Company Policy: Elements of Administrative Investigation and Progressive Discipline.

Company Policy:
Elements of Administrative
Investigation and
Progressive Discipline
Resource Speaker:
Atty. Apollo X.C.S. Sangalang
Business Lawyer & Legal Coach

Did you know that…?
• …it is the micro, small and medium
enterprises that are usually the losers?
• …labor cases are preventable?
• …losing a labor case is very costly for the
employer, and may result in the closure of the
business?

Are labor problems EXPENSIVE?
1. Imprisonment and fine.
2. Forced closure of business.
3. Monetary awards, including Reinstatement.
4. Financial assistance.
5. Settlement payments.
6. Lawyer’s fees, including “facilitation or goodwill
expenses”.
7. Litigation expenses, including Appeal Bonds.

Are labor problems EXPENSIVE?
1. Mental and emotional stress. Health problems.
2. Productivity and profitability losses.
3. Socio-economic cost.
1. Mass closure of businesses and capital flight.
2. Unemployment and poverty.
3. Industrial unrest and strikes.
4. Underdevelopment and social INjustice.
5. Riots and revolutions.

Types of Labor Problems:
1. Termination, including Post-Employment.
2. Labor Standards, including Labor Inspections.
3. Unfair Labor Practice (criminal offense).
4. Representation and Intra-Union.
5. Collective Bargaining, including Strikes &
Lockouts.
6. Social Insurance (SSS, ECC, and others).
7. Regulatory, including OFW, Alien, Child and
others.

Types of Labor Problems:
Main focus of this seminar:
Just Cause Termination
Why?
• Because it is the most common type.
• Because of time constraint.

8-Steps to Avoid Expensive
Labor Problems?
1. Master the Basic Principles of Labor Relations.
2. Observe the Golden Rule.
3. Documentation, Documentation, Documentation!
4. Write Clearly.
5. Consult the Experts.
6. Use Best Practices (e.g. Progressive Discipline).
7. Be Open-minded.
8. Negotiate, Negotiate, Negotiate!

1st
Step: Master the Basic Principles of
Labor Relations
• Rule No. 1: Comply with Labor Laws.
• But even if you comply 100% with Labor
Laws, you can still end up with costly labor
problems and disputes.
• Rule No. 2: Master the basic principles of
Labor Relations.

1st
Step: Master the Basic Principles of
Labor Relations
• Useful websites for compliance with Labor
Laws:
– www.dole.gov.ph (DOLE website & portal)
– www.nwpc.dole.gov.ph (Minimum wage)
– www.bwc.dole.gov.ph (Labor standards)
– www.oshc.dole.gov.ph (Health & safety)

2nd
Step: Observe the Golden Rule of
Human Relations
• “... Love your neighbor as yourself.’ No
other commandment is greater than these.”
(Mark 12:31 NLT)
• Many labor problems and disputes arise
from strained interpersonal relationships.
• Treat your employees well, and they might
not sue you, even if you violated Labor Laws.

3rd
Step: Documentation,
Documentation, Documentation!
• In labor cases, the employer is always
presumed guilty.
• The only way that an employer can prove
Labor Law compliance is thru proper
documentation.
• Employers who fail to maintain proper
documentation will end up losers.

4th
Step: Write Clearly
• The documentation must reflect the real
intentions of the parties.
• An employer–employee relationship is basically
a contract. It is a “contract of service”.
• Subject to Labor Laws, “employment contract”
as well as COMPANY POLICIES, govern the
relationship between employer and employee.

5th
Step: Consult the Experts
• It is better to be safe than sorry.
• Not every lawyer or HR professional is a
Labor Law expert.
• Many employers end up with costly labor
problems because their lawyers and HR
consultants are not experts in Labor Law.

6th
Step: Use Best Practices
• Be pro-active.
• In dealing with problem employees, use
Progressive Discipline!
• Remember that it is very easy, simple and
inexpensive to file a labor case. Moreover,
there are many “fixers” and “labor dealers”
who will assist disgruntled employees for a
contingent fee.

7th
Step: Be Open-minded
• If your case is NOT airtight, then settle.
• When you settle, do it at the earliest
opportunity.
• Check the cost of litigation (including the non-
financial costs).
• Weigh the risks involved.
• A reasonable and principled settlement may
still be the best option.

8th
Step: Negotiate,
Negotiate, Negotiate!
• Negotiation -versus- litigation?
• It is never too late to negotiate.
• Master the art of negotiation.
• Or, hire a skilled negotiator.
• Practice win-win labor law.

Basic Principles of Labor Relations
• Our Political, Economic and Socio-Cultural
Systems are Pro-Elite and Pro-Employers.
–We have a republican political system.
• Do you know how much money you need to run for a high
elective office in government?
–We have a capitalist and semi-feudal
economic system.
• Do you know how much money you need to start and run a
big business?
–We have an elitist socio-cultural system.
• Do you know how much money you need to run a sustained
advertising, public relations or advocacy campaign?

• Our Economic System has evolved to favor
the Capitalists (or the Employers).
–Slave-Labor Driven Economy
• Owner-Slave
• Master-Servant
–Feudal (or Land-Driven) Economy
• Lord-Serf
• Landowner-Tenant
–Capitalist (or Capital-Driven) Economy
• Capitalist-Proletariat
• Businessman-Worker
• Employer-Employee
• Management-Labor

• The Capitalist System is based on the private-
ownership of Capital.
“The owner has the right to enjoy and dispose
of a thing, without other limitations other than
those established by law.” (Art. 428, Civil Code)
Rights of Ownership:
1. Right to enjoy, possess, control, use and abuse.
2. Right to dispose or convey, and destroy.
3. Right to the income and other fruits.

• Employers have an inherent right under the
Capitalist System, known as “Management
Prerogative”, which is based on the concept
of Ownership:
– Right to “Buy Labor” (or to select and hire).
2. Right to pay Labor based on “Market Price”.
3. Right to Control and Supervise Workers.
4. Right to Fire and Discipline his Workers.

• Management Prerogative is based on
the Ownership of Capital. Not on
Ownership of Employees. And it has
Limitations.
– The Constitution prohibits Slavery or “Involuntary
Servitude”.
– Principles of Equity prohibits Unjust Enrichment.
– Good Morals rewards Good Faith and punishes
Bad Faith.
– Law, more particularly Labor Law, regulates
Termination.

Inherent Property Rights of Employers and
Employees under a Capitalist System
• Employer
– Right to Buy Labor
from the Market
– Right to Pay Labor
based on Market
Prices
– Right to Control and
Supervise Labor
– Right to Fire and
Discipline Labor
• Employee
– Right to Sell his Labor
to the Market (or to
the Employer of his
choice)
• It includes the
Right NOT to Sell
his Labor

• Labor Laws and Regulations are Pro–
Employees!!!
– Since Employees have lesser or no bargaining
powers, the government enacted Labor Laws &
Regulations:
• To protect Employees e.g. Security of Tenure;
• To limit Management Prerogative;
• To regulate Employment Contracts; and
• Thus, all doubts in any labor dispute are
resolved in favor of the Employees.

• “Social Justice” balances of the rights
and interests of Employees and Employers.
‘We have repeatedly stressed that social justice – or any
justice for that matter – is for the deserving, whether he
be a millionaire in his mansion or a pauper in his hovel. It
is true that, in case of reasonable doubt, we are to tilt the
balance in favor of the poor to whom the Constitution
fittingly extends its sympathy and compassion. But
never is it justified to give preference to the poor simply
because they are poor, or reject the rich simply because
they are rich, for justice must always be served for the
poor and the rich alike, according to the mandate of the
law…’

• Social Justice promotes the “Principle
of Shared Responsibility”, not Class
War.
“…Justice in every case should only be for the
deserving party. It should not be presumed that
every case of illegal dismissal would automatically be
decided in favor of labor, as management has rights
that should be fully respected and enforced by this
Court. As interdependent and indispensable
partners in nation-building, labor and management
need each other to foster productivity and economic
growth; hence, the need to weigh and balance the
rights and welfare of both the employee and
employer.” (Agabon vs. NLRC, GR No. 158693, Nov. 17, 2004)

• “Voluntary Modes” of dispute resolution is
preferred over “Compulsory Modes”.
– Conciliation and mediation
– Collective bargaining and voluntary arbitration
– Settlement thru Compromise Agreements (NOT
Waiver and Quitclaims)
• Employer has “Burden of Proof”.
• But only “Substantial Evidence” is required to
support a claim.

• “Due Process” must be observed.
– “No one shall be deprived of life, liberty or
property without due process of law.”
– Labor, employment and livelihood are considered
as a property of the Employees.
• But only “Administrative Due Process” is
required in labor cases and in the workplace.
– Administrative due process consists of the proper
notices plus a real opportunity to be heard.

• 2 Kinds of Administrative Due Process:
– Substantive Due Process
• Grounds must be valid under Labor Law.
• Public Policy is also considered.
• Good Faith is material.
• Reasonableness Test is used.
– Procedural Due Process
• Rules of Procedure must be complied with.
• In Just Cause Termination, the requirements in the
Omnibus Rules must be strictly observed. This rule
is called the Two-Notice Rule.

Quasi-Judicial Tribunals involved in
Termination Disputes
• 1st
Level: Employers at the Workplace.
• 2nd
Level: Labor Arbiters of the NLRC.
• (2nd
Level: All DOLE Offices in case of small
claims and/or under the Single Entry
Approach).
• 3rd
Level: Divisions of the NLRC.
• 4th
Level: Judicial Review: Court of Appeals.
• 5th
Level: Appellate Review: Supreme Court.

15- MINUTE
NETWORKING BREAK
“An employer who hires a
fool or a bystander is like an
archer who shoots at
random.”
Proverbs 26:10 NLT

Law on Security of Tenure
• Definition: Protection From Being Fired At-Will.
• Types of Employment (based on how Employees
can be terminated):
– Regular Employment (Default Mode).
• Probationary.
– Casual.
– Project.
– Seasonal.
– Fixed-Term.
• Temporary / Emergency.
– Learnership or Apprenticeship.

• Regular Employment (Default Mode):
– Has maximum Security of Tenure:
• Regular Employees cannot be terminated until
they reach the age of compulsory retirement,
except for just or authorized causes.
– Unless the Employment Contract clearly states
otherwise, an Employee is automatically
considered to be a Regular Employee from
DAY 1!!!
– In the absence of a written Employment Contract,
an Employee is presumed to be a Regular
Employee.

• Just cause – the Employee is at fault.
Example: Crime against Employer, gross and
habitual negligence, serious misconduct,
insubordination, fraud, loss of trust and
confidence, etc..
• Authorized cause – the Employee is not
at fault.
Example: Retrenchment, redundancy, closure
of business, use of labor-saving devices,
serious disease or illness, etc.

• Casual Employment:
– Has NO Security of Tenure (At-will Employment)
• They can be terminated anytime, even without
just or authorized causes, provided that that
the work they do is not necessarily or desirable
to the usual or ordinary business of the
employer.
– However, if they are employed by the same
employer for a total period of 1 year or more,
whether for a continuous or broken period, they
become regularized casual employees.

• Probationary Employment:
– Has conditional Security of Tenure:
• They cannot be terminated until they reach the age of
compulsory retirement, except for just or authorized
causes.
– However, they are subject to a TRIAL or
PROBATIONARY PERIOD of not more than 6
months or 180 days, which if passed, they
automatically become regular employees.
– If they fail to pass the criteria set forth in their
written contracts, they can be terminated before
the end of the trial period.

• Project Employment:
– Has limited Security of Tenure:
• They cannot be terminated until the
completion of the project, except for just or
authorized causes.
– However, when the project is completed, or when
the stage of the project for which they are hired is
completed, their employment is automatically
terminated.
– Projects must have a definite timeframe for
completion, and this must be specified in their
written employment contracts.

• Seasonal Employment:
• They cannot be terminated until the end of the
season, except for just or authorized causes.
– However, when the season has ended, their
employment is automatically terminated.
– Seasons, unless based on the natural cycle, must
have a definite timeframe, and this must be
specified in their written employment contracts.

• Fixed-Term Employment (Direct Hire):
• They cannot be terminated until the end of the
term of their written contracts, except for just
or authorized causes.
– DIFFERENT from “contractual employment”.
– DIFFERENT from “temporary or emergency
employees”.
– Only Employees who have more or less equal
footing with their Local Employer can be fixed-
term employees. e.g. senior managers, seasoned
professionals, etc.
– OFWs or OCWs are Fixed-Term Employees.

• Temporary/Emergency Employment:
• They cannot be terminated until the end of the term of
their written contracts, except for just or authorized
causes.
– They are NOT “contractual employees”.
– They are NOT “fixed-term employees”.
– There must be a real temporary or emergency
need for their employment, which must be placed
in their written employment contract.
– To be safe, the period must NOT exceed 6
months, and they should NOT be re-hired.

• Contractual Employment:
– Contractual Employees are NOT the Employees of
the Principal (or Indirect Employer).
– They are Employees of the Job Contractor.
– They will never become Regular Employees.
– But they will be considered as Indirect Employees
if they are not properly compensated.
– And they will be considered as Regular Employees
if the Principal and/or Job Contractor engage in
“Labor-Only Contracting” or commit other
violations of the Law on Job Contracting (under
DOLE D.O. No. 18-A).

Consequences of Illegal Dismissal:
An employee who is terminated without just or
authorized cause is considered to be illegally
dismissed. And he is entitled to:
1. Full backwages, inclusive of allowances,
and other benefits or monetary equivalent;
2. Reinstatement without lost of seniority
rights and other privileges (or separation
pay);
3. Moral, exemplary and/or nominal damages;
and
4. Attorney’s fees of 10%.

Administrative Investigation
Purpose:
1.To properly exercise Management Prerogative
and fully protect the interests of the Employer.
a. Improve the viability or profitability, and
productivity of the business.
b. Manage risks and consequences.
c. Maintain good Employer-Employee relationship.
1.To perform the Employer’s role and function in
Labor Justice Administration.
– The Employer is equivalent to the first level
court.
– The Employer is therefore mandated to observe
and comply with Administrative Due Process.

Administrative Investigation Process
1. Pre-Investigation Stage.
a. Prepare: Company Policies and Employee Manual.
b. Prepare: Employment Contracts and 201 File.
c. Progressive Discipline: Train the Managers.
d. Progressive Discipline: Counsel or Warn Employees.
e. Preliminary: Fact-finding Activities.
1. Investigation Proper.
a. Start: Notice to Explain or Show Cause Memo.
b. Progressive Discipline: Performance Improvement
Plan.
c. End: Notice of Decision.
– Post-Investigation.
a. Review: Company Policies and Employee Manual.
b. Review: Employment Contracts and 201 File.

Elements of Valid Just Cause Termination:
1. Substantive Due Process :
a. Just Cause must be established.
i. Analogous Causes must NOT be against
Law or Public Policy.
ii. Reasonableness Test.
iii. Proportionate penalty.
b. Good Faith.
2. Procedural Due Process (Administrative):
a. Substantial Evidence.
b. Two-Notice Rule.

Just Causes under the Labor Code (Art. 282):
1. Serious Misconduct;
2. Willful Disobedience (or Insubordination);
3. Gross and Habitual Neglect of Duties;
4. Fraud;
5. Willful Breach of Trust;
6. Commission of a crime or offense against
the person of his employer or any
immediate members of his family or his
representatives; and
7. Other Causes Analogous to the foregoing.

Just Causes under Company Policy (Analogous):
1. Offenses Against Person;
2. Offenses Against Property;
3. Offenses Related to Orderliness and Conduct;
4. Offenses Related to Attendance and Punctuality;
5. Offenses About Morality;
6. Conflict of Interest Offenses;
7. Non-Performance or Negligence;
8. Offenses Related to Integrity and Honesty;
9. Incompetence or Poor Performance; and
10. Miscellaneous Offenses.

Good Faith is essential:
1. As a general rule, Good Faith is presumed.
But in labor cases, it is a great advantage if the
Employer can show that he is in Good Faith.
2. As a general rule, Bad Faith must be proven.
But in labor cases, it pays to avoid having any
sign or indication of Bad Faith in dealing with
the Employees.

Substantial Evidence is necessary, and it must be
established by:
1. Affidavits or sworn statements:
a. Proof of existence of just cause;
b. Proof of good faith observance; and
c. Proof of two-notice rule compliance.
2. Signed documents.
3. Unsigned documents attached to an affidavit.
4. Photocopies or duplicates of documents
attached to an affidavit.
5. Photographs and video recording.
6. Voice recording with transcript.
7. Others.

Two-Notice Rule compliance is required.
1.First Notice:
a. The Notice must be in writing and clear
enough for the employee to understand the
charges against him.
b. Consequences, if found guilty.
c. Reasonable time to submit a written
explanation.
d. Entitled to have lawyer or representative.
e. Conference or hearing.
f. Proof of service or receipt of Notice.

2.Conference or hearing:
a. The employee must be notified of the
conference and of its purpose.
b. Proof of service or receipt of the Notice
of Conference is essential.
c. Set of rules.
d. Attendance and minutes.
e. Recording the conference through
photographs or video and/or voice
recording is recommended.

3.Second Notice:
a. The Decision should have a narration of
facts and summary of the proceedings.
b. Basis of the verdict.
c. Proof of service or receipt of the Decision.
d. If for termination, the Employee must be
advised on how to proceed i.e. clearance.
e. If there are monetary accountabilities,
the decision must also state that these shall
be deducted from the Employee.

Definition:
It is a system of discipline where penalties increase
upon repeat occurrences.
Purpose:
It primarily aims to correct the negative behavior
rather than to punish the erring employee.
Range of Responses:
1. Counseling or coaching.
2. Verbal warning.
3. Written warning.
4. Suspension or demotion or fine or forfeiture.
5. Performance Improvement Plan.
6. Termination.

Advantages:
1.It addresses the silence of the Labor Code
regarding “Incompetence” as a ground for just
cause termination, especially when the Employee
is placed under the Performance Improvement
Plan.
2.It helps the Employer document habitual negative
behaviors, which is essential in establishing “Gross
and Habitual Negligence” as a ground for just
cause termination.
3.It helps the Employer show that he is in Good
Faith in dealing with the Employee.

Advantages (continuation):
4.It helps build up a case for “Analogous Cause” as a
ground for just cause termination.
5.Since it is corrective in approach, it helps preserve
the existing members of the team while improving
their performance and behavior.
6.It saves the Employer costly recruitment and
training expenses for new hires, as well as
prevents downtime due to vacancies.
7.It promotes Employee morale.

Requirements:
1. Employee Manual (with List of Offenses and
Penalties).
2. Step-by-step Implementation Guide.
3. Training for Managers and Supervisors.
a. Counseling or Coaching Skills.
b. Verbal and Written Warnings.
c. Performance Improvement Plan.
4. Employee Interview Log Sheets.
5. 201 File.
6. Templates and Scripts.

Progressive Discipline Process
1. Pre-Investigation Stage.
a. Prepare: Company Policies and Employee Manual.
b. Prepare: Employment Contracts and 201 File.
c. Progressive Discipline: Train the Managers.
d. Progressive Discipline: Counsel or Warn Employees.
e. Preliminary: Fact-finding Activities.
1. Investigation Proper.
a. Start: Notice to Explain or Show Cause Memo.
b. Progressive Discipline: Performance Improvement
Plan.
c. End: Notice of Decision.
– Post-Investigation.
a. Review: Company Policies and Employee Manual.
b. Review: Employment Contracts and 201 File.

Termination Tips
1. First, find out what type of employee is the
person to be fired or laid-off.
2. Regular employees have security of tenure and
thus, may be terminated only upon just or
authorized causes. However, they may be
retired upon reaching age of compulsory
retirement.
3. Casual employees have NO security of tenure
and may be terminated anytime, unless they
have become regularized casual employees after
1-year of continuous or broken service with
respect to their casual jobs.

Termination Tips
4. Project and seasonal employees have security of
tenure for the duration of the project or season.
However, after the project or season, their
employment is deemed terminated.
5. Probationary employees also have security of
tenure, but may be terminated within the 6-month
probationary period if they fail to qualify for regular
employment.
6. Fixed-term, temporary and emergency employees
have security of tenure for the duration of their
contracts. However, after their contract expires,
their employment is deemed terminated.

Termination Tips
7. Contractual employees have security of tenure for the
duration of their contract. However, after their contract
expires, their employment is deemed terminated.
– But even during their contract, the Principal may
request the Job Contractor to substitute or replace
the contractual employee anytime.
7. If there is no just or authorized cause, the
substituted or replaced employee must be
assigned to another work or station by the Job
Contractor .
8. If there is just cause, the Principal may act as
complainant and witness against the contractual
employee, and the Job Contractor must be the
one to terminate him.

PREVENTIVE SUSPENSION
Ground:
– Serious and imminent threat to the:
• Life and/or property of the…
• Employer and/or co-workers.
Maximum period: 30 days. Otherwise, it shall be
CONSTRUCTIVE DISMISSAL.
Ideally, the Notice of Preventive Suspension is incorporated in
the Notice to Explain (or 1st
Notice) issued to the employee.
It may be credited to the penalty of suspension, if Employee is
found guilty of an offense punishable with suspension.

TRANSFER
Requirements:
– Genuine business need or necessity;
– Good faith;
– No undue hardship upon employee; and
– Not meant as a form of penalty.
Otherwise, the transfer will be considered as a form of
CONSTRUCTIVE DISMISSAL.
If there is just cause, transfer may be resorted to as an
alternative to preventive suspension; but a
disciplinary proceeding must be initiated.

CONSTRUCTIVE DISMISSAL
• A form of ILLEGAL TERMINATION;
• No termination or disciplinary proceeding
was initiated;
– No due process; Presumably, no just or
authorized cause as well.
• Employee was forced to resign because:
– Demotion or diminution of benefits; or
– Impossible or unbearable for the employee to
continue with his employment; or
– Directed by the employer to resign.

Effective Discipline
Why Discipline?
Order
Consistency
Uniformity
Efficiency
Productivity
Profitability

Legal Basis of Discipline?
Management Prerogatives:
Hire
Fire
Pay
Control

Limitations of Discipline?
Needs Fair and Reasonable Rules
Cannot Inspire
Cannot Motivate
Not a Reward

How Discipline Should Be Imposed?
As a Form of Training
Goal is to Change Behavior
Corrective
Not Punitive

The HOT STOVE Rule

Elements of the HOT STOVE Rule
1. Immediate – A hot stove won’t wait to
punish the person touching it, and neither
should you. Discipline must happen right
away.

2. Provides warning – Everyone knows ahead
of time that by touching a hot stove, you’re
going to get burned. In the same way, you
must let people know the rules so as be fair.
Not knowing the rules provides an excuse.

3. Consistent – No matter the situation, a hot
stove is going to burn someone regardless of
when it is touched. Discipline cannot change
from day to day, nor should it change based
upon the person or their situation. It must be
consistent both on punishment and the on
exceptions.

4. Impersonal – a hot stove does not
differentiate between the person touching it,
and you must be careful not to treat
employees differently either. Don’t scold or
apologize. Discipline and then move on.

Role of Manager and Supervisor
•Be on the look out for violations
•Investigate violations reported
•Build case – interview witnesses
•Document the case and make a Report
•Direct employees to submit Incident Reports
•Conduct Administrative Investigation
•Use Progressive Discipline (optional)
•Terminate or Discipline
•Report to DOLE any Termination

Role of Manager and Supervisor
• Must know the Company Policies and
Rules
• Must know the requirements of the law
• Must be able to document and conduct
investigation
• Must be fair but firm.

ALTERNATIVE DISPUTE
RESOLUTION AT THE
WORKPLACE
Primarily, it is the process of
securing a valid and binding
RESIGNATION or QUITCLAIM

VOLUNTARY RESIGNATION
1. The Employee should resigned voluntarily;
2. The resignation must be accepted by the
Employer (unless it is irrevocable);
3. The content of the resignation letter must be
neutral, at the very least; and
4. If without cause, the Employee must give the
Employer a grace period of at least 30 days;
or
5. If with cause, the Employee can resign
immediately.
6. If there is no resignation letter, the Employee
should be treated as AWOL.

VALID QUITCLAIMS
– A quitclaim is valid if the Employer can prove the
following requisites:
1. the employee executes quitclaim voluntarily;
2. there is no fraud or deceit on the part of
Employer;
3. the consideration of the quitclaim is credible
and reasonable; and
4. the contract is not contrary to law, public
order, public policy, morals or good customs,
or prejudicial to a third person with a right
recognized by law.

WARNINGS ON QUITCLAIMS
– Quitclaims are commonly frowned upon as
contrary to public policy, and ineffective to bar
employee’s claims, especially if the following are
present: (a) there is clear proof that the waiver
was wangled from an unsuspecting or gullible
person; or (b) the terms of the settlement are
unconscionable, and on their face invalid.
– Acceptance of benefits from a quitclaim does not
amount to estoppel.

Best Practice: DOLE-witnessed Quitclaims
• Seek the assistance of the DOLE Regional
Office, the NCMB, or the NLRC in the signing
of quitclaims:
“Any compromise settlement, including those
involving labor standards, voluntarily agreed upon
by the parties with the assistance of the NCMB
[Bureau] or the Regional Office of the DOLE, shall
be final and binding upon the parties.” (Art. 227,
Labor Code)

Best Practice: Walk-In Settlement
• When seeking the assistance of the NLRC in
the signing of quitclaims, the process will be
called “WALK-IN SETTLEMENT”:
– The worker will be required to file a formal
complaint; but
– On the same day, the case will be raffled to a
labor arbiter for his acknowledgment of the
quitclaim.

THANK YOU!
“As workers who tend a fig tree
are allowed to eat the fruit, so
workers who protect their
employer’s interests will be
rewarded.”
Proverbs 27:18 NLT

Company Policy: Elements of Administrative Investigation and Progressive Discipline.

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