Labor Code Review

Articles and Key Concepts

Article 279

• Protection from Unjust Termination
  • Term: Security of tenure
  • Answer: Security of tenure

Article 280

• Types of Employment
  • Regular employment: Engaged in activities necessary/desirable for employer's business
  • Answer: B. Regular employment

Article 281

• Probationary Employment
  • Duration: Not exceeding 6 months unless covered by apprenticeship agreement
  • Answer: C. Probationary employment

Article 282

• Legal Grounds for Termination
  • Options: Serious misconduct, gross neglect of duties, fraud, willful disobedience, crime against employer
  • Except: Failure to pay personal debts
  • Answer: F. Failures to pay personal debts

Article 283 (Notice of Termination)

• Notice Period for Termination
  • Reason: Installation of labor-saving devices/redundancy
  • Prescribed period: At least 1 month before termination
  • Answer: D. At least 1 month before termination

Article 283 (Separation Pay for Labor Saving Devices)

• Separation Pay Amount
  • Criteria: Termination due to installation of labor-saving devices
  • Amount: At least one month pay or one month pay for every year of service, whichever is higher
  • Answer: B. At least one month pay or one month pay for every year of service, whichever is higher

Article 283 (Separation Pay for Retrenchment)

• Separation Pay for Retrenchment
  • Criteria: Termination due to retrenchment, closure, cessation of operations
  • Amount: At least one month pay or 1/2 month pay for every year of service, whichever is higher
  • Answer: B. At least one month pay or 1/2 month pay for every year of service, whichever is higher

Article 283 (Separation Pay Computation)

• Criteria for One Full Year
  • Time: At least 6 months
  • Answer: B. At least 6 months

Article 284

• Termination Due to Disease
  • Condition: Allowed if employment is prejudicial to health of employee/co-employees
  • Answer: B. Yes, provided that his employment is prejudicial to his health as well as to the health of his co-employees

Article 285

• Resignation Notice Requirement
  • Written Notice Period: 1 month
  • Exemption Cases: Serious insult by employer, inhuman treatment, crime against employee
  • Does Not Exempt: Immediate transfer to another employer with better compensation offer
  • Answer: D. Immediate transfer to another employer with better compensation offer

Article 287 (Compulsory Retirement Age)

• Retirement Age
  • Age: 65
  • Answer: B. 65

Article 287 (Retirement Pay Calculation)

• Retirement Pay
  • Criteria: Employees who served at least 5 years
  • Amount: 1/2 monthly salary multiplied by number of years in service
  • Answer: B. 1/2 monthly salary multiplied by the number of years in service

Article 287 (Service Incentive Leads)

• Factor in Retirement Pay
  • Inclusion: Yes
  • Answer: A. Yes

Article 287 (Exemptions for Granting Retirement Pay)

• Exempt Establishments
  • Criteria: Retail/service/agricultural establishments with not more than 10 employees
  • Answer: B. Retail/service/agricultural establishments with not more than 10 employees

Article 291

• Money Claims Filing Period
  • Period: Within 3 years of the disputed act
  • Answer: A. 3 years

Labor Code Enactment

• Date and Location
  • Enactment: Labor Day in 1874, Manila
  • Answer: A. Manila, Labor Day in 1874