D. PREVENTIVE SUSPENSION What is a Preventive Suspension? Preventive suspension is a disciplinary measure for the protection of the company's property pending investigation of any alleged malfeasance or misfeasance committed by the employee. The employer may place the worker concerned under preventive suspension if his continued employment poses a serious and imminent threat to the life or property of the employer or of his coworkers. Without this kind of threat, preventive suspension is not proper. [Artificio v. NLRC, G.R. No. 172988 (2010)] However, when it is determined that there is no sufficient basis to justify an employee's preventive suspension, the latter is entitled to the payment of salaries during the time of preventive suspension.[Gatbonton v. NLRC, G.R. No. 146779 (2006)] WHAT IS THE DURATION FOR PREVENTIVE SUSPENSION? No preventive suspension shall last longer than thirty (30) days. Upon the expiry of such period, the employer shall thereafter . (1) reinstate the worker in his former or in a substantially equivalent position or . (2) the employer may extend the period of suspension provided that during the period of extension, he pays the wages. IS PREVENTIVE SUPENSION A PENALTY? NO. Preventive suspension is not a penalty in itself. It is merely a measure of precaution so that the employee who is charged may be separated, for obvious reasons, from the scene of his alleged misfeasance while the same is being investigated. While preventive suspension may be imposed on a respondent during the investigation of the charges against him, suspension is the penalty which may only be meted upon him at the termination of the investigation or the final disposition of the case. [PAL v. NLRC, G.R. No. 114307 (1998) E. RELIEFS DISMISSAL FROM ILLEGAL WHAT ARE THE RELIEFS UNDER THE LABOR CODE? (B-O-R) 1. REINSTATEMENT without loss of seniority rights and other priviledges; 2. FULL BACKWAGES, inclusive of allowances; and 3. OTHER BENEFITS or their monetary equivalent. WHAT ARE THE OTHER RELIEFS NOT FOUND IN THE LABOR CODE? (S-I-R-M-F-L) 1. Separation pay in lieu of reinstatement 2. Indemnity in the form of nominal damages in case of termination due to just or authorized cause but without affording the employee procedural due process. 3. Reliefs to an illegally dismissed employee whose employment is for fixed period consisting of payment to him/her of his/her salaries corresponding to the unexpired portion of the employment contract. 4. Moral and exemplary damages and attorney’s fees. 5. Financial assistances in cases in cases where the employee’s dismissal is declared legal but there are circumstances justifying the rewards, such as long years of service, unblemished record of service, compassionate justice and other considerations. 6. Legal interest on separation pay, backwages and other monetary awards. F. MONEY CLAIMS ARRISING EMPLOYEE – EMPLOYER RELATIONSHIP WHAT ARE THE BASES OF EMPLOYEES MONEY CLAIM? 1. 2. 3. 4. 5. Labor Code; Other Special Laws; Jurisprudence; Employment Contracts; Voluntary Employer Policy or practice; or 6. Collective Bargaining Agreements (CBA’s) WHO HAS THE BURDEN OF PROOF? GR: EMPLOYEE Unless the employee set out in his complaint or affidavit the labor standards he is entitled which he alleged the employed failed to pay him, IT BECOMES THE EMPLOYER’S BURDEN TO PROVE THAT HE HAS PAID THESE MONEY CLAIMS. RATIONALE: Pertinent files, payrolls, records and remittances are not in the possession of worker but in the CUSTODY AND ABSOLUTE CONTROL OF THE EMPLOYER. G. RETIREMENT WHAT ARE THE TWO TYPLES OF RETIREMENT FIXED BY LAW? RETIREMENT PLAN. Employees and employers are free to agree and stipulate on the retirement age, either in the CBA or employment contract. It is only in the absence of such agreement, that the retirement age shall be fixed by law, that is in accordance with: 1. OPTIONAL RETIREMENT upon reaching the age of sixty (60) years 2. COMPULSARY RETIREMENT upon reaching the age of sixty-five (65) years If there is an agreement for an earlier or older age of retirement, retirement plan shall be controlling. WHAT IS THE MINIMUM AGE OF SERVICE? 5 years in the absence of retirement plan. VVI. MANAGEMENT PREROGATIVE The employer’s right to conduct the affairs of his business, according to its own discretion and judgment, is well recognized. An employer has a free reign and enjoys wide latitude of discretion to regulate all aspects of employment. This is a management prerogative, where the free will of management to conduct its own affairs to achieve its purpose takes form. [Torreda vs. Toshiba, G.R. No. 165960 (2007)] So long as a company’s management prerogatives are exercised in good faith for the advancement of the employer’s interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements A. DISCIPLINE WHAT ARE THE COMPONENTS? 1. Right to discipline; 2. Right to dismiss; 3. Right to determine who to punish; 4. Right to promulgate rules and regulations; 5. Right to impose penalty; proportionality rule; 6. Right to choose which penalty to impose; and 7. Right to impose heavier penalty than what the company rules provide. The employer’s right to conduct the affairs of his business, according to its own discretion and judgment, includes the prerogative to instill discipline in its employees and to impose penalties, including dismissal, upon erring employees. However, the Rules and Regulations and Penalties must be fair and reasonable. This management prerogative must not curtail the basic right of employees to security of tenure. B. TRANSFER OF EMPLOYEES WHAT ARE THE TWO KINDS OF TRANSFER? A transfer means a movement; 1. From one position to another of equivalent rank, level or salary, without break in the service; or 2. From one office to another within the same business establishment. OTHER TRANSFER: FORMS OF 1. Prerogative to reorganize and implement a job evaluation program; 2. Prerogative to promote; and 3. Prerogative to demote - Disciplinary action; or - Constructive dismissal. PRINCIPLES: An employee’s right to security of tenure does not give him such a vested right in his position as would deprive the company of its prerogative to change his assignment or transfer him where he will be most useful. The Employer has the right to transfer or assign Employees from one area of operation to another, or one office to another or in pursuit of its legitimate business interest. Provided there is no demotion in rank or diminution of salary, benefits and other privileges and not motivated by discrimination or made in bad faith, or effected as a form of punishment or demotion without sufficient cause. [Westin Phil. Plaza Hotel vs. NLRC] B. PRODUCTIVITY STANDARD WHEN IS BONUS DEMANDABLE AND ENFORCEABLE? 1. WHAT IS THE CONCEPT? 2. 1. Incentive scheme - employees who surpass the productivity quota or standards are usually given additional benefits; 2. Disciplinary scheme - employees may be sanctioned or dismissed for failure to meet the productivity standards or quota. The employer has the right to demote and transfer an employee who has failed to observe proper diligence in his work and incurred habitual tardiness and absences and indolence in his assigned work. [Petrophil Corporation vs. NLRC, G.R. No. L-64048 (1986)] C. BONUS GR: it is the amount granted and paid ex gratia to the employees. Its payment constitutes an act of enlightened generosity rather than as a demandable or enforceable obligation. It is the amount paid or granted to the employees for his industry and loyalty which contributed to the success of the employer’s business. The grant is a management prerogative and cannot be forced to the employer. 3. When it is stipulated in an employment contract or CBA; When the grant of bonus is a company policy or practice; When it is granted as an additional compensation which the employer agreed to give without any condition such as success of business or more efficient or more productive operation of wage or salary; hence demandable. It thus becomes a demandable and enforceable obligation only when it is made part of the wage or salary or compensation. When considered as part of the compensation and, therefore demandable and enforceable, the amount is fixed. But is the amount of bonus is dependent on the profits, the bonus is not demandable and enforceable. WHEN IS BONUS FORFEITED? It is valid for an employer to establish as policy that once an employee is found guilty of an administrative charge, he shall forfeit his bonus in favor of the employer.