{"id":5983,"date":"2018-05-07T15:28:00","date_gmt":"2018-05-07T07:28:00","guid":{"rendered":"https:\/\/pnl-law.com\/blog\/?p=5983"},"modified":"2020-05-21T15:10:31","modified_gmt":"2020-05-21T07:10:31","slug":"glossary-labor-code-of-the-philippines","status":"publish","type":"post","link":"https:\/\/pnl-law.com\/blog\/glossary-labor-code-of-the-philippines\/","title":{"rendered":"Glossary: Labor Code of the Philippines"},"content":{"rendered":"\n<p>[Terms defined under the <a href=\"https:\/\/pnl-law.com\/blog\/labor-code-of-the-philippines-presidential-decree-no-442-full-text-table-of-contents\/\">Labor Code of the Philippines<\/a> (Presidential Decree No. 442), related laws and issuances, implementing rules and regulations, and jurisprudence. New terms will be added from time to time.]<\/p>\n\n\n\n<!--more-->\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>A<\/strong><\/td><td><strong>B<\/strong><\/td><\/tr><tr><td>* <a href=\"#Alternative-Workplace\">Alternative workplace<\/a><br \/>* <a href=\"#Ample-Opportunity-Heard\">Ample opportunity to be heard<\/a><br \/>* <a href=\"#Apprentice\">Apprentice<\/a><br \/>* <a href=\"#Apprenticeable-Occupation\">Apprenticeable occupation<\/a><br \/>* <a href=\"#Apprenticeship\">Apprenticeship<\/a><br \/>* <a href=\"#Apprenticeship-Agreement\">Apprenticeship agreement<\/a><br \/>* <a href=\"#Authorized-Causes\">Authorized causes<\/a><br \/>* <a href=\"#Auxilliary-Aids-Services\">Auxilliary aids and services<\/a><br \/>* <a href=\"#Auxilliary-Social-Services\">Auxilliary social services<\/a><\/td><td>* <a href=\"#Bargaining-Representative\">Bargaining representative<\/a><br \/>* <a href=\"#Bond\">Bond<\/a><br \/>* <a href=\"#Burden-Proof\">Burden of proof<\/a><br \/>* <a href=\"#By-Stander-Rule\">By-stander Rule<\/a><\/td><\/tr><tr><td><strong>C<\/strong><\/td><td><strong>D<\/strong><\/td><\/tr><tr><td>* <a href=\"#Cabo\">Cabo<\/a><br \/>* <a href=\"#Closed-Shop-Agreement\">Closed-shop agreement<\/a><br \/>* <a href=\"#Closure-Cessation-Business\">Closure or cessation of business<\/a><br \/>* <a href=\"#Commerce\">Commerce<\/a><br \/>* <a href=\"#Commission-Crime-Offense\">Commission of crime or offense<\/a><br \/>* <a href=\"#Company-Union\">Company union<\/a><br \/>* <a href=\"#Contracting\">Contracting<\/a><br \/>* <a href=\"#Contractor\">Contractor<\/a><br \/>* <a href=\"#Contractors-Employee\">Contractor&#8217;s employee<\/a><br \/>* <a href=\"#Control-Test\">Control test<\/a><\/td><td>* <a href=\"#Disability\">Disability<\/a><br \/>* <a href=\"#Disabled-Persons\">Disabled persons<\/a><br \/>* <a href=\"#Doctrine-Management-Prerogative\">Doctrine of management prerogative<\/a><br \/>* <a href=\"#Doctrine-Strained-Relations\">Doctrine of strained relations<\/a><br \/>* <a href=\"#Downsizing\">Downsizing<\/a><br \/>* <a href=\"#Dual-System-Training\">Dual system\/training<\/a><\/td><\/tr><tr><td><strong>E<\/strong><\/td><td>F<\/td><\/tr><tr><td>* <a href=\"#Employee\">Employee<\/a><br \/>* <a href=\"#Employer\">Employer<\/a><br \/>* <a href=\"#Entrepreneurship\">Entrepreneurship<\/a><\/td><td>* <a href=\"#Four-Fold-Test\">Four-fold test<\/a><br \/>* <a href=\"#Fraud\">Fraud<\/a><\/td><\/tr><tr><td><strong>G<\/strong><\/td><td><strong>H<\/strong><\/td><\/tr><tr><td>* <a href=\"#Gross-Neglect\">Gross neglect<\/a><\/td><td>* <a href=\"#Habitual-Neglect\">Habitual neglect<\/a><br \/>* <a href=\"#Handicap\">Handicap<\/a><br \/>* <a href=\"#Handicapped-Workers\">Handicapped workers<\/a><\/td><\/tr><tr><td><strong>I<\/strong><\/td><td>J<\/td><\/tr><tr><td>* <a href=\"#Impairment\">Impairment<\/a><br \/>* <a href=\"#In-House-Agency\">In-house agency<\/a><br \/>* <a href=\"#In-House-Cooperative\">In-house cooperative<\/a><br \/>* <a href=\"#Insubordination\">Insubordination<\/a><br \/>* <a href=\"#Installation-Labor-Saving-Devices\">Installation of labor-saving devices<\/a><br \/>* <a href=\"#Internal-Union-Dispute\">Internal union dispute<\/a><\/td><td><\/td><\/tr><tr><td>K<\/td><td><strong>L<\/strong><\/td><\/tr><tr><td><\/td><td>* <a href=\"#Labor-Dispute\">Labor dispute<\/a><br \/>* <a href=\"#Labor-Only-Contracting\">Labor-only contracting<\/a><br \/>* <a href=\"#Labor-Organization\">Labor organization<\/a><br \/>* <a href=\"#Last-In-First-Out-Rule\">Last-in, first out rule<\/a><br \/>* <a href=\"#Learners\">Learners<\/a><br \/>* <a href=\"#Legitimate-Labor-Organization\">Legitimate labor organization<\/a><br \/>* <a href=\"#Lockout\">Lockout<\/a><br \/>* <a href=\"#Loss-Confidence\">Loss of confidence<\/a><\/td><\/tr><tr><td><strong>M<\/strong><\/td><td><strong>N<\/strong><\/td><\/tr><tr><td>* <a href=\"#Managerial-Employees\">Managerial employees<\/a><br \/>* <a href=\"#Manpower\">Manpower<\/a><br \/>* <a href=\"#Marginalized-Disabled-Persons\">Marginalized disabled persons<\/a><br \/>* <a href=\"#Market-driven-strategy\">Market-driven strategy<\/a><br \/>* <a href=\"#Middle-Level-Manpower\">Middle-level manpower<\/a><br \/>* <a href=\"#Misconduct\">Misconduct<\/a><\/td><td>* <a href=\"#Night-Worker\">Night worker<\/a><\/td><\/tr><tr><td><strong>O<\/strong><\/td><td><strong>P<\/strong><\/td><\/tr><tr><td><\/td><td>* <a href=\"#Principal\">Principal<\/a><br \/>* <a href=\"#Private-Enterprises\">Private enterprises<\/a><br \/>* <a href=\"#Procedural-Due-Process\">Procedural due process<\/a><br \/>* <a href=\"#Public-Transportation\">Public transportation<\/a><\/td><\/tr><tr><td><strong>Q<\/strong><\/td><td><strong>R<\/strong><\/td><\/tr><tr><td>* <a href=\"#Qualified-Individual-Disability\">Qualified individual with disability<\/a><\/td><td>* <a href=\"#Rank-File-Employees\">Rank-and-file employees<\/a><br \/>* <a href=\"#Readily-Achievable\">Readily achievable<\/a><br \/>* <a href=\"#Reasonable-Accommodation\">Reasonable accommodation<\/a><br \/>* <a href=\"#Reasonable-Period\">Reasonable period<\/a><br \/>* <a href=\"#Redundancy\">Redundancy<\/a><br \/>* <a href=\"#Rehabilitation\">Rehabilitation<\/a><br \/>* <a href=\"#Retrenchment\">Retrenchment<\/a><\/td><\/tr><tr><td><strong>S<\/strong><\/td><td><strong>T<\/strong><\/td><\/tr><tr><td>* <a href=\"#Security-Tenure\">Security of tenure<\/a><br \/>* <a href=\"#Service-Agreement\">Service Agreement<\/a><br \/>* <a href=\"#Sheltered-Employment\">Sheltered employment<\/a><br \/>* <a href=\"#Skill\">Skill<\/a><br \/>* <a href=\"#Skills-Development\">Skills development<\/a><br \/>* <a href=\"#Social-Barriers\">Social barriers<\/a><br \/>* <a href=\"#Solidary-Liability\">Solidary liability<\/a><br \/>* <a href=\"#Strike\">Strike<\/a><br \/>* <a href=\"#Strike-Area\">Strike area<\/a><br \/>* <a href=\"#Strike-Breaker\">Strike breaker<\/a><br \/>* <a href=\"#Subcontracting\">Subcontracting<\/a><br \/>* <a href=\"#Substantial-Capital\">Substantial capital<\/a><br \/>* <a href=\"#Substantive-Due-Process\">Substantive due process<\/a><br \/>* <a href=\"#Substantial-Evidence\">Substantial evidence<\/a><br \/>* <a href=\"#Supervisory-Employees\">Supervisory employees<\/a><\/td><td>* <a href=\"#Technical-Education\">Technical education<\/a><br \/>* <a href=\"#Telecommuting-Act\">Telecommunity Act<\/a><br \/>* <a href=\"#Telecommuting\">Telecommuting<\/a><br \/>* <a href=\"#Telecommuting-Agreement\">Telecommunity agreement<\/a><br \/>* <a href=\"#Telecommuting-Employees\">Telecommuting employees<\/a><br \/>* <a href=\"#Telecommuting-Program\">Telecommuting program<\/a><br \/>* <a href=\"#Trade\">Trade<\/a><br \/>* <a href=\"#Trainees\">Trainees<\/a><br \/>* <a href=\"#Trainers\">Trainers<\/a><br \/>* <a href=\"#Trainors-Trainers\">Trainors\/trainers<\/a><br \/>* <a href=\"#Twin-Notice-Rule\">Twin-notice rule<\/a><\/td><\/tr><tr><td><strong>U<\/strong><\/td><td><strong>V<\/strong><\/td><\/tr><tr><td>* <a href=\"#Unfair-Labor-Practice\">Unfair labor practice<\/a><br \/>* <a href=\"#User-Led-Strategy\">User-led strategy<\/a> <\/td><td>* <a href=\"#Voluntary-Arbitrator\">Voluntary arbitrator<\/a><\/td><\/tr><tr><td><strong>W<\/strong><\/td><td><\/td><\/tr><tr><td>* <a href=\"#Work-From-Home\">Work-from-home<\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Alternative-Workplace\">Alternative workplace<\/h2>\n\n\n\n<p>A location other than the regular workplace. [DO 202, s. 219; See <a href=\"https:\/\/pnl-law.com\/blog\/telecommuting-and-work-primer-on-the-telecommuting-act-republic-act-no-11165\/\">Primer on the Telecommuting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Ample-Opportunity-Heard\">Ample opportunity to be heard<\/h2>\n\n\n\n<p>Any meaningful opportunity (verbal or written) given to the employee to answer the charges against him\/her and submit evidence in support of his\/her defense, whether in a hearing, conference or some other fair, just and reasonable way. It is a requirement of <a href=\"#Procedural-Due-Process\">procedural due process<\/a> in termination proceedings based on <a href=\"#Just-Causes\">just causes<\/a>. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/twin-notice-rule-and-procedural-requirements-in-employment-termination-proceedings\/\">Procedural due process in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Apprentice\">Apprentice<\/h2>\n\n\n\n<p>A person undergoing training for an approved <a href=\"#Apprenticeable-Occupation\">apprenticeable occupation<\/a> during an established period assured by an apprenticeship agreement. [RA 7796, Sec. 4(k), superseding Art. 58 of the Labor Code]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Apprenticeship\">Apprenticeship<\/h2>\n\n\n\n<p>Training within employment with compulsory related theoretical instructions involving a contract between an <a href=\"#Apprentice\">apprentice<\/a> and an <a href=\"#Employer\">employer<\/a> on an approved <a href=\"#Apprenticeable-Occupation\">apprenticeable occupation<\/a>. [RA 7796, Sec. 4(j), superseding Art. 58 of the Labor Code]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Apprenticeable-Occupation&quot;\">Apprenticeable occupation<\/h2>\n\n\n\n<p>An occupation officially endorsed by a tripartite body and approved for apprenticeship by TESDA. [RA 7796, Sec. 4(m),]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Apprenticeship-Agreement\">Apprenticeship agreement<\/h2>\n\n\n\n<p>A contract wherein a prospective <a href=\"#Employer\">employer<\/a> binds himself to train the <a href=\"#Apprentice\">apprentice<\/a> who in turn accepts the terms of training for a recognized <a href=\"#Apprenticeable-Occupation\">apprenticeable occupation<\/a> emphasizing the rights, duties and responsibilities of each party. [RA 7796, Sec. 4(l), superseding Art. 58 of the Labor Code]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Auxilliary-Aids-Services\">Auxiliary aids and services<\/h2>\n\n\n\n<p>Include: (1) qualified interpreters or other effective methods of delivering materials to individuals with hearing <a href=\"#Impairment\">impairments<\/a>; (2) qualified readers, taped tests, or other effective methods of delivering materials to individuals with visual impairments; (3) acquisition or modification of equipment or devices; and (4) other similar services and actions or all types of aids and services that facilitate the learning process of people with mental disability. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(g)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Authorized-Causes\">Authorized causes<\/h2>\n\n\n\n<p>These are causes for termination of employment brought by the necessity and exigencies of business, changing economic conditions and illness of the employee. The authorized causes, provided in Articles 298 [Closure of Establishment and Reduction of Personnel] and 299 [Disease as a Ground for Termination] of the Labor Code, as amended, are: <a href=\"https:\/\/pnl-law.com\/blog\/installation-of-labor-saving-devices-authorized-cause-in-employment-termination\/\">Installation of labor-saving devices<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/redundancy-authorized-cause-in-employment-termination\/\">Redundancy<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/retrenchment-or-downsizing-authorized-cause-in-employment-termination\/\">Retrenchment or downsizing<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/closure-or-cessation-of-operation-authorized-cause-in-employment-termination\/\">Closure or cessation of operation<\/a>; and <a href=\"https:\/\/pnl-law.com\/blog\/disease-authorized-cause-in-employment-termination\/\">Disease<\/a>. [DO 147-15, Sec. 4(a)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Auxilliary-Social-Services\">Auxiliary social services<\/h2>\n\n\n\n<p>The supportive activities in the delivery of social services to the marginalized sectors of society. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(j)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Bargaining-Representative\">Bargaining representative<\/h2>\n\n\n\n<p>A <a href=\"#Legitimate-Labor-Organization\">legitimate labor organization<\/a> whether or not employed by the <a href=\"#Employer\">employer<\/a>. [Labor Code, Art. 219(j)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Bond\">Bond<\/h2>\n\n\n\n<p>The bond under Article 108 of the Labor Code that the <a href=\"#Principal\">principal<\/a> may require from the <a href=\"#Contractor\">contractor<\/a> to be posted equal to the cost of labor under contract. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(a); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Burden-Proof\">Burden of proof<\/h2>\n\n\n\n<p>The duty of a party to present evidence on the facts in issue necessary to establish his claim or defense by the amount of evidence required by law. For labor cases, the \u201camount of evidence\u201d is <a href=\"#Substantial-Evidence\">substantial evidence<\/a>. [Abbott Laboratories (Philippines), Inc. vs. Torralba, G.R. No. 229746, 11 October 2017; See Framework of employment termination]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"By-Stander-Rule\">Bystander Rule<\/h2>\n\n\n\n<p>The employer&#8217;s role in a certification election is that of a mere by-stander, as the choice of a collective bargaining agent is the sole concern of the employees. The employer has no legal standing in a certification election as it cannot oppose the petition or appeal the orders related thereto. [See <a href=\"https:\/\/pnl-law.com\/blog\/by-stander-rule-the-role-of-company-in-certification-elections\/\">By-stander rule in certification elections<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Cabo\">Cabo<\/h2>\n\n\n\n<p>The person or group of persons or to a labor group which, under the guise of a <a href=\"#Labor-Organization\">labor organization<\/a>, <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Cooperative\">cooperative<\/a> or any entity, supplies workers to an <a href=\"#Employer\">employer<\/a>, with or without any monetary or other consideration, whether in the capacity of an agent of the employer or as an ostensible independent contractor. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(b); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/prohibition-on-labor-only-contracting-and-other-unlawful-employment-arrangements-in-the-philippines\/\">Prohibited Labor-only Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Closed-Shop-Agreement\">Closed-shop agreement<\/h2>\n\n\n\n<p>An agreement whereby an <a href=\"#Employer\">employer<\/a> binds himself to hire only members of the contracting <a href=\"#Union\">union<\/a> who must continue to remain members in good standing to keep their jobs. [National Labor Union vs. Aguinaldo&#8217;s Echague, Inc., 97 Phil. 184]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Closure-Cessation-Business\">Closure or cessation of business<\/h2>\n\n\n\n<p>The complete or partial cessation of the operations and\/or shut-down of the establishment of the employer. [See <a href=\"#Retrenchment\">Retrenchment<\/a> and <a href=\"https:\/\/pnl-law.com\/blog\/separation-pay-in-employment-termination-and-resignation-in-the-philippines\/\">Separation pay in case of closure of business<\/a>; DO 147-15, Sec. 4(c)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Commerce\">Commerce<\/h2>\n\n\n\n<p>Shall be taken to mean as travel, trade, traffic, commerce, transportation, or communication among the provinces or between any foreign country or any territory or possession and any province. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(p)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Commission-Crime-Offense\">Commission of a crime or offense<\/h2>\n\n\n\n<p>An offense by the employee against the person of his\/her employer or any member of his\/her family or his\/her authorized representative. It is a <a href=\"#Just-Causes\">just cause<\/a> for termination.[DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/commission-of-a-crime-or-offense-authorized-cause-in-employment-termination\/\">Commission of crime\/offense as ground for termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Company-Union\">Company union<\/h2>\n\n\n\n<p>Any <a href=\"#Labor-Organization\">labor organization<\/a> whose formation, function or administration has been assisted by any act defined as <a href=\"#Unfair-Labor-Practice\">unfair labor practice<\/a> by the Labor Code. [Labor Code, Art. 219(i)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Contracting\">Contracting<\/h2>\n\n\n\n<p>Contracting or subcontracting refers to an arrangement whereby a <a href=\"#Principal\">principal<\/a> agrees to farm out to a <a href=\"#Contractor\">contractor<\/a> the performance or completion of a specific job or work within a definite or predetermined period, regardless of whether such job or work is to be performed or completed within or outside the premises of the principal. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(c); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>,\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/prohibition-on-labor-only-contracting-and-other-unlawful-employment-arrangements-in-the-philippines\/\">Prohibited Labor-only Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Contractor\">Contractor<\/h2>\n\n\n\n<p>Any person or entity engaged in a legitimate <a href=\"#Contracting\">contracting<\/a> or <a href=\"#Contracting\">subcontracting<\/a> agreement providing services for a specific job or undertaking farmed out by <a href=\"#Principal\">principal<\/a> under a <a href=\"#Service-Agreement\">Service Agreement<\/a>. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(d); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Contractors-Employee\">Contractor\u2019s employee<\/h2>\n\n\n\n<p>An <a href=\"#Employee\">employee<\/a> of the <a href=\"#Contractor\">contractor<\/a> hired to perform or complete a job or work farmed out by the <a href=\"#Principal\">principal<\/a> pursuant to a <a href=\"#Service-Agreement\">Service Agreement<\/a> with the latter. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(e); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Control-Test\">Control test<\/h2>\n\n\n\n<p>Commonly regarded as the most crucial and determinative indicator of the presence or absence of an employer-employee relationship under the <a href=\"#Four-Fold-Test\">four-fold test<\/a>. Under the control test, an employer-employee relationship exists where the person for whom the services are performed reserves the right to control not only the end achieved, but also the manner and means used to achieve that end. [DO 147-15, Sec. 3; David vs. Macasio, G.R. No. 1954661, 2 July 2014]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Covered-Entity\">Covered entity&nbsp;<\/h2>\n\n\n\n<p>An <a href=\"#Employer\">employer<\/a>, <a href=\"#Employment-Agency\">employment agency<\/a>, <a href=\"#Labor-Organization\">labor organization<\/a> or <a href=\"#Joint-Labor-Management-Committee\">joint- labor management committee<\/a>. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(o)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Disability\">Disability<\/h2>\n\n\n\n<p>Means: (1) a physical or mental <a href=\"#Impairment\">impairment<\/a> that substantially limits one or more psychological, physiological or anatomical function of an individual or activities of such individual; (2) a record of such an <a href=\"#Impairment\">impairment<\/a>; or (3) being regarded as having such an impairment. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(c)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Disable-Persons\">Disabled persons<\/h2>\n\n\n\n<p>Those suffering from restriction or different abilities, as a result of a mental, physical or sensory <a href=\"#Impairment\">impairment<\/a>, to perform an activity in the manner or within the range considered normal for a human being. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(a); See effect of definition to Labor Code&#8217;s <a href=\"#Handicapped-Workers\">Handicapped workers<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Doctrine-Management-Prerogative\">Doctrine of management prerogative<\/h2>\n\n\n\n<p>Every <a href=\"#Employer\">employer<\/a> has the inherent right to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, the time, place and manner of work, work supervision, transfer of employees, lay-off of workers, and discipline, dismissal, and recall of employees. The only limitations to the exercise of this prerogative are those imposed by labor laws and the principles of equity and substantial justice. In the context of balancing of interests between capital and labor, this balances the employees&#8217; <a href=\"#Security-Tenure\">Security of tenure<\/a>. [Peckson vs. Robinsons Supermarket Corp., G.R. No. 198534, 3 July 2013]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Doctrine-Strained-Relations\">Doctrine of strained relations<\/h2>\n\n\n\n<p>The payment of <a href=\"#Separation-Pay\">separation pay<\/a> is considered an acceptable alternative to <a href=\"#Reinstatement\">reinstatement<\/a> when the latter option is no longer desirable or viable. [See <a href=\"https:\/\/pnl-law.com\/blog\/separation-pay-in-employment-termination-and-resignation-in-the-philippines\/\">Separation pay in employment termination<\/a>]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Downsizing\">Downsizing<\/h2>\n\n\n\n<p>See <a href=\"#Retrenchment\">Retrenchment<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Dual-System-Training\">Dual system\/training<\/h2>\n\n\n\n<p>A delivery of quality technical and vocational education which requires training to be carried out alternatively in two venues: In school and in the production plant. In-school training provides the trainee the theoretical foundation, basic training, guidance and human formation, while in-plant training develops his skills and proficiency in actual work conditions as it continues to inculcate personal discipline and work values. [RA 7796, Sec. 4(p)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Employee\">Employee<\/h2>\n\n\n\n<p>Any person in the employee of an <a href=\"#Employer\">employer<\/a>. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice (DO 147-15).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Employer\">Employer<\/h2>\n\n\n\n<p>Any person, natural or juridical, employing the services of the <a href=\"#Employee\">employee<\/a> (Labor Code, Art. 173). Any person acting in the interest of an employer, directly or indirectly. It shall include <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Corporations\">corporation<\/a>, <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Sole-Proprietorship\">partnership<\/a>, <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Sole-Proprietorship\">sole proprietorship<\/a> and <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Cooperative\">cooperative<\/a>. [DO 147-15]. The term shall not include any <a href=\"#Labor-Organization\">labor organization<\/a> or any of its officers or agents except when acting as employer (Labor Code, Art. 219(e)).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Entrepreneurship\">Entrepreneurship<\/h2>\n\n\n\n<p>Training for self-employment or assisting individual or small industries within the purview of Title I of Book Two, Labor Code. [<a href=\"https:\/\/pnl-law.com\/blog\/labor-code-of-the-philippines-presidential-decree-no-442-full-text-table-of-contents\/\">Labor Code<\/a>, Art. 44]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Four-Fold-Test\">Four-fold test<\/h2>\n\n\n\n<p>Factors considered to ascertain the existence of an employer-employee relationship, to wit: (1) the selection and engagement of the employee; (2) the payment of wages; (3) the power of dismissal; and (4) the power to control the employee\u2019s conduct, or the so-called \u201c<a href=\"#Control-Test\">control test<\/a>.\u201d [DO 147-15, Sec. 3]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Fraud\">Fraud<\/h2>\n\n\n\n<p>Any act, omission, or concealment which involves a breach of legal duty, trust or confidence justly reposed, and is injurious to another. It is a <a href=\"#Just-Causes\">just cause<\/a> for termination. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/fraud-or-willful-breach-of-trust-authorized-cause-in-employment-termination\/\">Fraud as ground for employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Gross-Neglect\">Gross neglect<\/h2>\n\n\n\n<p>The absence of that diligence that an ordinary prudent man would use in his\/her own affairs. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/gross-and-habitual-neglect-of-duties-authorized-cause-in-employment-termination\/\">Gross and habitual neglect in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Habitual-Neglect\">Habitual neglect<\/h2>\n\n\n\n<p>Repeated failure to perform one\u2019s duties over a period of time, depending upon the circumstances. It is a <a href=\"#Just-Causes\">just cause<\/a> for termination. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/gross-and-habitual-neglect-of-duties-authorized-cause-in-employment-termination\/\">Gross and habitual neglect in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Handicap\">Handicap<\/h2>\n\n\n\n<p>A disadvantage for a given individual, resulting from an <a href=\"#Impairment\">impairment<\/a> or a <a href=\"#Disability\">disability<\/a>, that limits or prevents the function or activity, that is considered normal given the age and sex of the individual. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(d)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Handicapped-Workers\">Handicapped workers<\/h2>\n\n\n\n<p>Those whose earning capacity is impaired by age or physical or mental deficiency or injury. [<a href=\"https:\/\/pnl-law.com\/blog\/labor-code-of-the-philippines-presidential-decree-no-442-full-text-table-of-contents\/\">Labor Code<\/a>, <a href=\"https:\/\/pnl-law.com\/blog\/book-ii-human-resources-development-program-labor-code-of-the-philippines-full-text\/#National-Manpower-Program\">Art. 44<\/a>; see also <a href=\"#Disabled-Persons\">Disabled persons<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Impairment\">Impairment<\/h2>\n\n\n\n<p>Any loss, diminution or aberration of psychological, physiological, or anatomical structure or function. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(b)]\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"In-House-Agency\">In-house agency<\/h2>\n\n\n\n<p>A <a href=\"#Contractor\">contractor<\/a> which is owned, managed, or controlled directly or indirectly by the <a href=\"#Principal\">principal<\/a> or one where the principal owns\/represents any share of stock, and which operates solely or mainly for the principal. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(f); See ,\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/prohibition-on-labor-only-contracting-and-other-unlawful-employment-arrangements-in-the-philippines\/\">Prohibited Labor-only Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"In-House-Cooperative\">In-house cooperative<\/h2>\n\n\n\n<p>A <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Cooperative\">cooperative<\/a> which is managed, or controlled directly or indirectly by the <a href=\"#Principal\">principal<\/a> or one where the principal or any of its officers owns\/represents any equity or interest, and which operates solely or mainly for the principal. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(f); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/prohibition-on-labor-only-contracting-and-other-unlawful-employment-arrangements-in-the-philippines\/\">Prohibited Labor-only Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Insubordination\">Insubordination<\/h2>\n\n\n\n<p>The refusal to obey some order, which a superior is entitled to give and have obeyed. It is a willful or intentional disregard of the lawful and reasonable instructions of the employer. It is a <a href=\"#Just-Causes\">just cause<\/a> for termination. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/willful-disobedience-authorized-cause-in-employment-termination\/\">Willful disobedience in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Internal-Union-Dispute\">Internal union dispute<\/h2>\n\n\n\n<p>Includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by laws of a <a href=\"#Union\">union<\/a>, including any violation of the rights and conditions of union membership provided for in the Labor Code. [Labor Code, Art. 219(q)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Installation-Labor-Saving-Devices\">Installation of labor-saving devices<\/h2>\n\n\n\n<p>The reduction of the number of workers in any workplace made necessary by the introduction of labor-saving machinery or devices. This is one of the <a href=\"#Authorized-Causes\">authorized causes<\/a>. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/installation-of-labor-saving-devices-authorized-cause-in-employment-termination\/\">Installation of labor-saving devices in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Just-Causes\">Just causes<\/h2>\n\n\n\n<p>Causes for termination of employment that are directly attributable to the fault or negligence of the employee. The just causes, enumerated under Article 297 [Termination by Employer] of the Labor Code, as amended, are: <a href=\"https:\/\/pnl-law.com\/blog\/serious-misconduct-just-cause-in-employment-termination\/\">Serious misconduct<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/willful-disobedience-authorized-cause-in-employment-termination\/\">Willful disobedience or insubordination<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/gross-and-habitual-neglect-of-duties-authorized-cause-in-employment-termination\/\">Gross and habitual neglect of duties<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/fraud-or-willful-breach-of-trust-authorized-cause-in-employment-termination\/\">Fraud<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/loss-of-trust-and-confidence-authorized-cause-in-employment-termination\/\">Loss of trust and confidence<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/commission-of-a-crime-or-offense-authorized-cause-in-employment-termination\/\">Commission of crime or offense<\/a>; and <a href=\"https:\/\/pnl-law.com\/blog\/analogous-causes-authorized-cause-in-employment-termination\/\">Analogous cases<\/a>. [DO 147-15<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Labor-Dispute\">Labor dispute<\/h2>\n\n\n\n<p>Includes any controversy or matter concerning terms and <a href=\"#Conditions-Employment\">conditions of employment<\/a> or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether the disputants stand in the proximate relation of <a href=\"#Employer\">employer<\/a> and <a href=\"#Employee\">employee<\/a>. [Labor Code, Art. 219(l)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Labor-Only-Contracting\">Labor-only contracting<\/h2>\n\n\n\n<p>An arrangement where the <a href=\"#Contractor\">contractor<\/a> or <a href=\"#Subcontractor\">subcontractor<\/a> merely recruits, supplies or places workers to perform a job or work for a <a href=\"#Principal\">principal<\/a>. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(h); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/prohibition-on-labor-only-contracting-and-other-unlawful-employment-arrangements-in-the-philippines\/\">Prohibited Labor-only Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Labor-Organization\">Labor organization<\/h2>\n\n\n\n<p>Any <a href=\"#Union\">union<\/a> or association of employees which exists in whole or in part for the purpose of <a href=\"#Collective-Bargaining\">collective bargaining<\/a> or of dealing with <a href=\"#Employer\">employers<\/a> concerning terms and conditions of employment. [Labor Code, Art. 219(g); See <a href=\"#Legitimate-Labor-Organization\">Legitimate labor organization<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Last-In-First-Out-Rule\">Last-in, first-out rule<\/h2>\n\n\n\n<p>When there are two or more <a href=\"#Employee\">employees<\/a> occupying the same position in the company affected by <a href=\"#Installation-Labor-Saving-Devices\">installation of labor-saving devices<\/a>, <a href=\"#Redundancy\">redundancy<\/a> and <a href=\"#Retrenchment\">retrenchment<\/a>, the last one employed will be the first to go. ([DO 147-15]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Learners\">Learners<\/h2>\n\n\n\n<p>Persons hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable. Learnership programs must be approved by TESDA. [RA 7796, Sec. 4(n)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Legitimate-Labor-Organization\">Legitimate labor organization<\/h2>\n\n\n\n<p>Any <a href=\"#Labor-Organization\">labor organization<\/a> duly registered with the Department of Labor and Employment, and includes any branch or local thereof. [Labor Code, Art. 219(h)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Levy-Grant-System\">Levy grant system<\/h2>\n\n\n\n<p>A legal contribution from participating <a href=\"#Employer\">employers<\/a> who would be beneficiaries of the program (often as a percentage of the payroll) which is subsequently turned over or rebated to enterprises offering employee training programs.&nbsp; [RA 7796, Sec. 4(q)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Lockout\">Lockout<\/h2>\n\n\n\n<p>Any temporary refusal of an <a href=\"#Employer\">employer<\/a> to furnish work as a result of an industrial or <a href=\"#Labor-Dispute\">labor dispute<\/a>. [Labor Code, Art. 219(p)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Loss-Confidence\">Loss of confidence<\/h2>\n\n\n\n<p>A condition arising from fraud or willful breach of trust by employee of the trust reposed in him\/her employer or his\/her duly authorized representative. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/loss-of-trust-and-confidence-authorized-cause-in-employment-termination\/\">Loss of trust and confidence in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Managerial-Employees\">Managerial employees<\/h2>\n\n\n\n<p>Those vested with the powers or prerogatives to lay down and execute management policies and\/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. [Labor Code, Art. 219(e); See <a href=\"#Supervisory-Employees\">Supervisory employees<\/a> and <a href=\"#Rank-File-Employees\">Rank-and-file employees<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Manpower\">Manpower<\/h2>\n\n\n\n<p>That portion of the nation\u2019s population which has actual or potential capability to contribute directly to the production of goods and services. [<a href=\"https:\/\/pnl-law.com\/blog\/labor-code-of-the-philippines-presidential-decree-no-442-full-text-table-of-contents\/\">Labor Code<\/a>, Art. 44]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Marginalized-Disabled-Persons\">Marginalized disabled persons<\/h2>\n\n\n\n<p><a href=\"#Disabled-Persons\">Disabled persons<\/a> who lack access to rehabilitative services and opportunities to be able to participate fully in socioeconomic activities and who have no means of livelihood and whose incomes fall below the poverty threshold. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(k)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Market-Driven-Strategy\">Market-driven strategy<\/h2>\n\n\n\n<p>See <a href=\"#User-Led-Strategy\">User-led strategy<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Middle-Level-Manpower\">Middle-level manpower<\/h2>\n\n\n\n<p>Refers to those: (a) who have acquired practical skills and knowledge through formal or non-formal education and training equivalent to at least a secondary education but preferably a post-secondary education with a corresponding degree or diploma; or (b) skilled workers who have become highly competent in their <a href=\"#Trade\">trade<\/a> or craft as attested by industry. [RA 7796, Sec. 4(e)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Misconduct\">Misconduct<\/h2>\n\n\n\n<p>The transgression of some established and definite rule or action, a forbidden act, a dereliction of duty, willful in character and implies wrongful intent and not mere error in judgment. Serious misconduct is a <a href=\"#Just-Causes\">just cause<\/a> for employment termination. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/serious-misconduct-just-cause-in-employment-termination\/\">Serious misconduct as ground for dismissal<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Night-Worker\">Night worker<\/h2>\n\n\n\n<p>Any <a href=\"#Employee\">employed person<\/a> whose work requires performance of a substantial number of hours of night work which exceeds a specified limit. This limit shall be fixed by the Secretary of Labor after consulting the workers\u2019 representatives\/labor organizations and employers (Labor Code, Art. 154). A night worker is any <a href=\"#Employee\">employed person<\/a> whose work covers the period from 10 o&#8217;clock in the evening to 6 o&#8217;clock the following morning provided that the worker performs no less than seven (7) consecutive hours of work (DOLE D.O. No. 119).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Principal\">Principal<\/h2>\n\n\n\n<p>Any natural or juridical entity, whether an <a href=\"#Employer\">employer<\/a> or not, who puts out or farms out a job or work to a <a href=\"#Contractor\">contractor<\/a>. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(h); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Private-Enterprises\">Private enterprises<\/h2>\n\n\n\n<p>An economic system under which property of all kinds can be privately owned and in which individuals, alone or in association with another, can embark on a business activity. This includes industrial, agricultural, or agro-industrial establishments engaged in the production, manufacturing, processing, repacking or assembly of goods including service-oriented enterprises. [RA 7796, Sec. 4(f)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Procedural-Due-Process\">Procedural due process<\/h2>\n\n\n\n<p>The requirement that an employer must observe the requirement of <a href=\"#Twin-Notice-Rule\">twin-notice rule<\/a> and provide the employee with <a href=\"#Ample-Opportunity-Heard\">ample opportunity to be heard<\/a>, before a dismissal can be effected.&nbsp;[See <a href=\"https:\/\/pnl-law.com\/blog\/twin-notice-rule-and-procedural-requirements-in-employment-termination-proceedings\/\">Due process in employment termination proceedings<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Public-Transportation\">Public transportation<\/h2>\n\n\n\n<p>Transportation by air, land and sea that provides the public with general or special service on a regular and continuing basis. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(n)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Qualified-Individual-Disability\">Qualified individual with a disability<\/h2>\n\n\n\n<p>An individual with a <a href=\"#Disability\">disability<\/a> who, with or without reasonable accommodations, can perform the essential functions of the employment position that such individual holds or desires. However, consideration shall be given to the employer&#8217;s judgment as to what functions of a job are essential, and if an employer has prepared a written description before advertising or interviewing applicants for the job, this description shall be considered evidence of the essential functions of the job. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(l)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Rank-File-Employees\">Rank-and-file employees<\/h2>\n\n\n\n<p>All <a href=\"#Employee\">employees<\/a> not classified as <a href=\"#Managerial-Employees\">Managerial employees<\/a> or <a href=\"#Supervisory-Employees\">Supervisory employees<\/a>. [Labor Code, Art. 219(m)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Readily-Achievable\">Readily achievable<\/h2>\n\n\n\n<p>A goal can be easily attained and carried out without much difficulty or expense. In determining whether an action is readily achievable, factors to be considered include: (1) the nature and cost of the action; (2) the overall financial resources of the facility or facilities involved in the action; the number of persons employed at such facility; the effect on expenses and resources, or the impact otherwise of such action upon the operation of the facility; (3) the overall financial resources of the covered entity with respect to the number of its employees; the number, type and location of its facilities; and (4) the type of operation or operations of the covered entity, including the composition, structure and functions of the work force of such entity; the geographic separateness, administrative or fiscal relationship of the facility or facilities in question to the <a href=\"#Covered-Entity\">covered entity<\/a>. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(m)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Reasonable-Accommodation\">Reasonable accommodation<\/h2>\n\n\n\n<p>Includes: (1) improvement of existing facilities used by <a href=\"#Employees\">employees<\/a> in order to render these readily accessible to and usable by <a href=\"#Disabled-Persons\">disabled persons<\/a>; and (2) modification of work schedules, reassignment to a vacant position, acquisition or modification of equipment or devices, appropriate adjustments or modifications of examinations, training materials or company policies, rules and regulations, the provision of auxiliary aids and services, and other similar accommodations for <a href=\"#Disabled-Persons\">disabled persons<\/a>. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(h)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Reasonable-Period\">Reasonable period<\/h2>\n\n\n\n<p>A period of at least five (5) calendar days from receipt of the notice to give the employee an opportunity to study the accusation, consult or be represented by a lawyer or union officer, gather data and evidence, and decide on the defenses against the complaint. It is a part of <a href=\"#Procedural-Due-Process\">procedural due process<\/a> in termination proceedings based on <a href=\"#Just-Causes\">just causes<\/a>. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/twin-notice-rule-and-procedural-requirements-in-employment-termination-proceedings\/\">Due process in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Redundancy\">Redundancy<\/h2>\n\n\n\n<p>The condition when the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise or superfluous. It is an <a href=\"#Authorized-Causes\">authorized cause<\/a> for employment termination. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/redundancy-authorized-cause-in-employment-termination\/\">Redundancy as a ground for dismissal<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Rehabilitation\">Rehabilitation<\/h2>\n\n\n\n<p>An integrated approach to physical, social, cultural, spiritual, educational and vocational measures that create conditions for the individual to attain the highest possible level of functional ability. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(e)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Retrenchment\">Retrenchment<\/h2>\n\n\n\n<p>Retrenchment or downsizing is an economic ground for dismissing employees and is resorted to primarily to avoid or minimize business losses. It is an <a href=\"#Authorized-Causes\">authorized cause<\/a> for employment termination. [DO 147-15; See <a href=\"https:\/\/pnl-law.com\/blog\/retrenchment-or-downsizing-authorized-cause-in-employment-termination\/\">Retrenchment as ground for termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Security-Tenure\">Security of tenure&nbsp;<\/h2>\n\n\n\n<p>In case of regular employment, the employer shall not terminate the services of an employee, except for a <a href=\"#Just-Causes\">just cause<\/a> or an <a href=\"#Authorized-Causes\">authorized cause<\/a>. An employee who is unjustly dismissed from work shall be entitled to <a href=\"#Reinstatement\">reinstatement<\/a> without loss of seniority rights and to his <a href=\"#Backwages\">backwages<\/a> computed from the time his compensation was withheld from him up to time of his reinstatement. [Labor Code, Art. 294; See <a href=\"https:\/\/pnl-law.com\/blog\/twin-notice-rule-and-procedural-requirements-in-employment-termination-proceedings\/\">Procedural requirements in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Service-Agreement\">Service Agreement<\/h2>\n\n\n\n<p>The contract between the <a href=\"#Principal\">principal<\/a> and <a href=\"#Contractor\">contractor<\/a> containing the terms and conditions governing the performance or completion of a specific job or work being farmed out for a definite or predetermined period. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(j); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Sheltered-Employment\">Sheltered employment<\/h2>\n\n\n\n<p>The provision of productive work for <a href=\"#Disabled-Persons\">disabled persons<\/a> through workshops providing special facilities, income-producing projects or homework schemes with a view to giving them the opportunity to earn a living thus enabling them to acquire a working capacity required in open industry. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(i)]&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Skill\">Skill<\/h2>\n\n\n\n<p>The acquired and practiced ability to carry out a task or job. [RA 7796, Sec. 4(a)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Skills-Development\">Skills development<\/h2>\n\n\n\n<p>The process through which <a href=\"#Learners\">learners<\/a> and <a href=\"#Workers\">workers<\/a> are systematically provided with learning opportunities to acquire or upgrade, or both, their ability, knowledge and behavior pattern required as qualifications for a job or range of jobs in a given occupational area. [RA 7796, Sec. 4(b)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Social-Barriers\">Social barriers<\/h2>\n\n\n\n<p>The characteristics of institutions, whether legal, economic, cultural, recreational or other, any human group, community, or society which limit the fullest possible participation of <a href=\"#Disabled-Persons\">disabled persons<\/a> in the life of the group. Social barriers include negative attitudes which tend to single out and exclude disabled persons and which distort roles and inter-personal relationships. [&#8220;Magna Carta for Disabled Persons&#8221; (R.A. 7277), Sec. 4(f)]\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Solidary-Liability\">Solidary liability<\/h2>\n\n\n\n<p>The liability of the <a href=\"#Principal\">principal<\/a>, pursuant to the provision of Article 109 of the Labor Code, as direct <a href=\"#Employer\">employer<\/a> together with the <a href=\"#Contractor\">contractor<\/a> for any violation of the Labor Code. It also refers to the liability of the principal, in the same manner and extent that heshe is liable to his\/he direct employees, to the extent of the work performed under the contract when the contractor fails to pay the wages of his\/her employees, as provided in Article 106 of the Labor Code, as amended. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(k); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>,\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/prohibition-on-labor-only-contracting-and-other-unlawful-employment-arrangements-in-the-philippines\/\">Prohibited Labor-only Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Strike\">Strike<\/h2>\n\n\n\n<p>Any temporary stoppage of work by the concerted action of <a href=\"#Employee\">employees<\/a> as a result of an industrial or <a href=\"#Labor-Dispute\">labor dispute<\/a>. [Labor Code, Art. 219(o)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Strike-Area\">Strike area<\/h2>\n\n\n\n<p>The establishment, warehouses, depots, plants or offices, including the sites or premises used as <a href=\"#Runaway-Shop\">runaway shops<\/a>, of the <a href=\"#Employer\">employer<\/a> struck against, as well as the immediate vicinity actually used by <a href=\"#Picketing\">picketing<\/a> strikers in moving to and fro before all points of entrance to and exit from said establishment.&nbsp;(As amended by Section 4, Republic Act No. 6715, March 21, 1989)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Strike-Breaker\">Strike-breaker<\/h2>\n\n\n\n<p>Any person who obstructs, impedes, or interferes with by force, violence, coercion, threats, or intimidation any peaceful <a href=\"#Picketing\">picketing<\/a> affecting <a href=\"#Wages\">wages<\/a>, <a href=\"#Hours-Work\">hours of work<\/a> or <a href=\"#Conditions-Work\">conditions of work<\/a> or in the exercise of the <a href=\"#RIght-Self-Organization\">right of self-organization<\/a> or <a href=\"#Collective-Bargaining\">collective bargaining<\/a>. [Labor Code, Art. 219(r)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Subcontracting\">Subcontracting<\/h2>\n\n\n\n<p>See <a href=\"#Contracting\">Contracting<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Substantial-Capital\">Substantial capital<\/h2>\n\n\n\n<p>The paid-up capital stock\/shares at least Five Million Pesos in the case of <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Corporations\">corporations<\/a>, <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Partnership\">partnerships<\/a> and <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Cooperative\">cooperatives<\/a>; in the case of <a href=\"https:\/\/pnl-law.com\/blog\/glossary-for-the-revised-corporation-code\/#Sole-Proprietorship\">single proprietorship<\/a>, a net worth of at least Five Million Pesos. [<a href=\"https:\/\/pnl-law.com\/blog\/implementing-rules-on-contracting-and-sub-contracting-department-order-no-174-series-of-2017-full-text\/\">D.O. 174<\/a>, Sec. 3(l); See\u00a0<a href=\"https:\/\/pnl-law.com\/blog\/contracting-and-subcontracting-is-allowed-in-the-philippines-regulatory-framework\/\">Legitimate Contracting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Substantial-Evidence\">Substantial evidence<\/h2>\n\n\n\n<p>That amount of relevant evidence which a reasonable mind might accept as adequate to justify a conclusion. [See <a href=\"#Burden-Proof\">Burden of proof<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Substantive-Due-Process\">Substantive due process<\/h2>\n\n\n\n<p>A requirement that dismissal must be pursuant to either a <a href=\"#Just-Causes\">just cause<\/a> or an <a href=\"#Authorized-Causes\">authorized cause<\/a>. Together with <a href=\"#Procedural-Due-Process\">procedural due process<\/a>, this is a requirement in employment termination proceedings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Supervisory-Employees\">Supervisory employees<\/h2>\n\n\n\n<p>Those who, in the interest of the <a href=\"#Employer\">employer<\/a>, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. [Labor Code, Art. 219(e); See <a href=\"#Managerial-Employees\">Managerial employees<\/a> and <a href=\"#Rank-File-Employees\">Rank-and-file employees<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Telecommuting\">Telecommuting<\/h2>\n\n\n\n<p>A work arrangement that allows an <a href=\"#Employee\">employee<\/a> in the private sector to work from an <a href=\"#Alternative-Workplace\">alternative workplace<\/a> with the use of telecommunication and\/or computer technologies. [RA 11165, Sec. 3; See <a href=\"https:\/\/pnl-law.com\/blog\/telecommuting-and-work-primer-on-the-telecommuting-act-republic-act-no-11165\/\">Primer on the Telecommuting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Telecommuting-Act\">Telecommuting Act<\/h2>\n\n\n\n<p>Refers to Republic Act No. 11165, which is the law institutionalizing <a href=\"#Telecommuting\">telecommuting<\/a> as an alternative work arrangement in the private sector. [See <a href=\"https:\/\/pnl-law.com\/blog\/telecommuting-and-work-primer-on-the-telecommuting-act-republic-act-no-11165\/\">Primer on the Telecommuting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Telecommuting-Agreement\">Telecommuting agreement<\/h2>\n\n\n\n<p>The mutual consent of the <a href=\"#Employer\">employer<\/a> and the <a href=\"#Employee\">employee<\/a> in the implementation of a <a href=\"#Telecommuting\">telecommuting<\/a> work arrangement based on the <a href=\"#Telecommuting-Program\">telecommunity program<\/a> of the company, <a href=\"#Collective-Bargaining-Agreement\">Collective Bargaining Agreement<\/a> (CBA), if any, and other company rules and regulations. [DO 202, s. 219; See <a href=\"https:\/\/pnl-law.com\/blog\/telecommuting-and-work-primer-on-the-telecommuting-act-republic-act-no-11165\/\">Primer on the Telecommuting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Telecommuting-Employees\">Telecommuting employees<\/h2>\n\n\n\n<p><a href=\"#Employee\">Employees<\/a> who are on a <a href=\"#Telecommuting\">telecommuting<\/a> work arrangement. [DO 202, s. 219; See <a href=\"https:\/\/pnl-law.com\/blog\/telecommuting-and-work-primer-on-the-telecommuting-act-republic-act-no-11165\/\">Primer on the Telecommuting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Telecommuting-Program\">Telecommuting program<\/h2>\n\n\n\n<p>A set of guidelines and rules governing the implementation of a <a href=\"#Telecommuting\">telecommuting<\/a> work arrangement. DO 202, s. 219; See <a href=\"https:\/\/pnl-law.com\/blog\/telecommuting-and-work-primer-on-the-telecommuting-act-republic-act-no-11165\/\">Primer on the Telecommuting<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Trade\">Trade<\/h2>\n\n\n\n<p>Any group of interrelated jobs or any occupation which is traditionally or officially recognized as craft or artisan in nature requiring specific qualifications that can be acquired through work experience and\/or training. [RA 7796, Sec. 4(d)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Trainees\">Trainees<\/h2>\n\n\n\n<p>Persons who are participants in a vocational, administrative or technical training program for the purpose of acquiring and developing job-related skills. [RA 7796, Sec. 4(i)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Trainers\">Trainers<\/h2>\n\n\n\n<p>Persons who direct the practice of skills towards immediate improvement in some task. [RA 7796, Sec. 4(g)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Trainors-Trainers\">Trainors\/trainers<\/h2>\n\n\n\n<p>Persons who provide training to <a href=\"#Trainers\">trainers<\/a> aimed at developing the latter\u2019s capacities for imparting attitudes, knowledge, skills and behavior patterns required for specific jobs, tasks, occupations or group of related occupations. [RA 7796, Sec. 4(h)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Technical-Education\">Technical education<\/h2>\n\n\n\n<p>The education process designed at post-secondary and lower tertiary levels, officially recognized as non-degree programs aimed at preparing technicians, para-professionals and other categories of <a href=\"#Middle-Level-Manpower\">middle-level workers<\/a> by providing them with a broad range of general education, theoretical, scientific and technological studies, and related job skills training. [RA 7796, Sec. 4(c)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Twin-Notice-Rule\">Twin-notice rule<\/h2>\n\n\n\n<p>As part of <a href=\"#Procedural-Due-Process\">procedural due process<\/a>, two written notices must be served on the employee who is the subject of the disciplinary action.&nbsp;[See <a href=\"https:\/\/pnl-law.com\/blog\/twin-notice-rule-and-procedural-requirements-in-employment-termination-proceedings\/\">Procedural due process in employment termination<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Unfair-Labor-Practice\">Unfair labor practice<\/h2>\n\n\n\n<p>Any unfair labor practice as expressly defined by the Labor Code. [Labor Code, Art. 219(k)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"User-Led-Strategy\">User-led strategy<\/h2>\n\n\n\n<p>&#8220;User-Led Strategy\u201d or \u201cMarket-Driven Strategy\u201d refers to a strategy which promotes strengthened linkages between educational\/training institutions and industry to ensure that appropriate skills and knowledge are provided by the educational system. [RA 7796, Sec. 4(o)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Voluntary-Arbitrator\">Voluntary arbitrator<\/h2>\n\n\n\n<p>Any person accredited by the Board as such or any person named or designated in the <a href=\"#Collective-Bargaining-Agreement\">Collective Bargaining Agreement<\/a> by the parties to act as their Voluntary Arbitrator, or one chosen with or without the assistance of the National Conciliation and Mediation Board, pursuant to a selection procedure agreed upon in the Collective Bargaining Agreement, or any official that may be authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a <a href=\"#Labor-Dispute\">labor dispute<\/a>. [Labor Code, Art. 219(n)]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Work-From-Home\">Work-from-home<\/h2>\n\n\n\n<p>A mode of <a href=\"#Telecommuting\">telecommuting<\/a> work arrangement wherein the <a href=\"#Employee\">employee<\/a> works from home. [See <a href=\"https:\/\/pnl-law.com\/blog\/telecommuting-and-work-primer-on-the-telecommuting-act-republic-act-no-11165\/\">Primer on the Telecommuting<\/a>]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[Terms defined under the Labor Code of the Philippines (Presidential Decree No. 442), related laws and issuances, implementing rules and regulations, and jurisprudence. New terms will be added from time to time.]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[371],"tags":[87,405,1330,133,244,1431,84],"class_list":["post-5983","post","type-post","status-publish","format-standard","hentry","category-hr-and-labor","tag-employees","tag-employers","tag-glossary","tag-labor","tag-labor-code","tag-labor-code-of-the-philippines","tag-work"],"_links":{"self":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/comments?post=5983"}],"version-history":[{"count":11,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5983\/revisions"}],"predecessor-version":[{"id":6869,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/5983\/revisions\/6869"}],"wp:attachment":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media?parent=5983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/categories?post=5983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/tags?post=5983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}