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Labor Law I-Pau's Reviewer

Labor Law I-Pau's Reviewer



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Semester, AY 2008-2009
Prof. E. (Leo) D. BattadCollege of LawUniversity of the Philippines
CA Azucena, The Labor Code with Comments andCases (Latest Edition)
Samson S. Alcantara, and Samson B. Alcantara Jr.,Philippine Labor and Social Legislation Annotated
1987 Philippine Constitution
 The Labor Code of the Philippines and itsImplementing Rules &Regulations
Pertinent International Human Rights Instrumentsand ILO Conventions, Recommendations and Labor-related laws
Assigned Readings
1. General SenseLabor
physical toil although it does not necessarilyexclude the application of skill, thus there is skilledand unskilled labor.Skill
familiar knowledge of any art or sciencemunited with radiness and dexterity in execution orperformance or in the application of the art orscience to practical purposes.Work is broader than labor as work covers all formsof physical or mental exertion, or both combined, forthe attainment of some object other than recreationor amusement per se.2. Technical senseWorker
broader than employee as workers mayrefer to self-employed people, and those working inthe service and under the control of another,regardless of rank, title, or nature of work.Employee
salaried person working for another whocontrols or supervises the means, manner or methodof doing the work.
B.Labor Law
1. DefinitionLabor legislaton
labor standards + labor relationsa.consists of statutes, regulations and jurisprudenceb.governing the relations between capital andlaborc.by providing for certain employmentstandards and a legal frameworkd.for negotiating, adjusting and administeringthose standards and other incidents of employment.
Labor standards
: which sets out the minimumterms, conditions, and benefits of employment thatemployers must provide or comply with and to whichemployees are entitled as a matter of legal right.
Labor relations law:
which defines the status,rights and duties and the institutional mechanismsthat govern the individual and collective interactionsof employers, employees or their representatives.SOCIAL LEGISLATION VS. LABOR LAWSSocial legislation: provides particular kinds of protection or benefits to society or segments thereof in furtherance of social justice.Labor laws are necessarily social legislation. But todifferentiate, labor laws directly affect employmentwhile social legislation governs effects of employment.Labor laws are social legislation but not all sociallegislation are labor laws.2.Social Justice, Const., Art. II, Sec. 10; Art.XIII, Sec. 1-3
Section 10.
The State shall promote social justice inall phases of national development.
Section 1.
The Congress shall give highest priority tothe enactment of measures that protect and enhancethe right of all the people to human dignity, reducesocial, economic, and political inequalities, andremove cultural inequities by equitably diffusingwealth and political power for the common good.To this end, the State shall regulate the acquisition,ownership, use, and disposition of property and itsincrements.
Section 2.
The promotion of social justice shallinclude the commitment to create economicopportunities based on freedom of initiative and self-reliance.ARTICLE XIII – LABOR
Section 3.
The State shall afford full protection tolabor, local and overseas, organized andunorganized, and promote full employment andequality of employment opportunities for all.It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations,and peaceful concerted activities, including the rightto strike in accordance with law. They shall be entitledto security of tenure, humane conditions of work, anda living wage. They shall also participate in policy anddecision-making processes affecting their rights andbenefits as may be provided by law.The State shall promote the principle of sharedresponsibility between workers and employers andthe preferential use of voluntary modes in settlingdisputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrialpeace.The State shall regulate the relations betweenworkers and employers, recognizing the right of labor to its just share in the fruits of production and the rightof enterprises to reasonable returns to investments,and to expansion and growth.
 The aim and the reason and, therefore, the justification of labor laws is social justice.
Social Justice:
 JP Laurel in Calalang
neithercommunism, nor despotism, nor atomism notanarchy but the humanization of laws and theequalization of social and economic forces by theState so that justice in its rational and objectivelysecular conception may at least be approximated. The promotion of the welfare of all the people, theadoption by the Government of measures calculated
to insure economic stability of all the componentelements of society through the maintenance of proper economic and social equilibrium in theinterrelations of the members of the community,constitutionality, through the adoption of measureslegally justifiable, or extra-constitutionally, throughthe exercise of powers underlying the existence of allgovernments, on the time-honored principle of 
salus populi est suprema lex.
 Labor is the primary social economic force, thus theState shall protect the rights of workers and promotetheir welfare.
Constitutional Rights and Mandates
 The State shall afford full protection to labor and thisis found in the 1935, 1973, and 1987 Consti. TheState affirms labor as a primary social economicforce thus, it shall protect the right of the workersand promote their welfare.Basic rights of workers guaranteed by the consti:1.Right to organize themselves2.Conduct collective bargaining ornegotiation with management3.Engage in peaceful concertedactivities, including to strike inaccordance with law4.Enjoy security of tenure5.Work under humane conditions6.Receive a living wage7.Participate in policy and decision-making processes affecting theirrights and benefits as may beprovided by law. (Sec. 3, XIII).Other provisions in the Consti:1)Right to form unions, associations, societiesfor purposes not contrary to law.2)Right to self organization shall not be deniedto government employees.3)Regular farmworkers shall have the right toown directly or collectively the lands theytill.4)The State shall by law and for commongood, undertake in cooperation with theprivate sector a continuing program of urban land reform and housing.5)The State shall protect working women byproviding safe and healthful workingconditions taking into account theirmaternal functions.6)Labor is entitled to seats allotted to party-list representatives7)The State shall promote industrializationand full employment based on soundagricultural development and agrarianreform.8)Congress shall create an agency to promotethe viability and growth of cooperatives.9)The Govt shall increase salary scales of theother officials and employees of theNational Government.10)Career civil service employees shall beentitled to appropriate separation pay andto retirement and other benefits underexisting laws.a.Definition/Balancing of Interest
Calalang v. Williams, 70 Phil. 726 (1940)
Social Justice:
 JP Laurel in Calalang
neithercommunism, nor despotism, nor atomism notanarchy but the humanization of laws and theequalization of social and economic forces by theState so that justice in its rational and objectivelysecular conception may at least be approximated.Social justice is the promotion of the welfare of allthe people, the adoption by the Government of measures calculated to insure economic stability of all the component elements of society through themaintenance of proper economic and socialequilibrium in the interrelations of the members of the community, constitutionality, through theadoption of measures legally justifiable, or extra-constitutionally, through the exercise of powersunderlying the existence of all governments, on thetime-honored principle of 
salus populi est supremalex.
Manila Electric Co. v. Sec. of Labor, 337 SCRA 90(2000)When will the CBA take effect?<-o-------------------------------I
CBA expiration 6 monthsSecretary of Labor may determine the date of retroactivity as part of his discretionary powers. Butthis discretionary power shall only be exercised onlywhen jurisdiction has been vested.Assailed Resolution:Article 263(g) gives the Secretary jurisdiction. CBAnegotiated within six months after the expiration of the existing CBA retroacts to the day immediatelyfollowing such date and if agreed thereafter, theeffectivity depends on the agreement of the parties.But the law is silent as to the retroactivity of a CBAarbitral award or that granted not by virtue of themutual agreement of the parties but by interventionof the government. Despite the silence of the law,the Court rules herein that CBA arbitral awardsgranted after six months from the expiration of thelast CBA shall retroact to such time agreed upon byboth employer and the employees or their union.Absent such an agreement as to retroactivity, theaward shall retroact to the first day of the six-monthperiod following the expiration of the last day of theCBA should there be one. IN the absence of a CBA,the Sec’s determination of the date of retroactivity aspart of his discretionary powers over arbitral awardsshall control.Held: Where an arbitral award is granted beyond sixmonths after the expiration of the existing CBA, andthere is no agreement between the parties as to thedate of effectivity thereof, the arbitral award shallretroact to the first day after the six-month periodfollowing the expiration of the last day of the CBA.But instead of Dec 1, 1995 to Nov 30 1997 (CBA hada 2-year applicability period), the Court modified it to June 1, 1996 to May 31, 1998.
On social justice
: “[T]his Court cannot ignore theenormous cost that petitioner will have to bear as aconsequence of the fill retroaction of the arbitralaward to the date of the expiry of the CBA and theinevitable effect that it would have on the nationaleconomy. On the other hand, under the policy of social justice, the law bends over backward toaccommodate the interests of the working class onthe humane justification that those with less privilegein life should have more in law. Balancing these twocontrasting interests, this Court turned to thedictates of fairness and equitable justice and thusarrived at a formula that would address the concernsof both sides. Thus, Arbitral award must retroact tothe first day AFTER the six-month period followingthe last day of the CBA.Azucena:Duman / Labor I / Prof. Battad / Page 2
 The Consitution has not overlooked the rights of capital. It provides that, “the State recognizes theindispensable role of the private sector, encouragesprivate enterprise, and provides incentives to neededinvestments (Art. II, Sec. 20).While labor is entitled to a just share in the fruits of production, the enterprise has an equally importantright not only to reasonable returns on investmentbut also to expansion and growth.Shared Responsibility between workers andemployers
Preferential use of voluntary modes of settling disputes.a.Foundation: Police Power and StateProtectionWhile social justice is the raison d’etre of labor laws,their basis or foundation is the police power of theState.a.State legislatures may enact laws for theprotection of the safety and health of employees.b.Right of every person to pursue a business,occupation, or profession is subject to theparamount right of the government as apart of its police power to impose suchrestrictions and regulations as theprotection of the public may require.Legal Classification: (discussed in light of thesuspension of deployment of women)a.such classification rest on substantialdistinctionsb.they are germane to the purpose of the lawc.they are not confined to existing conditionsd.they apply equally to all members of thesame classb.Foundation: Police Power and State Protection
CMS Estate, Inc. v. Social Security System, 132 SCRA108 (1984) The case of two businesses, one was in real estateand the other was in the logging business. Oneowner was demanding for a refund from SSS and itrefused to subscribe the employees of the 2
business to SSS because the business has not beenin operation for 2 years (which was the requirementof the law) yet. The Social Security Law was enacted pursuant to thepolicy of the government “to develop, establishgradually and perfect a social security system whichshall be suitable to the needs of the peoplethroughout the Philippines, and shall provideprotection against the hazards of disability, sickness,old age and death.
It is thus clear that saidenactment implements the general welfaremandate of the Constitution and constitutes alegitimate exercise of the police power of theState.
It is the intention of the law to cover as manypersons as possible so as to promote theconstitutional objective of social justice.Compulsory coverage of the employer shall takeeffect on the first day of his operation, and that of the employee on the date of his employment (RA1161 as amended by RA 2658). The two yearprescription of the prior law must be consideredprevailed over by the later law and moreover, thelegislative intent must be given effect.c. Limits of Use
PLDT v. NLRC, 164 SCRA 671 (1988)PLDT employee promised to facilitate the approval of the complainantsapplications for telephoneinstallation and then received from them an amountof money in consideration of her promise. The rule embodied in the Labor Code is that a persondismissed for cause as defined therein is not entitledto separation pay. The cases abovecited (wheredifferent cases were cited proving that somecompanies still allowed separation pay despite thedegree of the ground upon which the employeeswere being dismissed for) constitute the exception,based upon considerations of equity. Equity has beendefined as justice outside law, being ethical ratherthan jural and belonging to the sphere of morals thanof law. It is grounded on the precepts of conscienceand not on any sanction of positive law. Hence, itcannot prevail against the expressed provision of thelabor laws allowing dismissal of employees for causeand without any provision for separation pay.Separation pay shall be allowed as a measure of social justice only in those instances where theemployee is calidly dismissed for causes other thanserious misconduct or those reflecting on his moralcharacter. Where the reason for the valid dismissal is,for example, habitual intoxication or an offenseinvolving moral turpitude, life theft or illicit sexualrelations with a fellow worker, the employer may notbe required to give the dismissed employeeseparation pay or financial assistance, or whateverother name it is called on the ground of social justice. The policy of social justice is not intended tocountenance wrongdoing simply because it iscommitted by the underprivileged. At best it maymitigate the penalty but it certainly will not condonethe offense. Compassion for the poor is animperative of every humane society but only whenthe recipient is not a rascal claiming an underservedprivilege. Social justice cannot be permitted to berefuge of scoundrels any more than can equity be animpediment to the punishment of the guilty. Thosewho invoke social justive may do so only if theirhands are clean and their motives blameless and notsimply because they happen to be poor.
Agabon v. NLRC, 442 SCRA 573 (2004)Employees were claiming illegal dismissal. Employerwas asserting that there was abandonment.Abandonment is the deliberate and unjustifiedrefusal of an employee to resume his employment. Itis a form of neglect of duty, hence, a just cause fortermination of employment by the employer. For avalid finding of abandonment: (1) failure to report forwork or absence without valid or justifiable reason(2) clear intention to server employer-employeerelationship with the second as the moredeterminative factor which is manifested by overtacts from which it may be deduced that theemployees has no more intention to work.
Wenphil or Belated Due Process Rule:
where theemployer had a valid reason to dismiss an employeebut did not follow the due process requirement, thedismissal may be upheld but the employer will bepenalized to pay an indemnity to the employee.But this was re-examined in
Serrano case
whereinthe Court required that the employer pay the fullbackwages from the time of dismissal until the timethe Court finds the dismissal was for a just orauthorized cause. It was because of a significantDuman / Labor I / Prof. Battad / Page 3

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