PHILIPPINES Law and Practice Contributed by: Rashel Ann C Pomoy and Paolo Miguel Consignado, Villaraza & Angangco
6.3 Collective Bargaining Agreements A CBA is a contract negotiated between an employer and the duly recognised or certified exclusive bargain - ing representative of the workers. This agreement cov - ers matters such as wages, working hours, and other employment terms and conditions within the appro - priate bargaining unit, and mandatory provisions for grievance and arbitration mechanisms. The CBA is executed by both the employer and SEBA. Before entering into a collective bargaining negotia - tion, the following conditions must be met: • there must be an employer-employee relationship between the employer and the members of the bargaining unit; • the bargaining agent must have the majority sup - port of the bargaining unit and be lawfully recog - nised; and • the proposed agreement must align with legal standards. The CBA, when finalised, becomes legally bind - ing during its entire duration and must be followed in good faith by both parties. It is important to note that wage negotiations within the CBA are separate and distinct from legally mandated wage increases, provided that any reductions must not fall below the minimum standards. Once ratified by the majority of the bargaining unit, the CBA becomes binding on all employees. Benefi - ciaries of the CBA include members of the bargain - ing unit, non-members who pay agency fees, and any employees hired after the agreement has been enforced. Notably, filing a petition for the cancella - tion of union registration does not prevent the ongoing CBA negotiation process. Furthermore, CBAs should be interpreted liberally; if the terms of the agreement are clear, the intent of the contracting parties should prevail. Finally, a valid CBA must include specific mandatory provisions. These include:
• the establishment of a Labour-Management Coun - cil (LMC). If these provisions are not incorporated, the Bureau of Labour Relations (BLR) may reject the CBA’s reg - istration.
7. Termination 7.1 Grounds for Termination
In the Philippines, motivation is required a priori. Arti - cle 294 of the Philippine Labour Code provides that the employer may only terminate the employee for “just cause” or “authorised cause”. The procedures for the observance of due process in terminations based on just and authorised Causes differ in terms of notice requirements and periods, as discussed in 7.2 Notice Periods. Just Causes for Termination The causes for termination are based on acts attribut - able to an employee’s own wrongful actions or neg - ligence. Article 297 of the Philippine Labour Code provides the just causes for termination, which are: • serious misconduct; • causes analogous to the foregoing, for as long as such act or omission is voluntary or wilful on the part of the employees. The specific requisites per ground are enumerated in DOLE Department Order No 147-15, series of 2015 (“D.O.147-15”). Authorised Causes Authorised causes refer to lawful grounds for termina - tion which do not arise from the fault or negligence of the employee. Articles 298 and 299 of the Philippine Labour Code enumerate the authorised causes for termination, which are classified into business-related causes and health-related causes. • wilful disobedience or insubordination; • gross and habitual neglect of duties; • fraud or wilful breach of trust; • loss of confidence; • commission of a crime or offence; and
• grievance procedure; • voluntary arbitration; • no strike-no lockout clause; and
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