2011 Supreme Court Decision (Labor )


For abandonment to exist, it is essential (a) that the employee must have failed to report for work or must have been absent without valid or justifiable reason; and (b) that there must have been a clear intention to sever the employer-employee relationship manifested by some overt acts. The employer has the burden of proof to show the employee’s deliberate and unjustified refusal to resume his employment without any intention of returning. Mere absence is not sufficient. There must be an unequivocal intent on the part of the employee to discontinue his employment. It is a settled rule that failure to report for work after a notice to return to work has been served does not necessarily constitute abandonment. The intent to discontinue the employment must be shown by clear proof that it was deliberate and unjustified. In this case, petitioner- corporation failed to show overt acts committed by respondents from which it may be deduced that they had no more intention to work. Respondents’ filing of the case for illegal dismissal barely four (4) days from their alleged abandonment is totally inconsistent with our known concept of what constitutes abandonment. (E.G. & I. Construction Corporation vs. Sato, et. al., G.R. No. 182070, February 16, 2011) Continue reading 2011 Supreme Court Decision (Labor )



SM Supermalls will have another sale event this coming week. You can avail of up to 70% discount on selected great items plus you can have a chance to win  Asus Laptop from Aug 3,4 & 5, 2012, .  A total of 15 winners can win this very interesting treat from SM . The SM Supermalls 3-DAY SALE will happen on the following SM shopping malls:

SM City Sta. Mesa – http://www.facebook.com/SMCityStaMesa?ref=ts
SM Center Valenzuela – http://www.facebook.com/smcentervalenzuela?ref=ts
SM City Masinag – http://www.facebook.com/smmasinag?ref=ts
SM City Calamba – http://www.facebook.com/smcalamba?ref=ts
SM City Tarlac – http://www.facebook.com/smcitytarlac

You may want to visit SM’s facebook fan page for more details.

Gift Checks – No Expiry Dates starting July 2012

Guidelines on the Issuance, Use and Redemption of Gift Checks, Certificates or Gift Cards in accordance with Republic Act No. 7394 or the Consumer Act of the Philippines, and for other Purposes

Gift Check/ Certificate/ Card – an instrument issued by a supplier to an individual, partnership or a juridical entity for monetary consideration evidencing a promise by the issuer that consumer goods or services will be exchanged in favor of the bearer upon presentation of said gift certificate/ check/ card to the value, credit, specific good, service or event shown in the instrument. It represents value held in trust by the issuer/supplier/distributor, thus DTI intends to regulate its use to protect consumers and ensure that they are not unduly deprived of their money
Salient Features
  • Upon effectivity of the order, 16 July 2010, all gift checks/ certificates/ cards issued must bear a date of issue and an expiry of two (2) years.
  • Starting 01 July 2012, all suppliers, issuers, distributors and sellers are prohibited to issue and/or sell gift certificates/check/cards with an expiry date.
    • Gift certificates/checks/cards that are distributed to consumers under awards, loyalty or promotional programs are not covered.
    • All gift checks/certificates/cards with no expiry dates shall be redeemable until used by the bearer.
    • Holders of unused and unexpired gift check/ certificates/ cards after June 30, 2012 shall be entitled to replacement after revalidation by suppliers.
    • Terms and conditions of unused gift checks/ certificates/ cards issued before the effectivity of this order shall be honored; but those bearing expiry dates beyond June 30, 2012 shall be subject to revalidation or replacement.
    • Goods and services that are paid with gift certificates/check/card are qualified in promotional sales activities, loyalty programs, warranties, return policies for cash purchases, and discounts for senior citizens/persons with disability.
    • The suppliers cannot be held liable for gift certificates/ checks/ cards under that are:
(a) lost due to no fault of the supplier; and
(b) mutilated or defaced due to no fault of the supplier and such damage prevents the supplier from identifying the security and authenticity features thereof.
Source: DTI


SM CITY Great Northern Sale

The SM City North EDSA will once again delight you with their enticing offers and promo. You can avail of up to 70% discount on selected brands at  SM City North EDSA’s  Great Northern Sale on July 13, 14 & 15, 2012.  See you there!

You can go to their facebook  fan page for more details:www.facebook.com/smnedsa

Philippines: Can an employer extend beyond six (6) months the probationary period of an employee?

The provision of the Philippine Labor Code pertaining to Probationary Employment can be found under Article 282 which states:
Art. 282. Probationary Employment. — Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after probationary period shall be considered a regular employee.’

The issue is whether or not employers can extend the 6 months provision of law on probationary employment.

Based on the following Supreme Court Decision probationary employment can be extended:

HON. VICENTE LEOGARDO, JR., in his capacity as Deputy Minister of Ministry of Labor and Employment judgment,

G.R. No. 74246 January 26, 1989

By voluntarily agreeing to an extension of the probationary period, Dequila in effect waived any benefit attaching to the completion of said period if he still failed to make the grade during the period of extension. The Court finds nothing in the law which by any fair interpretation prohibits such a waiver. And no public policy protecting the employee and the security of his tenure is served by prescribing voluntary agreements which, by reasonably extending the period of probation, actually improve and further a probationary employee’s prospects of demonstrating his fitness for regular employment.

Will find more relevant jurisprudence on my next post.

Allowances in excess of 30,000/yr. – TAXABLE

MANILA, Philippines – The Bureau of Internal Revenue (BIR) declared Wednesday that allowances and bonuses received by all officials and employees in government and the private sector are subject to income tax if the amount is in excess of P30,000 per year.

“There is no exemption,” BIR Commissioner Kim S. Jacinto S. Henares stressed.

The BIR chief spelled out the requirement in the Internal Revenue Code (Sections 244 and 245) following disclosure at the Senate impeachment trial of Chief Justice Renato C. Corona that high tribunal justices were recipients of tax-free multi-million-peso bonuses and allowances through the years.

Supreme Court spokesman, Court Administrator Jose Midas Marquez, admitted that the extra income of the justices have not been placed under the withholding tax system since the time of Chief Justice Hilario Davide.

He said, however, that there is no problem if the BIR decides to collect the deficiency income taxes due from these allowances and bonuses.

But Henares would not say whether she has issued instructions to Manila Revenue Regional Director Pete Madulara to collect the back taxes, saying the audit on the extra income of the justices like any other investigation is “strictly confidential.”

Other revenue officials said that under the Tax Code even the 13th-month pay and other Christmas bonuses are also subject to income tax if the amount goes beyond P30,000 per year.

The tax is slapped on the excess of the P30,000 threshold.

They said certain “de minimis” (small value) allowances are tax exempt under Revenue Regulations 2-28, including monetized unused vacation leave, medical cash allowance, rice subsidy and uniform, or clothing allowance.

The BIR earlier filed last month a P12 million tax evasion charges against Jesus Santos, counsel of former First Gentleman Mike Arroyo , for alleged non-declaration of his allowances and bonuses received from the Government Service Insurance System as member of its board of trustees from 2006 to 2009.

BIR insiders said Corona and other SC justices could not be charged for the same offense as their earnings from the SC are covered by the Substituted Filing System of the BIR in which the task of filing income tax returns is done by SC treasurers and accountants.

“If ever criminal complaints are filed, the respondents should be the justices, but it was the SC accountants who were designated as withholding agents of the BIR,” one of the sources added

Source: Yahoo News

Bus Driver’s Minimum Wage starting February

Beginning February 1, bus drivers and conductors plying the NCR route will receive minimum wage and other mandatory benefits.

DOLE’s Department Order No. 118-12 Series of 2012 mandates a fixed and performance based compensation scheme in the public bus transport industrya novel scheme which drastically changes an age-old commission-based pay practice.

According to Secretary Rosalinda Dimapilis-Baldoz, the fixed componentconsists of an amount mutually agreed upon by the owner/operator and the driver/conductor, which shall not be lower than the minimum wage while theperformance-based component shall be based on the safety and business performance such as ridership, revenues/profitability, and other related parameters.

DOLE hopes that by improving the compensation and working condition of bus drivers and conductors, road accidents and traffic violations due to jostling among bus drivers for passengers, will be reduced.

NWPC Executive Director Ciriaco A. Lagunzad III explained that the NWPC is mandated by the law to fix and determine the applicable minimum wage, not only on regional and provincial level, but also on industry level.

The benefits include 13th month pay, holiday pay, rest day, overtime pay, nightshift differential, retirement pay, service incentive leave, maternity, paternity, and parental leave, and other leaves mandated under the Magna Carta for Women.

Also, they will be entitled to Pag-IBIG Fund, PhilHealth, Employees’ Compensation Law, Social Security System (SSS), and other social welfare benefits, the Department Order states.

Meanwhile, the NWPC will issue the operational guidelines to implement the compensation scheme including the formula to be used by bus companies. Companies may submit their proposed compensation scheme to respective Regional Tripartite Wages and Productivity Board on or before March 31, 2011.

Also, the safety and health of bus drivers and conductors, the Bureau of Working Conditions (BWC) and the Occupational Safety and Health Center (OSHC) will issue a Safety and Health Manual for the Bus Industry which will be implemented and promoted by the operators.

The Technical Educational and Skills Development Authority (TESDA) will provide training, assessment and certification to ensure drivers have the knowledge and skills in driving and basic troubleshooting. The certificate from TESDA is one of the requirements in getting Certificates of Public Convenience from the Land Transportation Franchising and Regulatory Board.

In the first six months but not later than one year from the effectivity, the provisions in this D.O. shall be liberally construed to enable compliance by the bus companies.

The D.O. was published on 17 January 2012 at The Philippine Star.

Source: http://www.dole.gov.ph

"Study while others are sleeping; work while others are loafing; prepare while others are playing; and dream while others are wishing." -W.A. Ward