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June 1, 2022

Business Law and Labor Law Updates

The topics below may be relevant to your daily activities, especially those which involve business law, labor law, and other legal areas of your business.


Basics in Writing a Notice to Explain Memorandum


In dismissing employees, what comes into mind is compliance with the two-notice rule: Notice to Explain (“NTE”), and Notice of Decision (“ND”). The NTE is issued for the purpose of apprising the employee that an offense is being charged against him, and he is given the opportunity to defend himself. Thus, in preparing a NTE, it is necessary that it be done right, considering that a defect in such memo may prove to be the difference between proper separation and illegal dismissal, which could prove costly for employers.

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Why Ease of Doing Business was Called a “Gamechanger”


ease of doing business

The Department of Trade and Industry (“DTI”) referred to the enactment of the Ease of Doing Business Act as a “gamechanger”, as businesses can now expect streamlined processes and reduced processing times from all government agencies, including government-owned and controlled corporations. This development is very important considering how involved the government is in dealing, if not regulating, businesses in the Philippines. Notably, the law includes programs for the adoption of simplified requirements and procedures that will reduce, if not eliminate, red tape and expedite business transactions in government.

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Things to Know About Filing a Small Claims Case


small claims

Pursuant to A.M. No. 08-8-7-SC, or the 2016 Revised Rules of Procedure for Small Claims Cases issued by the Supreme Court of the Philippines, money claims that do not exceed P200,000.00 shall be filed before the small claims court where the procedures to be followed are different from that of ordinary lawsuits for collection of sum of money, provided that the claims purely civil in nature where the claim or relief prayed for by the plaintiff is solely for payment or reimbursement of sum of money. If this is your first time to file (or at least, consider filing) a small claims case, then here are some things that you need to know.

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Dismissal Due to Gross and Habitual Neglect of Duty


gross and habitual neglect of duty

Dismissal of an employee who had been grossly and habitually neglectful of his duties is not only legally allowed, but is also practical for every enterprise. It is so because the employer’s obligation to give his workers just compensation and treatment carries with it the corollary right to expect from the workers adequate work, diligence and good conduct. While it is a State policy to provide full protection to labor, the State nevertheless cannot allow giving such protection at the expense of being oppressive to employers.

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