Company policies
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COMPANY POLICIES MANAGEMENT PREROGATIVE IN WRITING richo B. del Puerto. All rights reserved. For permissions to use this material, send a request to this e-mail address: [email protected]
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Transcript of Company policies
COMPANY POLICIESMANAGEMENT PREROGATIVE IN WRITING
©2015, Atty. Jericho B. del Puerto. All rights reserved. For permissions to use this material, send a request to this e-mail address: [email protected]
“”
Company policies lay down the rules in the workplace.
- ATTY. JERICHO B. DEL PUERTO
Business Lawyer & Legal ConsultantJDP Consulting Ltd. Co.
Business Law ProfessorSan Beda Graduate School of Business
Book Author, Legal Aspects of BusinessCentral Books Publishing
What arecompany policies?
Company policies are the rules and regulations in the workplace.
“It is recognized principle that company policies and regulations are, unless shown to be grossly oppressive or contrary to law, generally valid and binding on the
parties and must be complied with until finally revised or amended, unilaterally or preferably through negotiation, by competent authority.”
Tanala v. NLRC, Via Mare Catering Services, G.R. No. 116588, 24 January 1996
What is the basis forcompany policies?
Management prerogative is the basis for company policies.
The principle of management prerogative is that right of the employers to regulate all aspects of employment.
“Jurisprudence recognizes the exercise of management prerogatives. Labor laws also discourage interference with an employer’s judgment in the conduct of its
business.”
Endico v. Quantum Foods Distribution Center, G.R. No. 161615, 30 January 2009
What is the importance of having good company
policies?Company policies form part of the employment contracts.
They create rights and obligations between employers and employees.
“Whenever there is doubt, all labor laws and employment contracts are construed in favor of the safety and decent living of the laborer.”
Art. 1702, Civil Code of the Philippines
What are the usual contents of company policies?
Contents1. Company Profile
2. Mission and Vision
3. Working Conditions
4. Monetary Benefits
5. Leaves
6. Violations
7. Disciplinary Actions
8. Miscellaneous
MandatoryA. Sexual Harassment
B. Drug-Free Workplace
C. HIV-AIDS
D. Hepatitis B
What are the usual contents of company policies?
COMPANY PROFILE A short introduction of the
company
Company values, aspirations and principles
General background or history of the company
MISSION & VISION Company objectives, goals,
and targets
Over-all direction and thrust of the company
Roadmap towards achieving these objectives
What are the usual components of company policies?
WORKING CONDITIONS Working days and time of the
week
Rest day of the week
Rules on overtime work
1-hour meal period
20-minute short rest
Compensable working hours
MONETARY BENEFITS Holiday pay
Overtime pay
Premium pay
Night shift differential pay
Service charges
13th month pay
Separation pay
Retirement pay
What are the usual components of company policies?
LEAVES Service incentive leave or
vacation leave, and sick leave
Maternity leave
Paternity leave
Solo parental leave
VAWC leave
Company-authorized leaves
VIOLATIONS Company violations and
offenses
Just causes: serious misconduct, willful disobedience, gross and habitual neglect, breach of trust, commission of a crime against person, etc.
Absence without leave (AWOL)
What are the usual components of company policies?
DISCIPLINARY ACTION Penalties and sanctions
Preventive suspension or penalty of suspension
Termination or dismissal
MISCELLANEOUS Clearance process in case of
termination of employment
Release, Waiver, and Quitclaim
What are the required components of company policies?
SEXUAL HARASSMENT Complaint process, including
reporting of harassment
Due process to give both sides the opportunity to be heard
Sanctions and penalties, including termination
Rules against retaliation
DRUG-FREE WORKPLACE Rules on random drug testing
Process of selection
Date and time to be conducted
Sanctions and penalties, including termination
What are the required components of company policies?
HIV-AIDS Non-discrimination and
confidentiality
Advocacy, information, education and training
Workplace education package on HIV and AIDS based on curriculum by Inter-Agency Committee (IAC) on STD
Work accommodation and arrangement
HEPATITIS B Non-discrimination and
Confidentiality
Rights-based, incorporating human rights standards and principles
Advocacy, information, education and training
Preventive strategies
Work accommodation and arrangement
Do company policies need to have all of these?
Except for those that are required, company policies depend on the rules and conditions of employment laid down by the
management.
What if the company policies do not provide for
these?
Labor laws are written into employment contracts.
Thus, the employees are entitled to statutory monetary claims and benefits even if they are not provided in the company policies, employment contracts, and CBA.
What should management do if it revises the company policies?
Employees should be given an opportunity to access the revised company policies. If they ask for a copy, they should be given one.
What are the consequences for having poorly written employment contracts?Company policies may be the basis for an employee’s rights.
Poorly written employment contracts may result in creating unintended rights in favor of the employees which the management will be bound to
observe. Failure to comply with these, a labor complaint may result exposing the employer to liabilities and costs for litigation.
How do you avoid such liabilities?
Management should observe best legal practices to avoid such consequences and liabilities.
Best legal practices are best practices with legal compliance. For employment, they are sourced from labor laws, rules & regulations, jurisprudence, and best practices.
What are these best legal practices for company policies?
Ensure that the company policies are in compliance with current labor laws, rules, and jurisprudence
Clearly and expressly state the working conditions, monetary claims, benefits, leaves, violations, disciplinary actions, and so on
Whenever necessary, provide for their scope and extent of applicability
Harmonize the company policies with the employment contracts and company practices
Document and announce revisions to the entire workforce, as well as allow employees the opportunity to read them
Have there been cases when company policies
were used in labor cases?
Yes, there are numerous Supreme Court Decisions or Jurisprudence wherein company policies were used either for or against the
employer.
Jurisprudence or Supreme Court Decisions…
GENERAL Company policies
and regulations are generally valid and binding and must be complied with until finally revised or amended by competent authority.
- Tanala v. NLRC, Via Mare Catering Services, G.R. No. 116588, 24 January 1996
IN FAVOR An employee was
validly dismissed after refusing to attend a “Values Transformation Seminar” where company policies are primarily discussed.
– Canadian Opportunities Unlimited v. Dalangin, G.R. No. 172223, 06 February 2012
AGAINST
An employer was liable for illegal dismissal after dismissing employees in violation of its own company policies on drug testing.
- Plantation Bay Resort and Spa v. Dubrico, G.R. No. 182216, 04 December 2009
“”
Company policies may help shield the company from labor complaints.
- ATTY. JERICHO B. DEL PUERTO
For more information, contact:
JDP CONSULTING LTD. CO.Call: (+632) 479-5405, Fax: (+632) 479-5401Mobile: (+63) 917-622-0124E-mail: [email protected]: www.jdpconsulting.ph
You may also want to visit:
www.legalaspects.phBusiness Laws & Best Legal Practices
©2015, Atty. Jericho B. del Puerto. All rights reserved. For permissions to use this material, send a request to this e-mail address: [email protected]
