QUILAQUIL,ZENNY R. DR.

GERTRUDE VILLALON

BSE IV-3 HISTORY

PHILIPPINE DEVELOPEMENT OF LABOR AND

EMPLOYMENT

ECONOMIC PLANNING
To operationalize the attainment of decent work, the proposed LEP will formulate
outcomes for the following key pillars: Employment; Labor Relations, Labor Standards,
and Social Dialogue; and Social Protection including migration and development. Rights
at Work, Gender and Development, and Labor Governance concerns will be
mainstreamed during the consultation process. Once pillar outcomes are formulated,
specific challenges and strategic priorities to address them will be identified. The LEP
process is designed provide for a multisectoral platform for a more inclusive
consultation.Starting February 2016, the DOLE gather inputs from key stakeholders –
workers (formal labor, public sector workers, informal sector workers, women, youth,
migrant workers, persons with disabilities), employers, government agencies and civil
society (i.e non-government organizations). This process included:

ECONOMIC STRATEGIES
In crafting the strategic outcomes, thrusts and priorities for the next LEP, key
documents were reviewed as inputs and as part of a comprehensive environmental
scanning of labor and employment situation and prospects at the global, regional and
national levels, including international commitments of the Philippines. These include
the following:

 Sustainable Development Goals as the post-MDG/2015 agenda where 11 labor and

employment related goals and targets were identified with goal 8 as core to promote
sustained inclusive and sustainable economic growth, full and productive employment
and decent work for all;
  2015 Human Development Report which gives particular attention to work as
fundamental driver of human development;

 ILO Future of Work which tackles policy issues and framework for future initiatives on
jobs, equity, sustainability, human security, labour mobility, social dialogue

 World Employment and Social Outlook 2016 which discusses a forecast of global
unemployment levels, looking at the situation in developed, emerging and developing
economies, as well as the scale of the informal economy and provides policy guidance
to boost decent work opportunities around the globe;

 2015 World Report on Child Labour which highlights the close linkages between child
labour and good youth employment outcomes, and the consequent need for common
policy approaches to addressing these challenges;

 2015 Trafficking in Persons Report which highlights the hidden risks that workers may
encounter when seeking employment and the steps that governments and businesses
can take to prevent trafficking, including a demand for transparency in global supply
chains;

 Multi-lateral and Regional Commitment

ECONOMIC POLICY
Implement a comprehensive national industrial policy that creates value-added supply
chain by linking laborintensive sectors with competitive and comparative advantages,
such as agriculture and industry, to sustain investments and create employment
opportunities, and by aligning monetary, fiscal, financial, and trade and investment
policies in support of the Comprehensive National Industrial Strategy (CNIS)
(Concerned agencies: NEDA, DTI, DA, DOF, DOLE).This are the following Philippine
Constitution Law about Labor and Employment.

ART. 1. Name of Decree.

ART. 2. Date of Effectivity. This Code shall take effect six (6) months after its

promulgation.3

ART. 3. Declaration of Basic Policy.4 The State shall afford protection to

labor, promote full employment, ensure equal work opportunities regardless of sex,

race or creed, and regulate the relations between workers and employers. The State

shall assure the rights of workers to self-organization, collective bargaining, security

of tenure, and just and humane conditions of work.

ART. 4. Construction in Favor of Labor. All doubts in the implementation

and interpretation of the provisions of this Code, including its implementing rules

and regulations, shall be resolved in favor of labor.

ART. 5. Rules and Regulations. The Department of Labor and other

government agencies charged with the administration and enforcement of this Code

or any of its parts shall promulgate the necessary implementing rules and

regulations. Such rules and regulations shall become effective fifteen (15) days after

announcement of their adoption in newspapers of general circulation.

ART. 6. Applicability. All rights and benefits granted to workers under this

Code shall, except as may otherwise be provided herein, apply alike to all workers,

whether agricultural or non-agricultural.

ECONOMIC PROCESS
No employee can be dismissed from work except for a just or authorized cause, and
only after due process.

Just Cause refers to any wrongdoing committed by an employee including:

1.serious misconduct

2.willful disobedience of employers' lawful orders connected with work

3.gross and habitual neglect of duty

4.fraud or willful breach of trust

5.commission of crime or offense against the employer, employer's family member/s or

representative

6.other analogous cases

Authorized Cause refers to an economic circumstance not due to the

employee's fault, including:
1.the introduction of labor-saving devices
2.redundancy

3.retrenchment to prevent losses

4.closure or cessation of business

Due Process in cases of just cause involves:

1.notice to employee of intent to dismiss and grounds for dismissal

2.opportunity for employee to explain his or her side

notice of decision to dismiss

3. In authorized causes, due process means written notice of dismissal to the employee
specifying the grounds, at least 30 days before the date of termination.

The inability of a probationary employee to meet the employer's prescribed standards of

performance made known to him or her at the time of hiring is also a just cause for dismissal.

ECONOMIC PRACTICES
• Work Days and Work Hours

Work Day refers to any day during which an employee is regularly required to work. Hours of
Work refer to all the time an employee renders actual work, or is required to be on duty or to be
at a prescribed workplace. The normal hours of work in a day is 8 hours. This includes breaks or
rest period of less than one hour, but excludes meal periods, which shall not be less than one
hour. An employee must be paid his or her wages for all hours worked. If all or any part of his
or her regular work hours falls between 10:00 p.m. to 6:00 a.m., a covered employee shall be
entitled to a night shift pay in addition to his or her pay for regular work hours. If he or she
works for more than 8 hours in one day, he or she shall be entitled to overtime pay.

• Weekly Rest Day

A day-off of 24 consecutive hours after 6 days of work should be scheduled by the employer
upon consultation with the workers.

• Wage and Wage-Related Benefits

Wage is the amount paid to an employee in exchange for a task, piece of work, or service
rendered to an employer. This includes overtime, night differential, rest day, holiday and 13th
month pay. It also includes the fair and reasonable value of board, lodging and other facilities
customarily furnished by the employer. Wage may be fixed for a given period, as when it is
computed hourly, daily or monthly. It may also be fixed for a specified task or result. If wage is
for a fixed period, the minimum wage for a regular 8-hour workday shall not be lower than the
minimum daily wage applicable to the place of work as determined by the Regional Tripartite
Wage and Productivity Board having jurisdiction over workplace. If wage is paid by result, the
worker shall receive at least the prescribed minimum wage for 8 hours of work. The amount
may be increased or reduced proportionately if work is rendered for more or less than 8 hours a
day. An employer cannot make any deduction from an employee's wage except for insurance
premiums with the consent of the employee, for union dues, or for withholding taxes, SSS
premiums and other deductions expressly authorized by law.

• Payment of Wages

Wages shall be paid in cash, legal tender at or near the place of work. Payment may be made
through a bank upon written petition of majority of the workers in establishments with 25 or more
employees and within one (1) kilometer radius to a bank. Payment shall be made directly to the
employees. Wages shall be given not less than once every two (2) weeks or twice within a
month at intervals not exceeding 16 days.

• Employment of Women

Nightwork prohibition unless allowed by the Rules:

1.in industrial undertakings from 10PM to 6AM

2.in commercial/non-industrial undertakings from 12MN to 6AM

3.in agricultural undertakings, at night time unless given not less than 9 consecutive hours of
rest

Welfare facilities must be installed at the workplace such as seats, separate toilet rooms,
lavatories, and dressing rooms. Prohibition against discrimination with respect to pay (i.e.
equal pay for work of equal value), promotion, training opportunities, study and scholarship
grants.

• Employment of Children

Minimum employable age is 15 years. A worker below 15 years of age should be directly
under the sole responsibility of parents or guardians; work does not interfere with child's
schooling/normal development. No person below 18 years of age can be employed in a
hazardous or deleterious undertaking.

• Safe Working Conditions

Employers must provide workers with every kind of on-the-job protection against injury,
sickness or death through safe and healthful working conditions.Jobs may be hazardous or
highly hazardous. Hazardous jobs are those which expose the employee to dangerous
environment elements, including contaminants, radiation, fire, poisonous substances, biological
agents and explosives, or dangerous processes or equipment including construction, mining,
quarrying, blasting, stevedoring, mechanized farming and operating heavy equipment. If you
need further information on the provisions of the OSH Standards, please click here (OSH
Standards) and LCP, Book IV.
• Right to Self-Organization and Collective Bargaining

The right to self-organization is the right of every worker, free of any interference from the
employer or from government, to form or join any legitimate worker's organization, association
or union of his or her own choice. Except those classified as managerial or confidential
employees, all employees may form or join unions for purposes of collective bargaining and
other legitimate concerted activities. An employee is eligible for membership in an appropriate
union on the first day of his or her employment.

Collective Bargaining involves two parties:

1.the representative of the employer

2.a union duly authorized by the majority of the employees within a bargaining unit
called exclusive bargaining agent.

3. It is a process where the parties agree:

4.to fix and administer terms and conditions of employment which must not be below
the minimum standards fixed by law

5.to set a mechanism for resolving their grievances

The result of collective bargaining is a contract called collective bargaining

agreement (CBA). A CBA generally has a term of five years. The provisions of a CBA
may be classified as political or economic. Political provisions refer to those which
define the coverage of the CBA and recognize the collective bargaining agent as the
exclusive representative of the employees for the term of the CBA. Economic provisions
refer to all terms and conditions of employment with a monetary value. Economic
provisions have a term of five years but may be renegotiated before the end of the third
year of effectivity for the CBA.

• EC Benefits for Work-Related Contingencies

The Employees' Compensation Program is the tax-exempt compensation program

for employees and their dependents created under Presidential Decree No. 626 which
was implemented in March 1975. The benefits include:

1.Medical benefits for sickness/injuries

2.Disability benefits

3.Rehabilitation benefits

4.Death and funeral benefits

5.Pension benefits

QUILAQUIL ,ZENNY R. DR.GERTRUDES VILLALON

BSEIV-3HISTORY

ANALYSIS:

THIS ARE THE PROGRESS IN ECONOMIC IN LABOR AND

EMPLOYMENT

Pervasive in-work poverty is the main challenge facing labor policy.

The reduction of in-work poverty hinges on removing constraints to gainful employment

in both supply side (better education and skills) and demand side (better jobs).

It is critical that the young poor have improved access to quality education, and be
equipped with skills required in the modern sector of the economy.

This study analyzes labor market performance in the Philippines from the perspective of
workers’ welfare.

Pervasive poverty among those who have jobs is primarily due to low earning capacity
of the poor and their limited access to regular and productive jobs.

Behind these are the two interrelated root causes of in-work poverty—low education of
the poor, and the scarcity of productive job opportunities. The labor market is
segmented into “good” and “bad” jobs, with the poor working in the latter. They hold
jobs that are informal, temporary or casual, and low-paid.

Widespread informality means that the poor neither benefit from the minimum
wage policy nor from employment protection legislation.

They do not benefit from wage growth either, because their bargaining power is weak.
“Good” jobs are so few, especially in rural areas, that even better educated workers are
often forced to take unskilled jobs and work as low-paid laborers.

Better jobs need to be created, which can be attained from the growth of the formal and
higher value added sector of the economy.
The process of structural transformation should be supported by effective labor policy.

Labor regulations need to be made simpler and more flexible to facilitate the
reallocation of labor from less to more productive activities, and from informal to formal
sector.