CHAPTER 2

THE CONSTITUTIONAL
AND LEGAL FRAMEWORK
MEMBERS:

AMPARADO, KYLA NICOLE

AMPER, AIZA MAE
ANADON, ANGIE
INTRODUCTION
Managing human resources is oftentimes fraught with legal
implications. One cannot just ignore the protection of the rights of
labor that are enshrined in our Constitution and statues principally the
Labor Code.

The Constitutional and statutory provisions protecting labor are

derived from the "Police Power” of the state the right of the state to
regulate labor relations for the general welfare and to maintain
industrial peace. It is also based on social justice to ensure protection
of the weaker social partner-labor.
THE CONSTITUTIONAL BASIS
The Philippine Constitution laid the basis for protecting the
rights and welfare of employees.
"The state affirms labor as primary socio-economic forms. It
shall protect the right of workers and promote their welfare
(Article II, Section 18)”

Also, pursuant to this Declaration of Principles, Article XIII,

Section 3 expands its labor policy by providing that:
❑ The State shall afford full protection to labor; local and
overseas, promote full employment and equality of
employment opportunities for all.
❑
THE CONSTITUTIONAL BASIS
❑ It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including
the right to strike in accordance with law.

❑ The State shall promote the principle of shared responsibility between

workers and employers and the preferential use of voluntary modes in
setting disputes. including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace

❑ The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production
and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
 STATUTORY AND
INTERNATIONAL BASIS OF
RIGHTS TO SELF-ORGANIZATION
The Labor Code reinforces this
Constitutional Right to self-
organization (Art. 211):
> ILO Convention 87 (Freedom of
Association)
> ILO Convention 98 (Right to
Collective Bargaining)
THE LABOR CODE KINDS OF
Originally, the Labor Code of the
Philippines was enacted during Martial
EMPLOYEES
Law by virtue of Presidential Decree > EMPLOYEE
442. > EMPLOYER
Since then, it has undergone several
amendments.
It is divided into six major parts:
Book 1: Deals with Pre-employment
CLASSIFICATIONS OF
Book 2: Human Resources Development
Program
EMPLOYEES
Book 3: Conditions of employment > MANAGERIAL EMPLOYEE
Book 4: Health, Safety, and Social Welfare > SUPERVISORY EMPLOYEE
Benefits. > RANK FILE EMPLOYEE
Book 5: Labor Relations
Book 6: Post-Employment
TYPES OF EMPLOYEES IN
TERMS OF TENURE
THERE ARE FIVE TYPES OF
EMPLOYMENT:
❖ REGULAR
❖ PROJECT
❖ CASUAL
❖ PROBATIONARY
❖ FIXED CONTRACT EMPLOYEE AS SETTLED
IN JURISPRUDENCE
 HEALTH, SAFETY AND SOCIAL
WELFARE PROVISIONS
It is the responsibility of the Employment to provide
safe and healthy working conditions in the
workplace.

EMPLOYEE COMPENSATION AND STATE INSURANCE FUND

The state shall promote and develop a tax-exempt employee compensation
program whereby employees and their dependents, in the event of work-
connected disability or death, may promptly secure adequate income benefit, and
medical or related benefits.

• State Insurance Fund is created out of monthly contributions by the employer

for the employee.
LABOR RELATIONS
refer to the relationship between employers and
employees in industry, and the political decisions and
laws that affect it.

Sources of conflicts in labor relations can be attributed to any

or a combination of any of the following causes:

❖ Manner by which hierarchical demands are made or

executed.
❖ Clash between Management Prerogatives and Labor rights
❖ Just share in the fruits of production.
❖ Fair return in investments, expansion and growth.
MANNER BY WHICH HIERARCHICAL DEMANDS ARE
MADE OR EXECUTES

The basic definition of management is getting things

done through people. A manager's function is to plan,
lead, organize, direct and control. It is the manner a
directive is done that hurts the sensibilities of a
subordinate and causes friction labor-management
relations.
MANAGEMENT PREROGATIVES VERSUS LABOR
RIGHTS
There is always the built-in clash between management
prerogatives and labor rights. Management should not
surrender its rights for the sake of industrial peace. But it
must also understand and respect the rights of
employees. In the management of human resources.
somehow there must be a happy balance between
management prerogatives and workers' rights. Both are
not necessarily mutually exclusive.
JUST SHARE IN FRUITS OF PRODUCTION

This is one of the most contentious issues in labor-

management relations. The law does not specify how
much of the fruits of production will be shared between
labor and capital. Employer sometimes complains that
labor does not share in the burden of losses. Workers on
the other hand, complain, not some-times without
justification, that employer through 'creative accounting
reports losses when in truth it has operating profits.
FAIR RETURN IN INVESTMENTS, EXPANSION AND
GROWTH

This is corollary to the immediately preceding issues of

just share in the fruits of production. The Constitution
and the enabling law give allowance in the allocation of
the fruits of production, a fair return in investments, and
a reserve for expansion and growth. This issue can be a
source of serious industrial dispute that could lead to
slowdown in work stop page and strike.
UNFAIR LABOR PRACTICE (ULP)

Unfair labor practices are those covered under Articles

247, 248 and 249 of the Labor Code. It can be committed
by the Employer or by the Employee although usually
ULP is always charged against the Employer.
UNFAIR LABOR PRACTICE BY EMPLOYER
(ART. 248, LABOR CODE)
Interferes, restrains, coerces em- Initiates, dominates, assists or
01 ployees in the exercise of their
right to self-organization; 04
oth- erwise interferes with the
formation/ administration of
labor organization including
Requires as a condition of employ- giving of financial or other
support to its organizers or
02 ment that a person or an employee
shall not join a labor organization supporters
or shall withdraw from one which
he 135:43 belongs: Discriminates in regard to
wages hours of work, and
Contracts out services or functions
being performed by union members
05 other terms and conditions of
03 when such will interfere with, restrain
employment in order to
encourage or discourage
or coerce employees in the exercise membership in labor
of their rights to self-organization: organizations;
 Dismisses, discharges, or Pays negotiation or
otherwise prejudice or attorney's fees to the Union
06 discriminate against an
employee for having given or
08 or its officers or agents as
part of the settlement of any
being about to give testimony is sue in Collective
under the Labor Code; Bargaining Agreement, and

Violates the duty to

07 bargain collectively as 09 Violates a Collective
Bargaining Aggrement
prescribed by the Labor
Code;
 STRIKES AND WORK STOPPAGE/LOCKOUTS
The right to strike is guaranteed by the constitution and the law.
Employees can only strike on two grounds:

❖ Dead lock in collective bargaining Negotiation

❖ Unfair Labor Practice (ULP)

FURTHER CONDITION BEFORE A STRIKE CAN BE STAGED:

❖ A strike notice must be filed with the Department of Labor and Employment 30
days before intended strike in case of deadlock in CBA negotiations:1; days in
case of UIP
❖ Strike must be approved through secret balloting by the majority of the
members in the bargaining unit in a meeting called for the purpose

Lockout is a weapon that can be availed of by the company under the above
conditions
CAN THE UNION STAGE A WILDCAT STRIKE?
In case of ULP involving the dismissal of Union officer
duly elected according to its Constitution and by laws
which amounts to union busting provided a strike vote
is conducted and results submitted to the regional
branch of NCMB Illegal Strikes.

ILLEGAL STRIKES
A strike is a right guaranteed by our Constitution and
Law.
 THE LAW OF TERMINATION
The security of tenure of employees is guaranteed by the Constitution
and by law.
JUST CAUSES
Art. 282 of the Labor Code enumerates the following just causes of
termination:
1. Serious misconduct or willful disobedience by the employee of the lawful orders of
his employer or representatives in connection with his
2.Gross and habitual neglect by the employee of his duties.
3. Fraud or willful breach by the employee of the trust reposed on him by his
employer or duly authorized representatives.
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
representative; and
5. Other causes analogous to the foregoing.
AUTHORIZED CAUSES
Art. 283 of the Labor Code, employers can terminate
employees due to authorized causes under the ff.
conditions:
1. Installation of labor saving devices or redundancy provided the terminated
employee is given one month pay for every year of service.

2. Retrenchment to prevent losses or closing or cessation of operation of the

establishment or undertaking unless the closing is for the purpose of
circumventing the law, provided, that the employee to be retrenched is
given 1/2 month pay per year of service.
DUE PROCESS
REQUIREMENT

The Bill of Rights of the

Constitution provides that no
person shall be deprived of life,
liberty or property without any
due process of law.
THE WAGE RATIONALIZATION LAW (R.A. 6727)
This law was passes in 1989, among others, to
'rationalize wage fixing of minimum wages and to
promote productivity improvement and gain-
sharing measures.

ANTI – SEXUAL HARASSMENT LAW (R.A. 7877)

This law was enacted on February 14, 109 Some companies previously took a cavalier
attitude on complains of sexual harassment committed by superiors.

Sexual Harassment is defined as any work, education or training-related sexual

harassment committed by any person who, having authority, influence or moral
ascendancy over any environment, demands, request or otherwise requires any sexual
favor from other, regardless of whether the demand. request or requirement for
submission is accepted by the object of said act.
THE NEW LABOR RELATIONS LAW (R.A. 9481)
AN ACT STRENGTHENING THE WORKERS' CONSTITUTIONAL RIGHT TO
SELF-ORGANIZATION, AMENDING FOR THE PURPOSE PRESIDENTIAL
DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE
OF THE PHILIPPINES.

The bottom line of the law is, it further strengthens the Constitutional right to
self-organization to the disadvantage of companies who want to maintain a
no- union status. It has also a bias towards federated approach to union
organizing.
THANKS!
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