Labor Relations is the relationship and interaction of the employer and an employee. More importantly, it is how the employer deals with their employees.
The Presidential Decree No. 442, also known as the Labor Code of the Philippines, has an entire section dedicated to Labor Relations which is Book V. Although Labor Relations may be thought of only Labor Unions, the section of the Labor Code also includes post-employment provisions such as the termination of employment.
The National Labor Relations Commission (NLRC), which is an attached agency of the Department of Labor and Employment (DOLE), is the government agency tasked with handling of unfair labor practices, termination disputes, conditions of employment, prohibited acts made by either labor organization or employer, among others.
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Employment Classifications:
Employment Classification in the Philippines is provided in the Presidential Decree No. 442, also known as the Labor Code of the Philippines.
The following are employee classifications according to the Labor Code of the Philippines:
Employee Classifications
- Regular Employee
- Probationary Employee
- Casual Employee
- Fixed-term Employee
- Project Employee
- Seasonal Employee
Employee Ranks
The following are employee ranks according to the Labor Code of the Philippines:
- Managerial
- Supervisorial
- Rank-and-File
Employment Status
Termination of Employment in the Philippines
Termination of employment in the Philippines may be exercised by either the Employee and the Employer. Employers should always keep in mind of Article 279 of the Labor Code as amended by Section 35, Republic Act No. 6715 regarding Security of Tenure.
Although the following is not an official classification, there is are five (5) kinds of termination of employment:
Termination of Employment by Employee
Termination of Employment by Employee is , or more commonly known as Resignation, is the severance of an employee-employer relationship initiated by the Employee.
Termination of Employment by Employer due Just Causes
The termination of Employment by the Employer due to Just Causes is attributable to the fault or negligence of the employee.
The following are the Just Causes of Termination of Employment:
- Serious misconduct or willful disobedience;
- Gross and habitual neglect;
- Fraud or willful breach of trust;
- Commission of a crime or offense; and,
- Other causes analogous to the foregoing.
Termination of Employment by Employer due to Authorized Causes
The Termination of Employment by the Employer due to Authorized Causes is attributable to the exigency of the business. Termination of Employment that arises due to such causes are due to the economic situation that the employer is facing.
The following are Authorized causes of Termination of Employment:
- Installation of labor-saving devices;
- Redundancy;
- Retrenchment;
- Closing or Cessation of Operation of the establishment; and
- Disease of an employee.
The difference between Retrenchment and Redundancy is that the latter reducing manpower to avoid financial loss while the former only requires proof that manpower is in excess of what is demanded.
Employees whose employment is terminated due to Authorized Causes are entitled to Separation Pay unless an employer permanently ceased the operations of the business due to serious financial losses.
Retirement
Retirement is simply an employee reaching the age of sixty (60) or more but not exceeding 65 and wishes to separate him or herself voluntary from employment.
Death
The death of an employee extinguishes the employment relationship between an employee and an employer.