LEGAL IMPLICATIONS OF RECENT DOLE RULINGS

989856

989856 Management Employees

989856 Management Prerogative

Employees’ Rights

989856

1. Right to hire and fire

1. Security of Tenure

Government

Laws

2. Right to fix salaries

2. Minimum Wage

3. Other Benefits

3. Mandated Benefits

Management Prerogative

• Sec. 23. The board of directors or trustees. - Unless otherwise provided in this Code, the corporate powers of all corporations formed under this Code shall be exercised, all business conducted and all property of such corporations controlled and held by the board of directors or trustees x x x “ (Corporation Code of the Phil, B.P. Blg. 68)

RIGHTS OF SCHOOLS

• Sec. 13. Rights of Schools. – In addition to other rights provided by law, schools shall enjoy the following:

– 1. The right of their governing boards or lawful authorities to provide for the proper governance of the school and to adopt and enforce administrative or management systems.

• 2. The right of institutions of higher learning to determine on academic grounds who sall be admitted to study, who may teach, and what shall be the subject of the study and research. (Education Act of 1982, B.P. Blg. 232)

Revised Manual of Regulations for Private Schools in Basic Education

• Section 21. Governing Body. – Every private school shall have a governing board which shall exercise general supervision, have exclusive control and direction of all funds, prescribe policies, make rules and regulations and establish practices consistent with law for the governance and direction of the school.

– Trustees of educational institutions organized as non-stock corporations shall not be less than five (5) nor more than fifteen (15).

–Note: Sec. 108 of the Corporation Code of the Philippines: Trustees shall be in multiples of five.

• The control and administration of educational institutions shall be vested in citizens of the Philippines. Trustees or directors of educational institutions shall possess at least a bachelor’s degree. (Revised Manual for Private Schools in Basic Educ.)

Rights of Management

• The right to hire and fire

• The right to fix terms of employment

– Casual

– Substitute

– Contractual

– Probationary/Regular

• The right to fix conditions of employment

• - 1. Salaries/wages

• - 2. Company benefits

• - 3. Hours of Work –Schedule

–Overtime

4.Weekly Rest Periods

5. Pay dates

SALARY SCHEME FOR TEACHERS

• I. 272 days

– `Monday to Friday – worked and paid

– Saturdays & Sundays – not worked and not paid

II. 314 days

- Monday to Friday – worked and paid

- Saturdays - Not worked but paid

- Sundays - Not worked and not paid

• III. 365 days

– - Monday to Friday - worked and paid

– - Saturdays & Sundays – Not worked but paid

N.B. - 272 days and 314 days include the regular holidays

No. of school days/contact days during the year - - 205 days

• Benefits voluntarily granted by the Employer

– Sick Leave/Vacation Leave

– Employee’s Tuition Fee Discounts

– Study Grants

– Benefits in excess of those mandated by law

NOTE: Art. 100, Labor Code – No demotion in rank or diminution in benefits

EMPLOYEES’ RIGHTS

• 1. Security of Tenure • - Contractual/probationary

• - regular/permanent

• A regular teacher does not acquire a second tenure (La Salette Case)

• Every private school shall promote the improvement of the economic, social and professional status of all its personnel (MRPS, Sec. 89)

• 2. Right to Organize

• 3. Right to Just and Humane Conditions of Work

Labor Laws

• 1. Right to Due Process

• 2. Right to law-mandated benefits

– a) Minimum wage

– b) Normal Hours of Work

– c) Overtime Pay

• d) Weekly Rest Period

• e) Holiday Pay

– Regular holiday vs. Special Public Holiday

• f) Rest day Pay

• g) Service Incentive Leave Pay

h) Night Shift Differential Pay

i) 13th Month Pay

• Benefits Mandated by Law

– SSS

• Sickness Benefit, Maternity Leave Benefits,

• Retirement, Death

– Philhealth

– Pag-ibig

– ECC – for work-connected or work-aggravated disease/incapacity

B E N E F I T S

• Mandated by the Labor Laws

– Salaries/Wages – Payment (not more than 16 days apart)

– Solo Parent’s Leave (R.A. No. 8972)

– Paternity Leave (R.A. No. 8187), 7 days

– 13th Month Pay (PD No. 851)

– Service Incentive Leave Pay, 5 days

– Special Leave for Women (R.A. No. 9710), 60 days

– Battered Woman’s Leave (R.A. 9262), 10 days

– Retirement Pay (R.A. 7641)

E N D O

(End of Contract) CONTRACTUALIZATION

5 5 5

• JOB-CONTRACTING

• VS.

• LABOR-ONLY CONTRACTING

Labor Code of the Philippines

• Art. 106. CONTRACTOR OR SUBCONTRACTOR.

– Whenever an employer enters into a contract with another person for the performance of the former’s work, the employees of the contractor and of the latter’s subcontractor, if any, shall be paid in accordance with the provisions of this Code.

– In the event the contractor or fails to pay the wages of his employees in accordance with this Code, the employer shall be jointly and severally liable with his contractor or subcontractor to such employees to the extent of the work performed under the contract, in the same manner and extent that he is liable to employees directloy employed by him.

– There is “labor-only” contracting where the person supplying the workers to an employer does not have (1) substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the (2) workers recruited and placed by such persons are performing activities which are directly related to the principal business of such employer.

• In such cases, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him.

E N D O • 5 5 5 – Repeated hiring of employees under an

employment contract of short duration with the same or different contractors which circumvents the Labor Code provisions on Security of Tenure.

Dept. Order NO. 18-A, s. 2011 (N0v. 14, 2011)

• Requires registration of contractors or subcontractors with the Department of Labor

• Paid-up capital of not less than Php3M

• Net Finanical Contracting Capacity

PROHIBITED ACTS Sec. 7, D.O No. 18-A

• 1. Contracting out of jobs, works or cervices when the same results in the termination or reduction of regular employees and reduction of work hours or reduction or splitting of the bargaining unit.

• 2. Contracting out of work with a “cabo”.

• 3. Contracting out of a job through an in-house agency.

• 4. Contracting our of a job, work or service that is necessary or desirable or directly related to the business or operation of the principal by reason of a strike or lock-out.

• 5. Repeated hiring or of employees under an employment contract of short duration or under a Service agreement of short duration with the same or different contractors which circumvents the Labor Code provisions on security of tenure.

Labor Advisory No. 10 July 25, 2016

• Reiterates prohibition against labor-only contracting.

• The DOLE Regional Directors have authority to

declare the existence of labor-only contracting.

Dept. Order No. 162 (July 25, 2016)

• Suspends the registration of new applicants as contractors or subsontractors under Dept. Order NO. 18-A.

• Manila Doctors’ College et al. vs. Emmanuel M. Olores (G.R. No. 225044, Oct. 3, 2016)

– “Order of reinstatement issued by the Labor Arbiter is self-executory, i.e., LA need not even issue a writ of execution.” (Bergonio, Jr. vs. South East Asian Airlines)

• TEACHING – NOT the ordinary source of bread and butter

• TEACHING is an APOSTOLATE

THANK YOU!