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Phillippines Labor Code ( plan to resign,terminated, and new employee) August 17, 2008

Posted by auxbreak in Job Tips, Phillippines.
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389 comments

Para sa mga gustong mag resign, naterminate sa work, kakahire pa lang or new employee. Read this, baka makatulong in the future.

Ipaglaban ang karapatan!

Phillippines Labor Code

Under the Labor Code, the following are basic rights of workers:

1. Workers cannot be dismissed without just and authorized causes. Whether an employee is regular or probationary, he enjoys security of tenure. Under Article 282 of the Labor Code, an employer may terminate an employment for any of the following causes: a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; b)  Gross and habitual neglect by the employee of his duties;  c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;  d) Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative; and e) other cause analogous to the foregoing.   Likewise, Article 283 of the Labor Code provides the authorized causes for the termination of an employee, to wit:  a) automation or installation of labor-saving device; b) redundancy; c) retrenchment;  d) closure of business;  e) cessation of operations of the business;  and e) sale of the business in good faith.

2. Workers cannot be dismissed without due process. The requisites of an employee’s right to due process are as follows:  a) Notice furnished to the employee stating the particular acts or omissions constituting the grounds for his dismissal;  b) Employee must be given an opportunity to answer the allegations stated against him in the notice of dismissal within a reasonable period from receipt of such notice; c) Employee is given an ample opportunity to be heard and to defend himself with the assistance of a representative if he so desires; and d)  Employer shall immediately notify the employee in writing of the decision to dismiss him stating clearly the reasons therefore.

3. Worker’s right to be a regular employee after the probationary period not exceeding six (6) months. A probationary employee is one who is on trial during which the employer determines whether or not he is qualified for permanent employment.  Failure to qualify as a regular employee in accordance with the reasonable standards of the employer is a just cause for terminating a probationary employee.  However, the probationary employment must not exceed six (6) months.  Otherwise, the employee becomes regular by operation of law.

4. Hours of Work. The normal working hours of an employee shall not exceed eight (8) hours a day, otherwise, employee shall be entitled to an overtime pay.

5. Weekly rest day. An employee is entitled to a day-off of 24 consecutive hours after 6 days of work.  This should be scheduled by the employer upon consultation with the workers.

6. Right to a fair wage and wage-related benefits. The following are considered the monetary benefits which the employee is entitled:

  • Minimum wage in the region.
  • Holiday pay.
  • Premium pay for work within 8 hours on a special holiday or rest day, rest day falling on a special holiday, and rest day falling on a regular holiday
  • Overtime pay for work in excess of 8 hours on ordinary days and special holidays, rest days and regular holidays.
  • Night shift differential pay for work between 10 p.m. – 6 a.m.
  • Service incentive leave of five days with pay per year of service
  • Service charges:  85% for distribution to rank and file employees and 15% for losses, breakages, or distribution to managerial employees (applicable only in establishments collecting service charges, i. e. restaurants or hotels)
  • 13th month pay: 1/12 of the total basic salary earned within the calendar year.
  • Paternity leave: 7 days full pay to attend to the needs of the legal wife before, during and after delivery.
  • Separation pay: minimum of ½ month pay for every year of service for authorized causes of separation.
  • Retirement pay:  22.5 days salary for every year of service for optional retirement at 60 under RA7641 or under applicable agreements or for compulsory retirement at age 65.


7. Payment of Wages.

  • Wages shall be paid in cash, legal tender at or near the place of work
  • Payment shall be made directly to the employees.
  • Wages shall be given not less than once every two weeks or twice within a month at intervals not exceeding 16 days.


8. Safe and Healthful Conditions of Work and Welfare Services. This includes proper illumination and ventilation, fire exits and extinguishers, occupational health personnel and services, family welfare / family planning services at the workplace, etc.

9. Self-organization and collective bargaining. This includes the right to form associations and be members of associations which are not contrary to law, morals, public order and public policy.

10. Free access to the courts and quasi-judicial bodies and speedy disposition of their cases. The Department of Labor and Employment is the government agency tasked in providing the employee with information on where and how to present the employee’s grievances and concerns to the proper entity.

11. Employees’ Compensation Benefits for work-related contingencies. This includes medical benefits for sickness / injuries, disability benefits, rehabilitation benefits, death and funeral benefits and pension benefits.

12. SSS Benefits. This includes maternity, sickness, disability, retirement, death and pension benefits.