JURISPRUDENCE
G & S Transport Corp. v. Medina
G.R. No. 243768, September 5, 2022
On the commensurability of the penalty imposed on an erring employee
An employee’s commission of infraction should merit only the corresponding penalty demanded by the circumstance. The penalty must be commensurate with the act, conduct or omission imputed to the employee and must be imposed in connection with the disciplinary authority of the employer. The employer’s disciplinary authority is recognized but should be tempered with compassion and understanding.
Desktop Bags Phils., Inc v. Desktop Employees Association, et al.
G.R. No. 244698-99, September 07, 2022
On absence without approved leave
One of the requisites of willful disobedience as a ground for termination of employment is that the order violated must have been reasonable. Even though an employee proceeded with his/her leave of absence despite the disapproval of his/her application for leave, the same is not tantamount to willful disobedience that justifies termination of employment. This is because the reason for the employee’s absence from work (i.e., to attend the preliminary conference scheduled by the National Labor Relations Commission) cannot be considered as unjustified, which calls for the penalty of dismissal. A leave of absence based on a disapproved leave application should just be considered as unauthorized, thus, unpaid.
On Moral Damages in illegal dismissal cases
Moral damages are awarded to a dismissed employee when the dismissal is attended by bad faith or fraud or constitutes an act oppressive to labor, or is done in a manner contrary to good morals, good customs or public policy. On the other hand, exemplary damages may be awarded if the dismissal is effected in a wanton, oppressive, or malevolent manner.||
Heirs of the Late Edwin Y. Cayabyab v. Bright Maritime Corp., et. al
G.R. No. 253338, September 07, 2022
On the recovery of benefits due to the death of the seafarer
Death benefits and other remunerations resulting from the death of a seafarer may be claimed provided that: (a) the seafarer dies of work-related death; and (b) the death occurred during the term of the contract. These two elements must concur. In order for the beneficiaries of a seafarer to be entitled to death compensation from the employer, claimants have the burden to prove these two elements by substantial evidence.
Continental Temic Electronics Phils., Inc v. Jeffrey N. Mortega
G.R. No. 252725, September 14, 2022
Data security measures as a matter of management prerogative
It is the prerogative of management to adopt policies and rules on data security. While it is true that there are more sophisticated measures to secure a company’s database like encryption, key management, data redaction, data subsetting, and data masking, it bears stressing that it is well within the prerogative of management to adopt and institute the appropriate level of security for its database.
Data security is crucial for employers in this age of information technology. A data breach, whether from an insider or outside agent, poses great risks to the security of personal data, financial data, trade secrets, and other regulated data. Whether the unauthorized access actually resulted in quantifiable damage is of no moment.
Even if an employee has a log-in account to access the office network, he/she is authorized to access folders and files related only to his/her specific work duties; which means he/she can open only those folders and files necessary to the performance of his/her work functions.
CVM Finance & Credit Corp., et al. v. Annabelle B. Fuentes
G.R. No. 248934, September 14, 2022
On the termination of employment due to loss of trust and confidence
For an act to be considered as loss of trust and confidence, it must be first, work-related, and second, founded on clearly established facts. The employer’s loss of trust and confidence must be based on a willful breach of trust and founded on clearly established facts. A breach is willful if it is done intentionally, knowingly and purposely, without justifiable excuse, as distinguished from an act done carelessly, thoughtlessly, heedlessly or inadvertently. It must rest on substantial grounds and not on the employer’s arbitrariness, whims, caprices or suspicion.
An employee’s failure to pay the loan on time is not a grave offense that will put a dent on the employee’s capacity as a manager in a lending business. There is no correlation between asking for a loan from another employee and the alleged propensity to commit a more serious infraction involving company property.
The loan of an employee from his/her subordinate is a private affair between them and the employer cannot summarily terminate one’s employment on the ground of non-payment of said loan.
Salamoding v. Verdant Manpower Mobilization Center, Inc.
G.R. No. 250843, September 21, 2022
On employer’s intention to terminate employment as a requirement in illegal dismissal cases
In illegal dismissal cases, it is necessary for the employee to prove the fact of dismissal by positive and overt acts of the employer indicating the intention to dismiss.
In this case, there was no intention on the part of the employer to terminate the employment of the employee, as it was established that the employee voluntarily terminated his employment through the End of Contract Waiver in exchange for reciprocal release from liability from his/her employer. Absent any showing that consent of the employee was vitiated in agreeing to voluntarily relinquish his/her work, the same is considered valid.
Angelina P. Santos et al. vs. Bicol Apparel Corporation, et al.
G.R. No. 226259, October 19, 2022
On the prescriptive period of money claims:
The three-year prescriptive period to file a complaint for money claims arising from employer-employee relationship shall commence from the time that the claim becomes a legal possibility, or when the claim was unlawfully withheld by the employer. The three-year period is interrupted when: i.) a complaint is filed; ii.) a written extrajudicial demand is made, or iii.) the employer makes a written acknowledgment of its debt.
On the existence of employer-employee relationship:
One of the tests in determining the employer-employee relationship is the control test. Under the control test, an employer-employee relationship exists if the employer has reserved the right to control the employee not only as to the result of the work done but also as to the means and methods by which the same is to be accomplished. Otherwise, no such relationship exists.
The prohibition against employees to take out items outside of the establishment without prior approval cannot be construed as an indicium of control. It had no bearing on the means and methods by which work should be accomplished by the employees. It is only natural for the employer to lay down such regulation considering that it allowed the employees to work inside its premises and use its equipment, regardless of whether such work would redound to the employer’s benefit.
Mindanao International Container Terminal Services, Inc. v. Mindanao International Container Terminal Services, Inc. Labor-Union-Federation of Democratic Labor Organization
G.R. No. 245918, November 29, 2022
On Wage Distortion
Wage distortion under the Labor Code does not cover increases in salary initiated by the employer at its instance. Further, a disparity in wages between employees holding similar positions but in different regions does not constitute wage distortion as contemplated by law.
The Exception to the Equal Pay for Equal Work Principle
As a rule, employees with the same rank and position shall receive the same pay. As an exception, an employer may satisfactorily justify, based on its management prerogative, that its employees, who have the same rank and position, may receive different salaries based on reasonable factors or criteria, such as qualifications, skill, work experience, seniority, length of service, region, nature of work, or incentives.
If the employer provides a valid justification to exercise its management prerogative in imposing different salaries for employees occupying the same position, then it will not constitute discrimination against the employees. If reasonably made, it is within the employer’s business prerogative to impose different salaries on employees even though they hold the same position.
DEPARTMENT OF LABOR AND EMPLOYMENT (“DOLE”)
Administrative Order
Administrative Order No. 31-2023 dated February 1, 2023 re: Resumption of Labor Inspections
The DOLE activates its corps of inspectors to begin inspection of private establishments beginning February 1, 2023. This includes labor inspectors, labor inspection auditors, technical safety inspectors, hearing officers and sheriffs. The labor inspections are expected to be conducted up to December 31, 2023.
Labor Advisories
Labor Advisory No. 18 dated September 06, 2022 Re: COVID-19 Prevention, Control and Reporting Protocols in the Workplace
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As a matter of policy, private sector companies should realign their Corona Virus Disease 2019 (“COVID-19”) prevention, control and reporting protocols with prevailing government policies, to aid the safe reopening of the economy. In addition to the mandatory reporting of COVID-19 cases and close contacts to their respective local government and Department of Health units, employers must also report COVID-19 cases and close contacts to the DOLE by submitting the Employer’s Work Accident/Illness Report (WAIR) through the DOLE Establishment Report System.
Labor Advisory No. 20 dated October 24, 2022 Re: Issuance Of Certification Pursuant to the Implementing Rules And Regulations (IRR) of Republic Act No. 11647 or The Foreign Investments Act of 1991, As Amended
https://www.dole.gov.ph/news/
All non-Philippine nationals intending to engage in micro and small domestic market enterprises with a paid-in equity capital of at least one hundred thousand US dollars (US$100,000.00), but not equal to or more than two hundred thousand US dollars (US$200,000.00), to obtain a Certification from the concerned DOLE Regional Office (DOLE RO) having jurisdiction over the enterprise as a pre-requisite for registration with the Securities and Exchange Commission or the Department of Trade and Industry. This Certification shall reflect that that majority of the direct employees to be employed by the entity are Filipinos. In this regard, the entity is required to submit to the DOLE RO a notarized undertaking certifying that the majority of its direct employees are Filipinos and that in no case shall the number of Filipino direct employees be less than fifteen (15).
Labor Advisory No. 22 dated November 02, 2022 re: Guidelines on the Voluntary Wearing of Face Masks in the Workplace
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Pursuant to Executive Order No. 07 issued by the President of the Philippines, the wearing of face masks by workers in private sector workplaces shall be voluntary, except in the following cases:
- Healthcare facilities, including, but not limited to clinics, hospital, laboratories, nursing homes, and dialysis clinics;
- Medical transport vehicles, such as ambulance and paramedic rescue vehicles; and
- Public transportation by land, air or sea.
Employers and their workers may implement a policy requiring face masks, taking into account, among others, the hazards, risks and industry requirements, and incidence of communicable diseases.
Labor Advisory No. 24 Series of 2022 dated December 05, 2022 Re: Guidelines on the Administration of COVID-19 Vaccine Doses for Private Sector Employees on Special Vaccination Days
https://docs.google.com/
In support of the Philippine government’s implementation of Bakunang Bayan II program, the DOLE encouraged employers in the private sector to allow their employees to be excused from work without being considered absent when the employee: 1) gets vaccinated and/or accompany his/her child/children on the scheduled vaccination; or 2) experiences adverse vaccine-related effects and/or have to take care of his/her child/children who experience adverse vaccine-related effects.
Labor Advisory No. 27 Series of 2022 dated December 23, 2023 Re: Payment of Wages For the Regular Holidays and Special (Non-Working) Days For The Year 2023
https://www.dole.gov.ph/news/
The following are the rules for payment of wages for the regular holidays and special non-working holidays for the year 2023 in this Labor Advisory, as follows:
- Regular Holidays — January 1, April 6, April 7, April 10, May 1, June 12, August 28, November 27, December 25, December 30, Eidul Fitr (to be proclaimed) and Eidul Adha (to be proclaimed)If the employee does not work, the employer shall pay 100% of the employee’s wage for that day, provided that: a) the employee reports to work or b) is on leave of absence with pay on the day immediately preceding the regular holiday (Basic wage x 100%);
For work done during the regular holiday, the employer shall pay a total of 200% of the employee’s wage for that day for the first eight hours.
- Special (Non-Working) Days — January 2, February 25, April 8, August 21, November 1, November 2, December 8 and December 31If the employee does not work, the “no work, no pay” principle shall apply unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on a special day.
For work done during the special day, the employer shall pay the employee an additional 30% of the basic wage on the first eight hours of work (Basic wage x 130%).
Labor Advisory No. 01 Series of 2023 dated January 16, 2023 Re: Food and Waterborne Disease Prevention and Control in the Workplace
https://www.dole.gov.ph/news/
The following are the guidelines for the prevention and control of food and waterborne diseases in the workplace, as follows:
- All employers shall provide their workers with free welfare facilities, particularly an adequate supply of safe drinking water, and sanitary and washing facilities under Section 19 of DOLE Department Order No. 198-18.
- All establishments and workplaces engaged as drinking water service provides, bulk water suppliers, water refilling station operators; ice manufacturers; food establishments, commercial, industrial and institutional buildings the use/supply/serve drinking water; and other covered entities are advised to conform with the provisions of the Department of Health Administrative Order No. 2017-0012 and Chapter 2 of Presidential Decree No. 856 (PD 856) prescribing the standards and procedures on drinking water quality.
- All establishments where food and/or drinks are manufactured, processed, stored, sold or served for public consumption are advised to secure the necessary permits from the local health office and conform to the requirements pursuant to Chapter 3 of PD 856, and other food safety-related issuances.
- All employers shall continue to implement their Occupational Safety and Health Program, which shall include, as may be practicable, the following:
- Promotion of the importance of safe water supply and well-maintained sanitation facilities;
- Conduct awareness-raising activities on the basic information about food and waterborne diseases;
- Provision of necessary assistance and access to treatment of employees in need of immediate medical attention in cases of cholera, diarrhea, or any food and waterborne disease in workplaces; and
- Advocacy for the families of their workers and respective communities.
As to reporting of cases, the DOLE indicates that workplace incidents of cholera, diarrhea and other food and waterborne disease shall be reported by the safety officer to the local government unit of their locality and to the Department of Health, pursuant to Republic Act No. 11332. Said report shall contain the details and sources of cases and the results of the investigation.
Department Order
Department Order No. 237 dated September 16, 2022 re: Revised Implementing Rules of the Telecommuting Act
Department Order No. 237-22 Revised Implementing Rules and Regulations of RA No. 11165, Otherwise Known as The Telecommuting Act | Department of Labor and Employment (dole.gov.ph)
This contains the Revised Implementing Rules and Regulations of Republic Act No. 11165, otherwise known as the Telecommuting Act. It includes the minimum standards and requirements to be complied with in implementing telecommuting programs/arrangements.
Telecommuting refers to an arrangement agreed by both employer and employee, wherein the employee is allowed to work from an alternative workplace, in whole or in part, with the use of telecommunication and/or computer technologies.
SOCIAL SECURITY SYSTEM (SSS)
SSS Circular No. 2022-025 dated September 29, 2022 re: Service Fee Payment for SSS Payment Transactions
All SSS-accredited collecting partners may now charge a service fee to SSS Employers and members for every transaction. Also, all accredited collecting partners of the SSS may charge a service fee for every payment transaction, which was fully implementational on December 21, 2022.
SSS Circular No. 2022-031 dated December 06, 2022 re: Guidelines on the Implementation of the Enhanced Online Appointment System in the My.SSS Member Account on the SSS Website
Members with registration on the SSS Website shall be able to set an online appointment using their My.SSS account. A member shall be able to select an available appointment date, time and branch in the portal for transactions related to registrations and coverage, contributions, loans, benefits, Unified Multipurpose Identification (UMID) Applications and other concerns and feedback.
SSS Circular No. 2022-033 dated December 13, 2022 re: New Schedule of Social Security (SS) Contributions Effective January 2023
The SSS announces the new schedule of SSS contributions of employers and employees, which will be imposed starting January 2023.
SSS Circular No. 2022-039 dated December 27, 2022 re: Online Filing of Social Security (SS) Disability Claim Application (DCA) through the My .SSS Portal
SSS Members may file their DCA online through My.SSS portal. Documentary requirements, such as a medical certificate, should be uploaded to proceed with the filing. In addition, other documentary requirements may be determined by the SSS.
SSS Circular No. 2022-040 dated December 28, 2022 re: SSS-Accredited Collecting Agents for the period of November 01, 2022 to October 31, 2023
The SSS released the list of Banks and Remittance Transfer Companies that accept SSS payments and are accredited as collecting agents of the SSS.
