Subject: HUMAN RESOURCE MANAGEMENT

Reporter: RONNIE F. TAMBAL 6. Meal and Rest periods

Topics: Employee Benefits & Services Under Article 83, the employee is provided one-hour employee
Employee Relations benefit for regular meals, when working on an eight-hour (8-hours)
stretch. Employees are also provided adequate rest periods in the
morning and afternoon which shall be counted as hours worked.
EMPLOYEE BENEFITS AND SERVICES
COMPENSABILITY OF ILLNESS OR INJURY
Benefits
Employee’s Compensation Program (ECP) - is a
Indirect financial and nonfinancial payments employees
government program designed to provide a compensation
receive for continuing their employment with the company.
package to public and private employees or their dependents
in the event of work-related sickness, injury, or death.
The objectives of the employee benefits policies and practices
of an organization are to:
A. Occupational Diseases - For an occupational disease and
 provide an attractive and competitive total remuneration
the resulting disability or death to be compensable, all of the
package which both attracts and retains high-quality
following conditions must be satisfied:
employees; 1. the employee’s work and/or the working conditions must involve
 provide for the personal needs of employees; risk/s that caused the development of the illness;
 increase the commitment of employees to the organization; 2. the disease was contracted as a result of the employee’s exposure
 provide for some people a tax-efficient method of to described risks;
remuneration. 3. the disease was contracted within a period of exposure and under
such factors necessary to contract it; and
Main types of employee benefits 4. there was no deliberate act on the part of the employee to disregard
Benefits can be divided into the following categories: the safety measures or ignore established warning or precaution.
 Pension schemes: these are generally regarded as the most
important employee benefit. B. Work-related Injuries
 Personal security: these are benefits which enhance the For the injury and the resulting disability or death to be
individual’s personal and family security with regard to illness, compensable, the injury must be the result of an accident
health, accident or life insurance. arising out of and in the course of employment.
 Financial assistance: loans, house purchase schemes, relocation  Injuries resulting from an accident which happened at the
assistance and discounts on company goods or services. workplace.
 Personal needs: entitlements which recognize the interface  Injuries resulting from an accident which happened while the
between work and domestic needs or responsibilities, e.g. holidays employee is performing his official function.
and other forms of leave, child care, career breaks, retirement  Injuries resulting from an accident which happened while going to
counselling, financial counselling and personal counselling in times or coming from the place of work.
of crisis, fitness and recreational facilities.  Injuries resulting from an accident which happened while
 Company cars and fuel: still a much-appreciated benefit in ministering to personal comfort
spite of the fact that cars are now more heavily taxed.  Injuries resulting from an accident while the employee is inside the
company shuttle bus
 Other benefits: which improve the standard of living of
 Injuries resulting from an accident which occurred during a
employees such as subsidized meals, clothing allowances, refund of
company-sponsored activity.
telephone costs, mobile phones (as a ‘perk’ rather than a necessity)
 Death of an Employee Due to Assault
and credit card facilities.
 Intangible benefits: characteristics of the organization which
contribute to the quality of working life and make it an attractive
Excepting Circumstances
and worthwhile place in which to be employed. No compensation shall be allowed to the employee or his/her
dependents in cases when the
Mandatory Government Benefits and Contributions sickness, injury, disability, or death was occasioned by any of
Covered by the Philippine Labor Code the following:
1. Intoxication - Intoxication refers to a person’s condition in being
under the influence of liquor or prohibited drugs to the extent that
1. Social Security System (SSS) Contributions his acts, words, or conduct is impaired visibly, as to prevent him
Republic Act No. 8282 or otherwise known as the Social Security
from physically and mentally engaging in the duties of his
Act of 1997 aimed at providing protection for the SSS member
employment.
against socially recognized hazard conditions such as sickness,
2. Notorious Negligence - Notorious negligence is something more
disability, maternity, old age and death, or other such contingencies
than mere or simple negligence. It signifies a deliberate act of the
not stated but resulted in loss of income or results to financial burden
employee to disregard his own safety or ignore established
warning or precaution.
2. Contribution to National Health Insurance Program 3. Willful Intent to Injure Oneself or Another - This contemplates a
(NHIP) deliberate intent on the part of the employee to inflict injuries on
The employee and his/her employer(s) are to contribute to the himself or another.
medical insurance of the said employee in accordance to the Republic
Act 7835 on Medicare Program which is administered by the BENEFITS UNDER ECP
Philippine Health Corporation (PhilHealth).
1. Loss of Income Benefit
Under the ECP, it is the disability, or the incapacity to work,
3. Contribution to Home Development and Mutual Fund which is being compensated and not the illness or the injury.
(HDMF/Pag-IBIG)
Home Development Fund Law of 2009, employer(s) is required to
contribute per month not less than ₱100.00 to the employees Home
3 Types of Disability
Development and Mutual Fund. 1. Temporary Total Disability (TTD)
For a disability that prevents an employee from performing his
4. The 13th Month Pay work for a continuous period not exceeding 120 days. The amount
As mandated by the Presidential Decree No. 851, the employee shall of daily income benefit shall be ninety percent (90%) of the
receive a bonus salary equivalent to one (1) month, regardless the employee’s average daily salary credit as determined by the
nature of his/her employment, not later December 24 of every year. Systems.
2. Permanent Total Disability (PTD)
5. Service Incentive Leave
A monthly income benefit granted for disabilities, such as, but not
Book III, Chapter III of the Labor Code of the Philippines covers the
limited to, complete loss of sight of both eyes, loss and function
employee benefits for Incentive Leaves. According to Article 95, an
loss of both limbs, and brain injury resulting to imbecility or
employee who has rendered at least one year of service is entitled to a
insanity.
yearly five days service incentive leave with pay.
 The amount of monthly income benefit for PTD shall be Labor Day - May 1, 2019, Wednesday 
determined by the Systems based on the average monthly salary Independence Day - June 12, 2019, Wednesday
credit or average monthly compensation (AMSC/AMC). National Heroes' Day - August 26, 2019, last Monday of August  
Bonifacio Day - November 30, 2019, Saturday
3. Permanent Partial Disability (PPD) Christmas Day - December 25, 2019, Wednesday 
A monthly income benefit is granted for disabilities that result in Rizal Day - December 30, 2019, Monday
physical loss (amputation) or functional loss of a body part. Eid'l Fitr (TBA)
The number of monthly pensions is based on the corresponding Eid'l Adha (TBA)
body part loss or functional loss, as provided under Article 193 of
PD No. 626, as amended, and EC schedule of Compensation. Special non-working days:
2. Medical Services Chinese New Year - February 5, 2019, Tuesday
It includes reimbursement of the cost of medicines for the illness EDSA Revolution Anniversary - February 25, 2019, Monday
or injury, payment to providers of medical care, hospital care, Black Saturday - April 20, 2019
surgical expenses, and the costs of rehabilitation appliances and Ninoy Aquino Day - August 21, 2019, Wednesday
supplies. The medical services are limited to ward services of All Saints' Day - November 1, 2019, Friday
hospitals duly accredited by the Department of Health (DOH). Feast of the Immaculate Conception of Mary - December 8, 2019,
Sunday
3. Carer’s Allowance December 31, 2019, Tuesday - last day of the year
A supplemental pension of P575/month is provided to pensioners
Additional special non-working holidays:
under the ECP who suffer from work-connected PPD and PTD.
November 2, 2019, Saturday 
December 24, 2019, Tuesday
4. Rehabilitation Services/KaGabay Program (Katulong at
Gabay sa Manggagawang May Kapansanan) 3. Parental Leaves
Persons with work-related disabilities (PWRD) with an approved
Maternity Leave (Expanded Maternity Leave Act or RA 11210)
EC TTD, PPD or PTD are qualified to avail of the benefits and  105 days leave in case of normal delivery or caesarean delivery
services under the Katulong at Gabay sa Manggagawang May  60 days for miscarriage or emergency termination of pregnancy
Kapansanan, or KaGabay Program.  maternity benefit = 100% of her salary credit
 allocate up to 7 days to the father
5. Death Benefits
 The beneficiaries of the deceased employee are entitled to an Paternity Leave
income benefit if the employee died as a result of a work-related  Paternity leave benefit is granted to all married male employees
injury or sickness. first 4 deliveries of lawful wife
 The surviving legitimate spouse is entitled to receive income  7 days leave = full pay (consisting of his basic salary)
benefit until he or she remarries.
 Each dependent child, not exceeding five, counted from the Solo-parent Leave
youngest and without substitution, shall receive ten percent  Solo Parents Welfare, Republic Act No. 8972
(10%) more as dependent’s pension.  Employee must have been working for at least 1 year
 7 working days of leave in a year (with pay)
6. Funeral Benefits
 An amount of P20,000 may be granted for the Private 4. Other leaves
Sector upon the death of an employee who died as a result Leave due to Domestic Violence
of a work-related accident or disease. Leave for women and their children who are victims of violence
 Simultaneous Granting of EC Disability Benefits and Sick paid leave for up to 10 days (extendible when the necessity arises as
Leave Benefits for Private Sector. specified in the protection order)
 Simultaneous Granting of EC Disability Benefits and
Special Leave Benefits for Women in the Private and Public Leave due to Gynecological Disorders
Women employees who have rendered continuous aggregate
Sector.
employment service of at least six months for the last 12 months are
 In the event that an employee’s gynecological disorders entitled to the special leave benefit of up to two months with full pay
were found to be work-connected, all qualified women following surgery caused by gynecological disorders.
employees in the private and in the public sector can still
avail of EC disability benefits in addition to Special Leave 5. Retirement Benefits
Benefits under Republic Act No. 9710, otherwise known as Section 1. Article 287 of Presidential Decree No. 442
“Magna Carta for Women”. 60 years of age (but not beyond 65) and served for at least 5
years
Benefits = 15 days salary + service incentive leave (cash
BENEFITS IN THE PHILIPPINES equivalent) + 13th month pay

1. Rest Days 6. Separation Pay

Employees, except exempt employees, are entitled to a rest A one-time payment when terminating an employee.
period without pay of not less than 24 consecutive hours for
every six consecutive normal working days (i.e. Sunday). Basis of separation pay:
Work done on rest days = plus 30% of the regular daily 1. Introduction of labor-saving devices
compensation 2. Redundancy
3. Retrenchment
2. Holiday Pay 4. Closure or Cessation of business
The Labor Code requires the payment of an employee’s daily 5. Disease the employee found to be suffering and whose continued
basic wage for all non-working regular holidays. employment is prohibited by law or is prejudicial to his health as
Unworked regular holiday (except exempt employees) = regular well as the health of his coemployees.
daily wage
Work on regular holiday = 200% or Double pay 7. “De Minimis Benefits”
Work on Special Holiday = regular daily pay + 30% Compensation of small value, or “De Minimis benefits”, are
Rest day + Work on Special holiday = regular daily pay + 50% excluded from the computation of the gross income.

The regular holidays for 2019 are: De Minimis Benefits have the purpose to promote the well-
New Year's Day - January 1, 2019, Tuesday being and efficiency of employees and are limited to facilities
Araw ng Kagitingan - April 9, 2019, Tuesday  or privileges of relatively small size.
Maundy Thursday - April 18, 2019 
Good Friday - April 19, 2019
De Minimis Benefits include: Spread in various parts of the 1987 Philippine Constitution are
 Monetized unused vacation leave credits for private employees not specific pronouncements and mandates on the protection and
exceeding 10 days promotion of the rights of workers in the public and private
 Monetized unused vacation and sick leave credits for government sectors, to wit:
officials and employees;
1. Sec. 18, Art. II, the State recognizes "labor as a primary
 Medical allowance for dependents of ₱750 per semester or ₱125
per month;
social economic force" and it endeavors to "protect the rights
 Rice subsidy of ₱1,500 or one sack of rice monthly; of workers and promote their welfare";
 Uniform allowance of ₱5,000;
 Medical assistance not exceeding ₱10,000 annually; 2. Sec. 8, Art. III, the State recognizes the "right of (workers)
 Laundry allowance not exceeding ₱300 per month or ₱3,600 per xxx in the public and private sectors to form unions";
year;
 Employees achievement awards not exceeding ₱10,000; 3. Sec. 2, Art. XIII, the State pronounces "the promotion of
 Gifts given during Christmas and major anniversary celebrations social justice" as one of its main goals;
not exceeding ₱5,000 per employee per annum;
 Daily meal allowance for overtime work and night shift not
exceeding 25% of basic minimum wage; and 4. The most specific labor-related provision of the
 Collective bargaining agreements (CBA) and productivity Constitution is found in Sec.3, Art. XIII thereof, which
incentives not exceeding ₱10,000. provides:
a) That the State shall afford "full protection to labor, local and
EMPLOYEE SERVICES overseas, organized and unorganized";
b) That the State shall aim to "promote full employment";
Employee services can include anything an employer deems
c) That the "equality of employment opportunities for all" shall be
necessary to provide as a perk for employees. No real limit respected;
exists as to what can be included as an employee service. d) That the State shall protect the "right of all workers to:
- self-organization,
Common Types of Employee Services - collective bargaining and negotiations,
- peaceful concerted activities, and
1. Flexible Work Schedules - including the right to strike, in accordance with law”.
These programs are arranged to meet an organization's goals e) That the right to "security of tenure" of workers shall be respected;
f) That the workers are entitled to "humane conditions of work";
while assisting employees with their personal lives.
g) That the workers are entitled to "a living wage";
Example:
h) That the workers shall be afforded the right to "participate in
Because of technological advances, some employers allow employees
policy and decision-making processes affecting their rights and
to work from home one or several days per week.
benefits as may be provided by law";
This gives employees some flexibility to maintain a balanced
i) That employers and workers must be guided by the precept of
personal life and continue to successfully complete their work
"shared responsibility";
responsibilities.
j) That the State encourages the "preferential use of voluntary modes
in settling disputes" (i.e., conciliation, mediation, and voluntary
2. Wellness Program arbitration);
In 2008, the Harvard School of Public Health noted a national k) That the State has the power to "regulate the relations between
study by Harris Interactive showing that 91% of employers workers and employers";
"believed they could reduce their health care costs by l) That the State respects the "right of labor to its just share in the
influencing employees to adopt healthier lifestyles.“ fruits of production"; and
Many employers offer wellness programs to improve m) That, balancing capital with labor, the State recognizes the "right
employees' health. of enterprises to reasonable returns on investments, and to
expansion and growth".
These programs can be applied in a variety of ways, including
reimbursable gym membership costs, on-site fitness facilities,
Union / Employees’ Organization
and events to promote healthy living and eating.
It refers to any labor organization organized for collective
bargaining or negotiation and for other legitimate purposes.
3. Child Care Services
Working parents having access to a work-site child care center
PRIVATE SECTOR UNIONS
positively affects their ability to successfully concentrate on
All labor unions whose members are employed in commercial,
the job and be productive.
industrial and agricultural enterprises, and employees of
government-owned or controlled corporations without original
4. Product/Service Discounts
charters established under the Corporation Code, including
Most individuals clip coupons and shop for sales to save
religious, charitable, medical or educational institutions
money. Some employers work with local and national retail
whether operating for profit or not which exist in whole and in
product and service providers to offer employees discounts for
part for collective bargaining.
their personal needs.
These types of programs can include everything from
Supervisory employees shall not be eligible for membership in
discounts on groceries to purchasing a vehicle at a lower cost.
a rank-and-file employee labor union but may form their
Free or discounted on-site food and drink services such as
separate labor unions.
lunch, snacks and coffee can also assist employees by saving
them time and money.
Alien employees with valid working permits issued by DOLE
These types of services are often appreciated by employees
may exercise their right to self-organization and join or assist
and can be implemented at little or no cost.
labor unions for purposes of collective bargaining if they are
nationals of a country which grants the same or similar rights
to Filipino workers, as certified by the Department of Foreign
EMPLOYEE RELATIONS
Affairs.
Employee Relations refers to a company's efforts to manage Managerial employees shall not be eligible to form, join or
relationships between employers and employees. assist any labor union for purposes of collective bargaining.
It can include: Collective Bargaining
working conditions, pay and benefits It is a process where the parties agree to fix and administer
work life balance, rewards and recognition. terms and conditions of employment which must not be below
Labor Rights of Workers
the minimum standards fixed by law, and set a mechanism for
resolving their grievances.

Collective Bargaining Agreement (CBA)

It is a contract executed upon request of either the employer or
the exclusive bargaining representative of the employees
incorporating the agreement reached after negotiations with
respect to wages, hours of work and all other terms and
conditions of employment, including proposals for adjusting
any grievances or questions under such agreement.
PUBLIC SECTOR UNIONISM 8. provision for first aid medical services and supply;
9. physical fitness program;
Public sector union refers to an organization of government 10. provision for family planning services for married women;
employees established for the promotion and furtherance of 11. annual medical/physical examination;
their interests. 12. recreational, social, athletic and cultural activities and
facilities;
COVERAGE UNDER E.O. 180 13. CNA incentive pursuant to PSLMC Resolution No.
4, s. 2002 and Resolution No.2, s. 2003; and
SECTION 1. This Executive Order applies to all employees of all 14. such other concerns which are not prohibited by law and
branches, subdivisions, instrumentalities, and agencies, of the CSC rules and regulations.
Government, including government-owned or controlled
corporations with original charters. For this purpose, employees, Examples of Negotiable Items
covered by this Executive Order shall be referred to as 1. Bulletin Boards and Union Office
“government employees”. 2. Compensatory Time-Off (Overtime Pay)
3. Grace Period on Hours of Work
SECTION 2. All government employees can form, join or assist 4. Hazard Pay
employees’ organizations of their own choosing for the
5. Representation in Committees
furtherance and protection of their interests. They can also form,
6. Stipend for Scholars
in conjunction with appropriate government authorities, labor-
management committees, works councils and other forms of 7. Union Time Off
workers’ participation schemes to achieve the same objectives. 8. Union Space

SECTION 3. High-level employees whose functions are normally What cannot be negotiated?
considered as policy-making or managerial or whose duties are of Compensation Matters:
a highly confidential nature shall not be eligible to join the 1. Increases in salary;
organization of rank-and-file government employees. 2. allowance
3. travel expenses; and
SECTION 4. The Executive Order shall not apply to the members 4. other benefits that are specifically provided by law
of the Armed Forces of the Philippines, including police officers,
policemen, firemen and jail guards. Examples of NON-NEGOTIABLE ITEMS
1. Allowances:
PSU serves the following purposes: a. Christmas Grocery Allowance
1. As a mechanism to promote harmonious relationship b. Rice Allowance
between the rank-and-file employees and management. c. Subsistence Allowance
2. As a force to compel management to faithfully observe the 2. Bonuses:
democratic processes relating to the merit system. a. Anniversary Bonus
3. As a factor in influencing the enactment of legislations b. Birthday Month Bonus
which will further protect and uplift employees' welfare. c. Christmas Bonus/Cash Gift
4. As a partner of management in policy-making, policy- d. Loyalty Bonus
implementation and policy- monitoring. 3. Assistance/Aid/Insurance
5. As a watchdog of the people in preventing graft and a. Bereavement Assistance
corruption. b. Social Development Assistance
6. As an agent of change in bringing about a more efficient c. Death Benefit
public service delivery. d. Calamity Aid
7. As a negotiating agent for improved terms and conditions of e. Crisis Management Aid
work, particularly those which are not fixed by law. f. Insurance
8. The coverage of the constitutional guarantee is limited to 4. Other Monetary Benefits
responsible public sector unions. a. Fringe Benefits
b. Longevity Pay
A responsible public sector union is an organization of c. Year-End Benefits
government employees which: d. 14th Month Pay
1. makes government employees aware not only of their rights 5. Health Care/Maintenance:
but also of their responsibilities a. Annual Health Care Benefit
2. knows not only to make impositions or demands but also to b. Hospitalization Assistance
listen to reason c. Medical, Dental and Optical Health Maintenance
3. looks upon Management not as rival but as partner to social Program
and economic progress d. Work-Connected Injury
4. balances its interests with those of the management and the 6. Leaves:
agency as a whole a. Chronic Illness/Disease Leave
b. Day-Off for Travel and Travel Leave
Collective Negotiation Agreement or CNA c. Emergency Leave/Special Leave Privileges
is a contract negotiated between an accredited employees’ 7. Others:
organization as the negotiating unit and the employer/ a. Employment of Next of Kin
management on the terms and conditions of employment and b. Housing Program
its improvements that are not fixed by law. c. Service Vehicle

What can be negotiated? Harnessing PSU one of the major thrusts of the Civil service
1. schedule of vacation and other leaves; Commission.
2. personal growth and development;
3. communication system-internal (lateral and vertical), Personnel Relations Office (PRO)
external; given the challenging task of promoting responsive
4. work assignment/reassignment/detail/transfer; 5. management and responsible public sector unionism as key
distribution of work load; partners to effective governance.
6. provision for protection and safety;
7. provision for facilities for handicapped personnel;
The PRO is committed to the creation of harmonious working
atmosphere between a management and an employee’s
organization which mutually respect each other’s rights.

PRO Programs/Services
 Registration of Employees’ Organizations
 Accreditation of Employees’ Organization
 Registration of Collective Negotiation Agreement (CNA)
 Labor Education Program/Conciliation Services