In the Philippines, the relationship between capital and labor is not merely a matter of contract but is impressed with public interest. The 1987 Constitution and the Labor Code of the Philippines (Presidential Decree No. 442) serve as the primary framework for protecting workers' rights and ensuring that the inherent inequality between an employer and an employee is balanced by the State's mandate for social justice.
I. Fundamental Labor Rights
The Philippine legal system guarantees several core rights to every employee, regardless of their status (regular, probationary, or project-based).
1. Security of Tenure
Perhaps the most vital right, Security of Tenure ensures that an employee cannot be dismissed except for a just or authorized cause and only after due process. Even if an employee signs a contract with a fixed term, the law may deem them a "regular employee" if their functions are necessary and desirable to the employer's business.
2. Right to Self-Organization and Collective Bargaining
Employees have the right to form, join, or assist labor unions for the purpose of collective bargaining. This allows workers to negotiate as a group for better terms and conditions than what is provided by the minimum requirements of the law.
3. Standards on Wages and Benefits
The law mandates several "statutory benefits," including:
- Minimum Wage: Varies by region as set by the Regional Tripartite Wages and Productivity Boards (RTWPB).
- 13th Month Pay: Mandatory for all rank-and-file employees who have worked for at least one month.
- Service Incentive Leave (SIL): Five days of paid leave for every year of service.
- Overtime, Night Shift Differential, and Holiday Pay: Additional compensation for work performed beyond eight hours, at night (10 PM to 6 AM), or on rest days/holidays.
II. Recognizing Unfair Treatment
Unfair treatment in the workplace generally falls under two categories: Illegal Dismissal and Money Claims/Unfair Labor Practices.
Common Forms of Maltreatment:
- Constructive Dismissal: This occurs when an employer creates an environment so hostile or unbearable—or demotes an employee without cause—that the employee is forced to resign. Legally, this is treated as an illegal dismissal.
- Discrimination: Under the Labor Code and special laws (like the Magna Carta of Women), it is illegal to discriminate against an employee based on gender, age, disability, or ethnicity regarding pay, promotion, or training.
- Unfair Labor Practices (ULP): These are acts that violate the constitutional right of workers to self-organize, such as interfering with union formation or violating a Collective Bargaining Agreement (CBA).
III. Due Process: The Two-Notice Rule
For a dismissal to be legal in the Philippines, the employer must comply with Procedural Due Process. Failure to do so, even if there is a valid reason for firing the employee, can result in the employer being ordered to pay "nominal damages."
| Step | Requirement | Description |
|---|---|---|
| 1 | First Written Notice | Specifies the ground(s) for termination and gives the employee an opportunity to explain their side (usually within 5 days). |
| 2 | Hearing/Conference | The employee is given a chance to present evidence or rebut the charges, often with the assistance of counsel. |
| 3 | Second Written Notice | Indicates that all circumstances have been considered and a decision has been reached to dismiss the employee. |
IV. Legal Remedies for Aggrieved Employees
If an employee is treated unfairly or dismissed illegally, several avenues for redress are available through the Department of Labor and Employment (DOLE) and the National Labor Relations Commission (NLRC).
1. SEnA (Single Entry Approach)
Before filing a formal lawsuit, parties must undergo mandatory conciliation-mediation. A SEAD (Single Entry Assistance Desk) Officer attempts to help the employer and employee reach a settlement or compromise to avoid a lengthy legal battle.
2. Filing a Complaint with the Labor Arbiter
If SEnA fails, the employee files a formal Position Paper with the NLRC. If the Labor Arbiter rules in favor of the employee, the following remedies may be awarded:
- Reinstatement: Restoring the employee to their former position without loss of seniority rights.
- Full Backwages: Payment of the salary the employee would have earned from the time of illegal dismissal until actual reinstatement.
- Separation Pay: Awarded in lieu of reinstatement if the relationship between the parties is "strained" or if the position no longer exists.
- Moral and Exemplary Damages: Awarded if the dismissal was attended by bad faith, fraud, or was oppressive to labor.
3. Inspection and Enforcement
For violations regarding safety standards, minimum wage, or non-payment of SSS/PhilHealth/Pag-IBIG, employees can request a Labor Inspection. DOLE inspectors have the power to visit the workplace, examine records, and issue compliance orders.
V. Burden of Proof
In Philippine labor law, the burden of proof rests on the employer. In cases of termination, the employer must prove by substantial evidence (that amount of relevant evidence which a reasonable mind might accept as adequate to justify a conclusion) that the dismissal was for a valid cause and that due process was followed. If the employer fails to meet this burden, the dismissal is deemed illegal.