Separation Pay

Separation pay is given to employees whenever the cause of termination of employment is attributable to authorized causes,[1] as well as in cases where employment of an employee who initiated a labor complaint is no longer feasible due to strained relations.[2]

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Employment Arrangements

The law recognizes these various arrangements by the employer and the employee depending on the nature of the employment: regular, probationary, project, fixed-period or term, seasonal, casual.

These different setups are due to various reasons. For regular employment, the employer benefits from a full-time employee who in turn will receive all statutory and company benefits. Meanwhile, in probationary employment, the employer has the opportunity to assess the performance of the employee who will prove that he is suitable for the position. As for project, fixed-period or term, seasonal, and casual employments, the employer and the employee mutually benefits from an arrangement where neither one will be committed to continue employment after the expiration of he project, term, season, or incidental activity.

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Company Policies

The management’s prerogative on all aspects of employment are ordinarily reflected in the company or workplace policies. The company or workplace policies consist of the rules and regulations to be followed and observed in the workplace, as well as additional and more detailed terms and conditions of the employee’s employment.

The company policies are required to have provisions concerning: (a) sexual harassment; (b) drug free workplace; (c) HIV/AIDS; and (d) Hepatitis B.

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Employer-Employee Relationship

The law generally defines an employer as any person acting in the interest of an employer, directly or indirectly.[1] It does not include a labor organization or any of its officers or agents unless they are acting as an employer.[2]

On the other hand, an employee is likewise broadly defined as any person in the employ of another.[3] The definition includes any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment.[4] It is not limited to employees of a particular employer, except if so explicitly stated by law.[5]

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Balancing of Interests between Employer and Employee

Although labor law is based on social justice, it does not necessarily mean that the employer is left to its own devices. The Supreme Court itself has repeatedly mandated that injustice should not be done to the employer:[1] “We cannot simply tolerate injustice to employers if only to protect the welfare of undeserving employees.”[2]

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Social Justice as the Reason for Labor Law

Social justice is the aim, reason, and justification of labor laws, as aptly summed up by former Supreme Court Justice Cesar Alvero Azucena, Jr.[1]

As the basic tenet of social justice states that “those who have less in life must have more in law,”[2] the 1987 Philippine Constitution mandates the State to afford “full protection to labor.”[3] The directive covers all employees whether they be local or overseas, organized and unorganized. [4] In pursuance thereto, the State is mandated to promote full employment and equality of employment opportunities to all.[5]

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