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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.


Unfair and Unconscionable Sales Acts and Practices


Every entrepreneur, whatever line of business may be, is bound to deal with fairness and honesty, and promote equitable relations among the parties in consumer transactions. Sadly, in trying to extract more profits from their business, some entrepreneurs do not observe, if not violate, these ideals on business dealings that they ought to conform to. Therefore, in order to protect the public against deceptive, unfair and unconscionable sales acts, the law designated the Department of Trade and Industry (“DTI”) to clamp down on those who carry out such unacceptable practices. Thus, to avoid committing inequities in dealing with the purchasing public, it has become imperative for business owners to know what constitutes unconscionable sales acts and practices, as well as the consequences for committing them.

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Applicability of 13th Month Pay to Commissions


Since employees look forward to receiving additional cash to spend during Christmas season, payment and receipt of 13th month pay has become among the things that are highly anticipated by both employers and employees. However, despite 13th month pay being mandatory under the law, employees paid on commission basis are subject to a different rule. It therefore becomes important for payroll managers to know when commissions are subject to 13th month pay, to ensure industrial peace during the season of giving.

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Duty of Loyalty by the Corporate Directors


Having a disloyal corporate officer is worse than having an incompetent one. While incompetence may often lead to flawed business management and ineffective results, disloyalty on the other hand breeds corruption, which can destroy even established businesses in a blink of an eye. Thus, it becomes crucial for owners of any corporate enterprise, especially for those who are members of the board of directors, to know the consequences of disloyalty and how to prevent breeding conflict of interest among their ranks.

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You’re Hired, Apprentice!


Apprenticeship as a labor law concept is intended to benefit both the employers and their workers by reducing job mismatch, generating more employment opportunities, promoting speedy hiring and increasing work efficiency by enhancing skills through training. So what do employers have to do to lawfully engage the services of apprentices, under what conditions, and what do said employers get in return? The article aims to help enterprises understand the nature of apprenticeship arrangements, and how they can benefit from it.

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