Category Archives: HR & Labor

Increase of Tax Exclusion to P82,000 for 13th Month Pay and Other Benefits (BIR Revenue Regulations No. 3-2015; Full Text)

REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVUENUE
Quezon City

March 9, 2015

REVENUE REGULATIONS NO. 3-2015

SUBJECT: Implementing the Provisions of Republic Act No. 10653, More Particularly on the Increase of the Total Amount of Exclusion to P82,000.oo for 13th Month Pay and Other Benefits from Gross Income Effectively Further Amending the Pertinent Provisions of Revenue Regulations No. 2-98

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Due Process in Termination and Disciplinary Actions; Minimum Period for Reply to Show-Cause Notice

Practitioners in the field of labor or Human Resources (HR), as well as managers and executive officers of companies, are aware that an employee may only be dismissed for cause. Disciplinary actions, including dismissal from work, must comply with both substantive and procedural due process. Substantive due process requires a valid cause for the dismissal. For procedural due process, outlined below, an interesting question is this: is there a minimum period that must be given to the employee to answer the show-cause notice?

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New Law Increasing the Exemption for 13th Month Pay and Other Benefits (Republic Act No. 10653)

Republic of the Philippines
Congress of the Philippines
Metro Manila

REPUBLIC ACT NO. 10653

AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

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Employment of Night Workers: A Primer

Congress recently passed Republic Act No. 10151, signed into law by President Benigno Aquino on 21 June 2011, allowing the employment of night workers, including women. Here’s a primer on the Employment of Night Workers.

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“At-Will” Employment and Termination in the Philippines

Among the first concepts that we have to extensively discuss with foreign clients is the absence of “at-will employment” under Philippine labor law. “At-will employment” basically refers to an employment arrangement wherein either the employer or the employee can terminate the relationship even without cause. In the Philippines, the employer can only terminate an employee for cause and after complying with due process, even if the employment contract grants the employer the power to dismiss without notice.

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Labor Code of the Philippines (Presidential Decree No. 442): Table of Contents, Full Text

PRESIDENTIAL DECREE NO. 442, AS AMENDED

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

Preliminary Title [Full Text: Arts. 1-11]

* Chapter I. General ProvisionsSUMMARY:
* Glossary
* Chapter II. Emancipation of Tenants

Book I. Pre-Employment [Full Text: Arts. 12-42]

TITLE I. Recruitment and Placement of WorkersRELATED TOPICS:
* Chapter I. General Provisions
* Chapter II. Regulation of Recruitment and Placement Activities* Revised Rules on Local Recruitment
* Chapter III. Miscellaneous Provisions
TITLE II. Employment of Non-Resident Aliens

Book II. Human Resources Development Program [Full Text: Arts. 43-81]

 TITLE I. National Manpower Development Program 
 * Chapter I. National Policies and Administrative Machinery 
 TITLE II. Training and Employment of Special Workers 
 * Chapter I. Apprentices 
 * Chapter II. Learners 
 * Chapter III. Handicapped Workers 

Book III. Conditions of Employment [Full Text: Arts. 82-161]

TITLE I. Working Conditions and Rest PeriodsSUMMARIES/DISCUSSIONS:
* Telecommuting
* Anti-sexual harassment act
* Suspension of work due to calamities
* Chapter I. Hours of Work* Flexible working hours
* Chapter II. Weekly Rest Periods
* Chapter III. Holidays, Service Incentive Leaves, and Service Charges* Primer on expanded maternity leave
* Deferment of holiday pay
TITLE II. Wages
* Chapter I. Preliminary Matters* Christmas bonus vs. 13th month pay
* Chapter II. Minimum Wage Rates* Wage Rationalization Act
* Chapter III. Payment of Wages* Final pay and Certificate of employment
* Implementing rules on contracting and subcontracting
* Chapter IV. Prohibitions Regarding Wages
* Chapter V. Wage Studies, Wage Agreements, and Wage Determination* System of fixing minimum wage
* Chapter VI. Administration and Enforcement
TITLE III. Working Conditions for Special Groups of Employees* Primer on solo parents
* Chapter I. Employment of Women
* Chapter II. Employment of Minors
* Chapter III. Employment of Househelpers* Primer on Batas Kasambahay
* Chapter IV. Employment of Homeworkers
* Chapter V. Employment of Night Workers* Primer on night workers

Book IV. Health, Safety and Social Welfare Benefits [Full Text: Arts. 162-217]

 TITLE I. Medical and Occupational Safety 
 * Chapter I. Medical and Dental Services 
 * Chapter II. Occupational Health and Safety 
 TITLE II. Employees Compensation and State Insurance Fund 
 * Chapter I. Policy and Definitions 
 * Chapter II. Coverage and Liability 
 * Chapter III. Administration 
 * Chapter IV. Contributions 
 * Chapter VI. Disability Benefits 
 * Chapter VII. Death Benefits 
 * Chapter VIII. Provisions Common to Income Benefits 
 Chapter IX. Records, Reports and Penal Provisions 
 TITLE III. Medicare 
 TITLE IV. Adult Education 

Book V. Labor Relations [Full Text: Arts. 218-292]

 TITLE I. Policy and Definitions DISCUSSIONS:
 * Chapter I. Policy 
 * Chapter II. Definitions 
 TITLE II. National Labor Relations Commission 
 * Chapter I. Creation and Composition 
 * Chapter II. Powers and Duties 
 * Chapter III. Appeal 
 TITLE III. Bureau of Labor Relations 
 TITLE IV. Labor Organizations 
 * Chapter I. Registration and Cancellation 
 * Chapter II. Rights and Conditions of Membership 
 * Chapter III. Rights of Legitimate Labor Organizations 
 TITLE V. Coverage* The by-stander rule 
 Title VI. Unfair Labor Practices 
 * Chapter I. Concept 
 * Chapter II. Unfair Labor Practices of Employers 
 * Chapter II. Unfair Labor Practices of Labor Organizations 
 Title VII. Collective Bargaining and Administration of Agreements 
 Title VII-A. Grievance Machinery and Voluntary Arbitration 
 Title VIII. Strikes and Lockouts and Foreign Involvement in Trade Union Activities 
 * Chapter I. Strikes and Lockouts 
 * Chapter II. Assistance to Labor Organizations 
 * Chapter III. Foreign Activities 
 * Chapter IV. Penalties for Violations 
 Title IX. Special Provisions 

Book VI. Post Employment [Full Text: Arts. 293-302]

TITLE I. Termination of Employment
SUMMARIES/DISCUSSIONS:
Just causes:
* 1. Serious misconduct
* 2. Willful disobedience or insubordination
* 3. Gross and habitual neglect of duties
* 4. Fraud or willful breach of trust
* 5. Loss of trust and confidence
* 6. Commission of a crime or offense
* 7. Analogous causes
* Due Process in termination cases

Authorized causes:
* 1. Installation of labor-saving devices
* 2. Redundancy
* 3. Retrenchment or downsizing
* 4. Closure or Cessation of Operation
* 5. Disease
 * Separation pay

Others:
* At-will employment
* Probationary employment
* Suspension of probationary period
* Unemployment insurance or involuntary separation benefits
TITLE II. Retirement from the Service

Book VII. Transitory and Final Provisions [Full Text: Arts. 303-317]

TITLE I. Penal Provisions
TITLE II. Prescription of Offenses and Claims
TITLE III. Transitory and Final Provisions