Answers to frequently asked questions on management prerogative in the Philippines. What is management prerogative? Management prerogative is the bundle of rights inherent to the employer who gets to decide all aspects of employment, from pre-employment to post-employment, unless limited or regulated by labor law. What are examples of management prerogative? The exercise of management…
Making a job applicant take a drug test as a pre-employment requirement is an exercise of management prerogative. What’s the legal basis? It appears that there is confusion on the legal basis for drug test as a pre-employment requirement. While random drug testing for those who are already employees is clearly provided for in Republic…
Summary ⦁ Employers, whether local or overseas, are prohibited from hiring Filipino workers for overseas employment. ⦁ There are exceptions. ⦁ If not falling under the exceptions, the employer has to contract with a duly licensed private employment agency for overseas employment. 1. Concept The ban on direct-hiring for overseas employment is found in P.D….
1. Concept Duty Detail Order – refers to a written order/schedule/assignment issued to a security guard and other private security personnel by a superior officer, usually the private security agency or branch manager or operation’s officer, for the performance of security and/or detective service duty/ies. (Section 2[b], D.O. No. 150, Series of 2016) 2. Contents…
1. Concept Security of tenure –Security guards and other private security personnel shall enjoy security of tenure in their employment as provided by law. Their services can only be terminated for just or authorized causes after due process. (Section 10.1, D.O. No. 150, Series of 2016) 2. Due process a. Just cause termination For termination…
1. Coverage of benefits Security guards and other private security personnel are entitled to not less than the following benefits depending on the working hours, work shift and workdays and other analogous conditions, which benefits should be included in the cost distribution in the Service Agreement: a. Basic salary 1) Basic salary for all actual…
1. Employer-employee relationship The Security Service Contractor / Private Security Agency (SSC/PSA) is the employer of its security guards and other private security personnel on duty detail to a principal or client under a Service Agreement. (Section 3.1, D.O. No. 150, Series of 2016) NB: 1) Private Security Personnel – refers to natural persons, including…
1. Solidary Liability and Responsibilities The Security Service Contractor / Private Security Agency (SSC/PSA) and its principal or client shall be jointly and solidarily liable with each other in any of the following circumstances: 1) When the SSC/PSA fails to pay the wages of its security guards and other private security personnel, the principal or…
1. Concept Service Agreement – refers to the contract between the principal and the Security Service Contractor / Private Security Agency (SSC/PSA) containing the terms and conditions governing the performance or completion of security service, job, or work being farmed out for a definite or predetermined period. (Section 2[j], D.O. No. 150, Series of 2016)…
Summary ▪ Labor-only contracting is prohibited. ▪ It refers to an arrangement that violates the laws and regulations on contracting and job contracting. ▪ All contractors are presumed to be labor-only contractors by default. ▪ Finding of labor-only contracting results in the principal being declared as the employer. ▪ There are illicit forms of employment…