Knowing your rights: Philippine labor laws
I have worked for my present company for several years. My position has given me the opportunity to oversee the work of several employees. And in all those years, I have witnessed my share of new hires, experienced hires, resignees, and applicants.
Because of my work and my position, I have learned a lot about the Philippine labor laws. Add to that, my brother is in the human relations industry and has even been the head of labor relations for a multinational company.
Mr T is a manager at a local company in the metro. He has just been hired and is serving the first month of his probationary term. Mr T is a normal decent man – a bit shy at times, but at most serious. He has an exceptional CV that got him the position he now enjoys. Now all this may sound familiar to you – or to those who have been once a new employee. (If you must know, the probationary period is 6 months. After which, you become a regular employee unless otherwise notified.) Mr T then is allowed 6 months to show what he can do before he is evaluated if he will be regularized or not. After the first month of his employment, he was called in by the more senior manager in the company and told that the boss did not like him and he did not have the kind of rapport with the other employees that the boss expected. As such, the company was letting him go. A few seconds later he was escorted out the door.
I have witnessed similar situations as the one of Mr T that occurred at our client’s company. Our client is foreign. Mr T is not. He is a Filipino working in the Philippines.
Now what is wrong with that picture?
In my experience with human relations processes, it is a difficult process to terminate or dismiss an employee in the Philippines. Our laws ensure that employees are protected. Our laws ensure that employers are protected. There are defined processes when termination of employment is being implemented. Even when the employee has failed the set standards of the company, it will still be a long process to get that resource dismissed. Countless documentation of failure needs to be done, proof that the employee has failed or has violated company processes or policies. Evidence needs to be produced. Hearsay is unacceptable. In short – employers here in the Philippines cannot terminate anyone without just cause. Employers cannot just call you up and tell you not to come to work because you have been fired. Employers cannot escort you out the door on the same day they tell you that the boss did not like the way you bonded with the staff.
Due process dictates that “no person shall be deprived of life, liberty or property without due process of law”.
Here is what I found out on the different scenarios where termination of employment has been applied and whether it is legal or not.
- The dismissal is for a just cause under Article 282, for an authorized cause under Article 283, or for health reasons under Article 284, and due process was observed – The dismissal is LEGAL.
- The dismissal is without just or authorized cause but due process was observed – The dismissal is ILLEGAL.
- The dismissal is without just or authorized cause and there was no due process – The dismissal is ILLEGAL.
- The dismissal is for just or authorized cause but due process was not observed – The dismissal is LEGAL but the employer is liable to pay indemnity in the form of nominal damages. The amount of nominal damages vary from case to case.
- The dismissal is for a cause which later on is proven to be non-existent – The dismissal is NOT EFFECTIVE therefore the employee should be reinstated.
- The dismissal is not supported by evidence – NO DISMISSAL TO SPEAK OF; SO EMPLOYEE SHOULD BE REINSTATED.
**For details on just causes you can get them here.
What category do you gather Mr T belongs to? Its not hard to tell… really. What do you think?
[...] More here… [...]
sIR, i was a store manager before under probationary period from Aug.23,2007-February 22,2008. I was terminated immediately last Jan.11,2008.Termination letter was given to me Jan,10,2008 at around 4:00-5:00 in the afternoon.I did not go to work the next day.No evaluation was done,no performance appraisal was given and discussed to me before it happened.Not even a single idea that they will terminate me.Termination letter was hand carried by my senior manager.Reason is low sales.
sir, can I file a complain or charges against them?should an employee be informed first before the termination for how many days maybe?is it ok for a company not to give performance appraisal to me?was there due process lieu of the tremination?pls i really need an answer.
Just started working with a company. They’re new and still starting to develop their rules and regulation. This last pay day “15thâ€, I’ve heard that they’ve deducted 2 days pay from my colleagues’ salary for failing to inform the company that she won’t be coming to work one day.
This rule was written in the contract we’ve signed. We need to sign the contract, if not, then might as well find another job.
Is this policy legal?
drew – Without having the whole story I cannot say whether or not it is legal. Also I do not have a law degree to give an accurate assessment of your situation. However I feel that everyone should know what they are signing into (i.e. understanding the contract) before actually inking a contract with your signature.
currently im a sales manager in a company and iv been in the company for more than 7 years now. i was promoted to sales manager last 2003 and signed appointment papers with the company. the appointment papers included compensation, benefits, duties and responsibilities, and car plan. It was stated that after 5 consecutive years of service the car will be transfered to and owned by the sales manager. But unfortunately i was informed that the mgt change the policy from 5 to 6 years… i was not aware of any changes even my co-employees, I was told that its the owner’s decision to change the policy if they wanted to and the papers signed by the company and me will be nullified… Is this proper? legal? Do i have the right to complain? Thank you.
Art. 281. Probationary employment. Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee.
Source: Labor Code of the Philippines (http://www.dole.gov.ph/laborcode/book6.asp)
tj – Thanks for the reference.
if i was fired due to absence last Friday can i still get the days i had work today which is the salary date? i worked on the days for the cut off period but the company said i dont know when you can get the salary? we didnt sign a contract and we really dont know if the company is legal
Hi
I would like to know if the company has the right to not give our salary if they’ve decided to have us on a “floating stage” that means, the company was very promising at first that if we did not meet the targets expected from us in one department, they will be looking for another department that would somehow suit our profile (we still go to the office to login and logout). I have been in this “floating stage” for about 2 months now, but I’m still paid though all I do is login and logout on time. But the company has decided to not pay us in the following months to come. Please advise. I’m really not familiar with my rights as an employer.
iv got fired from work this month.. do i have the right to get my seperation fee or backpay or somethin even i just worked for 9 months ??
and the main reason i’ve got termenated was not connected to my work co’z my boss wants me to leave my former girlfriend.. i think thats not fair..what should i do? i need your comments and sugestions..
All – I know I wrote about employment in the Philippines and the conflicts that employees have. However, I am not an expert nor a lawyer and do not have the right to tell you about what you should or should not do. All I can recommend is that if you feel deprived then dont hesitate and go immediately to the Department of Labor and file your complaint. That’s what most people I know do in these situations.
It’s just so sad that a lot of our laborers are not aware that they cannot get fired without due process. I know of a certain company that fires employees on the spot because the owner got upset. The owner even yelled “You’re fired!” in front of everyone, and left thereafter. Unfortunately, the aggrieved party did not go to DOLE, because she did not know that it was illegal to do that.
Also, there was a time when employees of a company would just get escorted out the door with their things in tow. Unfortunately, those employees who were unjustly dismissed did not go to DOLE.
I have a concern to raise and I need an advise. I work in a call center owned a by a Filipino with Australian Client. Ive been with the company for about a month now and as I could see how the system goes here, everything seems to be wrong. I wanna know my rights and so I could dispute all the unjustifiable charges given to all the employees. To start with, I was on 7am-4pm schedule and as a policy we have to notify our direct Team Leader in case we need to be absent or late. Oct 13, 2008, I texted my Team leader as early as 4AM that I will be late due to allergic reaction, I dint get response till I was already on my way to work at 7:30 AM saying that the Australian Clients would send everyone who came in late without prior notice. And so I was sent home, the next day I was given a citation form for No Call No Show as my Team Leader claims that she did not receive my text. First of all it wasnt my fault if she did not receive my text so I disputed the charges providing a copy of a sent message as a proof. The sanction was then voided however they did not consider the absence as paid. Then again it was not my intention not to report to work as I was illegally suspended. Although I am not too knowledgeable about the labor law but in my understanding if the company unjustifiably suspended an employee, they then should pay for the damages equivalent to how many days they put an employee on suspension.
Can anyone help me in this situation as I want to know what my rights are. Thanks.
Good read and very timely as I’m seriously rallying for employees to know their rights
To answer your question, I think it’s “The dismissal is without just or authorized cause and there was no due process”. The dismissal is ILLEGAL.” But judging from the responses, people are looking for answers rather giving answers. Which just goes to show the situation of the Filipino employee when it comes to their labor rights.
Tea – Thanks and I think there’s not enough rallying going around and here there’s a lot of obstacles when an individual wants to complain or sue an employer. The result is nothing is ever done. And I thought our country was more pro-employee than other countries.
James – I agree. I don’t have the answers as I have the same questions myself.
Actually, probationary period not only allows for termination for any basis, but encourages it. Since Philippine labour laws are generally employer unfriendly, employers would do well to quickly terminate anyone that even seems unfit during the probationary period. There are some companies, operated by locals, which are notorious for firing all rank and file employees every six months to keep employees in perpetual probationary period. As an employer I am surprised by the perspective of many employees in the Philippines. If an employee is performing poorly why should it be difficult to terminate that employee? Employees have the freedom to leave companies at well simply because they don’t like the company, their boss, or the work. Why shouldn’t companies be able to let their employees go for the same reasons? What if Mr T. is actually a bad manager, and due to pro labor laws, the company is unable to let him go? Great if you are Mr. T.. Bad if you are a subordinate who is now stuck with a bad boss, or if his failure to do his job puts the company out of business, so that everyone loses their job.
David – I confess I agree to some if not most of what you said. I have had several experiences where I expressed frustration at Philippine laws just because I cannot just simply terminate an employee who is truly lousy and no good. The one thing though that we have done our best to do is inform the employee why his job is at risk to give him even a slim chance of improving or addressing his behavior. And in everything else (not just at work), feedback is very important. I personally feel I should be told if I am doing something right or something wrong, maybe I am clueless… maybe not but the whys are always important. Otherwise people will keep terminating right and left just because they like to. Does that make sense?
i work for a US based multinational company for 19months now..jsut last week, i have been inform that a re-structuring has been done and my position wil be redundated -leaving me no job by this coming June. they will give me salary until may 30 and will give 2months separation pay. my question is that, is there a standard separation pay for this situation like is it really 1month per year of service or it could be higher since its very hard to look for a job nowadays…i mean is there other way to get a better scheme? thanks.
Question: How is backpay computed? For example, if you have a monthly basic salary of PhP 13,000 and you worked for 11 months for a company that gives the tax refunds only at the end of every year, how much will you get if you left the company on February?
I have recently tendered my resignation letter and gave the company the usual 1 month notice (in fact, 1 month and 1 week). I have a pending application in another company and that company has this bakground investigation which is part of their selection process. One of the requirements is that to submit a certificate of employement. I have requested from my current employer and filled-out a request form where the requestor has to state the purpose for obtaining the said document. I initially thought of choosing for credit card application (since my bosses have not yet all signed my resignation letter therefore our HR dept has yet to be notified of my resignation) but it struck me that the certificate might indicate the purpose. Since I directly stated that my reason is for employment purposes and attached a copy of the letter (with 2 of my 5 bosses’ signatures), the HR flat out told me that they cannot issue a certificate of employement unless i have already been cleared by the company.
Is this right? because I think it is not – I am not asking for a clearance but rather a certificate stating that i am, indeed, employed in that company. Anybody who knows about issuance of COE? I am worried that because the company that I am applying in is in urgent need, this opportunity might pass just because my application cannot be processed due to a pending document.
3 days ago received a notice from my office stating “NOTICE OF ABOLITION OF POSITION AND TERMINATION OF EMPLOYMENT DUE TO REDUNDANCY”
I have been with the company for two years and two months. A few months ago there was a change in the management. Our HR manager resigned and my boss the Admin manager was transferred to our main office in Vietnam. So they hired this new manager and combined HR & Admin into one.
There were rumors that she wanted all the pioneers of the company to be replaced by her team which happened eventually. On the afternoon of May 19 all the HR and Admin staff were called for a meeting. When the new HR manager came in (please take note that she was accompanied by a chief security of our General Manager inside the meeting room) she was explaining something regarding the re-organization and restructuring of the organizational structure and cost cutting device. Then she said that NO ONE CAN GO OUT OF THE ROOM and we were to be called one by one.
I was then called inside the HR&Admin managers office and to my surprise 2 of our lawyers were there as well. She was explaining that due to global financial and economic crisis the company after daw ng careful evaluation the company has determined that our position has unfortunately become redundant and is currently excess by the actual requirement of the business. Take note that the company already hired and continuously hiring Admin officers and Admin staff.
After they spoke to me I was asked to surrender all the company property (access card, id’s etc etc) and to get all my personal things then leave the premises. I was treated like a criminal on that day. While i was getting my stuff two of the new staff were behind me and checking what im doing. I wasn’t even able to get my files from the computer because they were saying that I don’t need to touch or open my computer which was by the way locked/blocked at that time.
After gathering all my stuff I was even escorted by the body guard (chief security kuno) of the General manager from my workstation until the elevator (totoo bang pwede kong ikaso yung sa kanila?)
Ang tanong ko po tama ba yung ginawa nila? Pag nilaban ko ba po ito sa korte eh may pagasa ba na mapanalo ko yung case? Kasi dun sa sinasabi nilang GLOBAL Financial and Economical crisis palang eh mali na kasi our company just had our annual outing sa boracay and almost 300 katao ang kasama. At dun din sa redundancy eh mukhang mali din kasi meron din kaming kapalit at nag hahire pa din po sila ng tao.
Earl Caliwan – It would be difficult for me to provide you with advice as I am not in a position to do that. I am not in the business of HR nor am I a lawyer or law practicioner. I too have my own questions and conflicts with how companies handle their employees.
I can only say that escorting you to the door is normal for terminated employees regardless of reason. So I really don’t think that this is something you can sue for. My 2 cents. I suggest seek help with the Labor office and inquire there. All companies who implement redundancy are required to file some sort of documentation so you should be able to confirm or at least get your questions answered.
about dedaction of tax in my security agency, eaglewatch security services at west avenue in quezon city. owner by Mr. willie jamilla. my question? is about the tax dedaction of the security guard, please answer this matter. thanks…..
HI, I have been working for this company for a year now and lately they have not been giving our salaries on time. As of today June 10, 2009, they owe us 75% of our April salary and the whole May salary. Do we stand a chance if we complain to DOLE? What is important for us right now is to get everything they owe us then just leave.
I have been teaching in college as a Math instructor for 8 years now..I have finished 16 consecutive semester. I am not yet considered a regulaR employee because i did not yet
finished my masters degree. Is this lawful? Do i have the right to claim for my regular status?
ALL -
I would like to reiterate that I am not a lawyer or expert on labor disputes or labor complaints. I am not in the industry of labor relations and have no knowledge to provide you with any advice or tip. I myself have my own complaints and the above post is about the experience of someone I know and of the stuff I have researched online. Although my brother is with HR, I am not him and he doesnt have a blog so I dont know how he can provide you with assistance.
Sorry guys, we are in the same boat so I am not able to help as well.
Thanks for visiting!
i was recently fired by my boss for the reason that my students doesn’t like my perfume, soap and even the scent of my shampoo because i and my student use the same bathroom.i am an in house teacher and im working in a Korean company..What can I do? What are my rights?
i formally filed for resignation on June 15 from the company i have been with for 2 years. date of effectivity is June 30. my manager accepted it and signed my letter that day. Human Resources also accepted it. there is also a newly hired supervisor who can take on my workload. he has been duly oriented and already in line with all the current projects.
i am the marketing assistant who has been reporting to the sales manager for about a year now. during that time i was also the only employee in marketing. now that there is a new marketing supervisor, i can freely leave the company after making the necessary arrangements.
now on June 17, my manager suddenly wanted to retract his acceptance of my resignation with only 15 days notice, stating that under the Philippine labor code, employers are entitled to at least 30 days notice and wants me to submit another letter extending my stay in the company.
since they have accepted my resignation, i have already made arrangements with another company. extending my stay with my current employer would jeopardize my committment with my new one.
don’t employers have the prerogative of accepting resignations with less than 30 days notice? can they even rescind their acceptance at all?
Hi! I hope you would give me some idea on what to do as I’m really confused right now.
I worked for an organization for more than two years and resigned some time end of last year because of domestic issues and unjust treatment from my bosses. Now I did not raise the latter issue with the board of officers and I just filed my resignation to avoid any further complications as I felt really abused and unappreciated. Gist, I left and they accepted my resignation a week or two after I filed it (my immediate supervisor was the one who approved it. I was on a month’s leave at the time and did not personally tender my resignation so I made a leeway with them. They were visiting me and we were finalizing documents at my house. Plus, I made an appointment with them a month after my resignation at the office to do some other things as well. Now, well over half a year of being resigned, they are still bothering me regarding some of the things they missed discussing with me when I had the time. I am now working for another organization and they are harassing me and my husband and telling us that I SHOULD finish some of the things I left.
My question is do they have a right to harass/bother me with some of the unfinished business I left when I resigned? And am I right in ignoring their demands? Understand that they are not requesting but DEMANDING my presence.
I tender my resignation to the company I’m working the usual they ask to render a 30 day advance notice but since the company which I will transfer required to work with them by the fourth of week my resignation, my question is am I entitled to file a leave for that remaining 1 week of my resignation. Please send me an email of your advise.
** Reposting
ALL -
I would like to reiterate that I am not a lawyer or expert on labor disputes or labor complaints. I am not in the industry of labor relations and have no knowledge to provide you with any advice or tip. I myself have my own complaints and the above post is about the experience of someone I know and of the stuff I have researched online. Although my brother is with HR, I am not him and he doesnt have a blog so I dont know how he can provide you with assistance.
Sorry guys, we are in the same boat so I am not able to help as well.
Thanks for visiting!
Laws in the Philippines sometimes are tell publib, if you were be able to to college more chances that you studied tha laws. But how about no those who cant afford. Im hoping that government should take action.
I just want to ask something regarding my friends case…she was told harsh words.. like stupid and an idiot by the general manager… are there laws for this kind of situation? or what should my friend do? pls help..
hello, i recently got regularized in my company after 6 months of probationary, but the problem is my basic pay didn’t increase, it is the same rate as my probationary period can i complain this to labor?
Don2 – I am not sure. What does your contract say? All I can tell you is my own experience. When I got regularized, my basic pay didnt increase too.