TOPIC 2: BASIC PRINCIPLES - Improves the working conditions

of the working man by disallowing

Rights of the workers in relation to labor from regulating the worker to
standards. work beyond the allowed
 PH Constitution provides for the minimum hours of work, unless
rights of workers in general. there is a valid and justifiable
cause or reasons to do so.
CONSTITUTIONAL RIGHTS OF - Provides for compensation on
WORKERS IN GENERAL rest days, holidays, additional
1. Right of workers to just and compensation
humane conditions of work Essence: It will bring about social,
2. Security of tenure economic, and political consequences.
3. Collective bargaining and Without LABOR STANDARDS, families
negotiation will be broken because of poverty
4. Self-organization because they will no longer have the
5. Living wage means of livelihood income for day to
6. Peaceful/lawful concerted day sustenance.
activities
7. Participate in policy and decision- CONSEQUENCES
making process SOCIAL  Promote unity in
a. JMM: Check which are the the family
rights of workers in relation  Promote
to labor standards togetherness in
the family
RIGHTS OF WORKERS IN RELATION because it will
TO LABOR STANDARDS ARE: have means to
1. Human conditions support
2. Living wage POLITICAL  Stability of the
3. Just share in the fruits of society will
production depend upon the
citizen’s jobs
whether they
2 ASPECTS OF LABOR STANDARDS could get
themselves
1. Protective – protect health, safety employed.
and well-being of the workers  Chaos in the
2. Meliorative – expands the flow of society because
income of the
Purpose: Remedial and Humanitarian commission of
Support crimes
ECONOMI  Financial stability
- Provide minimal conditions of the C encourages
employee income
Impact: Improve the condition of the
workers and their families. SOURCES OF LABOR STANDARDS
1. LAW ITSELF – Labor Code PD employer’s conduct
442 or behavior covered
o It’s the law that provides it in a period of
Labor standards time. NOT simply
2. ADMINISTRATIVE ORDERS just a 1 time grant
o Issued by DOLE to constitue
o Source of protective and company practice.
meliorative rights Dapat matagal and
o Various department customarily
orders, it prescribes provided by the
guidelines which protects employer even
workers because without though not written.
such it would be an o Implied acceptance – if
invitation for abuse. employee continues to
3. EMPLOYMENT CONTRACTS work
o Provides for monthly 5. COMPANY PRACTICES
compensation, benefits, o Refers to customary or
allowances established mode or
o Meliorative standards in conduct of the employee
form of employee benefits fixing the benefits of the
4. COMPANY POLICY employee
o Statements or declarations o Unlike practices, this is a
made by employer usually non-verbal pattern of
in written form conduct of an employer
o May be found in company over a period of time
memos, handbooks, o Repeated practices by the
announced unilaterally and employer
forms part, even if there is  Ex. Worker got sick
no express consent from and still got paid by
the worker. the employer, such
 May be found in that, this has been
written manuals. done already by the
Ex. There is a employer over a
written policy that long period of time.
every December PERFECTION OF AN EMPLOYMENT
the worker will be CONTRACT
entitled to 1 sack of
rice. Employer makes an offer of
 IF there is no employment. The offer is accepted by
written policy, it will the employee unconditionally then
be company there is a meeting of minds and
practice. But essential elements of a contract is
remember for it to perfected. Because the contract is
constitute a consensual in nature. Perfected by
practice, there must mere consent. There is no need for
be a proof that an written contract if deemed perfected
by the consent. In some cases,  Rule on the construction of the
contract of employment is done orally labor law – applicable to:
or verbally. There is nothing wrong o Contracts or agreements
with that as long as there is a meeting of employment
of minds and the essential elements o Collective bargaining
of the contract, it is deemed perfected. o Evidences presented in
Of course, in an employment contract, the labor proceeding
once the offer is accepted then the  BACK TO THE
terms and conditions of employment RULE: IN FAVOR
are placed in writing. Just need OF WORKER
formality because perfection of the BECAUSE
contract will arise even before the CAPITAL AND
formalization of the contract of LABOR DO NOT
employment or before putting it in STAND IN EQUAL
writing. FOOTING.
DOES THE PERFECTION OF A
IS A CONTRACT OF EMPLOYMENT CONTRACT OF EMPLOYMENT GIVES
CONSIDERED A CONTRACT OF RISE TO THE E-E RELATIONSHIP?
ADHESION?
 NO. It does not give rise. In
 There have been cases that is perfection of the employment
how the contract of employment contract, we apply the civil law. In
is described by the SC. As I have determining the E-E relationship
said, the offer of employment we have the 4-fold test.
comes from the employer. And, Perfection of an employment
only thing an employee has to do contract is not the same to the
is to: agree, accept and affix the commencement of the E-E
signature. relationship. The E-E relationship
 Similar to an insurance policy shall commence once there is a
contract, for example, a contract fulfillment of the 4-FOLD TEST.
of employment is a contract of Perfection of the contract only
adhesion. precedes to the E-E relationship.
 In case of doubt – apply the LC  FOUR-FOLD TEST includes:
provision that it should be o Selection and engagement
decided in favor of the employee. o Payment of wages
Notwithstanding, that the labor o Power of discipline
code says doubt in the o Power of control
interpretation and employment
and doubt in the implementation IS IT POSSIBLE THAT UPON
of the law and the IRR, this PERFECTION THE E-E
principle shall also apply with RELATIONSHIP WILL COMMENCE?
regards to the interpretation and
implementation of a contract of  There is a possibility if it happens
employment. APPLY BY simultaneously. Wherein you are
ANALOGY offered a job, right then and there
you started working and then get
 paid compensation. And you are - Is that the most conclusive test in
subject to control and at the determining that an employer-
same time you are subjected to employee relationship exists?
discipline then in this situation And the power of exercising
you could say that there is a control is that the means and
perfection of an employment manner of performing once job or
contract which coincides with the service or is that in the results?
employer-employee relationship. Or is it both?
POINT: They are not the same. TN: in those cases as when there is no
written contract, and several positions –
FOUR-FOLD TEST what would be the better tests? The
 Not found in the Labor Code. four-fold test or the economic-reality
 Initiated by SC in various cases. test.

Selection and engagement What is the so called economic test?

What evidence is needed to establish
- Know who exercises it. Employer that the E-E exists?
or employee?
- In selecting and engaging, does WHY IS IT IMPORTANT?
the employer have the power to because in LS, it will apply only in an
prescribe the qualifications for a employment relationship. (Read each of
job? Is that a management the assigned cases on this topic
prerogative? Can that be because its very important). LABOR
exercise by the employer STANDARDS CANNOT APPLY WHEN
absolutely? Or are there THERE IS AN ABSENCE OF E-E
limitations provided by the Labor RELATIONSHIP
Code and other laws
Very popular topic in the BAR:
Payment of wages
 There is a basketball court, a
- When you speak of wages are referee and a player. When the
you referring to a salary? Are referee says foul. Is there an E-E
they one or the same? Is that for Relationship between basketball
services rendered or for labor association and referee?
rendered or payment of results of  In an insurance company?
one’s own labor? Insurance agents paid by way of
Power of discipline/dismissal commission. Real estate agents?
Doctors? Doctor specialists?
- Who exercises? Is it absolute or
regulated by law? Is it not you
must comply with substantive and Also determine the characteristics of
procedural due process before employer-employee relationship to
you can terminate employment? distinguish it from contractorship. You
Does that constitute a regulation go to a clinic in ayala – look for a dentist
or prerogative to discipline or – u selected the dentist – pay the
dismiss orders? dentists – is there an E-E relationship?
Power of control Or independent contractorship?
You go to a law office to consult matters
or notarized is there an E-E
relationship? Or independent
contractorship?
What are the characteristics of
employment? Is that economic
dependence by one over the other? Is
there a subordination in a work
relationship? Is that the one who offers
services? Is that subject to control with
regards to the means and manner of
performing his job? Is it independent
RS? Or E-E RS?
A professional, to whom does it offer his
services? Is it to a particular person like
an employment relationship? Or does it
offer its services to the public? In an
employment relationship does the
worker possess any skills, experience or
is it more in an ICRS? What payment of
services do you pay for an ICRS?
MAKE YOUR OWN OUTLINE ON THE
CHARACTERISTICS OF AN ICRS AND
EERS
TN: DO on Talents with regards to
working conditions of television industry
because the workers are different from
talents. If this is the case will the EERS
exists? Or will it be governed by the Civil
Law and nor Labor Code.
-In some cases employer deny
relationship because the EERS carries
more duties and responsibilities as well
as obligations in the labor laws.
BTW-also determine or distinguished
the principal agent relationship.