Makati Main Office Quezon City Satellite Office 5th Floor Builders Center, 170 Salcedo Street 5th Floor EU State Tower, 30 Quezon Avenue Legazpi Village, Makati City, Metro Manila 1229 PH Barangay Doña Josefa, Quezon City, Metro Manila 1113 PH Tel: +63 2 208 2606 Cel: +63 917 821 6848 Tel: +63 2 353 4274; +63 2 353 3826 Cel: +63 917 721 7266 Email: pol.sangalang@paladinslaw.org Email: james.chew@paladinslaw.org

APOLLO X.C. S. SANGALANG JAMES EARL R. CHEW Lawyers www.paladinslaw.org

LABOR LAW MADE EASY  (FOR BUSINESS OWNERS, EXECUTIVES AND MANAGERS)

In-House Seminar Series (Updated on August 10, 2015)

Learning Objectives: At the end of these In-House Seminar Series, the target participants (i.e. business owners, executives, managers, and HR officers) would be able to:

1. Understand better the realities and intricacies of labor law and labor-management relations in the Philippines, particularly in the industry where their companies and businesses happen to belong to;

2. Recognize and understand the “rules of the game” of Philippine labor law and labor-management relations; and thereby become better “players”;

3. Enhance their knowledge of labor law and jurisprudence (i.e. Supreme Court Decisions),

and on how to effectively deal with the Department of Labor and Employment (DOLE) and other regulatory agencies;

4. Acquire working knowledge about the legal and documentary requirements of labor law,

especially on aspects of “substantive and procedural due process” and “substantial evidence” in the discipline and termination of employees;

5. Improve their skills in instilling and maintaining effective progressive discipline in the

workplace or worksite; while at the same time avoiding, if not, minimizing costly and time-consuming illegal dismissal cases;

6. Appreciate the different scenarios that can result from a protracted labor dispute: win-

lose, lose-win, lose-lose, and win-win; thereby encouraging strategic, creative and practical thinking in handling and dealing with workers and their representatives (or unions).

7. Understand and apply the pro-active “Labor Law Made Easy” approach and “WIN-WIN”

strategy in dealing with labor concerns, issues and disputes; and appreciate their multi-dimensional nature, building on a solid legal foundation and framework as well as on the ancient wisdom of Sun Tzu, the legendary general and author of the classic The Art of War.

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In-House Seminar Series Outline: MODULE 1: Labor Law Made Easy: Methods and Solutions Session 1: Labor Problems in the Philippines: An Introduction to Labor Law

and Jurisprudence. • 25 Frequently Asked Questions (FAQs) on Labor Law. • Management Prerogative and the Law on Property • Democratic Freedom and the Law on Obligations • Social Justice and the Labor Code • Rule of Law and the Constitution • Landmark Supreme Court Decisions on Labor Law.

Session 2: Best Solution to Labor Problems:

D.O.C.U.M.E.N.T.© YOUR GOOD FAITH • Document x3 • Open-mindedness • Clarity • Understand Labor Law Principles • Master HR • Embrace Best Practices • Negotiate x3 • Take Advice From Experts

MODULE 2: The Hiring Process and Labor Law Session 3: Effective Employment Contracts and Employee Manuals:

• Law on Contracts and the Law on Property • Regular Employment Contract • Probationary Employment Contract • Casual Employment Contract • Non-Regular Employment Contracts:

o Project, Seasonal, Fixed-Term (or Contractual), Temporary or Emergency Employments

• Managerial, Supervisory and Rank-and-File Employees • Field Personnel and Other Special Employees • Payment Arrangements:

o Based on Hours of Work o Based on Results

• Essential Terms and Conditions. • Employee Manual versus Employee Handbook • Code of Discipline and Rules of Procedure • The 201 File.

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Session 4: Hiring Strategies and Best Practices in Philippine Labor Law: • Prohibited and/or Discriminatory Hiring Practices • The Do’s and Don’t When Hiring Through Private Employment

Agencies under the new DOLE Department Order No. 141-14 Series of 2014

• Pre-Employment Checklist • Interview, Screening, and Background Investigation • Job Descriptions (or KPIs) • Job Offer and Terms Sheet as Employment Contract • Apprenticeship, Learnership, and Training Programs • Training Bonds • Promotions and Transfers • Non-Compete, Non-Disclosure and Non-Solicitation Clauses.

MODULE 3: Contracting Out and Outsourcing of Labor in the Philippines Session 5: How to Effectively Distinguish and Deal With:

• The 4-Fold Test and the Control Test • Job Contractors:

o Private Security Agencies o Janitorial Agencies o Manpower Cooperatives o Self-Employed Workers’ Cooperatives o Others

• Independent Contractors: o Consultants and Professionals o Self-Employed Businessmen o Freelancers o Virtual Assistants

• Contractor’s Employees (or Agency Employees) • Contractual Employees (or Directly Hired Fixed-Term Employees) • Casual Employees • Non-Regular Employees:

o Project o Seasonal o Temporary or Emergency

• Non-Employee Workers: o Board Directors o Corporate Officers o Partners o Agents o Cooperative Members o Volunteers o Student Interns (or OJTs) o Trainees o Apprentices

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o Learners Session 6: Do’s and Don’t in the Contracting of Labor:

• Regularization versus Contractualization • Labor-Only Contracting and DOLE Department Order No. 18-A

Series 2011 (or the Rules on Job Contracting and Sub-Contracting):

o Trilateral Relationship versus Bilateral Relationship (or Vendor-Vendee Relationship)

o Rules for the Business Process Outsourcing (or BPO) Industry, including KPOs

o Rules for the Construction Industry o The 5-5-5 Work Arrangement

Session 7: Do’s and Don’t in Hiring Through a Private Employment Agency

under DOLE Department Order No. 141-14 Series of 2014 (or the Rules on Local Recruitment and Placement):

o Placement Fees o Illegal Recruitment in Local Employment o Human-Trafficking

MODULE 4: Labor Standards and the Department of Labor and Employment

(DOLE) - PART 1 Session 8: Statutory Monetary Benefits of Workers:

• Minimum Wage • Holiday Pay • Premium Pay • Overtime Pay • Night Shift Differential • Service Charges • Service Incentive Leave • Maternity Leave • Paternity Leave • Parental Leave for Solo Parents • Violence Against Women & Children Leave • Special Leave for Women • 13th Month Pay • Separation Pay • Retirement Pay • Employees’ Compensation Program Benefit • SSS Benefit • PhilHealth Benefit • Pag-Ibig Benefit

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Session 9: Worker’s Tax Benefits: • Minimum Wage Earner’s Exemption • Deminimis Benefits • PhP82,000 Annual Bonus • Other Exemptions and Tax Benefits

Session 10: Rules on Payment of Wages:

• No Work No Pay • Monthly Paid versus Daily Paid • Payroll and Payslips • Non-Interference in Disposal of Wages • Non-Diminution of Benefits • Illegal Wage Deductions under DOLE Labor Advisory No. 11

and 11-A Series of 2014. MODULE 5: Labor Standards and the Department of Labor and Employment

(DOLE) - PART 2 Session 11: Statutory NON-Monetary Benefits of Workers

• Occupational Health and Safety • Other Social Welfare Benefits • Drug-Free Workplace • Mandatory Committees in the Workplace.

Session 12: Policies and/or Protection for Special Workers:

• Aliens • Women

o Anti-Sexual Harassment o Magna Carta

• Children (or Minors) • Persons With Disability • Industrial Homeworkers and Other Workers Paid Based on

Results or on Piece-Rate Basis o Time and Motion Study

• Domestic Workers (or Kasambahay) • Night Workers • HIV Positive Persons.

Session 13: The Department of Labor and Employment (DOLE), Regional

Offices, Bureaus, and Attached Agencies: • Power and Functions • Guided Navigation of the DOLE Websites.

Session 14: The New Labor Laws Compliance System (LLCS):

• How to Handle DOLE Inspections and Visits: o Joint Assessments

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o Compliance Visits o Occupational Safety and Health Standards Investigations

• How to Secure DOLE Certificates of Compliance • How to Make the Most Out of the Single Entry Approach (SEnA)

Mediation • Preventive Maintenance: An Approach to Regulatory Compliance.

MODULE 6: WIN-WIN Labor Relations Strategies PART 1 Session 15: Worker’s Right to Self-Organization:

• Articles 218 – 292, Labor Code • Unfair Labor Practices • Unions and Federations • Certification Election • Collective Bargaining Agreement (or CBA) • Deadlock • Strike and Lockout • CBA Administration

Session 16: How to Apply Sun Tzu’s The Art of War Strategies in Dealing with

Workers in the Workplace. “The supreme art of war is to subdue the enemy without fighting.” - Sun Tzu, The Art of War

(NOTE: This particular module is highly sensitive and designed exclusively for the CEO and other C-Level Executives, Board Directors, HR Managers, Confidential Employees, and Company Officers occupying a position of trust and who are directly involved in Labor Relation Management).

MODULE 7: The Law on Termination PART 1 (Just Cause) Session 17: Understanding the Security of Tenure of:

• Regular Employees • Casual Employees • Probationary Employees • Non-Regular Employees:

o Project o Seasonal o Fixed-Term (or Contractual) o Temporary or Emergency

• Contractor’s Employees (or Agency Employees) • Independent Contractors and other Non-Employees

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• Other Workers. • Articles 293 – 296, Labor Code

Session 18: Understanding the Concept of Just Cause:

• Article 297, Labor Code • Serious Misconduct • Willful Disobedience (or Insubordination) • Fraud • Willful Breach of Trust • Crime Against the Person of the Employer, His Family or

Representative • Gross an Habitual Neglect of Duty • Analogous Causes:

o Gross Inefficiency o Loss of Trust and Confidence o Others

Session 19: Effective Workplace Discipline:

• Management Prerogative versus Security of Tenure • Code of Discipline versus Code of Ethics • Incident Reports and Fact-Finding Activities • Administrative Investigation • Procedural Due Process

o 2-Notice Rule o Personal Delivery of Notice o Substituted Delivery of Notice

• Substantive Due Process and Just Cause • Reasonableness Test • Substantial Evidence and Burden of Proof

o Affidavits and Testimonies o Admissions and Confessions o Other Acceptable Evidence

• Test of Good Faith. • Article 292, Labor Code

MODULE 8: The Law on Termination PART 2 (Progressive Discipline) Session 20: The Progressive Discipline System, and When and How to Correctly

Implement It in the Workplace: • Positive and Corrective Discipline Mindset • Totality of Infraction Doctrine • Primary Areas of Focus:

o Neglect of Duty o Inefficiency (or Incompetence)

• Performance Management System o KBO, KRA and KPI

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o Performance Appraisal Session 21: Progressive Discipline Responses and Documentation Process:

• Ethics and Discipline • Counseling, Coaching and Training • Warning (Verbal and Written) • Suspension • Other Corrective Actions • Performance Agreement • Performance Improvement Plan • Due Process and Termination • Exit Interview

MODULE 9: The Law on Termination PART 3 (Authorized Cause) Session 22: How to Effectively Implement:

• Retrenchment • Redundancy and Other Forms of Lay-Off:

o Right-sizing, downsizing, streamlining and rationalizing o Installation of labor-saving devices

• End of Contract (or Endo) or End of Season • Completion of Project • Closure of Business, Undertaking, Department or Unit • Temporary Suspension of Operations • Flexi-Time Arrangements • Work Pool Arrangements • Early Retirement Program • Termination Due to Disease • Termination Due to Union Security Clause • Separation Pay • Financial Assistance • Quitclaims • Articles 298, 299 and 301, Labor Code

Session 23: How to Effectively Deal with Resignations and Retirements:

• Articles 300 and 302, Labor Code • Constructive Dismissal • Abandonment and Informal Resignation • Issues on the 30-Day Resignation Notice • Clearance Process • Certificate of Employment • Legal Actions Against Employees with Accountabilities:

o Criminal o Civil o Administrative o Other Remedies.

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MODULE 10: WIN-WIN Labor Relations Strategies PART 2 Session 24: Must-Know Aspects of the Rules of Procedure in the:

• Prescription of Claims, Articles 305 – 307, Labor Code • SEnA (Single Entry Approach) Mediation • NLRC (or Compulsory Arbitration) • Voluntary Arbitration • DOLE (Rules on Labor Laws Compliance System) • Court of Appeals • Supreme Court

Session 25: How to Apply Sun Tzu’s The Art of War Strategies in Winning Labor

Cases (With or Without the Assistance of a Lawyer). “The greatest victory is that which requires no battle.” - Sun Tzu, The Art of War MODULE 11: Executive Session on Labor Law and Jurisprudence Session 26: The Must-Know Essentials of Today’s Labor Law (for the CEO and

other C-Level Executives, Board Directors, and Senior Management). Session 27: An Analytic Survey of Notable 2014-2015 Labor Laws, Rules and

Regulations, including Supreme Court Decisions. • Updates with Emphasis on How These Developments Could

Adversely Affect Companies and Businesses. NOTES: 1. Each of the above ELEVEN (11) MODULES would run for an estimated duration of 8

hours or about 1 whole day. 2. Most of the TWENTY-SEVEN (27) SESSIONS could run for an estimated duration of 3

to 5 hours. 3. Each of the above ELEVEN (11) MODULES and TWENTY-SEVEN (27) SESSIONS,

may be extended or lengthened for several more hours in order to:

• Accommodate workshops and more group exercises (i.e role playing and document drafting) so that the participants could interact with each other and further develop or enhance their skills; and/or

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• Cover more Supreme Court jurisprudence and case studies; and/or

• Extend the open forum and legal consultation. 4. Extending or lengthening a MODULE or SESSION would result in an additional half-

day or whole-day seminar, as the case may be. 5. SESSIONS from the different MODULES may be combined to create or customize a

NEW MODULE or series of MODULES for the client. 6. The ideal class size is 10-25 participants, although larger classes may be accommodated.

Workshops and certain group exercises that focuses on skill development (i.e. role playing and document drafting) may not be advisable for classes that are larger than 35.

This Labor Law Made Easy In-House Seminar Series outline was designed by: ATTY. APOLLO X.C. S. SANGALANG Business Lawyer, Legal Coach and Law Professor Partner, Señeres Tuazon Balbin Sangalang and Amansec Law Offices Member, Kapisanan ng mga Brodkaster ng Pilipinas Former Executive Director, National Labor Relations Commission (2003-2006) Former Chief Legislative Officer, Senate of the Philippines (2006-2007) Former University Legal Counsel, University of the Philippines (1997-1998) Former President, Integrated Bar of the Philippines, PPLM Chapter (2007-2009) Former President, Rotary Club of Makati McKinley (2014-2015)