PHILIPPINES Law and Practice Contributed by: Rashel Ann C Pomoy and Paolo Miguel Consignado, Villaraza & Angangco
9.3 Costs Damages and attorney’s fees may be awarded to an employee under the conditions outlined below. • Moral damages may be awarded to compensate one for diverse injuries such as mental anguish, besmirched reputation, wounded feelings, and social humiliation, as provided under 2199 of the Philippine Civil Code. • Nominal damages under Article 2221 of the Philip - pine Civil Code may also be awarded when rights are violated, such as in cases of procedural lapses during termination, even if no actual or substantial damage is proven. • Exemplary damages may be awarded only if the dismissal was shown to have been effected oppressively or maliciously under Article 2208 of the Philippine Civil Code. • Attorney’s fees are awarded in cases where exemplary damages are recovered, or where the employer acted in a wanton, fraudulent, or grossly negligent manner based on Article 2208 of the Philippine Civil Code. • Moreover, Article 111 of the Philippine Labour Code allows the award of attorney’s fees in cases of unlawful withholding of wages, where the culpa - ble party may be assessed attorney’s fees equiva - lent to 10% of the amount of wages recovered.
Parties may mutually agree to submit their disputes to a voluntary arbitrator or panel of arbitrators at any stage of the proceedings. Voluntary arbitration is often employed in labour disputes involving the interpreta - tion or implementation of CBAs and company person - nel policies. Article 273 of the Philippine Labour Code provides that parties to a CBA must establish a grievance machinery for the resolution of disputes. This machin - ery should address grievances related to the interpre - tation or implementation of the CBA, as well as issues arising from company personnel policies. If a grievance is not resolved within seven calendar days, it is automatically referred to voluntary arbitra - tion, in accordance with the process outlined in the CBA.
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