HRM

REVIEWER

Laws on Wages and Working Hours in the Philippines

“ The State shall afford protection to labor, promote full employment,
ensure equal work opportunities regardless of sex, race or creed, and regulate
the relations between workers and employees. The state shall assure the rights
of workers to self-organization, collective bargaining, security of tenure and just
and humane conditions of work.” -Article XIII, Section 3, 1987 Philippine
Constitution .

 Labor Code of the Philippines as amended

 PD 928 as amended on minimum age
 PD 851 as amended on 13th month pay
 PD 525 as amended on emergency allowance
 Social Security Law as amended
 Revised Government Insurance Act
 Philippine Medical Care Act as amended

Rights of Employees
The Bureau of Working Conditions, a staff department of the Department
of Labor and Employment, compiled a list of Basic Rights that every
worker is entitled to. These rights ensure the safety and health of all
workers.

1. EQUAL WORK OPPORTUNITIES FOR ALL

The State shall protect labor, promote full employment, provide equal work
opportunity regardless of gender, race, or creed; and regulate relations
between employees and employers.
2. SECURITY OF TENURE
Every employee shall be assured security of tenure. No employee can be
dismissed from work except for a just or authorized cause, and only after
due process. Just cause refers to any wrongdoing committed by an
employee; authorized cause refers to economic circumstances that are not
the employee’s fault.

3. WORK DAYS AND WORK HOURS

An employee must be paid their wages for all hours worked. If their work
hours fall between 10:00 p.m. and 6:00 a.m., they are entitled to night shift
pay in addition to their pay for regular work hours. If they work over eight
hours a day, they are entitled to overtime pay.

4. WEEKLY REST DAY

A day-off of 24 consecutive hours after six (6) days of work should be
scheduled by the employer upon consultation with the workers.
5. WAGE AND WAGE-RELATED BENEFITS
Wage is the amount paid to an employee in exchange for to the service
that they rendered to their employer. Wage may be fixed for a given
period.
6. PAYMENT OF WAGES
Wages should be paid directly to the employee in cash, legal tender, or
through a bank.

Wages shall be given not less than once every two weeks or twice within a
month at intervals not exceeding 16 days.

7. FEMALE EMPLOYEES
Women are prohibited from engaging in night work unless the work is
allowed by the following rules: industrial undertakings from 10 p.m. to 6
a.m., commercial/non-industrial undertakings from 12 m.n. to 6 a.m., or
agricultural takings at night provided that she has had nine consecutive
hours of rest.

Welfare facilities, such as separate dressing rooms and lavatories, must

be installed at the workplace.

Employment are fixed and agreed upon. In collective bargaining, the two
parties also decide upon a method for resolving grievances. Collective
bargaining results in a contract called a Collective Bargaining Agreement
(CBA).

8. EMPLOYMENT OF CHILDREN
The minimum employment age is 15 years of age. Any worker below 15
years of age should be directly under the sole responsibility of parents or
guardians provided that work does not interfere with the child’s schooling
or development.

The minimum age of employment is 18 years for hazardous jobs, and 15

years for non-hazardous jobs. Hazardous jobs are.

9. SAFE WORKING CONDITIONS

Employers must provide workers with every kind of on-the-job protection
against injury, sickness or death through safe and healthful working
conditions.

10. RIGHTS TO SELF-ORGANIZATION AND COLLECTIVE BARGAINING

Every worker has the right to self-organization, i.e., to form or to join any
legitimate workers’ union, free from interference of their employer or the
government. All workers may join a union for the purpose of collective
 bargaining and is eligible for union membership on the first day of their
employment.

Collective bargaining is a process between two parties, namely the

employer and the union, where the terms and conditions of employment
are fixed and agreed upon. In collective bargaining, the two parties also
decide upon a method for resolving grievances. Collective bargaining
results in a contract called a Collective Bargaining Agreement (CBA).

Performance Management & Appraisal, Part I

 The purposes and requirements of an effective performance management

and appraisal system
 Legal and strategic issues in performance appraisal
 Appraisal formats: Advantages and disadvantages

Performance management
-Defines performance
-Facilitates Performance
-Encourages performance

Performance Appraisal
-Measures performance
-Evaluates performance
-Feed back the evaluation

Legal & Strategic Issues

Legal issues
-Performance appraisal is open to adverse impact
-Criteria must be applied equally

Strategic issues
-Organizations get what they reward
-Need to align strategy with performance management system

Using Performance Appraisal

Developmental
-Improving performance
-Career development
Administrative
-Salary decisions
-Promotion
-Retention

Relative & Absolute Judgments

Relative
-Ranking
-Forced distribution

Absolute
-Graphic rating scales
-Behavioral checklists
-Critical incidents

Scale Formats
Graphic Rating Scale
Quality of Work

1 2 3 4 5
Poor Below Average Good Excellent
Average

Graphic Rating Scale

clearer anchors

Quality of Work

1 2 3 4 5
Frequent Passable Usually Errors Accurate
Errors accurate rare

Trait and Behavioral Data

Traits
-Personality
-Individual traits

Behavioral data
-BARS (create dimensions, write critical incidents, rate critical
incidents, form scales with incidents as anchors
-BOS

Scale Formats
Behaviorally Anchored Rating Scale For Supervision
5: Can train and develop subordinates
4: Exhibits respect towards subordinates

3: Critical of personnel in front of others

2: Sets a poor example

1: Reneges on promises

 Outcome Data
 Quantitative data
-sales
-scrappage
-productivity

Backwards & Forwards

Summing up: We began with distinguishing performance management from
performance appraisal. Legal and strategic issues were considered and the
balance of the session reviewed different rating formats, their advantages and
disadvantages.
Looking ahead Next time we complete our discussion of performance
management by looking at challenges to effective performance management, the
appraisal interview, motivation, and performance improvement.

Compensation and Benefits

Types of Compensation
1. Direct compensation is the financial compensation, or cash, given from
the employer to the employee for their services.

 Base pay, also called basic salary or base salary, is a fixed amount that
employers pay their employees in exchange for services performed and
time spent working on the premises. This pay is agreed on before the start
of the employment contract. The compensation is often expressed as an
hourly rate, monthly or annual salary.

 Overtime pay is the amount of extra pay an employee receives for

working extra hours on top of their scheduled contract hours.

 Variable compensation (also known as variable pay) is compensation

given to an employee that is based on performance. The aim of variable
compensation is to reward and encourage a specific behavior or result.
 A sales compensation strategy is often used to motivate a sales team to
achieve its goals. It will typically comprise a base salary and be topped up
with commissions, bonuses, and other performance-based incentives, all of
which are tailored to the role and company in question.

 Indirect compensation refers to monetary and non-monetary incentives

given to an employee to increase their overall engagement and
motivation at work. This type of compensation still has a financial value, but
employees don’t receive it in cash form.
1. The employee is offered equity in the company via shares of stock or
the option to buy shares. This is a common part of compensation packages
within startups where cash is low, and they desire to reward employees who
are the first through the door.

2. Stock options. An employee is entitled to purchase a number of shares

in the company at a fixed price after working for the company for a set
period (typically three to five years). They won’t have any ownership of the
company.

 Benefits to protect employees. Employees often offer a wide range of

benefits that are meant to protect employees’ future, including health
insurance, life insurance, pet insurance, pension plans, and more.

 Non-monetary incentives. Non-monetary perks include experiential

rewards, time to work on self-determined projects, additional time off,
flexible working, extra opportunities for development, wellness
programs, restaurant vouchers, free snacks or meals at the office, and
branded merchandise.

Total Compensation Package

 A total compensation package is the combination of direct and indirect
forms of compensation, which is then presented to an employee as part
of their contract. It’s an important part of a company’s talent acquisition
strategy. Benefits are often also considered part of the total compensation
package.
Benefits at work
 Flexible working hours mean that employees are able to have some
control over their schedule and work at times most convenient for
them. This is especially important for parents, pet owners and carers.

 Paid time off is usually given to salaried employees and termed as

annual leave. This is typically in the range of two to four weeks each
year, which the employee can use as and when they like.

 There are many other types of leave that an organization can offer its
employees, including sick leave, parental leave, public holidays,
bereavement leave, study leave, adverse weather leave, volunteer
time off, and more.

 Skills development. Another benefit that employers can offer is

funding for extra tuition or student loans, as well as budgeting for
online courses, workshops, and certification programs that help
employees learn new skills and progress in their careers.

 Food & beverages. Offering free or discounted food and beverages at

work is a popular voluntary benefit and can go a long way in
improving the happiness of your staff.

 Gifts & activities. Whether it’s a team bonding experience, an

evening out, company swag, recognition rewards, or even a birthday
gift, these small perks all contribute to a happy and positive work
environment.

Benefits for health

 Healthcare. This includes common healthcare such as health
insurance, dental plans, and vision plans. But some companies go the
extra mile by offering more specialized services such as massage
therapy, physiotherapy, acupuncture, fertility treatment, and more.

 Wellness incentives. As a society, we are starting to acknowledge

that health does not just relate to the physical body but also the
emotional, mental, and spiritual body. Therefore, many companies
are taking a more holistic approach to health and offering more
encompassing wellness incentives for employees. This includes
therapy sessions, a care plan for each employee, sleep pods to take a
quick power nap at work, and more.

Benefits for financial security

 Retirement and pension plans. Participating in a sponsored
retirement plan with their employer often feels easier to people than
trying to save and invest on their own.

 Insurances. Aside from health insurance, life insurance can be a great

perk for employees with dependents. It usually pays out a large one-
time sum if the employee passes away.

 Financial growth benefits. This includes stock options, stock

ownership, and profit-sharing plans, all of which can boost
productivity and inspire employees to work harder and achieve their
goals.

 Personal finance benefits. Some companies now offer financial

literacy programs to employees, which provide online resources,
tools, and coaching to help them better manage their money and
improve their financial situation.

Lifestyle benefits
 Remote work. Remote work means that employees have the
freedom to work from wherever they choose, either all the time or
for a set number of days per week or per year.
 Commuter benefits. Commuter benefits include providing a
company vehicle, subsidizing public transportation or car park fees,
and running a carpooling scheme.

 Work-life balance. This includes perks that help employees achieve

better work-life balance. For example, providing on-site childcare,
on-site grocery deliveries, dry cleaning services, and more.

Recruitment
Edwin Flippo-
- ‘Recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for job in the organisation.’
-It is process to search for prospective employees.
- It stimulates and encourages prospective employees to apply for the job.