PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
Developer’s Background
I.
Hi, I’m Jerich Ralph S. Lobo, your instructor for the subject PA 6. If you have queries
regarding this reviewer, feel free to ask.
REVIEWER FOR MIDTERM EXAMINATION
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LABOR
It is the exertion by human beings of physical or mental efforts, or both, towards the production of
goods and services (Poquiz, 2012, p. 1).
(1987 Constitution, Art. II, Sec. 18).:
•
The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare
Labor Law:
•
The law that governs the rights and duties of the employer (Er) and employees (Ee) with
respect to:
1. The terms and conditions of employment, and
2. Labor disputes arising from collective bargaining or other concerted activity
respecting such terms and conditions.
Basic Rights of Workers Guaranteed by the Constitution
1. Security of tenure
2. Living wage
3. Share in the fruits of production
4. Just and humane working conditions
5. Self-organization
6. Collective bargaining
7. Collective negotiations
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
8. Engage in peaceful concerted activities, including the right to strike
9. Participate in policy and decision-making processes (1987 Constitution, Art. XIII, Sec. 3).
Labor Code
Presidential Decree No. 442 otherwise known as the Labor Code of the Philippines is a decree
instituting a Labor Code, thereby revising and consolidating labor and social laws to afford
protection to labor, promote employment and human resources development and ensure industrial
peace based on social justice. It is a charter of human rights and a bill of obligations for every
working man.
Father of Labor Code
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Former Minister of Labor, Mr. Blas Ople
Employer
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The employer may be a natural or juridical person. It may be a single proprietor, a
partnership or a corporation.
Employee
•
Only a natural person can qualify as an employee. Natural persons may include Filipino
citizens and foreigners.
Existence of an employment relationship
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Employment relationship is determined by law and not by contract (Insular Life Assurance
Co. Ltd. v. NLRC, G.R. No. 119930, March 12, 1998).
Employer-Employee Relation as a Question of Law (Stipulation that No Er-Ee Relationship
Exists)
•
the employment status of a person is defined and prescribed by law and not by what the
parties say it should be. In determining the status of the management contract, the FourFold Test on employment has to be applied (Insular Life Assurance Co. Ltd. v. NLRC,
G.R. No. 119930, March 12, 1998).
Employer-Employee Relation as a Question of Fact
•
The existence of an employer-employee relationship depends upon the facts of each case
(Social Security System v. CA, G.R. No. 100388, December 14, 2000)
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
FOUR- FOLD TEST
Factors determining the existence of an employer-employee relationship
The four–fold test (indicia of determination):
1. Selection and engagement of the employee;
2. Payment of wages;
3. Power of dismissal; and
4. Power of control (1 Azucena, 2016 p. 189)
It is the so-called “control test” that is the most important element.
Absent the power to control to the employee with respect to the means and methods of
accomplishing his work, there is no employer employee relationship between the parties
(Continental Marble Corp., et.al v. NLRC, G.R. No. 43825, May 9, 1988).
Control test
The control test assumes primacy in the overall consideration. There is an Er-Ee
relationship when the person for whom the services are performed reserves the right to control not
only the end achieved but also the manner and means used to achieve that end (Television and
Production Exponents Inc. v. Servana, 542 SCRA 578).
The control test calls merely for the existence of the right to control the manner of doing
the work, not the actual exercise of the right.
removal of agents under private respondents' unit, collection of premiums, furnishing of
company facilities and materials as well as capital described as Unit Development Fund are but
hallmarks of the management system where there can be no escaping the conclusion that one is an
employee of the insurance company (Insular Assurance Co., Ltd., v. NLRC, G.R. No. 119930,
March 12, 1998).
Kinds of control exercised by an Er
Not every form of control establishes employer-employee relationship. A demarcation line should
be drawn between:
1. That merely serve as guidelines which only promote the result; and
2. Rules that fix the methodology and bind or restrict the party hired to the use of such means or
methods.
Under the first category, there exists no employer-employee relationship. In the second category,
it has the effect of establishing employer-employee relationship (Insular life v. NLRC, 179 SCRA
439; Consulta v. CA, G.R. No. 145443, March 18, 2005).
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
Kinds of Employment
1. As to tenure
a. Permanent- who is appointed to a job for an undefined and indefinite period.
b. Temporary/Probationary- one who stays on the job for a defined or preagreed period (1
Azucena, 2016 p. 210).
2. As to Labor Code Book VI
a.
b.
c.
d.
e.
f.
Regular
Project
Seasonal
Casual
Probationary
Fixed-term
1. REGULAR EMPLOYMENT
a. As to nature of work – An employment shall be deemed to be regular where the Ee
has been engaged to perform activities which are usually necessary or desirable in the
usual business or trade of the Er, the provisions of written agreements to the contrary
notwithstanding and regardless of the oral agreements of the parties (IRR, Book VI,
Rule I, Sec. 5 [a]).
b. As to length of service – Any Ee who has rendered at least one (1) year of service,
whether such service is continuous or broken, shall be considered a regular Ee with
respect to the activity in which he is employed and his employment shall continue while
such activity exists (IRR, Book VI, Rule I, Sec. 5 [b]).
What determines regularity or casualness is not the employment contract, written or
otherwise, but the nature of the job (Policy Instruction No. 2).
2. PROJECT EMPLOYMENT
A "project" has reference to a particular job or undertaking that may or may not be
within the regular or usual business of the Er. In either case, the project must be distinct,
separate and identifiable from the main business of the Er, and its duration must be
determined or determinable (PAL v. NLRC, G.R. No. 125792, November 9, 1998).
Project employment is employment that has been fixed for:
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a. Specific undertaking – a specific project or undertaking the completion; or
b. Time-bound – termination of which has been determined at the time of
engagement of the Ee (IRR, Book VI, Rule I, Sec. 5[a]).
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Requisites in determining whether an Ee is a project Ee
1. Designation of named Ees as “Project Ees”;
2. The project Ee was assigned to carry out a specific project or undertaking;
3. The duration and scope of which were specified at the time the Ee was engaged for
that project (Imbuido v. NLRC, G.R. No. 114734, May 31, 2000);
4. The Ee must have been dismissed every after completion of his project or phase;
5. Report to the DOLE of Ee’s dismissal on account of completion of contract(Policy
Inst. No. 20; D.O. 19 [1997]).
TAKE NOTE
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The period is not the determining factor, so that even if the period is more than 1
year, the Ee does not necessarily become regular.
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Repeated hiring on a project-to-project basis is considered necessary and desirable
to the business of the Er. The Ee is deemed regular (Maraguinot v. NLRC, G.R.
No. 120969, July 22, 1998).
3. SEASONAL EMPLOYMENT
• Employment where the job, work or service to be performed is seasonal in nature and the
employment is for the duration of the season [IRR, Book VI, Rule I, Sec.5 (a)].
• An employment arrangement where an Ee is engaged to work during a particular season on
an activity that is usually necessary or desirable in the usual business or trade of the Er
• NOTE: For Seasonal Ees, their employment legally ends upon completion of the project or
the season. The termination of their employment cannot and should not constitute an illegal
dismissal (Mercado v. NLRC, G.R. No. 79869, September 5, 1991).
• One year duration on the job is pertinent in deciding whether a casual Ee has become regular
or not, but it is not pertinent to a Seasonal or Project Ee. Passage of time does not make
a seasonal worker regular or permanent (Mercado v. NLRC, G.R. No. 78969,
September 5, 1991).
• During off-season, the relationship of Er-Ee is not severed; the Seasonal Ee is merely
considered on LOA without pay.
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
• Seasonal workers who are repeatedly engaged from season to season performing the same
tasks are deemed to have acquired regular employment (Hacienda Fatima v. National
Federation of Sugarcane Workers-Food and General Trade, G.R. No. 149440, January 28,
2003).
4. CASUAL EMPLOYMENT
• It is an employment where the Ee is engaged in an activity which is not usually necessary
or desirable in the usual business or trade of the Er, provided: such employment is neither
Project nor Seasonal (LC, Art. 281).
• He performs only an incidental job in relation to the principal activity of the Er.
• If he has rendered at least 1 year of service, whether such service is continuous or broken,
he is considered as regular Ee with respect to the activity in which he is employed and his
employment shall continue while such activity exists.
• A casual Ee is only casual for 1 year, and it is the passage of time that gives him a regular
status (KASAMMA-CCO v. CA, G.R. No. 159828, April 19, 2006).
• The purpose is to give meaning to the constitutional guarantee of security of tenure and right
to self-organization (Mercado v. NLRC, G.R. No. 79868, September 5, 1991).
5. FIXED TERM EMPLOYMENT
• A contract of employment for a definite period terminates by its own terms at the end of
such period (Brent School v. Zamora, G.R. No. L-48494, February 5, 1990).
• Term employment is not a circumvention of the law on security of tenure if it follows the
requisites laid down by the Brent ruling (Romares v. NLRC, G.R. No. 122327, August 19,
1998).
• Brent Doctrine
Article 295 of the Labor Code does not prohibit an employment contract with a fixed
period, provided it is entered into by the parties without any force, duress of improper
pressure being brought to bear upon either party, particularly the employee and absent any
other circumstances vitiating consent. Such employment for a defined period is allowed
even where the duties of the employee consist of activities usually necessary or desirable
in the usual business of the employer.
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
6. PROBATIONARY EMPLOYMENT
• Probation is the period during which the employer may determine if the employee is
qualified for possible inclusion in the regular force (Holiday Inn Manila v. NLRC, G.R.
No. 109114, September 14, 1993).
• Employment where the Ee, upon his engagement:
1. Is made to undergo a trial period
2. During which the Er determines his fitness to qualify for regular employment,
3. Based on reasonable standards made known to the Ee at the time of engagement (IRR,
Book VI, Rule I, Sec 6).
• Rules on probationary employment
1. Er shall make known to the Ee at the time he is hired, the standards by which he will
qualify as a regular Ee;
2. Probationary employment must have been expressly agreed upon; without such explicit
agreement, the employment is considered regular;
3. An Ee allowed to continue work after the probationary period shall be considered a
regular Ee;
4. During the probationary period, the Ee enjoys security of tenure; his services can only
be terminated for just or authorized causes.
• Period of probationary employment
GR: It shall not exceed 6 months.
XPNs:
1. Covered by an Apprenticeship or Learnership agreement stipulating a different period;
2. Voluntary agreement of parties (especially when the nature of work requires a longer period)
NOTE: By voluntarily agreeing to such an extension, the Ee waived any benefit attaching
to the completion of the period if he still failed to make the grade during the period of
extension (Mariwasa Mfg. Inc. v. Hon. Leogardo, G.R. No. 74246, January 26, 1989);
3. The Er gives the Ee a second chance to pass the standards set (Mariwasa Manufacturing,
Inc. v. Leogardo, Jr., G.R. No. 74246, January 26, 1989);
4. When the same is required by the nature of the work, e.g. the probationary period set for
professors, instructors and teachers is 3 consecutive years of satisfactory service pursuant
to DOLE Manual of Regulations for Private Schools;
5. When the same is established by company policy.
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
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RECRUITMENT AND PLACEMENT
• Article 38 of the Labor Code applies to both local and overseas employment
• RA 8042 (Migrant Workers Act) as amended by RA 10022 and its implementing rules has
broadened the concept of illegal recruitment
License v. Authority
Non-Licensee or Non-Holder of Authority
• Any person, partnership, or corporation with no valid license or authority to engage in
recruitment and placement of workers or whose license or authority is revoked, cancelled,
terminated, expired, or otherwise delisted from the roll of licensed recruitment/manning
agencies registered with the Philippine Overseas Employment Administration (POEA) or
DOLE
Illegal Recruitment
When any of the following acts are undertaken by a non-licensee or non-holder of authority:
any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, procuring workers and
includes referring, contact services, promising or advertising for employment abroad, whether for
profit or not
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
Types of Illegal Recruitment
1. Simple illegal recruitment; and
2. Illegal recruitment involving economic sabotage, consisting of either:
2.1. Illegal recruitment committed by a syndicate; or
2.2 Illegal recruitment committed in large scale
1. Simple Illegal Recruitment
Covers any recruitment and placement activity undertaken by a non-licensee or a nonholder of authority.
Also includes the commission of prohibited acts as enumerated under the law, not only by
a non-licensee or a non-holder of authority, but also a licensee or holder of authority
ELEMENTS:
a. That the offender engages in acts of recruitment and placement of workers as defined
under Article 13 (b) of the Labor Code, or in any prohibited activities enumerated under
the law, irrespective whether the offender is a non-licensee, non-holder, licensee or
holder of authority;
b. That the offender has no valid license or authority required by law to enable him to
lawfully engage in the recruitment and placement of workers;
c. That the number of recruiter(s) who committed the unlawful act and/or recruitee(s) who
fell victim(s) thereto should not be more than two (2) persons
2. Syndicated Illegal Recruitment
Illegal recruitment is deemed committed by a syndicate if it is carried out by a group of
three or more persons conspiring or confederating with one another
3. Large-scale Illegal Recruitment
Illegal recruitment is deemed committed in large scale when it is committed against three
or more persons, individually or as a group
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
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HUMAN RESOURCE
MANAGEMENT AND
DEVELOPMENT
Human - refers to the skilled workforce in an organization
Resource - refers to limited availability or scarce
Management - refers how to optimize and make best use of such limited or scarce resource so as
to meet the organization goals and objectives.
Human Resource Management:
- is a management function concerned with hiring, motivating and maintaining people in an
organization.
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It focuses on people
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is designing management systems to ensure that human talent is used effectively and
efficiently to accomplish organizational goals
Goals of HRM:
> Ensures effective utilization and maximum development of human resources.
>Identifies and satisfies the needs of individuals.
>Achieves and maintains high morale among employees.
>Provides the organization with well-trained and well-motivated employees.
Functions of HRM:
>Recruitment and selection
>Performance management
>Learning & development
>Succession planning
>Compensation and benefits
>Human Resources Information Systems
>HR data and analytics
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
1)Societal Objectives:
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seek to ensure that the organization becomes socially responsible to the needs and
challenges of the society while minimizing the negative impact of such demands upon the
organization. The failure of the organizations to use their resources for the society’s benefit
in ethical ways may lead to restriction.
2) Organizational Objectives:
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it recognizes the role of HRM in bringing about organizational effectiveness. It makes sure
that HRM is not a standalone department, but rather a means to assist the organization with
its primary objectives. The HR department exists to serve the rest of the organization.
3) Functional Objectives:
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is to maintain the department’s contribution at a level appropriate to the organization’s
needs. Human resources are to be adjusted to suit the organization’s demands. The
department’s value should not become too expensive at the cost of the organization it
serves.
4) Personnel Objectives:
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it is to assist employees in achieving their personal goals, at least as far as these goals
enhance the individual’s contribution to the organization. Personal objectives of employees
must be met if they are to be maintained, retained and motivated. Otherwise employee
performance and satisfaction may decline giving rise to employee turnover.
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PA6 – HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
What is Human Resource Development?
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deals with training and development of the employees in the organization.
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Human Resource Development (HRD) is the framework for helping employees develop
their personal and organizational skills, knowledge, and abilities.
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Even an organization that has reached its limit of growth, needs to adapt to the changing
environment.
Functions of HRD:
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The core of the concept of HRS is that of development of human beings.
The concept of development should cover not only the individual but also other units in
the organization.
HRD Systems must develop:
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The capabilities of each employee as an individual
The relationship between each employee and his or her supervisor.
The team spirit and functioning in every organizational unit
The organization's overall developmental health
Benefits of HRD
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HRD makes people more competent.
HRD can make people become more committed to their jobs.
It improves the all-round growth of the employees.
It also helps to create the efficiency culture In the organization
References:
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The Association of Business Executives, William House, 14 Worple Road, Wimbledon,
London, SW194DD, United Kingdom
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Pinoy-style HRM: Human Resource Management in the Philippines, JAN SELMER and
CORINNA DE LEON
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Richard Swanson and Elwood Holton. 2005. Foundations of Human Resource
Development. Koehler Publishers
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John Wilson. 2011. Human Resource Development: Learning and Training for Individuals.
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P.D. 442 or the Labor Code of the Philippines.
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E.O. 292 or the Administrative Code of the Philippines.
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