Thursday, February 20, 2014

LABOR POLICIES IN THE PHILIPPINES TO BE ADHERED BY THE EMPLOYERS

These are the summary of policies and employment terms and conditions consistent with the mandated labor policies set forth in the Labor Code of the Philippines.

*Under the Labor Code, your employees are entitled to compensation or wages, overtime pay, holiday and premium pay, service charges and tips in service businesses, SSS, EC , Pag-Ibig and NHI remittances, service incentive leaves, and retirement pay.

*You must pay your employees no lower than the minimum wage rates prescribed by law. The minimum wage rates are based on the normal working hours of eight (8) hours a day.

For access , see the Department of Labor and Employment website, www.dole.gov.ph.

*

Thursday, February 13, 2014

ON CONTRACTUAL/CONTRACTING EMPLOYEES

Department of Labor and Employment, Department Order 18-A, with the Implementing Rules on Article 106 to 109 of the Labor Code is all about Job Contracting.
There are different types and terms of Job Contracting. One which is familiar to me is the Contractual Type of employment wherein a worker works only for a specified period time. They are not considered regular.
However, they are covered too by the rules on Labor Standards.
a.      They are entitled to government-mandated benefits - SSS, PAG-IBIG, Philhealth, 5 days Service Incentive Leave after 1 year of service.
b.       It is legally advisable not to renew their contracts. A six months service in a company, whether continuous or broken, entitles them to claim for regularization.
Another type in which I am also familiar with is hiring of personnel through an agency or contractors. The following are considered in checking if said contractor is prohibited or not.
It is a legitimate contractor when:

a)      The contractor or subcontractor carries on a distinct and independent business and undertakes to perform the job, work or service on its own account and under its own responsibility according to its own manner and method, and free from the control and direction of the principal in all matters connected with the performance of the work except as to the results thereof; (b) The contractor or subcontractor has substantial capital or investment; and (c) The agreement between the principal and contractor or subcontractor assures the contractual employees entitlement to all labor and occupational safety and health standards, free exercise of the right to self-organization, security of tenure, and social and welfare benefits.

Wednesday, February 12, 2014

ARTICLE V OF REPUBLIC ACT NO. 9165 - A DRUG FREE WORKPLACE – IS A MUST

Pursuant to Article V of Republic Act No. 9165 or the Comprehensive Dangerous Drugs Act of 2002, and its Implementing Rules and Regulations and DOLE Department Order No. 53-03, series of 2003 (Guidelines for the Implementation of a Drug-Free Workplace Policies and Programs in the Private Sector), the following policies and programs must be adopted to achieve a drug-free workplace:
COVERAGE
This law applies to all establishments in the private sector, including contractors and concessionaires.
COMPONENTS
Advocacy, Training and Education – employees should be kept aware and educated about the dangers of using drugs including its consequences.
Drug Testing – random drug testing should be done in accordance with the company’s rules and regulation in order to avoid or lessen the risk in the workplace.
Treatment, Rehabilitation and Referral – this option is given only to officers and employees who are diagnosed with drug dependence for the first time, or who turn to the Assessment Team for assistance, or who would benefit from the treatment and rehabilitation.
CONSEQUENCES OF POLICY VIOLATIONS
1.       Any officer or employee who violated or commits other unlawful acts as defined under Article II of RA 9165 and its Implementing Rules and Regulations shall be subject to the pertinent provisions of the said Act.

2.       Any officer or employee found positive for use of dangerous drugs shall be dealt with administratively in accordance with the provisions of Article 282 of Book VI of the Labor Code and under RA 9165.

CUSTOMER SERVICE – TO RECRUIT OR TO OUTSOURCE?

We are a customer oriented company and currently thinking of the need to have a Customer Service Desk in order to fully address the necessitates of the clients including the seems to be hard to resolve critical protest or complain. What is the best thing to do – to recruit or to outsource?

In deciding on whether to recruit or outsource personnel, following are essential to be considered:
Scope of Work and Volume of Work – Is it a very complicated task or merely just answering phone calls and queries? If it is just a small task with less danger if someone commits a mistake, then outsourcing is an option. But if entails full responsibility of the taking care of the general requirements of the clients, then recruiting a personnel would be better.


In other words, it depends on your objective and the set budget in deciding so.

Sunday, November 24, 2013

NEW SSS CONTRIBUTION IN 2014

This news has been released early in May or June of this year but was finally announced and confirmed last October 2013.

It is confirmed that a 0.6 percent hike in SSS contribution will take effect in the coming year. Starting January 2014 the employee will have a share of 3.63% in the contribution and the employer with a share of 7.37%. The monthly salary credit or MSC will increase to PHP 16,000.00 per month.

Such increase in payment or contribution will result to increase in benefits. The maternity benefit is one example. Since the monthly salary credit increases as the contribution increases, then that will result to a higher computation of the said benefit. The maternity is being computed based on the monthly salary credit.


Microsoft Word - 2013 Draft Circular_Contribution Rate & MSC Inc

Tuesday, September 3, 2013

WHAT TO DO WITH EXCESS LEAVES?

If  a company have always practiced non-conversion and non forfeiture of its leaves and resulted in a number of excess-leaves, what is the best thing to do?
The scenario is that the company only provides the 10-VL SL. Due to non-treatment of excess leaves, employees have as much as 20+ leaves. Co. Wants to change this .

ANSWER:
It depends on what the management is willing to do and what is it that you want to convey to your employees. In other words, go back to your purpose: “ what is the reason for granting SL and VL to your employees?”
Do you want them to take a break and recharge from an exhausting work in order to have a better performance when they come back?
If you really want them to take a break, forfeiture of unused vacation leaves would be in order. This would compel them to use it. This way you put across the message that vacations are important to their well-being and that the company is looking out for them on this.
SL on the other hand should be treated differently. Unused SL could be monetized. This then serves as an incentive for them to keep themselves healthy, as the SL is actually savings for them. 
There are a number of ways to treat the excess, but the key is what do you (and management for that matter) want to do?


Saturday, August 3, 2013

PHILHEALTH - ON REGISTERING AND REPORTING EMPLOYEES

Philhealth is one of the government mandatory benefits in the Philippines. It aims to provide medical assistance to nearly the entire population. It caters the five patient groups as : the workers; the Retirees; the OFWs; the indigents ; and the Non-poor and others.
Benefits package are the same for each group except for indigents and the OFWs who have additional outpatient primary care benefits.
Let’s leave it at that and now continue with the write-up on the formal sector since HR works for the  employed.
PHILHEALTH REGISTRATION FOR NEWLY HIRED AND EXISTING EMPLOYEES WITHOUT PIN YET
  • Get a Philhealth Member Registration Form from the HR Department and fill it up.
  • Attach the supporting documents for qualified dependents as: birth certificate for children and the marriage contract for spouse.
  • Submit to HR Department. Better to have a receiving copies of your evidence in doing follow-ups.
  • HR Department will then forward it to Philhealth office together with ER2 Form or Report of Employee Members.
  • Then, Philhealth will send the Philhealth ID card and a copy of the Member Data Record to the member through his employer or the HR Department.
HR Department should be organized in keeping up this files of the employees since they are designated as the custodian.
PHILHEALTH FOR NEWLY HIRED EMPLOYEES WITH PIN
For newly-hired with PIN , he/she just have to report his PIN to the employer to indicate the same in ER2.
HR TO REPORT NEW AND SEPARATED EMPLOYEES TO PHILHEALTH
HR must be responsible enough to report the employees to Philhealth to ensure that they can get due benefits especially in times of need.
Newly – hired employees must be reported using the ER2 Form . Reporting must be done within 30 days of hiring date.
Separated employees must be reported using RF1 within 30 days from date of separation from the office.