What are the three categories of employees? a. Managerial employees b. Supervisory employees c. Rank-and-file employees

What is a manager?One who is 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. A manager’s primary duty consists of the management of the establishment in which they are employed.

What are the three types of managerial employees?1. Top management2. Middle management3. First-line management

Are managerial employees allowed to unionize? How about supervisory employees?As a general rule, only top and middle managers are not allowed to join any labor organization. First-line managers (or supervisory employees) are allowed to join a supervisory union but not the union of rank-and-file employees or vice-versa. In fact, the law does not allow mixed membership of both supervisory and rank-and-file employees in one union. A union with such mixed membership is no union at all. It cannot exercise the rights of a legitimate labor organization.

What is the distinction between managerial employees and supervisory employees?Managerial Employees have the power to decide and do managerial acts; while the Supervisory Employees have the power only to recommend managerial acts such as laying down policy, hiring or dismissal of employees and the like.

What is Management Prerogative?Management Prerogative is the exclusive right of the employer to regulate, according to his own discretion and judgment, all aspects of employment.

What is the extent of the rights and prerogatives of management?Our laws recognize and respect the exercise by management of certain rights and prerogatives. For this reason, courts often decline to interfere in legitimate business decisions of employers. In fact, labor laws discourage interference in employers’ judgment concerning the conduct of their business. An employer can regulate, generally without restraint, according to its own discretion and judgment, every aspect of its business. This privilege is inherent (virtually limitless) in the right of employers to control and manage their enterprise effectively.

What are the limitations on the exercise of management prerogatives?The exercise of management prerogative is not absolute. The exercise of management prerogative is subject to the limitations imposed by law or by CBA, employment contract, employer policy or practice and general principles of fair play and justice.

What is the extent of management’s prerogative to prescribe working methods, time, place, manner and other aspects of work?Employers have the freedom and prerogative, according to their discretion and best judgment, to regulate and control all aspects of employment in their business organizations. Such aspects of employment include hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers and the discipline, dismissal and recall of workers.

What is due process?Contrary to the time-honored principle that the right to due process of law is a constitutionally-guaranteed right, it being a basic constitutional tenet that “no person shall be deprived of life, liberty or property without due process of law, nor shall any person be denied the equal protection of the laws”

Due process under the Labor Code, like Constitutional due process, has two aspects: Substantive (the valid and authorized causes of employment termination under the Labor Code) and Procedural (the manner of dismissal).

Constitutional due process protects the individual from the government and assures him of his rights in criminal, civil or administrative proceedings; while statutory due process found in the Labor Code and Implementing Rules protects employees from being unjustly terminated without just cause after notice and hearing.

What is the two-fold due process requirement?1. Substantive aspect2. Procedural aspect

What are the twin requirements of notice and hearing?The twin requirements of notice and hearing constitute the essential elements of the procedural due process and neither of these elements can be eliminated without running afoul of the procedural mandate.

Due process under Article 282(a) A written notice (first notice) served on the employee specifying the ground or grounds for termination, and giving to said employee reasonable opportunity to explain his side;(b) A hearing or conference (or at least an opportunity to be heard) during which the employee concerned, with the assistance of counsel if the employee so desires, is given opportunity to respond to the charge, present his evidence or rebut the evidence presented against him; and(c) A written notice of termination (second notice) served on the employee indicating that upon due consideration of all the circumstances, grounds have been established to justify his termination*These requirements are mandatory, non-compliance with which renders any judgment reached by management void and inexistent.

What are the just causes for termination of employment under Article 282 of the Labor Code?

(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 representatives(e) Other causes analogous to the foregoing

What is serious misconduct?(a) It must be serious(b) It must relate to the performance of the employee’s duties(c) It must show that the employee has become unfit to continue working for the employer

What are the requisites to validly invoke willful disobedience of lawful orders as a just ground to terminate employment?1. Lawful and reasonable2. Sufficiently known to the employee3. in connection with the duties which the employee has been engaged to dischargeRequisites of lawful dismissal on the ground of willful disobedience. - For the ground of “willful disobedience” to be considered a just cause for termination of employment, the following requisites must concur, namely:1. The employee’s assailed conduct must have been willful or intentional, the willfulness being characterized by a ‘wrongful and perverse attitude’2. The order violated must have been reasonable and lawful and made known to the employee and must pertain to the duties which he had been engaged to discharge

What constitutes the ground of gross and habitual neglect of duties?1. Element of habituality may be disregarded where loss is substantial.2. Element of habituality may be disregarded if totality of evidence justifies dismissal.3. Element of actual loss or damage, not an essential requisite.4. Habitual tardiness or habitual absenteeism may be a ground for termination.

What constitutes the ground of fraud?Commission of fraud by an employee against the employer will necessarily result in the latter's loss of trust and confidence in the former. Proof of loss is not required under this ground.

What are the requisites for the ground of willful breach of trust?1. The loss of confidence must not be simulated;2. It should not be used as a subterfuge for causes which are illegal, improper or unjustified3. It may not be arbitrarily asserted in the face of overwhelming evidence to the contrary4. It must be genuine, not a mere afterthought, to justify earlier action taken in bad faith

5. The employee involved holds a position of trust and confidenceWhat constitutes the ground of commission of crime or offense?The commission of a crime or offense by the employee may justify the termination of his employment, if such crime or offense is committed against any of the following persons: 1. his employer; 2. any immediate member of his employer’s family; or 3. his employer’s duly authorized representative.

What are other analogous causes under Article 282 of the Labor Code?1. The ground of inefficiency.2. Violation of safety rules.3. Ban on one’s employees imposed by another company.4. Violation of the company code of conduct or company rules and regulations

What are the authorized causes for termination of employment?1. Installation of labor-saving devices;2. Redundancy1. Retrenchment2. Closure or cessation of business3. Disease

What are the requisites for the ground of installation of labor-saving devices?1. The introduction of the machinery, equipment or other devices must be done in good faith2. The purpose for such introduction must be valid such as to save on cost, enhance efficiency and other justifiable economic reasons3. There is no other option available to the employer than the introduction of the machinery, equipment or device and the consequent termination of employment of those affected thereby4. The 30-day notice requirement under Article 283 should be complied with5. There should be reasonable and fair standards or criteria in selecting who to terminate such as nature of work, status of the employee (whether casual, temporary or regular), experience, efficiency rating and seniority, among other considerations; and6. Separation pay under the law or company policy or Collective Bargaining Agreement or similar contract, when appropriate, must be paid to the affected employees.

What are the requisites for the ground of redundancy?1. Written notice served on both the affected employees and the Department of Labor and Employment at least one (1) month prior to the intended date of termination2. Payment of separation pay equivalent to at least one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher3. Good faith in abolishing the redundant positions; and4. Fair and reasonable criteria in ascertaining what positions are to be declared redundant and accordingly abolished [such as less preferred status [e. g., temporary employee]; (b) efficiency; and (c) seniority].

What are the requisites for the ground of retrenchment? (1) that the retrenchment is reasonably necessary and likely to prevent business losses which, if already incurred, are not merely de minimis but substantial, serious, actual and real or, if only expected, are reasonably imminent as perceived objectively and in good faith by the employer(2) that the employer serves a written notice both to the employees and to the Department of Labor and Employment at least one (1) month prior to the intended date of retrenchment(3) that the employer pays the retrenched employees separation pay equivalent to one (1) month pay or at least one-half (1/2) month's pay for every year of service, whichever is higher.(4) that the employer exercises its prerogative to retrench employees in good faith for the advancement of its interest and not to defeat or circumvent the employees' right to security of tenure(5) that the employer uses fair and reasonable criteria in ascertaining who would be dismissed and who would be retained among the employees, such as status (i.e., whether they are temporary, casual, regular or managerial employees), efficiency, seniority, physical fitness, age, and financial hardship for certain workers

Standards to be observed in retrenchment:Firstly, the losses expected should be substantial and not merely de minimis in extent. If the loss purportedly sought to be forestalled by retrenchment is clearly shown to be insubstantial and inconsequential in character, the bona-fide nature of the retrenchment would appear to be seriously in question.Secondly, the substantial loss apprehended must be reasonably imminent, as such imminence can be perceived objectively and in good faith by the employer. There should, in otherwords, be a certain degree of urgency for the retrenchment which is, after all, a drastic recourse with serious consequences for the livelihood of the employees retrenched or otherwise laid off.Thirdly, retrenchment, because of its consequential nature, must be reasonably necessary and likely to effectively prevent the expected losses. The employer should have taken other measures prior or parallel to retrenchment to forestall losses, i.e., cut other costs than labor costs.Lastly, but certainly not the least important, the alleged losses, if already realized, and the expected imminent losses sought to be forestalled, must be proved by sufficient and convincing evidence. The reason for requiring this quantum of proof is apparent; any less exacting standard of proof would render too easy the abuse of this ground for termination of services of employees.

What are the requisites for the ground of closure or cessation of business operations?1. The decision to close or cease operations should be made in good faith2. The purpose should not be to circumvent the provisions of Title I of Book Six of the Labor Code [NOTE: If the ground is serious business losses or financial reverses, there should be clear proof thereof since no separation pay to the employees is required to be paid

under the law, if such is the cause invoked. If not due to serious business losses, this requisite becomes relevant.]3. There is no other option available to the employer except to close or cease operations4. The notice requirement under Article 283 should be complied with, whether or not the closure or cessation of operations is due to serious business losses or financial Reverses5. Separation pay under the law (when not due to serious business losses) or company policy or Collective Bargaining Agreement or similar contract, when appropriate, must be paid to the affected employees.

What are the requisites for the ground of disease?1. The employee is suffering from a disease2. His continued employment is either: a. prohibited by law b. prejudicial to his health c. prejudicial to the health of his co-employees3. There is a certification by a competent public health authority that the disease is of such nature or at such stage that it cannot be cured within a period of six (6) months even with proper medical treatment4. Notice of termination based on this ground should be served to the employee6. Separation pay shall be paid to him in the amount equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year.

What are the requisites for termination of employment by employee without just cause?1. Written (not verbal or oral) notice of the termination (commonly known as resignation letter)2. Service of such notice to the employer at least one (1) month in advance

What are the just causes for termination of employment by employee with just cause?An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes:1. Serious insult by the employer or his representative on the honor and person of the employee2. Inhumane and unbearable treatment accorded the employee by the employer or his representative3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family4. Other causes analogous to any of the foregoing.

What are the cases falling under the jurisdiction of the Grievance Machinery?Any grievance arising from:1. The interpretation or implementation of the Collective Bargaining Agreement (CBA);2. The interpretation or enforcement of company personnel policies.

What is a grievance?

“Grievance” is any question by either the employer or the union regarding the interpretation or application of the collective bargaining agreement or company personnel policies or any claim by either party that the other party is violating any provisions of the CBA or company personnel policies. It is a complaint or dissatisfaction arising from the interpretation or implementation of the CBA and those arising from interpretation or enforcement of personnel policies.

What is grievance machinery?"Grievance machinery" refers to the mechanism for the adjustment and resolution of grievances arising from the interpretation or implementation of a CBA and those arising from the interpretation or enforcement of company personnel policies. It is part of the continuing process of collective bargaining.

What is grievance procedure?“Grievance procedure” refers to the internal rules of procedure established by the parties in their CBA with voluntary arbitration as the terminal step, which are intended to resolve all issues arising from the implementation and interpretation of their CBA. It refers to the system of grievance settlement at the plant level as provided in the collective bargaining agreement. It usually consists of successive steps starting at the level of the complainant and his immediate supervisor and ending, when necessary, at the level of the top union and company officials. All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of their submission shall automatically be referred to voluntary arbitration prescribed in the CBA.

Who Settles Grievances?Management Representatives

Typical Steps in the Grievance Process Essentially, the grievance process involves union and management addressing the grievance and attempting to reach an acceptable resolution. The specifics of the grievance process will be spelled out in the labor agreement. Typically, the contract outlines the specific steps in grievance handling, specifying time limits for both sides. The ramifications of not adhering to these time limits are usually identified as well, e.g., the grievance may be considered waived or settled or may automatically move on to the next step. Step 1. Shop floor level. Presentation by the employee problems to the foreman or supervisor who would listen to the employee and record the facts of the problem. The supervisor should settle the problem within three (3) days. If the employee is not satisfied, proceed to step 2. Step 2. Plant level. Discussion of the problem between the employee, the supervisor, and the department manager takes place. If no satisfactory solution within seven days, proceed to step 3. Step 3. Top level. Discussion of the problem between the supervisors, the department manager, the complainant, and top management (President or General Manager). If no satisfactory solution within ten (10) days, proceed to step 4. Step 4. Arbitrator’s level. The problem or case may be taken to voluntary arbitration for final decision.

Essential Management Tool: Policy Making• One of the many functions/tools of a manager• A manager must distinguish good policy from bad

policy (leads to conflict)

Characteristics of a Good Policy• A policy must be clearly stated• Specific, Measurable, Attainable, Realistic, and Time

Bound (SMART)• A policy must have an instruction followed by an

objective• Outcome must be clearly stated and be measurable

- Your policy and yourself must have the capacity to evaluate outcomes

- Must have a firm basis for evaluation• Has to be declarative• Concept Development Stage – a policy maker must

have consulted the stakeholders of the policy already, especially the leaders of the organization (the bosses) because they can give you insights. You are free to decide if those insights are valid)

• Regardless of whether or not your policy affects internal customers, public interest must be placed on the forefront

• A good policy means organizational expectations have been met- Organizational Expectations must be

measurable. It must have a method of measurement. It must measure the effectiveness of organizational expectations.

- Org expectations is the basis for continuous improvement

- It is also important to actualize the measurement (must be efficient and effective)

- By the time you promulgate the policy, everybody follows it (ex. Schedule of adherence in multiple sites of BPO company)

- If you are supposed to make an assumption, it must be clear and explicit

- Ex of assumption: schedule of adherence (workers must know their schedules)

• Not true for all types of policies but applies to most: your policy must be funded- There must be appropriate funding for policy

• Your policy must be compliant to all applicable laws and adjacent rules (when it is compliant, it must also be enforceable)

• It must be communicated well in order to be efficient

• Before you launch your policy, you must test prior to implementation (pilot, dry run, sample if effective)

• Most important Characteristic: must have clear accountability- Must be able to answer WHO is responsible

for following the policy; WHO is responsible for effecting the measurement

• Value and the link organizational direction: good policies must be linked to the organizational direction