Labor Laws Flashcards
Refer to the Philippine Law that provides the minimum requirements regarding work conditions, work hours, wages, benefits and other employment conditions that are being implemented by the management.
Labor Standards
Their goal is to strike a proper balance between the protection of worker rights versus the exercise of management prerogatives by the employer in accordance with law and to achieve industrial peace.
Labor Relations
The state shall promote the full protection of labor, local and overseas, organized and unorganized and promote full employment and equality of employment opportunities for all. (Guarantee the right of all workers to self-organization, they shall be entitled to security of tenure.)
Section 3. Art. 13 State Protection of Labor
A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE
Presidential Decree 442
The state shall afford protection of labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed.
Article 3. Declaration of Basic Policy
All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor.
- Equipose rule
Article. 4 Construction in favor of labor
-Minimum wage
-Overtime, Holiday, Premium, Night Shift Differential Pay
-13th Month Pay
-Service leave, Maternity leave, Magna Carta for Women
-Paternity, Solo Parent, Violence against Women & their Children (VAWC) leave
-Retirement Pay, Separation Pay
-SSS, Pag-ibig, Philhealth
- There should be an employer and employee relationship (The four fold test)
Statutory Benefits of Workers
- Selection and engagement of the employee
- Payment of wages
- Power of dismissal
- Control test
If all of these are present, then there is an employer and employee relationship.
The four fold test
Most important element of four fold test
employer’s power to regulate how the work is done
Control test
Lowest amount of wage that an employer will pay to an employee.
(Floor bc the employer and employee can negotiate to a much higher wage)
Minimum wage
- distress establishment
- new business enterprises
- retail and service not more than 10 employees
- establishment affected by natural calamity
Exempted from paying min wages
- Basic Pay / Salaries
- Fringe Benefits
- Incentives
- Non-financial Rewards
Compensation Plan Components
Is a segment of management or human resource management focusing on planning, organizing, and controlling the direct and indirect payments employees receive for the work they perform.
Compensation Administration
- Basic Components of Compensation Program
- Refers to the cash that an employer pays for the work performed
Base Pay
- Basic Components of Compensation
Program - Include cost-of-living adjustments (COLAs), overtime, holiday and other premium wages, travel and apparel/clothing allowances, and a host of related forms of premiums and reimbursements
- used to compensate employees for work above and beyond their normal work schedules or to reimburse them for expenses related to their jobs.
Wage and Salary Add-ons
- Basic Components of Compensation Program
- Refer to funds employees receive for meeting performance or output goals
as well as to seniority and merit pay. - Companies provide these forms of compensation to influence employee behavior, improve productivity, and reward employees for their years of service or their
strong job performance.
Incentive Payments
- Basic Components of Compensation Program
- Include paid time off, health insurance, deferred income such as pension and profit-sharing programs, company cars, fitness club memberships, child care services, and tuition reimbursement.
Benefits and Services
are hourly rates of pay regulated by the Labor Standards of the Department of
Labor and Employment together with the National Wages and Productivity Committee (NWPC).
Wages
which are usually paid to managers and professionals, are annual or monthly calculations of pay that usually have less relation to hours worked.
Salaries
- Social Security
- Workers’ Compensation
- Unemployment Compensation
Three legally required benefits
the employer promises a fixed pension level, either in terms of a dollar amount or a percentage of earnings scaled to seniority.
Defined-benefit plans
specify the amount an employer will set aside in an investment fund for
the benefit of each employee.
Defined-contribution plans