LABOR REV - October 1.docx

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Termination of Employment by reason of ILLNESS 2 CONDITIONS: 1. The continued employment of the Ee is prohibited by law or prejudicial to his health or health of other Ees 2. There should be a medical certificate from a public authority – the illness cannot be cured within a period of 6 months even if with medical treatment  If can be cured within 6 months – no termination but allow the Ee to go on leave of absence or sick leave + If no more sick leaves – sick leave without pa
  Termination of Employment by reason of ILLNESS 2 CONDITIONS: 1.   The continued employment of the Ee is prohibited by law or prejudicial to his health or health of other Ees 2.   There should be a medical certificate from a public authority  –  the illness cannot be cured within a period of 6 months even if with medical treatment   If can be cured within 6 months  –  no termination but allow the Ee to go on leave of absence or sick leave + If no more sick leaves  –  sick leave without pay + illness was not cured within 6 months  –  Er can already terminate the employment Separation Pay  –  ½ month for every year of service   Fraction of 6 months = 1 year VOLUNTARY RESIGNATION   There must be an INTENTION to relinquish the job   it must be unconditional   accompanied by actual act of relinquishment Indications of Voluntariness of Resignation 1.   Resignation Letter (indicating gratitude for being employed)   wordings of Resignation  –  to severe employment relationship + A salesman misappropriated the funds   threat of termination from Er and to file a criminal action   resignation is still voluntary + Er adopted a redundancy program  –  Ees affected told to submit their resignation and to give higher separation benefits and Ee chose to resign   resignation is voluntary + Er threatens Ee for dismissal for cause if he does not resign  –  Ee resigned   resignation is voluntary   a way of giving a graceful exit to the Ee + Voluntariness is not negated by the fact that the Er prepared and resignation letter and the Ee signed the same >> Law requires the Ee to give ONE MONTH NOTICE to the Er + in order to give the Er time to find a replacement + the Er cannot compel the Ee to work within the one month period = involuntary servitude (Er  –  action for damages) + Er can waive the 30-day period and allow the Ee to quit outright >> If the Ee resigns, he would NOT BE ENTITLED TO separation pay CONSTRUCTIVE DISMISSAL    Involuntary Resignation    It is the Ee who quits from his employment or stops working or relinquishes his job    harsh or unbearable treatment against the Ee    “a dismissal in disguise” –  Er wants to get rid of the Ee GROUNDS for Involuntary Resignation 1.   Serious Insult by the Er on the honor or person of the Ee 2.   Inhuman or unbearable treatment 3.   Commission of a crime against the Ee/Family/Representative 4.    Analogous Causes + Demotion of Rank and forces him to give up his Employment  –  Involuntary Resignation (Without a valid reason)   unless the same is a punishment for the commission of an offense   no offense  –  demotion is motivated by the desire of the Er to get rid of the Ee + Ee transferred to another place  –  to cause inconvenience   no claim for CD   mere inconvenience will not amount to CD   Er has the prerogative to transfer and Ee from one place to another >> One-month notice is not required anymore for involuntary resignation  ABANDONMENT OF EMPLOYMENT   Constructive Resignation   Initiative to cut-off the employment relationship comes from the Ee   Ee absents himself without justifiable reason   Mere absence is not enough to constitute AoE  –  there should be an intent to abandon or not to return to work anymore Elements: 1.    Absence for a substantial period of time without a  justifiable reason 2.   Intent to abandon   How to ascertain  –  send the Ee a notice to report to work   Ee does not report to work despite the notice will indicate intent to abandon   If Ee complied  –  Ee can be charged with absence from work an impose the corresponding penalty TERMINATION  –  PROLONGED LAY-OFF  ART. 291  –  Suspension of Business   Not longer than 6 months does not terminate employment 1.   Bona fide suspension of operations   suspension of operations in Good Faith   temporary lay-off of the Ees   does not exceed 6 months  –  employment is merely suspend and not terminated    exceeds 6 months  –  employment automatically terminates + Ees affected will be entitled to separation pay   Er resumes operations  –  Ee must signify his intention to return to work within ONE MONTH from resumption of operations of the company If suspension was NOT done in good faith  –  the effect is the Er will be held liable for back wages for the duration of the suspension of operations Lay-off will go beyond 6 months  –  automatic termination of employment Ees affected = Separation Pay 2.   Fulfillment of a civic or military duty   6-month period will NOT apply   employment is merely suspended and not terminated   upon discharge from duty  –  Ee concerned must signify his intention to return within a period of ONE MONTH from discharge from duty RETIRMENT OF EMPLOYEES   Determine whether Ee is retireable or not + CBA, company policy or retirement contract will determine the same + Absence  –  provisions of the LC will apply 2 types of retirement under the LC 1.   Optional   it is based on age  –  optional retirement age is 60 for ordinary Ees   50 years old for UNDERGROUND mining Ees WHO can exercise optional retirement:   ONLY the Ee can exercise the option to retire   If Er retires the Ee  –  Er can be held liable for illegal dismissal   the choice whether to retire upon reaching the age of 60 belongs to the Ee 2.   Complusory   65 for ordinary   60 for UNDERGROUND mining Ees Not all Ees who have reached the retirement age are entitled to retirement pay   Condition: Ee must have rendered at least FIVE YEARS of service NOT entitled: 1.   Domestice Helpers 2.   Personal service of another 3.   Establishments employing less than 10 Ees Retirement Pay (p. 631) a)   15 days salary b)   cash equivalent of 5 days of service incentive leave c)   1/12 of 13 th  month pay Retirement Fund if less than what is provided under the LC   Er will pay the difference Contributions to Retirement Fund   Total contributions of Er should not be less than the amount of the retirement benefits under the LC   If less  –  difference to be shouldered by the Er NLRC PROVISIONS Labor Arbiters   Orignal and Exclusive Jurisdiction a)   labor disputes b)   termination disputes c)   money claims if accompanied with a prayer for reinstatement d)   actual/moral/exemplary damages arising for Er-Ee relationship e)   violations of Art. 269 including the legality of strikes and lockouts f)   all of ther cases arising for Er-Ee except claims for ECC, SSS, PhilHealth and Maternity Benefits >> Unifying Element  –  Er-Ee Relationship Reasonable Causal Connection Doctrine   LA to acquire jurisdiction over a dispute, the same must have a reasonable causal connection with Er-EE relationship    if the principal relief sought can be resolved by the LC or other reference of other labor laws and not by the general civil law    no jurisdiction arising from damages due to negligence of the Ee  –  based on quasi-delict    no jurisdiction for damages arising from tort and no reasonable causal connection with Er-Ee relationship   not all claims arising from Er-Ee relationship will not fall within the jurisdiction of LA: a)   ECC benefits b)   SSS benefits c)   PhilHealth benefits d)    Art. 129 of the LC  –  pure money claims of Ees not exceeding FIVE THOUSAND pesos without a claim for reinstatement    Other agencies to share with the LA it’s jurisdiction  a)    Art. 267  –  VA vested with authority to decide complaints for ULPs and other Labor Disputes provided there is an agreement between the parties b)    Art. 268-G  –  SOLE to assume jurisdiction over a labor dispute to cause a strike or lockout in a industry of national interest. SOLE can decide all disputes between the parties including those falling within the jurisdiction of the LA TERMINATION DISPUTES GR: Jurisdiction of the LA Exceptions: a)   termination disputes involving corporate officers  –  intra-coporate dispute (RTC jurisdiction)  b)   termination disputes involving the interpretation and implementation fo the CBA or company personnel policies  –  Voluntary Arbitrator Jurisdiction of LA vs. VA  –  Termination Disputes   interpretation or implementation of CBA/CPP  –  Voluntary  Arbitrator   actual termination  –  Labor Arbiter + Sanyo vs. NLRC - union recommended the dismissal of one of its members who failed to maintain his membership in good standing - union security agreement in the CBA - the company acceded to the request  –  Ee dismissed - ISSUE: Jurisdiction  –  VA or LA? - SC: LA has jurisdiction - There is no dispute to interpretation of union security agreement - Dispute is between dismissed union member, the union and the company MONEY CLAIMS OF EMPLOYEES   Jurisdiction of the LA will depend whether or not there is a prayer for reinstatement   with reinstatement  –  LA has jurisdiction regardless of the amount involved   no reinstatement a)   if the aggregate amount is 5,000 and below  –  Regional Director b)   if the amount is more than 5,000  –  LA >>> money claim must have a reasonable causal connection with Er-Ee relationship Example: Illegal deduction of benefits Recovery of Attorney’s Fe es (In-house lawyer)  –  has a reasonable causal connection to Er-Ee relationship; the lawyer is considered an employee. Claim filed a security agency against a principal  –  NO reasonable causal connection to Er-Ee relationship + Smart Communications Case    Ee dismissed with a car plan benefit    Payable balance to be paid to the company    Company filed a complaint for replevin for the recovery of the car with the RTC    ISSUE: RTC jurisdiction?    RTC has jurisdiction Corporate Officers  –  Money claims 2 situations: 1)   money claims pertains to the perks of the corporate position  –  LA has no jurisdiction 2)   money claims pertains to corporation compensation and benefits as an Ee of the corporation  –  LA has jurisdiction Money claims of Er with LA  –  as long as it has a reasonable causal connection with Er-Ee relationship Money claims of Migrant Workers  –  LA has jurisdiction under the Migrant Workers Act Claims for Damages  –  LA jurisdiction   damages must have reasonable causal connection with Er-Ee relationship Damages arising from Malicious Prosecution  –  LA have no  jurisdiction since the same arises from Tort   regular courts will have jurisdiction To declare a strike illegal  –  LA has jurisdiction Writ of Injunction to remove the obstructions placed by strikers  –  NLRC has jurisdiction Wage Distortion Disputes a)   unorganized establishment  –  LA has jurisdiction b)   organized establishment  –  VA has jurisdiction COMPULSORY ARBITRATION PROCESS   NLRC has its own rules   rules of court  –  supplemental manner   case is decided merely on position papers and documentary evidence submitted by the parties   Mandatory Conciliation Conference before filing a complaint with the LA SENA  –  single entry approach If not decided at that level then complaint may be filed with the LA   Non-lawyers may appear before the LA a)   if they represent themselves b)   they represent the organizations in which they belong  –  proof is required   submission of the case to the Lupon Tagamapaya is not required Pleadings that cannot be filed with the LA: a)   motion for bill of particulars b)   motion for new trial c)   motion to dismiss except for lack of jurisdiction, improper venue, res judicata, prescription and forum shopping d)   motion to declare the defendant in default (no default in labor proceedings) LA exercises FULL control over the proceedings   necessity for hearing determined by LA then LA will conduct a hearing   degeree of proof  –  substantial evidence  Adverse Decision from the LA    motion for reconsideration is not allowed   Remedy: appeal to the NLRC  –  10 calendar days; non-extendable   notice of appeal will not interrupt the 10 day period   prepare memorandum of appeal  –  state the facts of the case, the arguments, and the reliefs being asked for   pay the appeal fee   Lawyer for Er  –  appeal bond must be filed equivalent to the monetary award excluding the award of damages and attorney’s fees + limited to the award of backwages + cash bond or surety bond + required only if the appellant is the Er who is appealing a monetary award + decision with no monetary award  –  appeal bond is no necessary + award to pay damages  –  appeal bond is not necessary (damages are excluded) Decision contains an order for reinstatement   Immediately executory even pending appeal   Compliance of the Er of the order of reinstatement: 1)   physically reinstating the employee in his position 2)   reinstate the Ee in the payroll >> only the Er can exercise the option  –  cannot be compelled by the LA to choose either of the 2 modes of reinstatement   Er CANNOT post a bond in lieu of reinstatement, the 2 ways for the reinstatement of an Ee must be followed NLRC reversed the LA decision  –  Valid Dismissal   Reinstatement a)   if the Ee was reinstated physically  –  the Er can put an end to the reinstatement as soon as the decision becomes final and executor b)   if reinstated in the payroll  –  Er can stop paying the salaries of the Ee as soon as the decision becomes final and executor Reinstatement was not imposed pending appeal a)   not implemented because the Er refused to comply  –  liable for backwages b)   not implemented because the Ee did not vigorously claim his right  –  no liability for backwages + Supervening Events  –  payroll reinstatement = stop payment MR for NLRC decisions are allowed   required before appeal to CA is allowed (by certiorari)   special civil action  –  Rule 65 CA renders a decision  –  elevate to SC by appeal by certiorari (Rule 45) INJUNCTION IN LABOR DISPUTES   is not favored and is discouraged >> a labor dispute must be involved!   regular courts DO NOT have jurisdiction to issue injunctions in labor disputes Substantive Requirements: 1)   prohibited or unlawful acts have threatened to be committed or are committed unless restrained 2)   substantial or irreparable injury to complainant 3)   greater injury on the part of the complainant unless the relief is granted 4)   there is no adequate remedy 5)   public officers charged with the protection of complainant’s  property do not act to protect the same >> petition under oath >> there has to be a hearing  –  cannot be issued ex parte >> TRO from NLRC  –  effective for 20 days after posting of a bond PRESCRIPTION   3 years  –  money claims   prescriptive periods for illegal dismissal cases  –  4 years from the date of dismissal   illegal dismissal is not a criminal offense under the LC   only those which are declared as UNLAWFUL as considered as criminal offenses
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