in the course of your practice.

Review of Wage Order

So take note, the Commission may review the wage order issued by the Board moto
proprio or upon appeal. An appeal may be filed by the following grounds:
1. Non-conformity with prescribed guidelines and/or procedure;
2. Question of law
3. Grave abuse of discretion

ARTICLE 124

Let us go to Article 124. Take note of the definition of Wage Order, Wage distortion of
Article 124. And what are the factors in considering the minimum wage. Take note the
demand for living wages and minimum wage are not the same. Because our minimum wage
is not really the living wage. Pasmo diha. For example, a worker with two dependents, so
upat sila, would receive P400.00. Kulang man na. Bugas, tag-singkwenta ang kilo, di P350
na lang. Sud-an, ah daghanon na lang ang kan-on kaysa sa sud-an. Kami kaniadto ang sud-an
sa ilalom sa kan-on.
 So the definition of wage distortion (definition), a situation where an increase in
prescribed wage rates results in the elimination or severe contraction of intentional
quantitative differences in wage or salary rates between and among employee groups in an
establishment as to effectively obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of differentiation. Memorize and
understand, read, comprehend and articulate the meaning of wage distortion because this was
also asked in the bar.

Second question, what are the remedies in case of wage distortion? If there is a labor
union, or it is an organized establishment, you submit your grievance to the grievance
machinery. If there is no amicable settlement you go to voluntary arbitration. If there is no
union, you go to National Conciliation And Mediation Board (NCMB), and if there is no
amicable settlement in NCMB, you go file a case with the Regional Arbitration branch of the
NLRC. It shall be the workers who shall file the complaint for wage distortion, dili ang
employer, alangan.

Naa koy studyante sa una, ang iyang gigamit nga explanation sa exam kay ang akong
explanation, ___ man ning studyanteha ni. Use lagi the provisions of law. Ako na tong gi-
explain para dali sabton. Ako lang tong gigamit akong illustration because I think it is the
most effective way of understanding wage distortion. What is wage distortion, nawala ang
quantitative difference.

Ang minimum wage, for example is P400.00, ang second diri kay P420, sa kompanya
naa gyud nay level of salary. Ang uban diha wala gyud naga-maintain og wage structure.
Wala silay wage distortion pero a company that has union, the company will always have a
wage/salary structure. Why? Because there are times when you have to increase to give
meaning to the person for performing well. Naay isa tamad, dili nimo tagaan og increase.
Pero ang katong isa didto nga kaning empleyado na ginatawag na asset, who is receiving a
salary for P420.00, and he performs well. He reports to the office before 8:00am, nakaready
na siya to work. Katong isa didto pag-alas-otso, saka pa siya mu-make-up, naka-time in na,
unya before siya mu-time-out manghipos na. Daghan ana, obserbahi ang mga opisina. So if
you are the employer tagaan nimo og increase, Oh karon, P420 ka na. For example A & B
are hired at the same company, but B is more industrious or diligent, so 1 year pa lang siya
P430 na siya, so gibyaan niya si A, P420.00 lang. So this is the structure of the company. But
I am not saying that that is the correct, na mao gyud ni permi.

For example, there is now a wage increase by wage order, so P400.00, so niingon ang
wage order na increasan nato ang minimum wage into P425.00. So as I have said, the
minimum wage is applicable only to minimum wage earners. So if you are not a minimum
wage earner, P420 ka, you are excluded from receiving this P425, dili man ka minimum
wage. So there is now salary distortion. So what is the effect? Magkaroon man pud na siya
og demoralization ba, ma-demoralize ang mga tao. Imagine, nauna pa ko, mas dako pa siya
og sweldo. So that is now the effect of wage distortion. What is the remedy? Naa diri sa
Article 124. But as I said, if it is wage order, mao na ang tumanon. But if there is a policy
issued by the company, increasing the hiring rate instead of P400, gihimong P600 to entice
people with good track, gwapo og educational background, probably a graduate of Legal
Education, UM Legal Education, maayo ang Labor Laws ana nila, kani sa Digos nigraduate,
kani sa UM, is there wage distortion? No, because it was the policy of the company. It is the
union to prove distortion. And you read the formula, ambot lang kung pangutan-on ba ning
formula. I am a voluntary arbitrator actually. I have yet to decide a case involving wage
distortion. I am a member of a voluntary arbitration here in Davao. Wala pa ko naka-decide
og kaso nga wage distortion, I want to, para mapang-apply nato ning mga gipang-yaw-yaw
nako diri ba. Tinuod ba gyud ni og dili.

So the summation of salary distortion discussed in National Federation of Labor vs

NLRC, it is stated in the book of Azucena. Take note of A, B, C, and D (page 370). And
wage distortion is nonstrikeable. You read this case of Ilaw at Buklod ng Manggagawa vs
NLRC.

So as a result of this RA 6727, there is now a double indemnity.

ARTICLE 128

Art. 128 is the visitorial, this is now the power of Department of Labor to go inside the
premises of the company to find out if this company is a labor law compliant.

Unlike in civil case, in civil case man gud, there must be a search warrant. But in Labor
laws, walay search warrant ni. Muadto tong labor inspector, huy, manong muanhi mi diri
kay mag-inspect mi kung labor law compliant ba ka. Kung nagsunod ba ka og balaod. So
they will interview some of the people. Pila imong ginadawat diri na sweldo? P250 sir.

If you are engaged in construction, there must be hard hat, kung nagsapatos, first aid, apil
na siya. Naa pa gyuy policy on dangerous drug act, naa na siya. Daghan og policy ang
Department of Labor. For example there are women workers, naa ba moy breastfeeding
center, required man na ron, or many requirements. But if you notice in the mall, women
workers are supposed to be provided with seats, kay lisod mag-sige og tindog kay ma-
varicose mo. Luoy kayo nang mga babae nga dagko og varicose oy. Utong-utong
pagpanganak, naa pay banang badlungon. Suroy mo didto sa kuan, diba walay lingkuranan,
mag-sandig-sandig lang ang uban diha. Ang uban diha manglingkod. I do not know, despite
of this Article 128, and despite of the City Ordinance, requiring that establishment must
provide seats for their employees, wala man gyud na gi.. Sige later pag mahimo mong
councilor sa Davao.

There is a decision of the Supreme Court regarding lingkuranan sa empleyado, in Coca

Cola gitanggal ang mga lingkuranan para sa mga lalaki. Ang mga lalaki likramo ron, because
it constitutes of the company practice. But under the Labor Code, the company is required to
furnish seats for female workers, not to male workers. So kitang mga lalaki, presumably nga
lalaki, are not entitled to seats, mga babae lang.
Compliance Order

So take note of Article 128 ha. This is the power of Department of Labor to be exercised
by the regional director to inspect the books of the corporation and inspect the employment
records Payroll. So if the company does not pay exactly, pabayron, there is what we call
compliance order. Once a compliance order is issued, and you do not comply, and you do not
make an appeal after 10 days, times two (2), mao ni ang indemnity. For example the finding
of the labor inspector is P200,000.00, if you do not pay, you do not comply, mahimo ning
P400,000.00. So mao n iron, compliance and enforcement power of the Department of Labor.

And then in relation to Article 129, is smaller ang scope. So I want you to read Article
128 and 129 kay ato ning idiscuss next meeting. And disposition of labor standard cases. All
these benefits of workers, Article 128 is important because mag-unsa diay ning Labor
Standards, kaning mga balaod nga atong gipang-yawyaw, if the state cannot enforce or the
employees cannot. Diba useless og muingon ta na, the employees are entitled to overtime pay
if they work more than 8 hours. What if the employers will refuse to pay. Mangadgi na lang
ta, ato na lang ni silang dagkutan, iampo na lang na matuman. Di na pwede. Mukaging na
lang mo. There must be a government agency that will enforce these labor standards laws.