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Copy of Changes in Personnel Status Transfer, Promotion, Demotion, and Separation

chapter 10
by

Dee Jae Aragrev

on 15 August 2013

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Transcript of Copy of Changes in Personnel Status Transfer, Promotion, Demotion, and Separation

CHAPTER 10
Changes in Personnel Status Transfer, Promotion, Demotion, and Separation
Why Study Possible Changes in Personnel Status
To know what are the possible changes in the status of an employee and the causes of these changes in status from time he is hired until termination or retirement.
To understand the procedure in the transfer, promotion, demotion or termination of an employee.
To understand the provisions of law regarding these changes in the status of an employee.
TRANSFER
~takes place when an employee is moved from one job to another of equivalent rank or of the same pay class within the firm.
REASONS FOR TRANSFER
the employee’s talents and training may be put to more effective use
a means of encouraging versatility and flexibility among employees
TRANSFER IS USEFUL DUE TO:
business expansion
retrenchment because of poor business
erroneous placement
the need to meet departmental personnel requirements during a peak season
the need to absorb excess personnel during slack periods
the need to protect the health and safety of the employees
2 KINDS OF TRANSFER
permanent - made to fill vacancies requiring the special skills or abilities of the employee being transferred
temporary -made due to the temporary absence of an employee, e.g., in cases of sick leave, vacation leave, or shifts in the work load during peak periods
PROMOTION
~is the movement of the employee from one position to another of a higher level involving more difficult duties and greater responsibilities and carrying higher pay, higher status and/or offering better privileges.
REASONS FOR EMPLOYEE PROMOTIONS
an effective way to keep good men in the firm
as recognition of and reward for good performance
to boost employee morale and encourage the employees to render to the company the best service they are capable of
GUIDELINES FOR POLICY OF PROMOTION
What should be the basis for promotions? should it be merit first and seniority next when candidates are equally qualified or should seniority alone be considered regardless of merit?
Who should recommend promotions? The immediate supervisor or department head?
Will the promotion be permanent or probationary or temporary? Will a promotional increase in salary be granted at the time of promotion, or upon permanent appointment in the new job?
Will there be a specified probationary period in the new job?
What steps should be taken if the employee does not meet the requirements of the new job after a probationary period?
What is his records of attendance and performance?
What potential ability he possess?
SENIORITY VS. MERIT IN EMPLOYMENT
“seniority rule” is the practice of basing rights to employment and job opportunities upon the employee’s relative length of service in the firm.
is often used as a basis for promotion, transfer, layoff, rehiring, and other actions that have a bearing on the employee’s status.
is a potent factor in building morale and instilling loyalty among employees.
DEMOTION
~ to reduce in grade, rank, or status; occurs when a classified employee (“employee”) is reassigned to a position with a salary range that is lower than the salary range of the former position.
REASONS OF DEMOTION
reduction in business so that the number of positions at certain levels must be reduced, or elimination of certain functions requiring a reduction in manpower. This demotion is not due to the fault of the employee.
Failure of the employee either to qualify for work on the occupational level to which he has been assigned or to meet established job standards.
As a form of disciplinary or punitive action against an employee found guilty of violating company policies or rules. Such an action is seldom resorted to in most business concerns because it lowers morale and can have an adverse effect on the employee’s performance.
Inability of the employee to meet the requirements of the job due to age, poor health, or physical disability.
SEPARATION
is the termination of employment as a result of resignation, layoff, or discharge. Voluntary separation is better known as resignation or quit. Resignation or quit is the termination of employment, generally initiated by the employee.
CAUSES OF RESIGNATION
•Dissatisfaction about wages and working conditions
•misunderstandings with supervisors or fellow workers
•inconvenient work hours are among the chief reasons for employee resignation
TERMINATION OF
EMPLOYMENT

Ways of terminating employment under different circumstances and the compensation of employees who are terminated are covered in the following Articles in Book Six of the Labor Code:
1. Article 279. Security of Tenure
2. Article 280. Regular and casual employment
3. Article 281. Probationary employment.
4. Article 282. Termination by Employer
5. Article 283. Reduction of personnel
6. Article 284. Disease as a ground for termination
7. Article 285. Termination by employee
8. Article 286. When employment not deemed terminated
9. Article 287. Retirement

1.
What is the right to security of tenure?
The right to security of tenure means that a regular employee shall remain employed unless his or her services are terminated for just or authorized cause and after observance of procedural due process.

2. May an employer dismiss an employee? What are the grounds?
Yes. An employer may dismiss an employee on the following just causes:
a) serious misconduct;
b) willful disobedience;
c) gross and habitual neglect of duty;
d) fraud or breach of trust;
e) commission of a crime or offense against the employer, his family or representative;
f) other similar causes.

3. Are there other grounds for terminating an employment? What are they?
Yes. The other grounds are authorized causes:
a) installation of labor-saving devices;
b) redundancy;
c) retrenchment to prevent losses;
d) closure and cessation of business; and
e) disease / illness.

4. Before terminating the services of an employee, what procedure should the employer observe?
An employer shall observe procedural due process before terminating one’s employment.

5. What are the components of procedural due process?
A. In a termination for just cause, due process involves the two-notice rule:
a) A notice of intent to dismiss specifying the ground for termination, and giving said employee reasonable opportunity within which to explain his or her side;
b) A hearing or conference where the employee is given opportunity to respond to the charge, present evidence or rebut the evidence presented against him or her;
c) A notice of dismissal indicating that upon due consideration of all the circumstances, grounds have been established to justify termination.

B. In a termination for an authorized cause, due process means a written notice of dismissal to the employee specifying the grounds at least 30 days before the date of termination. A copy of the notice shall also be furnished the Regional Office of the Department of Labor and Employment (DOLE) where the employer is located.

6. What is the sanction if the employer failed to observe procedural due process in cases of legal and authorized termination?
In cases of termination for just causes, the employee is entitled to payment of indemnity or nominal damages in a sum of not more than 30,000 pesos (Agabon vs. NLRC, 442 SCRA 573); in case of termination for authorized causes, 50,000 pesos (Jaka Food Processing vs. Darwin Pacot, 454 SCRA 119).

7. May an employee question the legality of his or her dismissal?
Yes. The legality of a dismissal may be questioned before the Labor Arbiter of a Regional Arbitration Branch of the National Labor Relations Commission (NLRC), through a complaint for illegal dismissal. In establishments with a collective bargaining agreement (CBA), the dismissal may be questioned through the grievance machinery established under the CBA. If the complaint is not resolved at this level, it may be submitted to voluntary arbitration.

8. In cases of illegal dismissal, who has the duty of proving that the dismissal is valid?
The employer.

9. Suppose the employer denies dismissing the employee, who has the duty to prove that the dismissal is without valid cause?
The employee must elaborate, support or substantiate his or her complaint that he or she was dismissed without valid cause (Ledesma, Jr. vs. NLRC, 537 SCRA 358, October 19, 2007).

10. On what grounds may an employee question his or her dismissal?
An employee may question his or her dismissal based on substantive or procedural grounds.
The substantive aspect pertains to the absence of a just or authorized cause supporting the dismissal.
The procedural aspect refers to the failure of the employer to give the employee the opportunity to explain his or her side.

11. What are the rights afforded to an unjustly dismissed employee?
An employee who is dismissed without just cause is entitled to any or all of the following:
a) reinstatement without loss of seniority rights;
b) in lieu of reinstatement, an employee may be given separation pay of one month pay for every year of service (Golden Ace Builders, et. al vs. Jose Talde, May 5, 2010, GR No. 187200);
c) full backwages, inclusive of allowances and other benefits or their monetary equivalent from the time compensation was withheld up to the time of reinstatement;
d) damages if the dismissal was done in bad faith (Aurora Land Project Corp. vs NLRC, 266 SCRA 48).

12. What is reinstatement?
Reinstatement means restoration of the employee to the position from which he or she has been unjustly removed.
Reinstatement without loss of seniority rights means that the employee, upon reinstatement, should be treated in matter involving seniority and continuity of employment as though he or she had not been dismissed from work.
When a Labor Arbiter rules for an illegal dismissal, reinstatement is immediately executory even pending appeal by the employer (Article 223 of the Labor Code, as amended).

13. In what forms may reinstatement pending appeal be effected?
Reinstatement pending appeal may be actual or by payroll, at the option of the employer.

14. What is meant by full backwages?
Full backwages refer to all compensations, including allowances and other benefits with monetary equivalent that should have been earned by the employee but was not collected by him or her because of unjust dismissal. It includes all the amounts he or she could have earned starting from the date of dismissal up to the time of reinstatement.

15. What is separation pay?
In termination for authorized causes, separation pay is the amount given to an employee terminated due to installation of labor-saving devices, redundancy, retrenchment, closure or cessation of business or incurable disease.
Separation pay may also be granted to an illegally dismissed employee in lieu of reinstatement.

16. How much is the separation pay?
In cases of installation of labor-saving devices or redundancy, the employee is entitled to receive the equivalent of one month pay or one month for every year of service, whichever is higher.
In cases of retrenchment, closure or cessation of business or incurable disease, the employee is entitled to receive the equivalent of one month pay or one-half month pay for every year of service, whichever is higher.
In case of separation pay in lieu of reinstatement, the employee is entitled to receive the equivalent of one month pay for every year of service.

17. Is proof of financial losses necessary to justify retrenchment?
Yes. Proof of actual or imminent financial losses that are substantive in character must be proven by the employer to justify retrenchment (Lopez Sugar Central vs. NLRC, 189 SCRA 179).

18. Are there other conditions before an employee may be dismissed on the ground of redundancy?
Yes. It must be shown that there is:
a) Good faith in abolishing redundant position; and
b) Fair and reasonable criteria in selecting employees to be dismissed, such as but not limited to less preferred status (e.g. temporary employee), efficiency and seniority (Asian Alcohol Corp. vs. NLRC, 305 SCRA 416);
c) A one-month prior notice is given to the employee and DOLE Regional Office as prescribed by law.

19. May the services of an employee be terminated due to disease?
Yes. The employer may terminate employment on ground of disease only upon the issuance of a certification by a competent public health authority that the disease is of such nature or at such stage that it cannot be cured within a period of six months even with proper medical treatment.

20. What is constructive dismissal?
Constructive dismissal refers to an involuntary resignation resorted to when continued employment becomes impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution in pay; or when a clear discrimination, insensibility or disdain by an employer becomes unbearable to an employee or an unwarranted transfer or demotion of a employee, or other unjustified action prejudicial to the employee. The employer has to prove that such managerial actions do not constitute constructive dismissal (Blue Dairy Corp. vs. NLRC, 314 SCRA 401)

21. May an employee be placed on floating status?
Yes, provided it is permitted under circumstances for a period of not more than six (6) months. Beyond this period, floating status becomes constructive dismissal which entitles the employee to separation pay (Phil. Industrial Security Agency Corp. vs. Virgilio Dapiton and NLRC, 320 SCRA 124)

22. When an employee resigned voluntarily, is he or she entitled to separation pay?
No. An employee is not entitled to separation pay when he or she resigns voluntarily, unless it is a company practice or provided in the CBA (Hanford Philippines Inc. vs. Shirley Joseph, 454 SCRA 786, March 31, 2005).

23. Are quitclaims valid?
Yes, provided that these are voluntarily signed and the consideration is reasonable and is not against the law or public policy. (More Maritime Agencies vs. NLRC, 307 SCRA 189)
Quitclaims entered into by union officers and some members do not bind those who did not sign it (Liana’s Supermarket vs. NLRC, 257 SCRA 186).

EXIT INTERVIEW
is an attempt to find out from an employee the actual reasons for his quitting the present organization.
Purposes of conducting exit interview:
ascertain from the employee the real reasons for his leaving the present job;
give the employee an indication of his future career in the company, with a view to dissuading him from quitting if he is really a desirable employee;
create in him goodwill towards the company; and
check whether he has accomplished all papers and clearances to make sure that he received all that is due him from the Social Security System and from the company.
LAYOFF OR
SUSPENSION
OF RELATIONSHIP

is the suspension of the employment relationship initiated by the employer through no fault of the employee. It is a temporary measure during periods of business recession, industrial depression or seasonal fluctuations.
Factors considered in layoffs of employees:
Employment status
Seniority
Work performance
LABOR TURNOVER
means losing an employee and hiring a new man o fill the position.
Labor Turnover Rate
used to express the ratio between the flows of workers leaving a company to the average number of work force during a specified period, say a month or a year.
A high turnover in company or in a unit of a company may be interpreted as follows:
- the turnover is due to voluntary resignations.
- it is due to dismissals.
END.
Thank you for listening.
Full transcript