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In Partial Fulfillment of the requirement in the Course
Good Governance and Social Responsibility
Submitted to:
Mr. Roberto Manalo
Submitted by:
Custodio, Alvin
De Guzman, Charlene G.
Academic Year 2018-2019
First Semester
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In other chapter discussed, Ethics and law are
synonymous, that what is legal is not always regarded as
morally permissible. Nevertheless, an equilibrium between
morality and legality would better serve the purpose of
creating harmonious and just society. In this chapter,
will discuss about the Employees relationship to
employer.In the workplace for example, the capitalist and
employer are clearly at higher pedestal, compared to
workers and laborer. Obviously therefore, the latter is
more susceptible to abuse and exploitation. At least in
the Philippines, this is common and shared opinion.The
pro and cons concept of Right to self-Organization.It
identifies here the labor codes concepts and function
that will be discuss on the latter part of the topic. The
management precognitive and relation between
employee.Then, the law which is also ethical at least
from the perspective of the culture where it is being
imposed would make compliance to legal requirement
easier. Respecting other people civil rights and
liberties are both legally and morally amiable, for while
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they are manifested throughthe letter of the law labor
Learning Objectives
At the end of the lesson, the learner is able to:
Understand the relations between the management and
Discuss the labor codes concept principles of
corporate governance and social responsibility with
its workers.
Identify labor protection affecting corporation and
its compliance with good governance practices.
Discuss the precognitive management and selforganization.
Learning cell
EmployeesThese are the people who contribute their
skills, abilities, and ingenuity to the corporation. They
are the one who invested their future in the company with
full trust and confidence that the entity would make them
secure. Employees andcorporation have symbiotic
relationship. In an ideal scenario, employees do what is
best for the corporation so that the corporation can
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provide them gainful and satisfying work.Good employees
can contribute would lead would lead to profit, profit
could mean additional benefits to workers. (Dr. Biore C.,
Dr. Gonzales R., Caparas J., Burgos N., Ballada W.,
(2015) Good Governance and Social Responsibility (1st
edition) Philippines.)
Regulations relevant to the conduct of Business
The government has set many business regulations in place
to protect employees’ rights, protect the environment and
hold corporation accountable for the amount of power they
have in this business driven-society. Some of these
regulations stand out more significantly that the others
because of their relevance to the employee, consumer and
society in general.(Dr. Biore C., et al., (2015) Good
Governance and Social Responsibility (1st edition)
EMPLOYEE PROTECTION(Dr. Biore C., et al., (2015) Good
Governance and Social Responsibility (1st edition)
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Many agencies work to protect the rights of employees.
This right covers the following:
Regular employmentUnder article 280 of the Labor Code is
one who:Has been engaged to perform activities which are
usually necessary or desirable in the usual business or
trade of the employer, his employment not being fixed for
a specific project or undertaking the completion or
termination of which has been determined at the time of
engagement, or seasonal in nature and the employment is
for the duration of the season. has rendered at least one
(1) year of service, whether such service is continuous
or broken, with respect to the activity in which he is
employed. Probationary employmentProbationary 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.
IN ALL CASES, an employee who is allowed to work after a
probationary period, EVEN UNDER THE GUISE OF AN
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EXTENSION, shall be considered a regular
employee.”Minimum employable ageArticle 139. Minimum
employable age.
(a) No child below 15 years of age shall be employed,
except when he works directly under the sole
responsibility of his parents or guardian and his
employment does not in any way interfere with his
(b) A person between 15 and 18 years of age may be
employed for such number of hours and such periods of the
day as determined by the Secretary of Labor and
Employment in appropriate regulations.
(c) The foregoing provisions shall in no case allow the
employment of a person below 18 years of age in an
undertaking which is hazardous or deleterious in nature
as determined by the Secretary of Labor and Employment.
Article 140. Prohibition against child discrimination. No
employer shall discriminate against any person in respect
to terms and conditions of employment on account of his
age. Prohibition against stipulation of marriageArticle
136. Stipulation against marriage. It shall be unlawful
for an employer to require as a condition of employment
or continuation of employment that a woman employee shall
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not get married, or to stipulate expressly or tacitly
that upon getting married a woman employee shall be
deemed resigned or separated or to actually dismiss,
discharge, discriminate or otherwise prejudice a woman
employee merely by reason of her marriage.
Article 137. Prohibited acts. (a) It shall be unlawful
for any employer:
(1) To deny any woman employee the benefits provided for
in this Chapter or to discharge any woman employed by him
for the purpose of preventing her from enjoying any of
the benefits provided under this Code;
(2) To discharge such woman on account of her pregnancy,
while on leave or in confinement due to her pregnancy; or
(3) To discharge or refuse the admission of such woman
upon returning to her work for fear that she may again be
pregnant. Anti-sexual harassment law, (a) In a workrelated or employment environment, sexual harassment is
committed when:
(1) The sexual favor is made as a condition in the
hiring or
in the employment, re-employment or continued
of said individual, or in granting said
individual favorable compensation, terms of conditions,
promotions, or privileges;
or the refusal to grant the
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sexual favor results in limiting, segregating or
classifying the employee which in any way
discriminate, deprive or diminish employment
opportunities or otherwise adversely affect said
employee; (2) The above acts would impair the employee's
rights or privileges under existing labor laws; or (3)
The above acts would result in an intimidating, hostile,
or offensive environment for the employee. (Retrieved
from on August
26, 2018).
Right to self-Organization
Section 8 Article III of the constitutions provides that
“the right of the people, including those employed in the
public and private sectors, to form unions, associations,
or societies for purpose not contrary to the law shall
not be abridged.” this is the controlling principle
behind the RIGHT TO SELF ORGANIZATION given to employees,
as vested by the constitution, and solidified by the
labor code. Rather than dealing with employer alone,
employees enjoy the right to form labor organizations
that would bargain with the management in their behalf.
The employees, through mechanism, shall collectively
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further their rights before the employer. These
Organizations are ordinarily known as LABOR UNIONS.
(Alden Reuben B. Luna, PHl. (2016) Social Responsibility
and Good Governance. Philippines.)
Article 248 of the labor code provides enumeration of
unfair labor practices which violates the right to selforganization of employees.
1. Interference – to interfere with, retrain or coerce
employees in the exercise of their right to selforganization.
2. Yellow Dog Condition – to require as condition for
employment that a person or an employee shall not
join a labor organization or shall withdraw from one
to which he belongs.
3. Contracting out – to contract out services or
functions being performed by union members when such
will interfere with, restrain, or coerce employees
in the exercise of their right to self-organization.
4. Company Domination Union – to initiate, dominate
assist or otherwise interfere with the formation or
administration of any labor organization, including
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the giving of financial or other support to it or
its organizer or officers.
5. Discrimination - to discriminate with regards to
wages, hours of work and other condition of
employment in order to encourage or discourage
membership in any labor organization.
6. Discrimination because of Testimony – to dismiss,
discharge or otherwise prejudice or discriminate
against an employee for having given or being about
to give testimony under this code.
7. Violation of Duty to Bargain – to violate the duty
to bargain collectively as prescribed by this code.
8. Paid Negotiation – to pay or negotiation or
attorney’s fees to the union or its officers or
agents as part of the settlement of any issue in
collective bargaining or any other disputes.
(Alden Reuben B. Luna, PHl. (2016) Social
Responsibility and Good Governance. Philippines)
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Management Prerogative
A. Right to transfer,Form one position to another of
equivalent rank, level or salary, without a break in the
Form of one office to another within the same business
B. Right to Discipline, to guide the exercise of this
right is that the policies, rules and regulations on work
related activities of the employees must always be fair
and reasonable and the corresponding penalties, as
prescribed, commensurate to the offense involved and to
the degree of the infraction- otherwise known as the
Proportionality rule.
C. Right to Promote, Promotion is the advancement from
one position to another involving increase in duties and
responsibilities as authorized by the law, and increase
in compensation and benefits.
D. Right to Demote, Inasmuch as employer has the right to
promote, s/he also has the right to demote. There is
demotion where there is reduction in position, rank or
salary as result of transfer.
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example, when an employee occupying a highly technical
position requiring the use of an employee’s mental
faculty, is transferred to another position where s/he
performed mere mechanical.
E. Right to Grant Bonuses, a bonus is not demandable and
enforceable obligation, except when it is made part of
the wage, salary or compensation of the employee. But the
employee cannot be forced to distribute bonuses when it
can no longer afford to pay. To hold otherwise would be
penalize employer for his past generosity.
F. Wages, Article 97 of labor code provides a rather
lengthy definition of the term wage. Accordingly, it is
the remuneration or earnings, however designated, capable
of being express in terms of Money, whether fixed or
ascertained on a time, task, piece, or commission basis,
or other method of calculating the same, which is payable
by an employer to an employee under a written or
unwritten contract of employment for work done.The
minimum wage of Law is another good example of government
involvement which mutually beneficial to both management
and labor, since this would set a hard-minimum benchmark
of compensation across all industries. In addition,
government set law on pensions for both public and
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private employees while they are still in the mainstream
workforce of industries.
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Non-Diminution of Benefits, Article
Code, it is provided that
100 of the Labor
”Nothing in this Book shall be
construed to eliminate or in any way diminish
supplements, or other employee benefits being enjoyed at
the time of promulgation of this Code.”
In other words benefits given by the employees cannot be
taken back or reduced unilaterally by employer, because
the benefit has already formed part of the employment
contract, written or unwritten.
Payment of Wages
ART. 102. Forms of payment. - No employer shall pay the
wages of an employee by means of promissory notes,
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vouchers, coupons, tokens, tickets, chits, or any object
other than legal tender, even when expressly requested by
the employee.
Time of Payment
103 of the Labor Code Wages shall be paid at
least once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days.
If on account of force majeure or circumstances beyond
the employer control, payment of wages on or within the
time herein provided cannot be made, the employer shall
pay the wages immediately after such force majeure or
circumstances have ceased. No employer shall make payment
with less frequency than once a month.
The payment of wages of employees engaged to perform a
task which cannot be completed in two (2) weeks shall be
subject to the following conditions, in the absence of a
collective bargaining agreement or arbitration award:
(1) That payments are made at intervals not exceeding
sixteen (16) days, in proportion to the amount of work
Prohibition of Wages
Article 116 of the Labor Code. It shall be unlawful for
any person, directly or indirectly, to withhold any
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amount from the wages of a worker or induce him to give
up any part of his wages by force, stealth, intimidation,
threat or by any other means whatsoever without the
worker consent.
Article 113 of the Labor Code. No employer, in his own
behalf or in behalf of any person, shall make any
deduction from the wages of his employees
 SSS Payment
The Philippine Social Security System (SSS) is a social
insurance program for employees in the Philippines.
Founded in 1957, the SSS is a government agency that
provides retirement and health benefits to all paid up
employees in the Philippines. Members of the SSS can also
make ‘salary’ or ‘calamity’ loans. Salary loans depend on
the monthly salary of the employee. Calamity loans are
for such times when there is a calamity that has been so
declared by the government, in the area where the SSS
member lives, such as flooding, earthquake and natural
disasters. ( Retrieved from on September 24,
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SSS Contribution Table
The Philippine Health Insurance Corporation (PhilHealth)
was created in 1995 to implement universal health
coverage in the Philippines. It is a tax-exempt,
government-owned and controlled corporation (GOCC) of the
Philippines, and is attached to the Department of Health.
Its stated goal is to ensure a sustainable national
health insurance program for all. In 2010, it claimed to
have achieved "universal" coverage at 86% of the
population, although the 2008 National Demographic Health
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Survey showed that only 38 percent of respondents were
aware of at least one household member being enrolled in
Nevertheless, this social insurance program
provides a means for the healthy to pay for the care of
the sick and for those who can afford medical care to
subsidize those who cannot. Both local[3] and national
governments allocate funds to subsidize the indigent. (
Retrieved from
_Corporation on September 24, 2018)
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Philhealth Contribution Table
 Contribution of Pag-ibig Funds
Pag-IBIG is an acronym which stands for
PagtutulungansaKinabukasan: Ikaw, Bangko, Industria at
Gobyerno. To this day, the Pag-IBIG Fundcontinues to
harness these four sectors of the society to work
together towards providing Fund members with adequate
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housing through an effective savings scheme. ( Retrieved
on September 24, 2018)
 Payment to the Third Person
 Deductions of Absences.
(Alden Reuben B. Luna, PHl. (2016) Social Responsibility
and Good Governance. Philippines)
Employers and employees have responsibilities to
each other, they should also always expect their
rights to be upheld. These rights and duties relate
to areas such as Health and Safety, the provision of
Terms and Conditions of Employment, Equal
Opportunities and the right to be paid a minimum
wage. The Health and Safety at Work Acts set out
responsibilities and rights for both employees and
employers. Employees are expected to carry out their
work in a way that has regard to the safety of
others. Employers are expected to abide by a number
of requirements governing such aspects as providing
safe machinery and equipment, carrying out regular
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health and safety checks, ensuring the training of
employees in health and safety issues, and carrying
out a risk assessment to assess the dangers of
particular work activities. There are also specific
regulations about the way in which potentially
harmful substances should be used and stored. There
are a number of requirements about the minimum
temperature at work, and other aspects of working
Employees are expected to receive the terms and
conditions of their work setting out when their work
commences, what their main duties are, who they are
accountable to, rates of pay, and other
Equal Opportunities legislation sets out that all
employees should receive the same pay and conditions
for carrying out the same or broadly similar work.
There are also laws against sexual, racial and
disability discrimination.
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Employee engagement continues to make a great deal
of interest from employers across numerous sectors.
In some respects, it is a very old aspiration – the
desire by employers to find ways to increase
employee motivation and to win more commitment to
the job and the organization. In some ways it is
modern in that the context within which engagement
is being sought is different. One aspect of this
difference is the greater penalty to be paid if
workers are less engaged than the employees of
competitors, given the state of international
competition and the raising of the bar on efficiency
standards. A second aspect is that the whole nature
of the meaning of work and the ground rules for
employment relations have shifted and there is an
open space concerning the character of the
relationship to work and to organization which
employers sense can be filled with more
sophisticated approaches.
But there is reason to worry about the lack of rigor
that has, to date, often characterized much work in
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employee engagement. If we continue to refer to
‘engagement’ without understanding the potential
negative consequences, the core requirements of
success, and the processes through which it must be
implemented, and if we cannot agree even to a clear
definition of what people are supposed to be engaged
in doing differently at work (the engaged ‘in what’
question), then engagement may just be one more ‘HR
thing’ that is only here for a short time. On a
positive note, there is now a wider array of
measurement techniques with which to assess trends
in engagement and an associated array of approaches
to effect some change. Thus, aspiration can more
feasibly be translated into action.
Basically, employers have also the right in making
their policies which does not conflict with the
rights of the employees. Hence, still, it always
ends up with a give and take process between the
employees and the employer.
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Employers should place as high a priority on
retaining talent as on recruiting employees. With a
majority of employers developing their future
leaders internally, rather than hiring from the
outside, companies have a greater investment, in
both time and money, in experienced workers. Realize
that they are just the type of employee’s other
organizations – including your competitors – want to
recruit the most.
Employers must know that many talented employees
want recognition of the value they bring, a career
path within the organization and a plan for their
future development.An effective retention method is
for employees and their managers to mutually develop
career paths for them with benchmarks to measure
their progress and commensurate rewards, including
monetary ones.
Trainings and seminars should be conducted
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Employers must give emphasis to work – life balance
of their employees.
VII. References
Dr. Biore C., Dr. Gonzales R.,Caparas J., Burgos N.,
Ballada W., (2015) Good Governance and Social
Resposibility (1stedition) Philippines.
Alden Reuben B. Luna, PHl. (2016) Social Responsibility
and Good Governance. Philippines.
(Retrieved from on August 26,
2018 ).
(Retrieved from on September 24,
( Retrieved from
_Corporation on September 24, 2018)
( Retrieved from on
September 24, 2018)
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