Key Legal Principles
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1. Right to Just and Favorable Work Conditions: The Philippine Constitution (Article XIII, Section 3) guarantees the protection of labor, focusing on workers’ rights to just and humane work conditions, security of tenure, and participation in policy and decision-making processes that affect their interests.​
​2. Non-diminution of Benefits: Ensures that benefits already granted to employees cannot be reduced or withdrawn without legal justification.​
3. Equal Work Opportunities: Refers to non-discrimination and equal employment opportunities for all workers, including marginalized groups.
4. Security of Tenure: Refers to the protection of employees against arbitrary dismissal or termination of employment. It ensures that workers can only be dismissed for justifiable reasons, following established legal procedures, and generally provides safeguards for fair treatment and due process.
5. No Work, No Pay: Establishes that wages are generally paid for work rendered. If no work is performed, there is no obligation to pay, except in situations where the law provides for payment (e.g., paid leaves, holidays).
6. Employer-Employee Relationship: Key in determining the rights and obligations of workers and their employers. The existence of an employer-employee relationship is determined using the “four-fold test”: (1) power of control, (2) selection and engagement, (3) payment of wages, and (4) the power to dismiss.
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Minimum Standards
The minimum labor standards are designed to protect the rights and welfare of workers, ensuring that they receive fair wages, appropriate working conditions, and other benefits.
1. Minimum Wage
Article 99 of the Labor Code - the minimum wage is the least amount an employer can pay their workers, which is determined by the regional wage boards. The wage rates vary by region, industry, and type of work.
Republic v. Court of Appeals (G.R. No. 122197, July 29, 1999) involved the issue of whether an employer had complied with minimum wage standards set by the regional wage boards. The Supreme Court held that employers must strictly comply with the wage orders issued by the Regional Wage Boards, emphasizing that the law mandates full payment of the prescribed minimum wage and prohibits any deductions unless authorized by law.
2. Hours of Work
Article 83 of the Labor Code - the normal work hours for employees should not exceed 8 hours a day, with exceptions for specific types of work. Work beyond this is considered overtime, and employees must be compensated accordingly (Article 87).
Benguet Corporation v. NLRC (G.R. No. 118493, June 29, 1998) concerned the issue of whether the employees were entitled to overtime pay for hours worked beyond the regular working hours. The SC ruled that under Article 83 of the Labor Code, any work exceeding 8 hours in a day entitles the employee to overtime pay at a rate of at least 25% more than the regular hourly rate, and in certain circumstances, double for work on rest days.
3. Rest Days and Paid Leave
Article 91 of the Labor Code - mandates that employees must be provided a weekly rest period of at least 24 consecutive hours. Article 95 ensures that workers are entitled to paid regular holidays, while Article 97 provides for the payment of holiday pay.
Philippine Long Distance Telephone Co. v. NLRC (G.R. No. 115397, January 16, 1997) involved a dispute about the non-payment of holiday pay to employees working on special holidays. The SC emphasized that workers are entitled to holiday pay even if they do not work on regular holidays, and if they do, they are entitled to double the usual daily wage as prescribed under the Labor Code.
4. 13th Month Pay
The 13th Month Pay law (Presidential Decree No. 851) mandates that all employees who have worked for at least one month during the calendar year must be given a 13th-month pay, which should not be less than 1/12 of the total basic salary earned within the year.
Republic v. Court of Appeals (G.R. No. 118387, January 22, 1997) The issue was entitlement to 13th month pay even if they were only employed for part of the year.
The SC affirmed that workers are entitled to a 13th-month pay regardless of whether they worked the entire year, as long as they have worked at least one month. The amount is proportional to the length of time they worked in the year.
5. Safety and Health Standards
Occupational Safety and Health Standards (OSHS) under RA 11058 requires that employers provide a safe and healthy work environment, covering both physical safety measures and occupational health standards.
Philippine Airlines, Inc. v. NLRC (G.R. No. 106942, November 9, 1994) dealt with a claim for compensation based on an employee's exposure to hazardous working conditions. The SC ruled that employers are liable for accidents arising from their failure to maintain safe working conditions and ensure the health and welfare of employees in accordance with the Occupational Safety and Health Standards.