MIDTERM REVIEWER
RELATIONS
S.Y. 2008-2009
LABOR LAWS are laws, rules, and regulations
enacted by the state that:
1. promote the general welfare of the
employees, and
2. govern the relationship between the
employees and their employers.
They include judicial decisions interpreting said
laws.
Example of Judicial Legislation:
FULL BACKWAGES
- wages from the time of illegal termination up to
the actual reinstatement
1. Mercury Drug vs. NLRC
- 3 years pay without qualification and
deduction
2. Ferrer vs. NLRC
- wages from time of illegal dismissal
to actual reinstatement MINUS earnings
elsewhere (earnings from the new job
while case is pending)
3. Osmalik Bustamante vs. NLRC
- wages from the time of illegal
dismissal up to actual reinstatement
without any deductions.
TYPES OF LABOR LAWS
1. Labor Standards Laws
• are laws, rules, and regulations which
provide the minimum requirements for
terms and conditions of employment
such as wages, hours of work, etc.
2. Labor Relations Laws
• are laws, rules, and regulations that
govern the relationship between
employers and employees,
• promote the rights of employees to
self-organization and collective
bargaining,
• penalize unfair labor practices, and
• provide for the mechanism of settling
and/or adjusting labor disputes such as
conciliation, mediation, grievance
machinery, and voluntary and
compulsory arbitration.
3. Social Legislation
• are laws, rules, and regulations which
promote the general welfare of all
sectors of society.
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LABOR
PLM - LAW
NOTE: Labor Standards and Labor Relations are
not exclusive unto themselves. They ate
interrelated and interdependent with each other.
BASES OF LABOR LAWS
1. Police Power
• is the inherent power of the state to
restrain one's liberty and right to
property to promote the welfare of the
people.
2. Social Justice
• Definition under Calalang vs. Williams:
"Social Justice is neither communism, nor
despotism, nor atomism, nor anarchy, but the
humanization of laws and the equalization of
social and economic forces by the state so
that justice at its rational and objectively
secular conception may at least be
approximated.
Social Justice means the promotion of the
welfare of all people, the adoption by the
government of measures calculated to insure
the economic stability of all the component
elements of society, through the interrelations
of the members of the community;
constitutionally through the adoption of
measures legally justifiable, and extra-
constitutionally through the exercise of
powers underlying the time-honored principle
of salus populi est suprema lex."
BLUE SUNDAY LAW - RA 946
 Forbid commercial, industrial, agricultural
enterprises to open on any Sundays,
Christmas Day, New Year's Day, Holy
Thursday and Good Friday. these days are
set aside by law as days of rest.
SWEETHEART AGREEMENT
 An agreement containing provisions which
are equal to the benefits provided by law,
or less that what is provided by law.
 Disadvantageous to employees.
RIGHTS OF EMPLOYEES UNDER THE LABOR
STANDARDS
1. Right to security of tenure
2. Right to a living wage
3. Right to humane conditions of
employment
4. Right o a just share in the fruits of
production
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RIGHTS OF EMPLOYEES UNDER THE LABOR
RELATIONS
1. Right to self-organization
a) form a union
b) assist in the formation of a union
c) join a union of one's choice
2. Right to engage in peaceful concerted
actions
a) STRIKE - temporary stoppage of
work by the employees due to a
labor dispute
b) BOYCOTT - non-patronage of a
specific service of employer or
produc
c) LOCK OUT- temporary refusal of the
employer to provide work
3. Right to collective bargaining agreement
4. Right to participate in policy and decision-
making
EMPLOYER'S RIGHT (MANAGEMENT
PREROGATIVES)
1. Right to select and hire employees
2. Right to conduct business
3. Right to close the business
4. Right to prescribe rules and regulations
5. Right to transfer and dismiss employees
EMPLOYEE - is the one who works for another for
a fee or compensation. It includes one who has
been dismissed from service due to a labor
dispute and has not yet found any substantial
employment.
EMPLOYER - is one who hires the services of
another and pays him for his service. it includes
one who acts for and in behalf of an employer.
* Labor organizations or unions generally are NOT
employers unless they act as an employer or acts
for and in behalf of an employer.
EMPLOYER-EMPLOYEE RELATIONSHIP
1. Selection and engagement of employees
2. Payment of wages
3. Power to dismiss
4. Control over the means and methods used by
the employee in accomplishing the work
DETERMINATIVE FACTORS OF AN
INDEPENDENT JOB CONTRACTOR
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LABOR
PLM - LAW
1. Must have substantial capital of at least PhP
2M or invested on tools, machineries, and
equipments;
2. Undertakes the contract on his own account
by his own means and responsibility without
interference of the principal, except as to the
result;
3. His employees must perform activities not
necessary or desirable to the usual business
of the principal;
4. He has his own place of work or official
business address.
* Independent Job Contractor is SOLIDARILY liable
with the principal for unpaid wages and benefits.
* Labor-only contractor - one who does not have
those determinative factors of an independent
job contractor.
- agent only of the principal; principal is
the direct employer of the employees and is
liable for unpaid wages and benefits.
FARMERS - those whose primary livelihood is
the cultivation of soil, harvesting crops, planting
of trees, and other agriculture activities and
raising of livestocks.
FARM WORKERS - are farmers who work on the
land for a fee. they are laborers in of the farm,
hired to do agricultural work for a fee.
ORGANIZED ESTABLISHMENT
(Asiabed Factory Case)
1. It has a UNION that is CERTIFIED as the sole
and exclusive bargaining agent of the
employees. (certified by the employer)
2. There is a Collective Bargaining Agreement
* A teacher is a regular employee…
• at least 21 units of load
• 3 school years of teaching
 6 semesters
 9 trimesters
* If there is vagueness as to the 4 factors of
employer-employee relationship, look into the
factors of Independent Job Contractor.
FLOATING STATUS is a situation where an
employee of a contractor has been relieved from
his post or affected by a termination or expiration
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S.Y. 2008-2009
of a service contract is made to wait for a period
of not exceeding 6 months for their employer, the
contractor, to find a vacancy for their
reassignment, otherwise, the said employees will
be considered CONSTRUCTIVELY DISMISSED from
the service. (Then, they can file illegal dismissal
case.)
** There is no exact time wherein the contractor
can be very sure of employment of workers upon
the expiration of one's contract because vacancy
is not always available.
SEASONAL EMPLOYEES are regular employees
insofar as the season for which they are hired is
concerned. During the OFF SEASON, the
employees are considered to be merely on leave
of absence without pay. The employment is not
terminated but merely suspended and when the
peak season comes, the employees are the first
to be called for work or service.
(Visayan Stevedoring vs. CIR)
** They are like project employees. Upon the
completion of the project to which the employee
is hired, he is dismissed from service. His
employment is co-terminus with the season for
which he was hired.
- Contrary tp Visayan Stevedoring case(Mercado
vs. NLRC)
** Back to the definition under the Visayan
Stevedoring Case, Phil. Tobacco vs. NLRC
EMPLOYEES -vs- INDEPENDENT JOB
CONTRACTORS
EMPLOYEES I.J.C.
In-house counsel Counsel at a retainer
fee
Salaried sales agent - Commissioned sales
being mad eto report to agent - may sell in any
office regularly, given manner they like when
the space in the office the company does not
interfere
LAWS ON THE EFFECTIVITY OF LAWS, RULES
AND REGULATIONS
1. CIVIL CODE, ART. 2: "unless otherwise
provided"
2. LABOR CODE, ART.5: 15 days after adoption
3. REVISED ADMINISTRATIVE CODE, SEC. 3 & 4:
serve 3 verified copies of the rules and
regulations at the National Administrative
Registry at the UP Law Center
© Hanna Magkasi 2008
LABOR
PLM - LAW
EXCEPTION TO COVERAGE
1. GOVERNMENT EMPLOYEES
• Based on the Constitution, the law
governing them is the Civil Service
Law, and they are under the
jurisdiction of the Civil Service
Commission.
• They are employees working in the
different branches, departments,
political subdivisions, agencies, and
instrumentalities of the Government
• Including thise in the GOCCs with
original charter
• They are not allowed to go on strike
because it will disrupt public service;
they have the right to self-organization
• The following are not allowed to form
unions because they are armed:
AFP (navy, army, marine, airforce)
PNP
Firemen
Jail Guards
• Subsidiaries and affiliated incorporated
under the General Corporation law
does not carry the original charter of
the mother corporation.
2. INTERNATIONAL RELATIONS
a) Employees of INTERNATIONAL
ORGANIZATIONS / BODIES
b) Employees of the DIPLOMATIC CORPS
c) Employees of agencies of United Nations
Organization
d) Intergovernmental Organizations
• Based on International Law, they are
immune from suit.
• For grievances:
i. see charter or treaty first if there is a
provision for the settlement of disputes;
ii. otherwise, seek assistance with the DFA
through diplomatic channels.
3. CORPORATE OFFICERS
• The provisions of the by-laws contain
the enumeration of corporate officers.
• PD 902-A: cases of illegal dismissal
filed by a corporate officer as a result
of non-reelection or non-
reappointment to the former position
are INTRACORPORATE DISPUTES that
fall under the jurisdiction of the S.E.C.
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• It is the DUTIES which makes a person
a corporate officer. The person should
perform the duties of the corporate
officer which makes his such, and
within the jurisdiction of the S.E.C.
• R.A. 799, NEW SECURITIES
REGULATION CODE effective July 19,
2000:
o The S.E.C. ha no jurisdiction
over the intracorporate
disputes; it is NOW vested onto
the regular courts (RTC)
o PD 902-A ceases
o Under the Nacpil Case, if the
person is also appointed by the
board of directors, even if the
position is not enumerated in
the by-laws, he is deemed a
corporate officer.
4. EMPLOYEES OF WATER DISTRICTS
• They are employees of a quasi-public
corporation, covered by the Civil
Service Commission.
KINDS OF ARBITRATION
1. VOLUNTARY ARBITRATION
• both parties agree to submit their dispute
to an impartial 3rd person, whose
resolution they both believe to be final
and executory.
• usually for the organized
2. COMPULSORY ARBITRATION
• where the government takes part in the
arbitration/resolution of the dispute.
• usually for the unorganized.
LEGAL HISTORY OF THE LABOR RELATIONS
LAW
1. CA-103, October 29, 1936
Created the CIR
2. RA 875, June 17, 1953
Industrial Peace Act (Magna Carta of
Labor)
 Copied from the U.S. Labor Code:
Anti-Injunction Act (Norris La Guardia Act
of 1952)
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LABOR
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NLR Act (Wagner Act of 1935; Taft and
Hartley Act)
3. PD 21, October 14, 1972
Ad Hoc NLRC - temporary NLRC
4. PD 442, November 1, 1974
Labor Code
 Made the NLRC permanent
 NLRC is a tripartite administrative body
with quasi-judicial functions attached
to the Department of Labor and
Employment only for policy and
program coordination.
 The DOLE cannot dictate how the
arbiters and the NLRC will decide the
case.
5. RA 6715, March 21, 1989
Herrera-Veloso law; The New Labor
Relations Code (amended the Labor Code)
6. RA 9347, July 27. 2006
Strengthening the NLRC
7. RA 9481
Act on Self-Organization
RA 9374
A. COMPOSITION OF THE NLRC
1 Chairman (from the public sector, the Presiding
Commissioner of the 1st division)
23 Commissioners
7 from public sector (each becomes the
Presiding Commissioner of the 2nd - 8th
divisions)
- nominated by the Sec. of Labor
8 from labor sector
- nominated by federations/unions
8 from employer sector
- nominated by employer
confederations
Labor Arbiters - nominated by Sec. of Labor
** all are appointed by the president
B. QUALIFICATIONS
CHAIRMAN/COMMISSIONERS
• members of the bar
• practiced law for at least 15 years
• experience/exposure to labor
management relations for at least 5
years
LABOR ARBITERS
• members of the bar
• practiced law for at least 10 years
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• experience/exposure to labor
management relations for at least 5
years

NLRC IN RA 9374
• 8 divisions, 3 members each
• When to sit en banc: only for purposes of
a) promulgating rules and regulations
governing the hearing and disposition of
cases before any of its divisions and
regional branches
b) formulating policies affecting its
administration and operations
c) on temporary or emergency basis - allow
cases within the jurisdiction of any division
to be heard and decided by another
division whose docket allows additional
workload and such transfer will not expose
litigants to unnecessary additional
expense.
• The concurrence of 2 commissioners of a
division shall be necessary for the
pronouncement of judgment or resolution.

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