ATENEO CENTRAL BAR OPERATIONS 2007 Labor Law & Social Legislation SUMMER REVIEWER

LABOR STANDARDS
I. GENERAL PRINCIPLES Labor Code – principal labor law of the country. But even now, there are Labor Laws that are not found in the Labor Code. Social Legislation – the promotion of the welfare of all the people, the adoption by the government of measures calculated to insure economic stability of all the component elements of society thru the maintenance of proper economic and social equilibrium in the interrelations of the members of the community, constitutionally, thru the adoption of measures legally justifiable, or extra-constitutionally, thru the exercise of powers underlying the existence of all governments, on the time honored principle of salus populi esta suprema lex (Calalang v. Williams, 02 December 1940) Social Justice – humanization of laws and the equalization of social and economic forces by the State so that justice in its rational and objective secular conception may at least be approximated Labor Standards – sets out the minimum terms, conditions, and benefits of employment that employers must provide or comply with and to which employees are entitled as a matter of legal right Labor Relations – defines the status, rights and duties, as well as the institutional mechanisms that govern the individual and collective interactions between employers, employees and their representatives Art. 3. Declaration of basic policy ƒ Afford protection to labor ƒ Promote full employment ƒ Ensure equal work opportunities regardless of sex, race, or creed QuickTime™between and a ƒ Regulate the relations workers and TIFF (Uncompressed) decompressor are needed to see this picture. employers ƒ Assure worker’s rights to self-organization, collective bargaining, security of tenure, and just and humane conditions of work Seven basic rights of workers guaranteed by the Constitution: 1. right to organize 2. to conduct collective bargaining or negotiation with management

3. to engage in peaceful concerted activities, including strike in accordance with law 4. to enjoy security of tenure 5. to work under humane conditions 6. to receive a living wage 7. to participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. Art. 4. Construction in favor of labor ƒ When the interest of labor and capital collide, the heavier influence of capital should be counterbalanced with the sympathy and compassion of law for the less privileged workers. But protection to labor does not mean oppression or destruction of capital. The employer’s act will be sustained when it is in the right. [Eastern Shipping Lines v. POEA, 166 SCRA 523 (1998)] ƒ Court decisions adopt a liberal approach that favors the exercise of labor rights. The mandate is simply to resolve doubt in favor of labor. If there is no doubt in implementing and interpreting the law, labor will enjoy no built-in advantage and the law will have to be applied as it is. ƒ When the subject matter is covered by the Labor Code, doubts which involve implementation and interpretation of labor laws should be resolved in favor of labor, even if the question involves Rules of Evidence. Management Rights / Prerogative – except as limited by special laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers and the discipline, dismissal and recall of workers Capitol Medical Center, Inc. v. Meris (16 September 2005) As long as the company’s exercise of the same is exercised in good faith for the advancement of the employer’s interest, and not for the purpose of defeating or circumventing the rights of the employees under special laws or valid agreements, the courts will uphold them.

—Adviser: Atty. Marlon J. Manuel; Head: Ryan Quan; Understudy: Kate Sabado; Labor Standards: Kukay Malabanan; Labor Relations: Peewee Estrella; Social Legislation: Binkki Hipolito—

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
Philippine Blooming Mills Employees Association v. Philippine Blooming Mills, GR No. L-31195, 05 June 1973 The primacy of human rights – freedom of expression, of peaceful assembly and of petition for redress of grievances over property rights has been sustained. PAL v. NLRC, GR No. 85985 (1993) The exercise of management prerogatives is not unlimited. A line must be drawn between management prerogatives regarding business operations per se and those which affect the rights of employees. In treating the latter, management should see to it that its employees are at least properly informed of its decisions and modes of action. Wages are defined as remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered, and included the fair and reasonable value, as determined by the Secretary of Labor, of board, lodging, or other facilities customarily furnished by the employer to the employee. [Ruga v. NLRC, 181 SCRA 266 (1990)] 2. Hiring – employment relation arises from contract of hire, express or implied [Ruga v. NLRC, 181 SCRA 266 (1990)] ƒ Selection and engagement of the workers rests with the employers ƒ Not a conclusive test since it can be avoided by the use of subcontracting agreements or other contracts other than employment contracts 3. Firing – disciplinary power exercised by employer over the worker and the corresponding sanction imposed in case of violation of any of its rules and regulations 4. Control, not only over the end product / RESULT of the work, but more importantly, control over the MEANS through which the work is accomplished. (most essential element; without it, there is no EER) B. Economic Relations Test – a subordinate / alternative test. Existing economic conditions between the parties are used to determine whether EER exists. 1. payment of PAG-IBIG Fund contributions 2. payment / remittance of contributions to the State Insurance Fund 3. deduction of withholding tax 4. deduction / remittance of SSS contributions Insular Life Assurance Co., Ltd. v. NLRC, GR No. 119930, 12 March 1998 The employment status of a person is defined and prescribed by law and not by what the parties say it should be. Algon Engineering Construction Corp. v. NLRC, GR No. 83402, 06 October 1997 No particular evidence is required to prove the existence of an EER. All that is necessary is to show that the employer is capable of exercising control over the employee. In labor disputes, it suffices that
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Art. 5. Rules and regulations Department of Labor and Employment (DOLE) ƒ Lead agency in enforcing labor laws and it possesses rule-making power in the enforcement of the Code ƒ But a rule or regulation that exceeds the Department’s rule-making authority is void. Art. 6. Applicability of Labor Code ƒ Applies alike to all workers, except as otherwise provided by law, whether agricultural or nonagricultural. ƒ Applies to a government corporation incorporated under the Corporation Code

II. EMPLOYER –EMPLOYEE RELATIONSHIP (EER) A. ELEMENTS OF RELATIONSHIP Jurisprudential Tests to Determine Existence of EER: A. The employer has the ability (need not be actual) to exercise control over the following: 1. Payment of Wages QuickTime™ and a ƒ payment TIFF of (Uncompressed) compensation way of decompressor by are needed to see this picture. commission does not militate against the conclusion EER exists. Under Art. 97 of the Labor Code, "wage" shall mean "however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, price or commission basis…" (Insular Life Assurance Co., Ltd. V. NLRC, GR No.119930, 12 March 1998)

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
there be a causal connection between the claim asserted and the EER. Control of the employee's conduct is commonly regarded as the most crucial and determinative indicator of the presence or absence of an employer-employee relationship. Aurora Land Projects Corp. v. NLRC, GR No. 114733, 02 January 1997 Whenever the existence of EER is in dispute, four elements constitute the reliable yardstick (fourfold test); (a) the selection and engagement of the employee; (b) the payment of wages; (c) the power of dismissal; and (d) the employer's power to control the employee's conduct. It is the so-called "control test," and that is whether the employer controls or has reserved the right to control the employee not only as to the result of the work to be done but also as to the means and methods by which the same is to be accomplished, which constitute the most important index of the existence of the employer-employee relationship Stated otherwise, an EER exists where the person for whom the services are performed reserves the right to control no only the end to be achieved but also the means to be used in reaching such end. Filipinas Broadcasting Network, Inc. v. NLRC, GR No. 118892, 11 March 1998 There could be no EER where "the element of control is absent; where a person who works for another does so more or less at his own pleasure and is not subject to definite hours or conditions of work; and in turn is compensated according to the result of his efforts and not the amount thereof, we should not find that the relationship of employeremployee exists." Dy Keh Beng v. International Labor, GR No. L32245, 25 May 1979 It should be borne in mind that the control test calls merely for the existence of the right to control the manner of doing the work, not the actual exercise of the right. AFP Mutual Benefit Association v. NLRC, GR No. 102199, 28 January 1997 QuickTime™ and a is control. The However, not TIFF all(Uncompressed) that glitters decompressor are needed to see this picture. fact that private respondent was required to solicit business exclusively for petitioner could hardly be considered as control in labor jurisprudence. Under Memo Circulars No. 2-81 and 2-85 issued by the Insurance Commissioner, insurance agents are barred from serving more than one insurance company, in order to protect the public and to enable insurance companies to exercise exclusive supervision over their agents in their solicitation work. Thus, the exclusivity restriction clearly springs from a regulation issued by the Insurance Commission, and not from an intention by petitioner to establish control over the method and manner by which private respondent shall accomplish his work. This feature is not meant to change the nature of the relationship between the parties, nor does it necessarily imbue such relationship with the quality of control envisioned by the law. So too, the fact that private respondent was bound by company policies, memo/circulars, rules and regulations issued from time to time is also not indicative of control. With regard to the territorial assignments given to sales agents, this too cannot be held as indicative of the exercise of control over an employee. Further, not every form of control that a party reserves to himself over the conduct of the other party in relation to the services being rendered may be accorded the effect of establishing an employer-employee relationship. Ruga v. NLRC, 181 SCRA 266 (1990) The employer-employee relationship between the crew members and the owners of the fishing vessels engaged in deep-sea fishing is merely suspended during the time the vessels are drydocked or undergoing repairs or being loaded with the necessary provisions for the next fishing trip. The said ruling is premised on the principle that all these activities i.e., drydock, repairs, loading of necessary provisions, form part of the regular operation of the company fishing business. B. INDEPENDENT CONTRACTORS AND LABOR-ONLY CONTRACTORS Independent Contractors has sufficient substantial capital OR investment in machinery, tools or equipment directly or intended to be related to the job contracted carries an independent business different from the employer’s undertakes to perform the job under its own account and responsibility, FREE from the principal’s control NO EER except when the contractor or subcontractor fails to pay the employees’ wages. Labor – Only Contractors has NO substantial capital OR investment in the form of machinery, tools or equipment

has no independent business performs activities directly related to the main business of the principal Principal treated as direct employer of the person recruited in all instances (contractor is deemed
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Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
LIMITED liability (principal solidarily liable with contractor or subcontractor only when latter fails to comply with requirements as to unpaid wages and other labor standards violations. PERMISSIBLE agent of the principal) Principal’s liability extends to all rights, duties and liabilities under labor standard laws including the right to self-organization 2. The employees recruited, supplied or placed by such contractor or subcontractor are performing activities which are directly related to the main business of the principal; or 3. The contractor does not exercise the right to control over the performance of the work of the contractual employee. Substantial capital or investment – capital stocks and subscribed capitalization in the case of corporations, tools, equipment, implements, machineries and work premises, actually and directly used by the contractor or subcontractor in the performance or completion of the job, work or service contracted out. Right to Control – right reserved to the person for whom the services of the contractual workers are performed, to determine not only the end to be achieved, but also the manner and means to be used in reaching that end. ƒ The test to determine whether one is a job or labor-only contractor is to look into the elements of a job contractor. If ALL elements of a job contractor are present, then he is a job contractor. Otherwise, he is a labor-only contractor. Absent one of the elements for being a job contractor, the person is a labor-only contractor. On the other hand, not all requisites of a laboronly contractor need to be present. As long as any one of the elements is present, then the person is a labor-only contractor.

PROHIBITED

Contracting or subcontracting – an arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the performance or completion of a specific job, work or service within a definite or predetermined period, regardless of whether such job, work or service is to be performed or completed within or outside the premises of the principal Contractor or subcontractor – any person or entity engaged in a legitimate contracting or subcontracting arrangement Contractual employee – one employed by a contractor or subcontractor to perform or complete a job, work or service pursuant to an arrangement between the latter and a principal Principal – any employer who puts out or farms out a job, service or work to a contractor or subcontractor Permissible Job Contracting; Conditions a. The contractor carries on an independent business; b. Undertakes the contract work on his own account under his own responsibility according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of the work except as to the results thereof; and c. The contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other materials which are necessary in the conduct of his QuickTime™ and a business. TIFF (Uncompressed) decompressor
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Posting of Bond – an employer or indirect employer may require the contractor or subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same Civil liability of employer and contractors – Every employer or indirect employer shall be jointly and severally liable with his contractor or sub-contractor for the unpaid wages of the employees of the latter. Such employer or indirect employer may require the contractor or sub-contractor to furnish a bond equal to the cost of labor under contract on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same Liability of the principal to the employee in cases of illegal dismissal
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Labor-only Contracting – an arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and any of the following elements are present: 1. The contractor or subcontractor does not have substantial capital or investment which relates to the job, work or service to be performed

supplies workers to an employer. managed or controlled by the principal and which operates solely for the principal e. "Cabo" refers to a person or group of persons or to a labor group which. work or service directly related to the business or operation of the principal by reason of a strike or lockout whether actual or imminent f. Book V of these Rules. In addition to his assigned functions. Taking undue advantage of the economic situation or lack of bargaining strength of the contractual employee. GR Nos. ƒ The principal. Contracting out of a job. but with the right to reimbursement from the employercontractor 2. in any of the following instances: i. 109 of the Labor Code. 23 July 1993 Page 5 of 83 . employment or continued employment. contractor or subcontractor from any liability as to payment of future claims. Contracting out of a job. work or service through an in-house agency which refers to a contractor or subcontractor engaged in the supply of labor which is owned. a waiver of labor standards including minimum wages and social or welfare benefits. QuickTime™ ii. Art. ƒ Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting. Separation pay and backwages. unless the latter contract is divisible into phases for which substantially different skills are required and this is made known to the employee at the time of engagement d. including the failure to pay wages. however. as amended Existence of EER – The contractor or subcontractor shall be considered the employer of the contractual employee for purposes of enforcing the provisions of the Labor Code and other social legislation. or undermining his security of tenure or basic rights. NLRC. Neri v. 97008-09. only when the principal has some relation to the termination (such as when he conspired to terminate) (Rosewood Processing Inc. Contracting out of a job. or a quitclaim releasing the principal. or b. an antedated resignation letter. or circumventing the provisions of regular employment. Prohibited Acts (DO 18-02): a.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 1. where the contracting arrangement falls within the prohibited acts ƒ Registration of Contractors and Subcontractors ƒ The registration of contractors and subcontractors shall be necessary for purposes of establishing an effective labor market information and monitoring. GR Nos. 21 May 1998) NOTE: this ruling is an obiter and made an unjustified interpretation of Art. Joint and several with the employer. restrain or coerce employees in the exercise of their rights to self organization as provided in Art. NLRC. where there is labor-only contracting. a blank payroll. work or service being performed by union members when such will interfere with. work or service when not done in good faith and not justified by the exigencies of the business and the same results in the termination of regular employees and reduction of work hours or reduction or splitting of the bargaining unit b. Requiring him to sign a contract fixing the period of employment to a term shorter than the term of the contract between the principal and the contractor or subcontractor. Contracting out of a job. 109 makes the principal liable in illegal dismissal WON there was fault on his part. and asa a precondition to TIFF (Uncompressed) decompressor are needed to see this picture. requiring the contractual employee to perform functions which are currently being performed by the regular employees of the principal or of the contractor or subcontractor. and iii. Requiring him to sign. Rule I. 116476-84. Wage differentials only to the extent where the employee performed the work under the principal. v. 248 (c) of the Labor Code. shall be solidarily liable with the contractor in the event of any violation of any provision of the Labor Code. 3. Contracting out of work with a "cabo" as defined in Section 1 (ii). with or without any monetary or other consideration whether in the capacity of an agent of the employer or as an ostensible independent contractor c. The principal shall be deemed the employer of the contractual employee in any of the following cases as declared by a competent authority: a. in the guise of a labor organization.

SPECIAL CASES 1. Lapanday Agricultural Dev’t Corp. Resident physicians in training – There is EER between resident physicians and the training hospital unless: a. the students are given real opportunities. term and duration of the relationship 4. The overseas recruiter is solidarily liable with the foreign employer. 126286. control and supervision of worker 6. power of employer with hiring. appliances. manner. There is a training agreement between them b. PNB v. NLRC. v. Every intendment of the law must be interpreted in favor of the working class. GR No. equipment and machineries. they are not necessary in the conduct of the principal business of the employer. provided. an appeal bond in an amount equivalent to the monetary award is required to perfect an appeal from a decision of the POEA. control of the premises 8. tools. While these services (janitorial. the appeal bond is intended to further insure the payment of the monetary award in favor of the employee if it is eventually affirmed on appeal to the NLRC. is made the indirect employer of the contractor's employees to secure payment of their wages should the contractor be unable to pay them. The bonds and the escrow money are intended to insure more care on the part of the local agent in its choice of the foreign principal to whom our overseas workers are to be sent. in order to ensure that the employees are paid the wages due them. security and even technical or other specific services) may be considered directly related to the principal business of the employer. and payment of wages 7. The principal. this Page 6 of 83 . 31 January 2000 It will be seen from the above provisions that the principal (petitioner) and the contractor (respondent) are jointly and severally liable to the employees for their wages. CA.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 The law does not require both substantial capital and investment in the form of tools. colleges or universities on the other. 157010. 05 August 1996 The POEA Rules are clear. Several factors to consider to Determine Whether Contractor is carrying on an independent business: 1. GR No. The joint and several liability of the contractor and the principal is mandated by the Labor Code to assure compliance with the provisions therein including the minimum wage. A reading thereof readily shows that in addition to the cash and surety bonds and the escrow money. issued on March 8. this Court affirms once again its commitment to the interests of labor. on the other hand. GR No. 112139. Obviously. Even in the absence of an EER. The Certificate. CA.” If the intention was to require the contractor to prove that he has both capital and the requisite investment. 21 June 2005 Noteworthy is the fact that respondent likewise applied for and secured an Overseas Employment Certificate from the POEA through the Philippine Embassy in Singapore. 9.e. III. and schools. Overseas recruiters are subject to more stringent requirements because of the special risks to which our workers abroad are subjected by their foreign employers. declared her a bona fide contract worker for Singapore. right to assign the performance of specified pieces of work 5. there is written agreement between them under which the former agree to work for the latter in exchange for the privilege to study free of charge b. Under Philippine law. v. Working scholars – no EER between students on one hand. where: a. the law itself establishes one between the principal and the employees of the agency for a limited purpose i. 02 February 2000) C. duty to supply premises. nevertheless. conformably to the mandate of the Constitution. against whom there is usually no direct or effective recourse. 120095. nature and extent of work 2. QuickTime™ and a TIFF (Uncompressed) decompressor materials and labor are needed to see this picture. terms of payment (Vinoya v. PRE-EMPLOYMENT A. PRINCIPLES AND DEFINITIONS JMM Promotion & Management Inc. firing. GR No. skill required 3. Cabansag. then the conjunction “and” should have been used. The contractor is made liable by virtue of his status as direct employer. By sustaining rather than annulling the appeal bond as a further protection to the claimant employee. 1999. This is clear from the use of the conjunction “or. mode. including such facilities as may be reasonable and necessary to finish their chosen courses under such agreement 2. The training program is duly accredited or approved by the appropriate government agency.

9. To furnish or publish any false notice or information or document in relation to recruitment QuickTime™ and a (Uncompressed) decompressor or employmentTIFF are needed to see this picture. To give any false notice. remittance of foreign exchange earnings. 10. Art. Illegal recruitment ƒ Any recruitment activities. common practices and customs prevailing in Singapore she subsequently became a contract worker or an OFW who was covered by Philippine labor laws and policies upon certification by the POEA. ensure equal work opportunities regardless of sex. RECRUITMENT AND PLACEMENT 1. separation from jobs. Page 7 of 83 . even assuming that she was considered at the start of her employment as a “direct hire” governed by and subject to the laws. or to make a worker pay any amount greater than that actually received by him as a loan or advance 2. a license or authority from POEA is needed. 12. contracting. advertising for employment. The Department of Labor and Employment or any law enforcement officer may initiate complaints. testimony. To induce or attempt to induce a worker already employed to quit his employment in order to offer him to another unless the transfer is designed to 11. promote full employment. including the prohibited practices enumerated under Article 34 of this Code. liberate the worker from oppressive terms and conditions of employment To influence or to attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized representatives To fail to file reports on the status of employment. 13. shall be deemed illegal and punishable under Article 39 of this Code. 3. employment to two or more persons shall be deemed engaged in recruitment and placement Prohibited Practices 1. promising for employment locally or abroad. referrals. utilizing or procuring workers and includes (CRAP) includes contract services. race or creed. to be undertaken by non-licensees or nonholders of authority. in any manner. To charge or accept. Any of the acts mentioned in Article 13 (b) will constitute recruitment and placement even if only one prospective worker is involved. contract stipulations to the contrary notwithstanding. Thus. 142 SCRA 664 (1986) The number of persons dealt with is not the basis in determining WON an act constitutes recruitment and placement. In that case. she already possessed the POEA employment Certificate. That any person or entity which. transporting. People v. whether for profit or not: Provided. offers or promises for a fee. and regulate the relations between workers and employers. B. all Filipino workers enjoy the protective mantle of Philippine labor and social legislation. departures and such other matters or information as may be required by the Secretary of Labor To substitute or alter employment contracts approved and verified by the Department of Labor from the time of actual signing thereof by the parties up to and including the periods of expiration of the same without the approval of the Secretary of Labor To become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations other than those authorized under this Code and its implementing rules and regulations Failure to actually deploy without valid reason as determined by DOLE Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment. directly or indirectly. This pronouncement is in keeping with the basic public policy of the State to afford protection to labor. information or document or commit any act of misrepresentation for the purpose of securing a license or authority under this Code 4. any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor. enlisting. Whether employed locally or overseas. placement vacancies. Panis. in cases where the deployment does not actually take place without the worker’s fault 5. At the time her employment was illegally terminated. hiring.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 document authorized her working status in a foreign country and entitled her to all benefits and processes under our statutes. 7. 38. 8. Definition: Illegal Recruitment. 6. Prohibited Acts Recruitment and Placement – any act of (CETCHUP) canvassing.

1. 10 RA 8042): 1. 2. The words “shall be deemed” create that presumption. IR committed in large scale . al. That the offender has no valid license or authority required by law to enable one to lawfully engage in recruitment and placement of workers. and. revoked or cancelled by the POEA or the Secretary Who are liable: ƒ Principals. Art. But where there are three conspiring recruiters. Sagun. ƒ Where offense committed. In large scale – committed against 3 or more persons individually or as a group People v. If there is only one complainant in several complaints. enterprise or scheme falling under illegal recruitment 2. ƒ Added the following in the list of Prohibited Acts: 1. the accused can be convicted only of “simple illegal recruitment”. ƒ Elements: 1. IR committed by syndicate – carried out by a group of 3 or more persons conspiring and/or confederating with one another in carrying out any unlawful or illegal transaction. ƒ Where illegal recruitment is proved but the elements of “large scale” or “syndicate” are absent. 19 February 1999) Illegal recruitment (IR) involving Economic Sabotage (Art. 110554. and accessories ƒ For juridical persons. Venue – filed with the RTC of the province or city. OR ƒ Where offended party actually resides at the time of the commission of the offense Labor Code local recruitment and employment Illegal Recruitment (Art. corporation or entity which has not been issued a valid license or authority to engage in recruitment and placement by the Secretary of Labor. or whose license or authority has been suspended. GR No. 07 March 2002 These categories are separate or independent categories. it must be shown that the accused gave the distinct impression that QuickTime™ and a TIFF (Uncompressed) decompressor he had the power or ability to send complainants are needed to see this picture. whether a nonlicensee. the officers having control.committed against 3 or more persons individually or as a group Estafa – a person convicted for illegal recruitment under Labor Code can be convicted for violation of the Revised Penal Code provisions on estafa provided the elements of the crime are present. 34 of LC) committed by any person. A person is guilty of illegal recruitment when he gives the impression that he has the power to send workers abroad. By a syndicate – carried out by a group of 3 or more persons confederating with one another 2. there is no illegal recruitment in large. 38 (b) Labor Code & Sec. 39 (c) of Labor Code unconstitutional Only a Judge may issue warrants of search and arrest. licensee or holder of authority. Illegal recruitment involving economic sabotage Page 8 of 83 . 2. in cases where the deployment does not actually take place without the workers fault. or any prohibited practices enumerated under Article 34. (People v. That the offender undertakes either any activity within the meaning of recruitment and placement defined under Article 13(b). accomplices. et. abroad for work such that the latter were convinced to part with their money in order to be deployed. ƒ ƒ To prove illegal recruitment. the individual or entity dealing with them shall be deemed to be engaged in the act of recruitment and placement. OR ƒ Prohibited Acts (same as Art.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 The proviso about “two or more persons” merely lays down a rule of evidence: where fee is collected because of a promise or offer of employment to two or more prospective workers. 34 committed by nonlicensees or nonholders of authority. there is illegal recruitment by a syndicate. 6): ƒ Any recruitment activity committed by nonlicensees / non-holders of authority. 38): ƒ Any recruitment activity including Prohibited Acts under Art. RA 8042 – Overseas Filipinos and Overseas Migrant Workers Act applies to recruitment for overseas employment Illegal Recruitment (Sec. management or direction of their business shall be liable. Fernandez. The labor authorities must go through the judicial process. fail to reimburse expenses incurred by the worker in connection with his/her documentation and processing for purposes of deployment. non-holder. fail to actually deploy without valid reason. Non-licensee / Non-Holder of authority – any person..

The prosecution is based on the date of the prohibited activity. The collection of unpaid accounts should not be the basis of a criminal prosecution. Local Agency is solidarily liable with foreign principal. airline tickets and foreign visa for another individual. Nature of the liability of local recruitment agency and foreign principal 1. ƒ The reason for the ban is to ensure full regulation of employment in order to avoid exploitation. plane tickets and other sundry expenses. Diaz. can hardly qualify as recruitment activities. the promise of future employment and other come-ons took place while Ms. They are intended for administrative and business expenses and for the travelling expenses of the applicants once cleared for overseas travel. and (2) worker has actually commenced working. 204 SCRA 240 (1991) Receipt of payments. The advertising. issuance or signing of receipts for the placement fees that makes a case for illegal recruitment. or such money. Recruitment refers to the offering of inducements to qualified personnel to enter a particular job or employment. Aquino was still licensed. . 267 SCRA 278 (1997) QuickTime™ and a According to TIFF the Labor Code. 292 SCRA 534 (1998) Page 9 of 83 By themselves. contracting and advertising for employment. IR must be proved beyond reasonable doubt. not on the payments being illegal exactions even if effected during the correct period. private recruitment entities d. Fees to be Paid by Workers: ƒ No worker shall be charged with any fee until employee: (1) obtained work through recruiter’s efforts.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Prescriptive Periods: ƒ Simple IR – within 5 years from time IR happened ƒ Economic Sabotage – within 20 years from time IR happened People v. but rather the undertaking of recruitment activities without the necessary license or authority. there has to be a winding-up after it ceases operations. Philippine Overseas Employment Administration (POEA) c. 2. 181 SCRA 110 (1990) POEA has the power to order refund of illegally collected fees. promising them employment abroad. CA. shipping or manning agents or representatives f. Senoron. True. However. unquestionably constitute acts of large scale illegal recruitment. without more. Such relief includes the refund or reimbursement of such fees as may have been fraudulently or otherwise illegally collected. private employment agencies e. after the expiration of the license. it is asking too much to expect a licensed agency to absolutely at the stroke of midnight stop all transactions on the day its license expires and refuse to accept carry-over payments after the agency is closed. Absent any other participation in the IR activities. which were clearly described in the lucid testimonies of the three victims. v. it is not the (Uncompressed) decompressor are needed to see this picture. ƒ Placement fee in an amount equivalent to one month’s salary of the worker and documentation costs are the ONLY AUTHORIZED PAYMENTS that may be collected from a hired worker. Secretary of Labor. Employers cannot directly hire workers for overseas employment except through authorized entities see (enumeration above). The payments are necessary in order to defray the expenses entailed in any overseas contract of employment. medical tests. mere receiving of placement fees or signing of receipt do not constitute IR. for services rendered before said expiration does not constitute illegal recruitment. placement fee. 259 SCRA 441 (1996) The acts of the appellant. People v. construction contractors Is direct-hiring of OFWs allowed? Why? ƒ No. procuring a passport. CA. Aquino v. such as collecting from each of the complainants payment for passport. Regulation of Recruitment and Placement Activities Entities authorized to engage in recruitment and placement a. Darvin v. Implicit in its power to regulate the recruitment and placement activities of all agencies is the award of appropriate relief to the victims of the offenses committed by the respondent agency or contractor. goods or services imposed and accepted in excess of what is licitly prescribed. In any business. the payments for services rendered are necessary consequences of the applications for overseas employment. Eastern Assurance and Surety Corp. such other persons or entities as may be authorized by the DOLE Secretary g. public employment offices b.

There is nothing in the stipulation calling for a direct judgment against the surety as a co-defendant in an action against the principal. hence. 184 SCRA 123 (1990) The requirement for the posting of a cash bond is also an indispensable adjunct to the requirement that the agency undertakes to assume joint and solidary liability with the employer for all claims and liabilities which may arise in connection with the implementation of the contract of overseas employment and to guarantee compliance with existing labor and social legislation of the Philippines and the country of employment. among others. 205 SCRA 605 (1992) The surety bond required of recruitment agencies is intended for the protection of our citizens who are engaged for overseas employment by foreign companies. The undertaking to QuickTime™ and a TIFF (Uncompressed) decompressor assume joint and solidary liability and to guarantee are needed to see this picture. The foreign principal is outside the jurisdiction of our courts and would probably have no properties in this country against which an adverse judgment can be enforced." The peculiar nature of overseas employment makes it very difficult for the Filipino overseas worker to effectively go after his foreign employer for employment-related claims and. Catan v. to afford overseas workers protection from unscrupulous employers.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 2. because the obligations covenanted in the recruitment agreement entered into by and between the local agent and its foreign principal are not coterminous with the term of such agreement so that if either or both of the parties decide to end the agreement. Stronghold Insurance Co. which can be proceeded against to satisfy that judgment. and the consequent posting of cash and surety bonds. This difficulty is corrected by the bond. the recruiter may still be sued for a violation of the employment contract because no notice of the agency agreement's termination was given to the employee. whether or not the surety was impleaded in the complaint and had the opportunity to defend itself. public policy dictates that. but the same extends up to and until the expiration of the employment contracts of the employees recruited and employed pursuant to the said recruitment agreement. NLRC. the recruitment or placement agency in the Philippines be made to share in the employer's responsibility. 160 SCRA 691 (1988) This must be so. CA. Power to suspend or cancel any license or authority to recruit employees for overseas employment is concurrently vested with the POEA and the Secretary of Labor. compliance with labor laws. the Secretary of Labor gave the POEA on its own initiative or upon filing of a complaint or report or upon request for investigation by any aggrieved Page 10 of 83 . may be traced all the way back to the constitutional mandate for the State to "afford full protection to labor. not only to 'restrict and regulate the recruitment and placement activities of all agencies. local and overseas. 205 SCRA 605 (1992) The surety agreed to answer for whatever decision might be rendered against the principal. v. conferred by Section 36. Liability of surety ƒ In a surety bond.' but also to 'promulgate rules and regulations to carry out the objectives and implement the provisions' governing said activities. the surety unequivocally bound itself to answer for all liabilities which the POEA may adjudge or impose against the principal in connection with the recruitment of Filipino seamen Stronghold Insurance Co. And the Secretary of Labor has the power under Section 35 of the law to apply these sanctions. The purpose is to insure that if the rights of these overseas workers are violated by their employers. Joint and solidary liability of recruiter with Foreign Principal ƒ A recruitment agency is solidarily liable for the unpaid salaries of a worker it recruited for employment overseas. this will render nugatory the very purpose for which the law governing the employment of workers for foreign jobs abroad was enacted. Severance of relations between local agent and foreign principal does not affect liability of local recruiter. v. Posting of cash bond by recruiter Capricorn Travel & Tours v. Pursuant to this rulemaking power thus granted. ƒ The penalties of suspension and cancellation of license or authority are prescribed for violations of the above quoted provisions. the responsibilities of such parties towards the contracted employees under the agreement do not at all end. recourse would still be available to them against the local companies that recruited them for the foreign principal. as well as the authority. ƒ Even if the recruiter and the principal had already severed their agency agreement at the time employee was injured. Otherwise. CA. CA.

Just causes for the termination of the contract or of the services of the workers 5. exemplary and other forms of damages. 125 SCRA 577 (1983) The form contracts approved by the National Seamen Board [now POEA] are designed to protect Filipino seamen not foreign shipowners who can take care of themselves. 3. Guaranteed wages. Assistance in the remittance of worker’s salaries.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 person. the imposition or acceptance. Free emergency medical and dental treatment and facilities 4. or if this is not Jurisdiction over Money Claims Labor Arbiters have jurisdiction over all monetary claims of Overseas Filipino Workers arising from employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment. employment and return 3. is entitled to: a. Repatriation of workers remains and properties in case of death to the point of hire. the salary paid should be that for the unexpired portion. Dispute Settlement Regulatory power – DOLE Secretary shall have the power to restrict and regulate the recruitment and placement activities of all agencies within the coverage of this Title and is hereby authorized to issue orders and promulgate rules and regulations to carry out the objectives and implement the provisions of this Title. public policy and morals. Contracts Freedom to Stipulate Vir-Jen Shipping v. involving or arising out of violations of rules and regulations relating to licensing and registration of recruitment and employment agencies or entities b. Minimum Provisions for Contract 1. ƒ The Administrator was also given the power to 'order the dismissal of the case or the suspension of the license or authority of the respondent agency or contractor or recommend to the Minister (now Secretary) the cancellation thereof. involving employers. rules and regulations. directly or indirectly. upon prior arrangement with the worker’s next-of-kin and the nearest Embassy or Consulate through the Office of the Labor Attache 7. contracting partners and Filipino migrant workers Money Claims of OFWs A worker dismissed from overseas employment without just. But the stipulations should not contradict law. which are administrative in character. or any fee or bond in excess of what is prescribed by the Administration 2. any other violation of pertinent provisions of the Labor Code and other relevant laws. moral. (authority to) conduct the necessary proceedings for the suspension or cancellation of the license or authority of any agency or entity' for certain enumerated offenses including 1. for regular working hours and overtime pay for services rendered beyond regular work hours in accordance with the standards established by the Administration QuickTime™ and a 2. including claims for actual. principals. valid or authorized cause as defined by law or contract. full reimbursement of the placement fee with interest at 12% per annum PLUS b. ƒ Terms and conditions and other benefits not provided by the minimum requirements are valid if the whole employment package is more beneficial to the worker than the minimum. Workmen’s compensation benefits and war hazard protection 6. of any amount of money. Free and adequate lodging facilities or compensatory food allowance at prevailing cost of living standards at the jobsite 4. Jurisdiction of the POEA Original and exclusive jurisdiction to hear and decide: a. possible under the circumstances. disciplinary action cases and other special cases. 115 SCRA 347 (1992). his salary for unexpired portion of his employment contract OR salary for 3 months for every year of the unexpired term. If the contract is shorter than that. the proper disposition thereof. Free transportation from point of hire to site of TIFF (Uncompressed) decompressor are needed to see this picture. goods or services. NLRC. They are not collective bargaining agreements or illimitable contracts which the parties cannot improve upon or modify in the course of the agreed period of time. which are administrative in character. all cases. WHICHEVER IS LESSER ƒ 3-months option available ONLY IF the employment contract is for at least one year. The standard forms embody the basic minimums which must be incorporated as parts of the employment contract. Page 11 of 83 . allowances or allotments to his beneficiaries 8.

unless sooner revoked by the Secretary of Labor ƒ Renewable upon showing of good cause ƒ Non-transferable Other Prohibitions ƒ Aliens shall not transfer to another job or change his employer without prior approval of the secretary of labor ƒ Non-resident alien shall not take up employment in violation of the provisions of the Code. alien must train at least two Filipino understudies for such undertaking 4. . of Labor to be beneficial to national interest. IRRI) 3. certification that there is no available Filipino willing and competent to do the job for the employer 3. All members of Diplomatic Services and foreign government officials accredited with the Phil. plans and programs 2.e. Government Machinery TIFF (Uncompressed) decompressor are needed to see this picture. Government 2. Duration of Permit ƒ Valid for 1 year from date of issuance. high quality and efficient technical education and skills development in support of the development of high-quality Filipino middle-level manpower responsive to and in accordance with Philippine development goals and priorities. coordinating. working permit from DOLE 2. Apprenticeship and Learnership Learners Apprentices ƒ Persons hired as ƒ Practical What trainees in semitraining on the skilled and other job industrial ƒ Supplemented occupations by related ƒ Nontheoretical apprenticeable instruction ƒ May be learned ƒ Covered by a through practical written training on the apprenticeship job in a relatively agreement with short period of an individual time employer or ƒ Shall not exceed entity 3 months ƒ Needs DOLE approval ƒ Shall not exceed 6 months ƒ No experienced ƒ Only in highlyWhen workers technical may be available industries hired ƒ Prevent ƒ Only in curtailment of apprenticeable employment occupations opportunities ƒ Not to create unfair competition in labor costs and lower working standards ƒ List of learnable ƒ At least 14 trades provided years old by TESDA ƒ Possesses vocational aptitude and capacity for tests ƒ Ability to comprehend ƒ Ability to follow oral and written instructions ƒ Any form of employment requiring beyond 3 mos. continuing. EMPLOYMENT OF ALIENS Requisites for Employment of Non-Resident Aliens 1. D. Government is a cooperating member (i.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 C. ADB. Power and Functions of TESDA Responsible for formulating. and fully integrating technical education and skills development policies. Have been determined by the Sec. FOR ENTERPRISES REGISTERED IN PREFERRED AREAS OF INVESTMENT – employment permit issued upon recommendation of government agency charged with the supervision of said registered enterprise Exemption from Permit 1. practical Page 12 of 83 Policy It is the policy of the State to provide relevant. accessible. Missionaries actually engaged in missionary work 4. All aliens granted exemption by special laws and all those whose employment in the Phil. HUMAN RESOURCES & MANPOWER DEVELOPMENT QuickTime™ and a 1. Members of international organizations with which the Phil.

convenience. (a) Regularly and directly assist a proprietor or a managerial employee. Officers or members of managerial staff if they perform the following duties and responsibilities i. or safety of the employer as well as members of the employer’s household Page 13 of 83 Venue of Apprenticeship Programs ƒ The plant. They have authority to hire or fire other employees of lower rank. civic groups and the like. . apprenticeship program approved by the Sec. they perform such services in the employer’s home which are usually necessary or desirable for the maintenance and enjoyment thereof. the employer is not required to continue the employment. They customarily and regularly direct the work of two or more employees therein iii. Contents of Learnership Agreement 1.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 training on the job supplemented by related theoretical instruction ƒ No list Requisites for a Valid Apprenticeship 1. Excluded Employees 1. qualifications of apprentice are met 2. Management employees. otherwise. of Labor. These standards apply only if there exists EER. occupation to be learned and the duration of the training period which shall not exceed 3 months 3. the apprentice shall be deemed as a regular employee 5. apprenticeship agreement duly executed and signed 4. shop. ƒ DOLE training center or other public training institutions with which the Bureau has made appropriate arrangements. who do not devote more than 20% of their hours worked in a workweek to activities which are not directly and closely related to the performance of work in i-iii above. Their primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof ii. ƒ The premises of one or several firms designated for the purpose by the organizer of the program if such organizer is an association of employers. WORKING CONDITIONS Coverage Book III of the Labor Code provides the conditions or standards of employment. including those employed in GOCCs 2. experience or knowledge. Government employees whether employed by the National Government or any of its political subdivisions. minister to the personal comfort. as a regular employee upon completion of training ƒ A learner who has worked during the first two months shall be deemed a regular employee if training is terminated by the employer before the end of the stipulated period thorough no fault of the learner. Customarily and regularly exercise discretion and independent judgment iii. If they meet ALL of the following conditions: i. wage of the learner which shall be at least 75% QuickTime™ and a of the applicable minimum wage TIFF (Uncompressed) decompressor are needed to see this picture. if he so desires. 4. premises of the employer or firm concerned if the apprenticeship program is organized by an individual employer or firm. and iv. Primary duty consists of performance of work directly related to management policies of employer ii. commitment to employ the learner. or ii. the apprentice earns not less than 75% of the prescribed minimum salary 3. 4. period of apprenticeship not exceed 6 months ƒ ƒ At the termination of the apprenticeship. domestic servants and persons in the personal service of another if i. names and addresses of employer and learner 2. Employer may not pay wage if the apprenticeship is • a requirement for graduation • required by the School • required by the Training Program Curriculum • requisite for Board examination V. (c) execute under general supervision special assignments and tasks. or there suggestions and recommendations as to the hiring and firing and as to the promotion or any other change of status of other employees are given particular weight 3. (b) Execute under general supervision work along specialized or technical lines requiring special training.

16 May 2005) It is of judicial notice that along the routes that are plied by bus companies. pakyaw or task basis 6.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 5. they will no longer incur transport and other expenses. such as when there is substantial slump in demand for his . mandatory once-a-week car barn or shop day. whether the work is broken or continuous Calendar Day – 24-hr. HOURS OF WORK ƒ Work hours shall not exceed 8. Autobus Transport Systems Inc. period commencing at 12 midnight and ending at 11:59 p. For the hours exceeding 8 in a workday. injury or deformity or in need of obstetrical or other medical and nursing care Regular Working Hours and Days of Hospital and Clinic Personnel ƒ Not more than 8 hrs. treatment. disease. Page 14 of 83 Work Day – 24-hr period commencing from the time QuickTime™ and a an employee regularly starts to work regardless of TIFF (Uncompressed) decompressor are needed to see this picture. the arrangement should not diminish the employees’ monthly or daily pay or their established employment benefits. B. Managerial Employees – refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof. all hospitals and clinics situated in cities or municipalities with a population of 1 million or more 2.. v. there are its inspectors assigned in strategic places. All time during which an employee required to be on duty or to be at the employer’s premises or to be at a prescribed work place. in return. not prohibited. they are under the effective control and supervision of the employer. ƒ ƒ ƒ ƒ Hours of Work of Hospital and Clinic Personnel. Further. Thus. Extended workday in CWW should not exceed 12 hrs. NLRC. and to other officers or members of the managerial staff Field Personnel – non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty Mercidar Fishing Corp. the reversion shall not constitute a diminution of benefits. including those who are paid on piece-work. the employees waive their OT pay because. in any one week ƒ Not more than 5 days in a work week. Work exceeding 12 hrs. a week. as they generally observe prompt departure and arrival from their point of origin to their point of destination. the employees will be regularly working for less than 6 days but each workday exceeds 8 hrs. 3. Allowed on condition that it is freely agreed upon between the employer and majority of the employees. Thus. workers paid by results. Coverage 1. Compressed Work Week (CWW) ƒ Resorted to by the employer to prevent serious losses due to causes beyond his control. non-agricultural field personnel if they regularly perform their duties away from the principal or branch office of place of business and whose actual hours of work in the field cannot be determined with reasonable certainty. drivers/conductors must be at a specific place at a specific time. or a day’s work of less than 8 hours.m. v. goods and services or when there is lack of raw materials. 297 SCRA 440 (1998) Fishermen are not field personnel since throughout the duration of their work. They are under the constant supervision while in the performance of this work. 156367. part-time work. takaw. provided employee is paid for overtime work ƒ Overtime: additional compensation of regular wage + at least 30% thereof Considered as Compensable Hours Worked 1. in a week should be considered OT. and 2. in a day or 48 hrs. Rest periods of short duration during working hours. GR No. and care of individuals suffering from illness. Bautista. The workweek may begin at any hour and on any day Overtime Work of Hospital and Clinic Personnel ƒ May be scheduled to work for more than 5 days or 40 hrs. drivers/conductors are not field personnel. Should the work shift revert to 8 hrs. all hospitals and clinics with a bed capacity of at least 100 Hospitals and Clinics – place devoted primarily to maintenance and operation of facilities for the diagnosis. in any one day and not more than 40 hrs. All time during which an employee suffered or permitted to work. Instead of working 6 days a week.

205 SCRA 69 (1992) The fact that he picks up employees at certain specified points in EDSA in going to the project site and drops them off at the same time on his way back from the field office going home to Marikina is not merely incidental to petitioner’s job as a driver. travel is done through a conveyance provided by the employer 3. like overnight travel from jobsite to jobsite during the workday GR: not Compensable Work time Travel From Home to Work compensable because it is a normal incident of employment Exceptions: 1. where employee made to work on an emergency call and travel is necessary in proceeding to the workplace 2. of Pangasinan. travel is done under vexing and dangerous circumstances and counted as hours worked when it cuts across an employee’s workday because it substitutes for the hours the employee should have been in the office Univ. waiting is an integral part of his work or 2. the employee is required or engaged by the employer to wait. Waiting Time ƒ Waiting time spent by an employee shall be considered as working time if 1. Since the assigned task of fetching and delivering employees is indispensable and consequently mandatory. Univ. travel is done under the supervision and control of the employer 4. but primarily for the benefit of the employer. An employee need not leave the premises of the workplace in order that his rest period shall not be counted. Rada v. or b. if the work was with the knowledge of his employer or immediate supervisor. Meeting.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Principles in Determining Hours Worked 1. NLRC. Lectures. of Pangasinan Faculty Union v. which is not work in travel as employee time part of his away from principal home activity. it being enough that he stops working. or the employee could not abandon his work at the end of his normal working hours because he had no replacement. 127 SCRA 691 (1984) Semestral break of teachers is compensable hours worked for it is a form of interruption beyond their control. may rest completely and may leave his workplace 3. The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered working time either if a. Travel Time Travel that is Travel Away All in Days from Home Work Normal travel from Time spent by Travel that QuickTime™ and a home to work an employee keeps an TIFF (Uncompressed) decompressor are needed to see this picture. If the work performed was necessary or it benefited the employer. ƒ Working while on call . All hours are hours worked which the employee is required to give to his employer. Programs Page 15 of 83 . all time spent or such work shall be considered as hours worked.an employee who is required to remain on call in the employer's premises or so close thereto that he cannot use the time effectively and gainfully for his own purpose. if the interval is too brief to be utilized effectively and gainfully in the employee's own interest. regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion 2. then the time required of and used by petitioner in going from his residence to the field office and back should be paid as overtime work. Applies only for regular full-time teachers. Trainings. 4. Said transportation arrangement had been adopted not so much for the convenience of the employees. the imminence of the resumption of work requires the employee's presence at the place of work.

it becomes only a rest period. ƒ Permissible for the employer to stipulate that the employee’s monthly salary constitutes payment for all the days of the month. Completion of work started before the 8 hour and is necessary to prevent serious obstruction or prejudice to the business 3. Actual rendition of OT work 2. ƒ Right to OT pay cannot be waived. Attendance is outside of the employee's regular working hours 2. in the following cases – compensable hours worked: 1. ƒ ƒ ƒ OT on a Regular Day: regular wage + at least 25% thereof OT on a Holiday/E’ee’s Rest Day: rate of 1st 8 hrs. without pay. Where the establishment regularly operates not less than 16 hours a day 3. Since the OT work is considered hourly. Offsetting the undertime hours against the OT hours would result in undue deprivation of the employee’s extra pay for OT work. Since the employees are no longer required to work during this 1-hour lunch break. The employee does not perform any productive work during such attendance. 289 SCRA 86 (1998) The employer may change the meal break from 30 mins. Sime Darby Pilipinas v. Necessary to Prevent loss of life/property or Imminent danger to public safety 5. If the so-called “meal time” is less than 20 mins. If employee is paid on a monthly salary basis. fully paid to 60 mins. on holiday/rest day + at least 30% thereof. Country at war/National or Local Emergency th 2. Necessary to avail of favorable weather or environmental condition Undertime NOT Offset by OT – an employee’s regular pay rate is lower than the OT rate. the daily rate is obtained by the following formula: Daily Rate = monthly salary x 12_____ Total no of days considered paid in a year ƒ Meal and Rest Periods GR: not less than 1 hour time-off for regular meals – non-compensable Except: meal period of not less than 20 mins. Work within the (Uncompressed) decompressor are needed to see this picture. the employees can freely and effectively use this hour not only for eating but also for their rest and comfort. Overtime Pay (OT) – work exceeding eight hours QuickTime™ and a within the worker’s TIFF 24-hour workday.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ NOT considered working time if ALL the following conditions are met: 1. For a full one hour undisturbed lunch break. equipment or installations to avoid serious loss which the employer would otherwise suffer 4. In case of actual or impending emergencies or there is urgent work to be performed on machineries. Necessary to prevent loss or damage to perishable goods 6. where the employee’s monthly salary. Regular Wage – includes the cash wage only. But when the alleged waiver of OT pay is in consideration of benefits and privileges which may even exceed the OT pay.. without deduction on account of facilities provided by the employer Conditions to be entitled to OT pay 1. there is no more need for them to be compensated for this period. To shorten meal time to less than 20 mins. Submission of sufficient proof that said work was actually performed 3. would still meet minimum wage. considered as compensable working time. the waiver may be permitted. The Page 16 of 83 . the pay rate is computed also on per hour basis. OT work is with the knowledge and consent of the employer Compulsory OT Work (provided employee paid the additional compensation required) 1. Where the work is non-manual work in nature or does not involve strenuous physical exertion 2. Where the work is necessary to prevent serious loss of perishable goods ƒ ƒ Rest periods or coffee breaks – running from 5 to 20 mins. E’ee’s shift is not overtime. is not allowed. NLRC. including rest days and holidays. when converted by the increased divisor into its daily equivalent. daily wage is divided by 8 to get the hourly base rate. Urgent work to be performed on Machines to avoid serious loss or damage to employer 4. Attendance is in fact voluntary 3.

In the event of abnormal pressure of work due to special circumstances. no employee shall be required against his will to work on his scheduled rest day. When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon. including public utilities operated by private persons Business on Sundays/Holidays – All establishments and enterprises may operate or open for business on Sundays and holidays provided that the employees are given the weekly rest day and the benefits as provided. however. To prevent serious loss of perishable goods 5. Those of retail and service establishments regularly employing not more than 5 workers 3. or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof C. Schedule of Rest Day a. Where the rest period is not granted to all employees simultaneously and collectively – the employer shall make known to the employees their respective schedules of weekly rest through written notices posted conspicuously in the work place at least one week before they become effective Work on Rest Day Authorized (UAAP NAF) 1. Managerial employees 5. flood. where the employer cannot ordinarily be expected to resort to other measures 4. Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis. after every 6 consecutive normal work days. or in cases of force majeure or imminent danger to public safety 3. NSD = (10% x regular wage/hr. ƒ The employee shall make known his preference to the employer in writing at least 7 days before . Page 17 of 83 Preference of employee – The preference of the employee as to his weekly day of rest shall be respected by the employer if the same is based on religious grounds. purely commission basis. Those of the government and any of its political subdivisions. epidemic or other disaster or calamity. the choice of the employee as to his rest day based on religious grounds will inevitably result in serious prejudice or obstruction to the operations of the undertaking and the employer cannot normally be expected to resort to other remedial measures. fire. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. of hrs. to prevent loss of life or property. REST PERIODS AND HOLIDAYS Weekly Rest Periods – applies to all employers whether operating for profit or not. Under other analogous or similar circumstances 7.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Night Shift Differential (NSD) – every employee shall be paid a night shift differential of not less than 10% of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning. the NSD should be based on the OT rate. of work between 10 pm – 6 am ƒ If work done between 10 pm and 6 am is OT work. including government-owned and/or controlled corporations 2. In case of urgent work to be performed on machineries. earthquake. as in the case of the crew members of a vessel to complete a voyage and in other similar cases 6. ƒ Other than the above circumstances. In case of actual or impending emergencies caused by serious accident.) x no. equipment or installations to avoid serious loss which the employer would otherwise suffer 2. the desired effectivity of the initial rest day so preferred. Where the nature of the work is such that the employees have to work continuously for 7 days in a week or more. Where. typhoon. Domestic helpers and persons in the personal service of another 4. the employer may so schedule the weekly rest day of his choice for at least 2 days in a month. Where the weekly rest is given to all employees simultaneously – the employer shall make known such rest period by means of a written notice posted conspicuously in the work place at least one week before it becomes effective b. ƒ Employees NOT Covered by NSD 1. Weekly Rest Day – Every employer shall give his employees a rest period of not less than 24 consecutive hrs.

an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first holiday. If he worked. Holidays 1. However. like Holy Thursday and Good Friday. in which case he is entitled to his holiday pay on the second holiday. EXCEPT: 1. Special Non-Working Days 2. Those of retail and service establishments regularly employing less than ten 10 workers 3. Holiday-Sunday – a legal holiday falling on a Sunday creates no legal obligation for the employer to pay extra. he was present or on leave wit pay on the preceding work day. of Aug. Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis. Managerial employees 5. Domestic helpers and persons in the personal service of another 4. he is entitled to 300% of his basic wage. Applies to ALL employees. Independence Day 7. Nat’l Heroes Day 8. 25 Dec. vacations. Rizal Day ƒ Holidays with Pay.e. or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof. Special National Holiday Page 18 of 83 . 30 Movable Date Dec. Private School teachers including faculty members of college and universities – may not be paid for the regular holidays during semestral Special Days 1. Bonifacio Day 9. New Year’s Day 2. An employee shall be entitled additional compensation for work performed on a Sunday only when it is his established rest day. employee must: (1) st be present on the day immediately preceding the 1 holiday. to its monthly-paid employees Successive Regular Holidays – Where there are 2 successive regular holidays. Maundy Thursday 3. he shall express such desire in writing. 1 Movable Date Movable Date April 9 May 1 June 12 Last Sun. Araw ng Kagitingan 5. he shall not be deemed to be on leave of absence on that day. that in no case shall the holiday pay be less than the applicable statutory minimum wage rate 3. Seasonal workers – may not be paid the required holiday pay during off-season when they are not at work 4. Those of the government and any of the political subdivision. unless he works on the first holiday. purely commission basis. Eidul Fit’r 10. yearly inventory. Nov. Paid for the regular holidays during Christmas vacation 2. Provided. Employee paid by results (payment on piecework) – holiday pay shall not be less than his average daily earnings for the last 7 actual working days preceding the regular holiday. subject to payment of additional compensation. Christmas Day 11. repair or cleaning of machineries or equipment. or (2) be on leave wit pay. Special Public Holidays 3. To be entitled to 2 successive holidays. etc) – regular holidays falling within this period compensable QuickTime™ and a TIFF (Uncompressed) decompressor Temporary or Periodic Shutdown and Temporary are needed to see this picture. 30 Holiday Pay of Certain Employees 1. aside from the usual holiday pay. Good Friday 4. Cessation of Work Due to Business Reverses – employer may not pay the regular holidays during this period - Jan. provided.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ When an employee volunteers to work on his rest day under other circumstances. Labor Day 6. Workers without regular working days – entitled to the benefits Double Holiday – an employee who is entitled to holiday pay should receive at least 200% of his basic wage even if he did not work on that day. including government-owned and controlled corporation 2. in which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the non-working day or rest day Temporary or Periodic Shutdown and Temporary Cessation of Work (i. Absences ƒ Employee on Leave of absence with pay – entitled to the benefit provided herein ƒ Employee on leave of absence without pay on the day immediately preceding a regular holiday – may not be paid the required holiday pay if he has not worked on such regular holiday ƒ Where the day immediately preceding the holiday is a non-working day in the establishment or the scheduled rest day of the employee.

+ 30% of 200% 1st 8 hrs. and irrespective of the method by which their wages are paid EXCEPT to managerial employees + 30% of the daily rate of 100% excess of 8 hrs. bars. casinos and gambling houses. SERVICE CHARGE & SERVICE INCENTIVE LEAVE Service Incentive Leave (SIL) – every employee who has rendered at least 1 year of service shall be entitled to a yearly service incentive leave of 5 days with pay ƒ Commutable to its money equivalent if not used or exhausted at the end of the year. except Eidul Fitr. Domestic helpers and persons in the personal service of another 3.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 4. designations or employment status. restaurants. 1 Dec. Those enjoying vacation leave with pay of at least five days 7. are observed only in specified areas. including those entities operating primarily as private subsidiaries of the Government Employees Covered – all employees of covered employers. + 30% of hourly rate on said day b. Those of the government and any of its political subdivisions. At least 1 year service – service for not less than 12 months. in which case said period shall be considered as one year Employees NOT Covered 1. + 50% of the 1st TIFF needed to see this picture. and similar enterprises. All Saints’ Day 5. SPECIAL DAYS a. Last Day of the Yr 6. + 30% of hourly rate on said day 3. Rules on Payment of Holiday Pay: 1. REGULAR HOLIDAYS a. Unworked – no pay unless there is a favorable company policy. Those employed in establishments regularly employing less than ten employees Service Charges – apply only to establishments collecting service charges such as hotels. Muslim Holidays – while the regular holidays are observed in the whole country. excess of 8 hrs. Muslim employees working outside of the specified areas shall be excused from reporting for work during the observance of the Muslim holidays as recognized by law. including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy. Page 19 of 83 . or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof 5. If it is employeee’s rest day: . including government-owned and controlled corporations 2. Managerial employees 4. + 30% of hourly rate on said day c. without diminution of salary or wages during the period.Worked: st 200% 1 8 hrs excess of 8 hrs.Unworked: 100% .Worked: . daily rate of 100% excess of 8 hrs. Falling on employee’s rest day QuickTime™ and a and if worked (Uncompressed) decompressor 8 are hrs. purely commission basis. regardless of their positions. whether continuous or broken reckoned from the date the employee started working. massage clinics. + 30% of hourly rate on said day 2. Worked st 1 8 hrs. or that provided in the employment contract is less than 12 months. Field personnel and other employees whose performance is unsupervised by the employer including those who are engaged on task or contract basis. practice or CBA granting payment of wages on special days even if unworked b. SPECIAL WORKING HOLIDAYS – only basic rate. If it is employee’s regular work day: . Those who are already enjoying the benefit herein provided 6. the Muslim holidays.Unworked: 100% . Ninoy Aquino Day Nov. night clubs. cocktail lounge. lodging houses. 31 August 21 D.

abaca. remuneration or earnings. or psychological. the burden of economic loss suffered by the employees. May be deducted from the employees’ wages. piece. task.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Distribution ƒ 85% distributed equally among the covered employees ƒ 15% for the disposition by management to answer for losses and breakages and distribution to managerial employees at the discretion of the management in the latter case ƒ distributed and paid to the employees not less than once every 2 weeks or twice a month at intervals not exceeding 16 days ƒ Supervisors share in the 15%. coconuts. "Fair and reasonable value" shall not include any profit to the employer. as determined by the DOLE Secretary. WAGES A. of board. under similar conditions. tobacco. and any practices performed by a farmer on a farm as an incident to or in conjunction with such farming operations. pineapples or other farm products Wage – paid to any employee shall mean the: 1. however designated. Facilities – articles or services for the benefit of the employee or his family but shall not include tools of the trade or articles or service primarily for the benefit of the employer or necessary to the conduct of the employers business. the production. Solo Parent Leave (RA 8972: Solo Parents’ Welfare Act of 2000) – a parental leave of not more than 7 working days every years shall be granted to any solo parent employee who has rendered service of at least 1 year ƒ Solo Parent – woman who gives birth as a result of rape or crimes against chastity. Fair Wage for Fair Work. a widow or widower. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. or other facilities customarily furnished by the employer to the employee. capable of being expressed in terms of money. and ready to work but was prevented by management or was illegally locked out. includes cultivation and tillage of soil. No Work – No Pay Principle – if there is no work performed by the employee. lodging. and so forth. which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done. but does not include the manufacturing or processing of sugar. she is entitled to a paid leave of up to 10 days in addition to other paid leaves under the Labor Code.” and not “managerial employees. sexual. other laws and company policies. should be paid similar salaries. the raising of livestock or poultry. OTHERS Vacation Leave (VL) / Sick Leave (SL) – not required by law and depends on voluntary employer policy or collective bargaining. effort and responsibility. Mabeza v. which may be physical. the employee’s acceptance of such facilities MUST BE VOLUNTARY. If such victim is an employee. a spouse separated legally or de facto for at least one year. or commission basis. or to any person affiliated with the employer. to apply for the issuance of a protection order. whether fixed or ascertained on a time. Acceptance of Facilities – in order that the cost of facilities furnished by the employer may be charged against an employee. Equal Pay for Equal Work – persons who work with substantially equal qualifications. or for services rendered or to be rendered. LC speaks of “management. NLRC. there can be no wage or pay unless the laborer was able. among other things. the fair and reasonable value. cultivation. ƒ The employee has to submit a certification from the Punong Barangay or Kagawad or prosecutor or Clerk of Court that an action under RA 9262 has been filed and is pending. Each party must bear his own loss. or other method of calculating the same. . dairying. The claimant parent has to show that he/she is left alone with the responsibility of parenthood. VI. skill. and includes 2. But where the failure of employees to work was not due to the employer’s fault. growing and harvesting of any agricultural and horticultural commodities. willing.” E. Should not be shifted to the employer. CONCEPT AND DEFINITION Agriculture – includes farming in all its branches and. 271 SCRA 670 (1997) Requirements for deducting value of facilities: Page 20 of 83 Leave under RA 9262 (Anti-Violence Against Women and their Children Act of 2004) – allows the victim of violence. suspended or dismissed.

the BMBE Law. minimum wages is not dependent on the employer’s ability to pay Daily-Paid Employee – paid only for days he actually worked Monthly-Paid Employee – employees paid by the month. When Non-Diminution Rule Applicable – The rule is applicable if it is shown that the grant of the benefit is 1. Benefits being given to employees shall not be taken back or reduced unilaterally by the employer because the benefit has become part of the employment contract. It is not a demandable and enforceable obligation unless it was promised to be given without any conditions imposed for its payment in which case it is deemed part of the wage. it ripens into a company policy and employees can demand for it as a matter of right. whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office. and is not due to an error in the construction/application of a doubtful or difficult question of law Bonus – a benefit which is contingent or conditional. written or unwritten. payment of (Uncompressed) decompressor are needed to see this picture. if the error is left uncorrected for a reasonable period of time. wage shall not be less than the statutory minimum wage multiplied by 365 days divided by 12. otherwise.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 1. The facilities must be charged at fair and reasonable value Facilities items of expense necessary for the laborer’s and his family’s existence and subsistence Supplements extra remuneration or special privileges or benefits given to or received by the employees over and above their ordinary earnings or wages. Agricultural Rate – farm work from land preparation to harvesting Industrial Rate – manufacturing or processing of farm products Non-Diminution Rule GR: Nothing in the Labor Code shall be construed to eliminate or in any way diminish supplements. trading and services. including agroprocessing. shall be presumed to be paid for all the days in the month whether worked or not. irrespective of the number of working days ƒ Payment by Results – regulated by DOLE Secretary to ensure the payment of fair and reasonable wage rates. based on an express policy 2. shall not be more than P3M B. The monthly min. has ripened into practice over a long period of time. or other employee benefits being enjoyed at the time of promulgation of the Labor Code. Barangay micro business enterprise (BMBE) under RA 9178. processing. its demandability depends on certain pre-conditions. independent of the wage not wage deductible therein. BMBE – any business entity or enterprise engaged in the production. preferably through time and motion studies or in consultation with representatives of workers’ and Page 21 of 83 . with a salary of not less than the statutory or established minimum wage. or manufacturing of products or commodities. Proof must be shown that such facilities are customarily furnished by the trade 2. and the practice is consistent and deliberate. ƒ It is an amount granted voluntarily to an employee for his/her industry and loyalty which contributed to the success and realization of profits of the employer’s business. WAGE-FIXING Regional Minimum Wages – the minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards Minimum Wage – lowest wage rate fixed by law that QuickTime™ and a an employer can TIFF pay his employee. plant and equipment are situated. farm tenancy / leasehold 2. domestic service 3. Exception: To correct an error. The provision of deductible facilities must be voluntarily accepted in writing by the employee 3. persons working in their respective homes in needle work or in any cottage industry duly registered in accordance with law 4. part of the wage deductible from the wage Employees NOT Covered by Provisions on Wages 1.

Thirteenth Month Pay 8. Household or domestic helpers. Other Benefits Basic Wage – means all remuneration or earnings paid by an employer to a worker for services rendered on normal working days and hours but does not include cost-of-living allowances. Receive. premium payments. Other functions Composition of Each Regional Board 1. Employees paid output rates which are prescribed by the employer and are not yet approved by the DOLE – to determine wage. Overtime and Premium Pay 7. Includes pakyaw. the worker receives such increased amount. Benefits Payable to Piece-Rate Workers (HANS MOTO) 1. programs and projects relative to wages. Applicable Statutory Minimum Daily Rate 3. Develop plans. Regional Director of NEDA 3. Workers and employees in retail/service establishments regularly employing not more than 10 workers. subject to guidelines issued by the National Wages and Productivity Commission. the employer must make up the difference. Determine and fix minimum wage rates applicable in their regions. piece work and other noontime work. Service Incentive Leave 5. Congress National Wages and Productivity Commission TIFF (Uncompressed) decompressor are needed to see this picture. 2 members from Employer sector 5. provincial. ƒ A wage order adjusts the minimum level but not the levels above the minimum. Regional Director of DOLE 2. the number of pieces produces is multiplied by the rate per piece as determined by the employer. Regional Tripartite Wages and Productivity Board 2. profit sharing payments. including family drivers and workers in the personal service of another 2. Workers and employees in new business enterprises outside the National Capital Region and export processing zones for a period of not more than two or three years. 1. If the result is equal to or greater than the applicable legal daily rate in proportion to the number of hours worked. 2. If the amount is lower. as the case may be. 2 members from Employee sector Wage Order – an order issued by the Regional Board whenever the conditions in the region so warrant after studying and investigating and studying all pertinent facts and based on the standards and criteria prescribed by the Labor Code. Two Categories of Piece-Rate Employees 1. 2. provinces or industries therein and to issue the corresponding wage orders. Night Differential Pay 4. Employees NOT Covered 1. 13th month pay or other monetary benefits which are not considered as part of or integrated into the regular salary of the workers Minimum Wage – lowest wage rate fixed by law than an employer can pay his employees Who Sets Minimum Wage 1. for a period fixed by the Commission/Boards 3. It does not mandate across the board salary increase. Reviews regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine if these are in accordance with prescribed guidelines and national development plans QuickTime™ and a Regional Tripartite Wages and Productivity Boards 1. incomes and productivity improvement for their respective regions 3.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 employers’ organizations. Holiday Pay 2. process and act on applications for exemption from prescribed wage rates as may be provided by law or any Wage Order 4. or industry levels 2. from the start of operations when exempted Effectivity of Wage Orders – takes effect after 15 days from its complete publication in at least one newspaper of general circulation in the region Public Hearings and Consultations Mandatory – notice must be given to employees’ and employers’ Page 22 of 83 . Regional Director of DTI 4. Prescribes rules and guidelines for the determination of appropriate minimum wage and productivity measures at the regional. when exempted from compliance. Meal and Rest Periods 6. Employees paid piece rates which are prescribed in Piece Rate orders issued by DOLE – wages are determined by multiplying the number of pieces produced by the pay rate per piece.

The equitable distribution of income and wealth along the imperatives of economic and social development Wage Distortion – a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills. a significant pay gap. The employer and employees shall endeavor to correct the distortion 2. UNORGANIZED ESTABLISHMENT 1. Improvements in standards of living 7.. Standards/Criteria for Minimum Wage Fixing – must be economically feasible to maintain the minimum standards of living necessary for the health. efficiency and general well-being of the employees within the framework of the national economic and social development program. promissory notes. ƒ A wage order issued without the required public consultation and newspaper publication is null and void. or any other form alleged to represent legal tender is absolutely prohibited even when expressly requested by the employee. PAYMENT OF WAGES Manner of wage payment – wages shall be paid in legal tender and the use of tokens. Prudential Bank and Trust Co. The demand for living wages 2. Simply. through voluntary arbitration B. 140689. Correction of Wage Distortion A. The prevailing wage levels 8. If dispute remains unresolved. Employer and union shall negotiate to correct the distortion Page 23 of 83 . The need to induce industries to invest in the countryside 6. Examination of alleged salary distortion is limited to jobs or positions in the same employer in the same region. The needs of workers and their families 5. NLRC. should suffice as correction. length of service QuickTime™ and a or other logical basis of differentiation. It does not refer to distortion caused by salary revisions voluntarily initiated by the employer unless such a duty exists because of a CBA stipulation or company practice. Bankard Employees Union – WATU v. C. ORGANIZED ESTABLISHMENT 1. 302 SCRA 74 (1999) Wage distortion involves comparison of jobs located in the same region. Fair return of the capital invested and capacity to pay of employers 9. Suggested Formula to Correct a Salary Distortion Minimum Wage = % x Prescribed Increase Actual Salary Prubankers Association v. it shall be referred to the NLRC Amount of Distortion Adjustment – the restoration of the previous pay advantage is the aim but not necessarily to the last peso. vouchers. The cost of living and changes or increases 4. coupons. 2. 17 February 2004 The distortion that should be rectified refers to distortion arising from compliance with a government wage order. GR No. Restoration of appreciable differential. Wage adjustment vis-à-vis the consumer price index 3. If remains unresolved after 10 days of conciliation. thus. Payment by check – Payment of wages by bank checks. Effects on employment generation and family income 10. not inter-region.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 groups. the comparison of salaries has to be intra-region. pay advantage of a position over another is removed or significantly reduced by a pay adjustment required by a wage order. if the TIFF (Uncompressed) decompressor are needed to see this picture. Any dispute arising should be resolved through grievance procedure under CBA 3. city and municipal officials and other interested parties. Any dispute shall be settled through National Conciliation and Mediation Board (NCMB) 3. Factors to Consider: 1. provincial. postal checks or money orders is allowed where Frequency – a wage order issued by the Board may not be disturbed for a period of 12 months from its effectivity and no petition for wage increase shall be entertained during said period EXCEPT when Congress itself issues a law increasing wages. such pay advantage should be restored.

payment shall be made at intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be made immediately upon completion of the work. or 3. 3. dance hall. or 2. The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be considered as compensable hours worked if done during working hours d. In case any of the heirs is a minor. where all of the following conditions are met: a. When authorized under existing law including: i. The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing the payment of wages by bank checks Time of payment GR: 1. union dues where the right to check-off has been recognized by the employer in accordance with a collective agreement iii. The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the arrangement c. ƒ Payment through ATM allowed Direct Payment of Wages GR: paid directly to workers to whom they are due Exceptions: 1. There is a bank or other facility for encashment within a radius of 1 kilometer from the workplace b. Under any other analogous circumstances. Payment Through Heirs of Worker – in case the worker has died. When the employer provides free transportation to the employees back and forth 3. When the heirs are of age. In case of force majeure rendering such payment impossible provided such person is under written authority given by the worker for the purpose b. twice a month at intervals not exceeding 16 days Except: 1. or by reason of TIFF (Uncompressed) decompressor are needed to see this picture. There must be a written permission of the majority of the employees concerned in an establishment 2. That the time spent by the employees in collecting their wages shall be considered as compensable hours worked Prohibited Place of Payment – bar. such manner of wage payment is customary on the date of the effectivity of the Labor Code. such affidavit shall be executed in his behalf by his natural guardian or next of kin. radius to the bank. Place of payment – the place of payment shall be at or near the place of undertaking. 2. not less than once every 2 weeks. they shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs to the exclusion of all other persons. epidemic or other calamity rendering payment thereat impossible 2. or other similar places or in places where games are played with stakes of money or things representing money except in the case of persons employed in said places Payment through Banks. night or day club. The establishment must be located within 1 km. Payment in a place other than the work place shall be permissible only under the following circumstances: 1. where it is so stipulated in a collective agreement. employer may pay wages of the deceased to the heirs of the latter without necessity of intestate proceedings Procedure: 1. caused by fire. When payment cannot be effected at or near the place of work by reason of the deterioration of QuickTime™ and a peace and order conditions. 2. or his representative 4.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 1. The establishment must have 25 or more employees 3. 3. Requisites 1. Payment through Member of Worker’s Family – where the employer is authorized in writing by the Page 24 of 83 . authorized in writing by the individual employees concerned 2. Provided. massage clinic. Affidavit shall be presented to the employer who shall make payment through the DOLE Sec. payments for the insurance premiums of the employee ii. In case of payment of wages by results involving work which cannot be finished in 2 weeks. 2. Payment of wage shall absolve the employer of any other liability with respect to the amount paid. actual or impending emergencies flood. Payment Through Another Person a. In case payment cannot be made with such regularity due to force majeure or circumstances beyond the employer's control – the employer shall pay the wages immediately after such force majeure or circumstances have ceased. drinking establishment.

attorney’s Page 25 of 83 . upon written authorization of the employee 6. 3. The amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage 4. clothing. It shall be unlawful for any person to demand or accept. wages may be the subject of execution or attachment. report or record to be false in any material respect. The deduction from the wages of the employee does not exceed 20% of the employee's wages in a week Prohibited / Unlawful Acts 1. In cases where employee indebted to employer. Deductions for value of meals and other facilities 9. Medicare. but only for debts incurred for food. equipment. 4. LIABILITY FOR WAGES Worker Preference in Case of Employer’s Bankruptcy – workers shall enjoy first preference as regards their wages and other monetary claims. Wage Deductions GR: NOT allowed Except: 1. The employee concerned is clearly shown to be responsible for the loss or damage 2. Establishes a preference of credit and NOT a lien. Union dues 7. In case of unlawful withholding of wages. 2. where such indebtedness has become due and demandable 2. and the deduction is to recompense the employer for the amount paid by him as premium on the insurance 2. threat or by any other means whatsoever without the worker’s consent. Agency fee 8. Deductions for payment to 3rd persons. Deductions for loss or damage 10. or tools supplied by the are needed to see this picture. shelter. In cases where the employer is authorized by law or regulations issued by the DOLE Secretary Other Allowable Deductions 1. or record filed or kept pursuant to the provisions of this Code knowing such statement. Attorney’s Fees 1. Deduction from the wages of any employee for the benefit of the employer or his representative or intermediary as consideration of a promise of employment or retention in employment. 2. For union dues. occupation or business of the employer recognizes or considers the practice of making deductions or requiring deposits necessary or desirable. The employee is given reasonable opportunity to show cause why deduction should not be made 3. Except: When the trade. Make any statement. stealth.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 employee to pay his wages to a member of his family Non-interference in Disposal of Wages – No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages and no employer shall in any manner oblige any of his employees to patronize any store or avail of the services offered by any person. ƒ ƒ A declaration of bankruptcy or a judicial liquidation must take place before the worker’s preference may be enforced. Such unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors may be paid. employer. discharge or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such proceedings. Pag-IBIG premiums Deductions for Loss or Damage GR: No employer shall require his worker to make deposits for the reimbursement of loss of or damage QuickTime™ and a TIFF (Uncompressed) decompressor to material. D. Withhold any amount from the wages of a worker or induce him to give up any part of his wages by force. Salary deductions of a legally established cooperative 5. intimidation. In court awards. any provisions of law to the contrary notwithstanding. report. in any judicial or administrative proceedings for the recovery of wages. Requisites for Valid Deduction for Loss/Damage 1. the culpable party may be assessed attorney’s fees equivalent to ten percent of the amount of wages recovered. In cases where the worker is insured with his consent by the employer. Withholding Tax 4. Refuse to pay or reduce the wages and benefits. in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned 3. and medical attendance 3. SSS.

In any industrial undertaking or branch thereof between 10 pm – 6 am of the following day. 6. 3. Incentives for Family Planning – employers who habitually employ more Page 26 of 83 VII. (Sec. In cases of actual or impending emergencies caused by serious accident. like other benefits granted by the SSS. 5. He has applied for paternity leave d. The claimant. or where the woman employee has been engaged to provide health and welfare services. provided they can perform their duties in this position without detriment to efficiency 2. His wife has given birth or suffered a miscarriage ƒ Wife – lawful wife. typhoon. Facilities for Women The DOLE Secretary may require employers to: 1. whether married or unmarried. Where the women employees are immediate and a operating members of TIFF (Uncompressed) the QuickTime™ family the decompressor are needed to see this picture. who need not be legally married. is employed at the time of delivery of his child b. In any agricultural undertaking at nighttime unless she is given a period of rest of not less than nine (9) consecutive hours. In any commercial or non-industrial undertaking or branch thereof. other than agricultural . and 7. to avoid serious loss which the employer would otherwise suffer. He is cohabiting with his spouse at the time she gives birth or suffers a miscarriage c. Where the work is necessary to prevent serious loss of perishable goods. equipment or installation. a married male employee. WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES A. RA 8187 IRR) ƒ Conditions to entitlement: a. fire. In case of urgent work to be performed on machineries. or in cases of force majeure or imminent danger to public safety. ƒ Every pregnant woman in the private sector. or 2. woman legally married to male employee concerned Family Planning Services. 2. and during working hours. with or without compensation in any: 1. To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those of flight attendants and the like Maternity Leave (under RA 1161 SSS Law) ƒ A female member. Where the woman employee holds a responsible position of managerial or technical nature. Under other analogous cases exempted by the Secretary of Labor and Employment in appropriate regulations. earthquake. It is immaterial who the father is. establishment or undertaking. Where the nature of the work requires the manual skill and dexterity of women workers and the same cannot be performed with equal efficiency by male workers. To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women 3. ƒ It is not necessary that the woman be impregnated by her legitimate husband. 1(a).Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 fees which exceed ten percent of the amount of wages recovered. Paternity Leave (under RA 8187 Paternity Leave Act of 1996) ƒ Grants 7 working days of paternity leave with full pay to married male employees in the private and public sectors. 4. to prevent loss of life or property. flood. are granted in lieu of wages and therefore. may not be included in computing the employee’s 13th month pay for the calendar year ƒ The employer shall advance the payment subject to reimbursement by the SSS.between 12 mn – 6 am of the following day. epidemic or other disasters or calamity. To establish a nursery in a workplace for the benefit of the women employees therein 4. is entitled to the maternity leave benefits. Exceptions: Prohibitions DO NOT APPLY 1. or 3. WOMEN Night Work Prohibition – no woman regardless of age shall be employed or permitted or suffered to work. who has paid for at least 3 monthly contributions in the 12-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to 100% of her average daily salary credit for o 60 days – normal delivery o 78 days – caesarian delivery ƒ Benefits shall be paid only for the FIRST 4 deliveries or miscarriages ƒ Maternity benefits. Provide seats proper for women and permit them to use such seats when they are free from work .

employment does not endanger the child’s life. salary or other form of remuneration and fringe benefits. The actions hereby authorized shall proceed independently of each other. To discharge or refuse the admission of such woman upon returning to her work for fear that she may be pregnant 4. the application or use of contraceptives Discrimination Prohibited – unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex Acts of Discrimination 1. for work of equal value 2. are needed to see this picture. when the child works directly under the sole responsibility of his/her parents/legal guardian who employs only members of his/her family under the ff conditions a. training opportunities. 272 SCRA 596 (1997) A woman worker may not be dismissed on the ground of dishonesty forQuickTime™ havingand written “single” on a (Uncompressed) decompressor the space for civilTIFF status on the application sheet. massage clinic. a woman employee shall be deemed resigned or separated 3. radio or television is essential. discharge. discriminate or otherwise prejudice a woman employee merely by reason of her marriage PT&T Co. health and morals b. discharge. require as a condition of employment or continuation of employment that a woman employee shall not get married 2. 288-289 of the Labor Code ƒ That the institution of any criminal action under this provision shall not bar the aggrieved employee from filing an entirely separate and distinct action for money claims. NLRC. to actually dismiss. a woman employee shall be deemed resigned or separated. theater. safety. To discharge such woman employee on account of her pregnancy. contrary to the fact that she was married. study and scholarship grants solely on account of their sexes ƒ Person guilty of committing these acts are criminally liable under Arts. cocktail lounge. facilities and other benefits provided under the Code 2. Prohibited Acts It is unlawful for any employer: 1. employment does not impair the child’s normal development. B. v. Stipulation Against Marriage It shall be unlawful for the employer to: 1. to stipulate expressly or tacitly that upon getting married. to a female employees as against a male employee. which may include claims for damages and other affirmative reliefs. Favoring a male employee over a female employee with respect to promotion. To require as a condition for a continuation of employment that a woman employee shall not get married or to stipulate expressly or tacitly that upon getting married. Payment of a lesser compensation. or to actually dismiss. the parent/legal guardian provides the child with primary/secondary education 2. bar or similar establishments under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor and Employment. or while on leave or in confinement due to her pregnancy 3. To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to testify under the Code 5. MINORS Below 15 Not employed EXCEPT: 1. and c. shall be considered as an employee of such establishment for purposes of labor and social legislation. in any night club. provided that: Page 27 of 83 .Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 than 200 workers in any locality shall provide free family-planning services to their employees and their spouses which shall include but not limited to. with or without compensation. discriminate or otherwise prejudice a woman employee merely by reason of her marriage Classification of Certain Women Workers – Any woman who is permitted or suffered to work. when the child’s employment or participation in public entertainment or information through cinema. To discharge any woman employed by him for the purpose of preventing such woman from enjoying the maternity leave. including wage.

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
a. employment does not involve advertisements or commercials promoting alcoholic beverages, intoxicating drinks, tobacco and its by-products or exhibiting violence b. there is a written contract approved by the DOLE, if possible c. the conditions prescribed for the employment of minors in No. 1 are met d. the following requirements are complied with: i. employer shall ensure protection, health, morals, and normal development of the child ii. employer shall institute measures to prevent child’s exploitation / discrimination taking into account the system and level of remuneration, duration, and arrangement of working time iii. employer shall formulate and implement a continuing program for training and skills acquisition of the child, subject to approval and supervision of competent authorities (as amended by RA 9231) ALLOWED ONLY in: nonhazardous or non-deleterious undertakings No prohibition d. Exposed to or use of heavy power-driven machinery or equipment e. Workers use or are exposed to power-driven tools C. HOUSEHELPERS Domestic or Household Service – services in the employer’s home which is which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employer’s household, including services of family drivers. Rights of Househelpers 1. Not to be assigned to non-household work 2. Reasonable compensation (minimum cash wage) 3. Lodging, food and medical attendance 4. If under 18 years, an opportunity for elementary education – cost of which shall be part of househelper’s compensation 5. Contract for household service shall NOT EXCEED 2 years – renewable from year to year 6. Just and humane treatment 7. Right not to be required to work for more than 10 hrs. a day – if the househelper agrees to work overtime and there is additional compensation, the same is permissible 8. Right to 4 days vacation each month with pay – if the helper does not ask for the vacation, the number of vacation days cannot be accumulated, he is only entitled only to its monetary equivalent. 9. Funeral expenses must be paid by the employer if the househelper has no relatives with sufficient means in the place where the head of the family lives 10. Termination only for just cause 11. Indemnity for unjust termination of service 12. Employment certification as to nature and duration of service and efficiency and conduct of the househelper Indemnity for Unjust Termination of Service 1. If the period for household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term except for a just cause. 2. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned + that for 15 days by way of indemnity 3. If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him/her not exceeding 15 days.

15 – Below 18

18 years and above

Hazardous Workplaces QuickTime™ and a a. Nature of theTIFF work exposes the workers to (Uncompressed) decompressor are needed to see this picture. dangerous environmental elements, contaminants or work conditions b. Workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock-work, deep sea fishing, and mechanized farming c. Workers are engaged in the manufacture or handling of explosives and other pyrotechnic products

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Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
Employment for Certification – upon the severance of the household service relationship, the househelper may demand from the employer a written statement of the nature and duration of the service and his/her efficiency and conduct as househelper Apex Mining Co. Inc. v. NLRC, 196 SCRA 251 (1991) The criteria are the personal comfort and enjoyment of the family of the employer in the home of said employer. While it may be true that the nature of the work of a househelper, domestic servant or laundrywoman in a home or in a company staffhouse may be similar in nature, the difference in their circumstances is that in the former instance they are actually serving the family while in the latter case, whether it is a corporation or a single proprietorship engaged in business or industry or any other agricultural or similar pursuit, service is being rendered in the staffhouses or within the premises of the business of the employer. In such instance, they are employees of the company or employer in the business concerned entitled to the privileges of a regular employee. D. HOMEWORKERS Homeworker – applies to any person who performs industrial homework for an employer, contractor or sub-contractor Industrial Homeworker – system of production under which work for an employer or contractor is carried out by a homeworker at his/her home. Materials may or may not be furnished by the employer or contractor Employer of Homeworker – includes any person, natural or artificial who, for his account or benefit, or on behalf of any person residing outside the country, directly or indirectly, or through an employee, agent contractor, sub-contractor or any other person: a. Delivers, or causes to be delivered, any goods, QuickTime™ and a TIFF (Uncompressed) decompressor or fabricated articles or materials to be processed are needed to see this picture. in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his directions b. Sells any goods, articles or materials to be processed or fabricated in or about a home and then rebuys them after such processing or fabrication, either by himself or through some other person Deductions – No employee, contractor, or subcontractor shall make any deduction from the homeworker's earnings for the value of materials which have been lost, destroyed, soiled or otherwise damaged unless the following conditions are met: 1. The homeworker concerned is clearly shown to be responsible for the loss or damage; 2. The employee is given reasonable opportunity to show cause why deductions should not be made; 3. The amount of such deduction is fair and reasonable and shall not exceed the actual loss or damages; and 4. The deduction is made at such rate that the amount deducted does not exceed 20% of the homeworker's earnings in a week. Liability of employer and contractor – Whenever an employer shall contract with another for the performance of the employer's work, it shall be the duty of such employer to provide in such contract that the employees or homeworkers of the contractor and the latter's sub-contractor shall be paid in accordance with the provisions of this Rule. In the event that such contractor or sub-contractor fails to pay the wages or earnings of his employees or homeworkers as specified in this Rule, such employer shall be jointly and severally liable with the contractor or subcontractor to the workers of the latter, to the extent that such work is performed under such contract, in the same manner as if the employees or homeworkers were directly engaged by the employer. Prohibitions for Homework 1. explosives, fireworks and articles of like character 2. drugs and poisons 3. other articles, the processing of which requires exposure to toxic substance E. HANDICAPPED / DISABLED Handicapped Workers – those whose earning capacity is impaired by age or physical or mental deficiency or injury, disease or illness ƒ There must be a link between the deficiency and the work which entitles the employer to lessen the worker’s wage. If the disability of the person is not in any way related to the work for which he was hired, he should not be so considered as a handicapped worker. Handicapped Person (RA 7277 Magna Carta
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Handicapped Worker (Art. 78 LC)

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
Those whose earning capacity is impaired by age or physical or mental deficiency or injury for Disabled Persons) Those suffering from restriction or different abilities as a result of a mental, physical or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being. which may be necessary to aid in enforcement of the Labor Code or any labor law or order 5. issue compliance orders to give effect to labor legislation based on the findings of employment and enforcement officers or industrial safety engineers made in the course of inspection Compliance Order – must observe due process in administrative proceedings: a. alleged violator must first be heard and given adequate opportunity to present evidence on his behalf b. evidence presented duly considered before any decision reached c. decision is based on substantial evidence d. decision based on evidence presented in the hearing, or at least contained in the record and disclosed to the parties e. decision is that of the decision-making authority and not mere views of subordinates f. decision should explain the issues involved and the reasons for the decisions rendered 6. Issue writs of execution to the appropriate authority for the enforcement of their orders, EXCEPT in cases where the employer contests the findings of the labor employment and enforcement officer and raises isues supported by documentary proofs which were not considered in the course of inspection – in the latter case, the case will have to be forwarded to a Labor Arbiter Appeal ƒ If order issued by duly authorized representative of DOLE Sec. – appeal to the latter ƒ If order involves monetary award – an appeal by the employer may be perfected upon only upon posting of CASH or SURETY bond in the amount equivalent to the monetary award in the order appealed from Power of DOLE Secretary ƒ May order stoppage of work OR suspension of any unit or department where non-compliance with the law or implementing rules and regulations poses grave and imminent danger to the health and safety of workers in the workplace. ƒ Within 24 hrs – a hearing shall be conducted to determine whether an order for the stoppage of work or suspension of operations shall be lifted ƒ If violation is attributable to FAULT OF THE EMPLOYER, he shall pay the employees concerned their salaries or wages during the period of such stoppage of work or suspension of operations.
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When Employable 1. their employment is necessary to prevent curtailment of employment opportunities 2. does not create unfair competition in labor costs 3. does not impair or lower working standards Handicapped Workers May Become Regular Employees – if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they were hired. Equal Opportunity for Employment – no disabled person shall be denied access to opportunities for suitable employment. Qualified disabled employees shall be subject to same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied person Employment Agreement; Contents 1. Names and addresses of the employer and the handicapped worker 2. Rate of pay of the handicapped worker which shall not be less than 75% of the legal minimum wage 3. Nature of work to be performed by the handicapped worker 4. Duration of the employment

VIII. ADMINISTRATION AND EMPLOYMENT Art. 128. Visitorial and enforcement power. QuickTime™ and a Power of the Sec.TIFF of Labor or his duly authorized (Uncompressed) decompressor are needed to see this picture. representative, including labor regulation officers to: 1. have access to employer’s records and premises at any time of the day or night whenever work is being undertaken therein 2. right to copy records 3. to question any employee 4. investigate any fact, condition, or matter which may be necessary to determine violations or

Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
POWER Unlawful ƒ For any person or entity to obstruct, impede, delay or otherwise render ineffective the orders of the Sec. or his authorized representatives issued pursuant to the authority under Art. 128 ƒ No inferior court shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over any case involving the enforcement orders. Enforcement Power cannot be Used ƒ Case does not arise from exercise of visitorial power ƒ When EER ceased to exist at the time of inspection ƒ If employer contests finding of the labor officer and such contestable issue is not verifiable in the normal course of inspection Recovery of Wages, Simple Money Claims and Other Benefits (Art. 129) Jurisdiction: DOLE Regional Director (summary proceeding and non-litigious) Claimant: Employee or person in domestic or household service, provided: 1. no claim for reinstatement 2. aggregate claims of each employee or househelper DOES NOT EXCEED P5,000. Guico v. Sec. of Labor, 298 SCRA 666 (1998) If the claim later exceeds P5,000, the Regional Director still retains jurisdiction based on inspection’s findings in the nature of enforcement action 3. claims arise from EER NOTE: ƒ Notice and hearing ƒ Resolution of complaint within 30 days from filing (Appeal within 5 calendar days to NLRC) ƒ NLRC to resolve appeal within 10 QuickTime™ and a calendar days TIFF (Uncompressed) decompressor from submission are of needed last to pleading see this picture. Not Included: claims for Employees’ Compensation, Social Security benefits, Medicare benefits and Maternity Benefits Art. 128 DOLE Sec. OR his duly Art. 129 Regional Director or any LIMITS AS TO AMOUNT OF CLAIM authorized representative who may or may not be a Regional Director Visitorial and enforcement power exercised through routine inspections of establishment Requires existence of EER duly authorized hearing officer of DOLE

NATURE OF POWER

Adjudicatory power on matter involving recovery of wage EER not necessary since it should not include a claim for reinstatement Sworn complaint filed by interested party Aggregate claim of each complainant does not exceed P5,000 Appeal to NLRC within 5 calendar days

EXISTENCE OF EER

HOW INITIATED

Enforcement power is an offshoot of visitorial power No limit

APPEAL

Appeal to Sec. of Labor within 10 calendar days

IX. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY First Aid Treatment – adequate, immediate and necessary medical and dental attention or remedy given in case of injury or illness suffered by a worker during employment, irrespective of whether or not such injury or illness is work-connected, before a more extensive medical and/or dental treatment can be secured. First-Aider – any person trained and duly certified as qualified to administer first aid by the PNRC or by any other organization accredited by the former

X. EMPLOYEES’ COMPENSATION Workmen’s Compensation – a general and comprehensive term applied to those laws providing for compensation for loss resulting from the injury,

WHO EXERCISES

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the employee must have been executing an order of the employer 4. The injury was not due to the employee’s intoxication. doing overtime work shall be considered work-connected Sickness – any illness accepted as an occupational disease listed by the Commission or any illness caused by the employment subject to proof that the risk of contracting the same is increased by the working conditions . must have been a continuing act. The employee must have been performing his official functions 3. 2. the injury is compensable. GOING TO OR COMING FROM WORK – when the injury is sustained when the employee is proceeding to or from his work on the premises of the employer. EXTRA PREMISES RULE – the company which provides the means of transportation in going to. his workplace. the disease was contracted within the period of exposure and other such factors necessary to contract it 4.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 disablement or death of a workman through industrial accident. the disease was contracted as a result of the employee’s exposure to the described risks 3. he had not been diverted therefrom by any other activity and he had not departed from his usual route to. or notorious negligence QuickTime™ and a ƒ Injuries incurred by a decompressor health worker while TIFF (Uncompressed) are needed to see this picture. An employee on a special errand must have been official and in connection with his work. Exceptions: 1. the injury is compensable. and b. SPECIAL ERRAND RULE – injury sustained outside the company premises is compensable if his being out is covered by an office order or a locator slip or a pass for official business e. The act of the employee of going to. or from. or coming from. that is. c. there was no notorious negligence on the part of the employee Death – loss of life resulting from injury or sickness Disability – loss or impairment of a physical or mental function resulting from injury or sickness Direct Premises Rule GR: The accident should have occurred at the place of work to be compensable. DUAL PURPOSE DOCTRINE – allows compensation where a special trip would have to be made for the employer if the employee had not combined the service for the employer with his going or coming trip Page 32 of 83 Payment of compensation is made by the SSS/GSIS through the State Insurance Fund. The employee must have been injured at the place where the work required him to be 2. willful intention to injure or kill himself or another. casualty or disease Compensation – money relief offered according to the scale established under the statute as differentiated from compensatory damages recoverable in an action at law for breach of contract or for tort WORKMEN’S COMPENSATION ACT (WCA) Presumption of compensability Presumption of aggravation There is a need for the employer to controvert the claim within 14 days otherwise he is deemed to have waived the right Payment of compensation is made by the employer EMPLOYEES COMPENSATION LAW (ECL) No presumption of compensability No presumption of aggravation No need for the employer to controvert the claim Conditions for Occupational Disease and Resulting Disability or Death to be Compensable 1. is liable to the injury sustained by the employees while on board said means of transportation d. or coming from the place of work. The employer’s obligation is to pay his counter contribution to the SSS Injury – any harmful change in the human organism from any accident arising out of and in the course of employment Conditions for Injury to be Compensable 1. the work place. INGRESS-EGRESS / PROXIMITY RULE – when the injury is sustained when the employee is proceeding to or from his work on the premises of the employer. a. If the injury is sustained elsewhere. Employee’s work must involve the risk described therein 2.

outings. guaranteed for 5 years 2. and legally adopted or acknowledged natural child who is unmarried. and to all employees.000. The income benefit shall be guaranteed for 5 years. Dependent spouse until he/she remarries 2. legitimated. PERMANENT PARTIAL . Simultaneous recovery underand the TIFF (Uncompressed) decompressor are needed to see this picture. legitimate spouse living with the employee 3. one greater than that to which other persons in the community are exposed and an unexpected injury occurs. PRIMARY 1. intoxication 2. Page 33 of 83 . that is. the injury is compensable Compulsory Coverage – ECL applies to all employers. the claimant cannot opt for the other remedy. State Insurance Fund – all covered employers are required to remit to a common fund a monthly contribution equivalent to 1% of the monthly salary credit of every covered employee. for not more than 60 mos. in no case shall the total benefit be less than P15. by agreement of the parties 2. and picnics when initiated and sanctioned by the employer g. Legitimate. The action is selective and the employee may either choose to file the claim under either. intramurals. Dependent 1. or substitute employees ƒ An employee over 60 yrs of age and paying contributions to qualify for the retirement or life insurance benefit administered by the system shall be subject to compulsory coverage. parents of said employee wholly dependent upon him for regular support Benefits 1. POSITIONAL AND LOCAL RISKS DOCTRINE – if an employee by reason of his duties is exposed to a special or peculiar danger from the elements. But once the election is made. notorious negligence – deliberate act of the employee in disregard to his own personal safety 4. but not exceeding 5.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 SPECIAL ENGAGEMENT RULE – covers field trips. death or disability is the result of the employee’s: 1. legitimated. Any agreement to contrary is prohibited Disability Categories 1. f. otherwise provided by the Labor Code Death through Suicide GR: not compensable Exceptions: 1. and without substitution.if as a result of the injury or sickness. if the suicide/death is caused by work-related or compensable illness or disease Rules on Simultaneous Recovery QuickTime™ a Labor Code 1. The employee pays no contribution to the fund. the employee is unable to perform any gainful occupation for a continuous period exceeding 120 days 3. Simultaneous recovery under the Labor Code and the SSS can be made. provided he is incapable of self-support due to a physical or mental defect which is congenital or acquired during minority 2. for life to the primary beneficiaries. the employee is unable to perform any gainful occupation for a continuous period not exceeding 120 days 2. Dependent children (legitimate. emergency. to the secondary beneficiaries in case there are no primary beneficiaries 3. Beneficiaries A. natural born or legally adopted) Effective Date of Coverage – the employer is covered from the first day of operation and the employee from first day of employment Limits of Liability No compensation if the injury. plus 10% thereof for each dependent child. public or private including casual. not gainfully employed and not over 21 years of age or over 21 years of age. temporary. TEMPORARY TOTAL – if as a result of the injury or sickness. and the Civil Code cannot be made. the employee suffers a permanent partial loss of the use of any part of his body Death Benefits – The System shall pay to the primary beneficiaries upon the death of the covered employee an amount equal to his monthly income benefit. 2. PERMANENT TOTAL – if as a result of the injury or sickness. beginning with the youngest. willful intention to injure or kill himself or another 3.

grandchildren QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Parents.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 B. Illegitimate children and legitimate descendants 2. SECONDARY 1. Page 34 of 83 . grandparents.

be considered as an employee for purposes of membership in any labor union. 277 par. industrial. religious. ƒ It shall be unlawful for any person to restrain. ƒ Any employee. QuickTime™ and a whether or not TIFF operated for decompressor profit. Definition and Types Labor Organization – means any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of` dealing with employers concerning terms and conditions of employment Legitimate Labor Organization – means any labor organization duly registered with the DOLE. or assisting labor organizations for the purpose of collective bargaining through representatives of their own choosing. intermittent and itinerant and rural workers. ALL persons in: Commercial. To engage in lawful concerted activities for the purpose of collective bargaining or for their mutual aid and protection. (ART. Who Enjoys the Right to Self Organization General Rule: 1. reported to the Regional Office and the Bureau in accordance with Rule III.c) Right to Self-Organization The right includes: 1. engaging in lawful concerted activities for collective bargaining. RIGHT TO SELF ORGANIZATION A. Sections 6 and 7 of these Rules. Art. beginning on his first day of service. Consolidation – refers to the creation or formation of a new union arising from the unification of two or more unions Independent Union – refers to a labor organization operating at the enterprise level that acquired legal personality through independent registration Legitimate Workers’ Association – refers to an association of workers organized for mutual aid and protection of its members or for any legitimate purpose other than collective bargaining registered with the Department Merger – refers to a process where a labor organization absorbs another National Union or Federation – refers to a group of legitimate labor unions in a private establishment organized for collective bargaining or for dealing with employers concerning terms and conditions of Page 35 of 83 PURPOSE: Collective bargaining. discriminate against. 2.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 LABOR RELATIONS I. and includes any branch or local thereof Affiliate – refers to an independent union affiliated with a federation or national union or a chartered local which was subsequently granted independent registration but did not disaffiliate from its federation. Employer – includes any person acting in the interest of an employer. Non-abridgment of right to selforganization. 2. (Uncompressed) are needed to see this picture. directly or indirectly. and mutual aid and protection. agricultural. joining. coerce. whether employed for a definite period or not. PURPOSE: Mutual aid and protection. 243. . Coverage and employees’ right to selforganization. Ambulant. the self-employed and those with no definite employers may form labor organizations. B. Section 2-E of the Rules. CONCEPT & SCOPE Art. ƒ It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. medical and educational institutions. and reported to the Regional Office in accordance with Rule III. ƒ The term shall not be limited to the employees of a particular employer. Chartered Local – refers to a labor organization that acquired legal personality through the issuance of a charter certificate by a duly registered federation or national union. the term shall not include any labor organization or any of its officers or agents except when acting as employer Employee – includes any person in the employ of an employer. charitable. 246. Forming. unless the Code so explicitly states. or unduly interfere with employees and workers in their exercise of the right to self organization. shall. LABOR ORGANIZATIONS 1.

list of officers/voters within 30 days from election c. election ofTIFF officers. 231. Art. 2. directly and Page 36 of 83 b. list of members who took part within 30 days from adoption of ratification or amendments thereto Rights of Labor Organizations 1. 234. Miscellaneous provisions. appeal. 2. minutes of its adoption/ratification. Checking off special assessments or any other fees without duly signed individual written authorizations of the members (other than for mandatory activities under the Labor Code) Procedure for Cancellation of Registration (ANNEX D) Procedure for Cancellation of Registration Due to Non-Compliance with Reportorial Requirements (ANNEX E) 4. 5. 3. CBL. list of (Uncompressed) decompressor are needed to see this picture. Annual financial report to the BLR within 30 days after the closing of every fiscal year d. Acting as labor contractor or engaging in the 'Cabo System' or otherwise engaging in any activity prohibited by law 4. Entering into CBAs with terms and conditions of employment below minimum standards established by law 5. minutes thereof. Misrepresentation. . real or personal. Minutes of the elections of officers. To act as the representative of its members for the purpose of collective bargaining. 235. Requirements of registration. registered with the Bureau Union – refers to any labor organization in the private sector organized for collective bargaining and for other legitimate purposes Workers’ Association – refers to an association of workers organized for the mutual aid and protection of its members for any legitimate purpose other than collective bargaining. welfare fund. Art. Requirements for Registration (ANNEX A) Requirements in Case Of Merger/Consolidation (ANNEX B) Procedure for Registration of Labor Organization (ANNEX C) 3. Rights of Labor Organization Art. Art. (a) All unions are authorized to collect reasonable membership fees. minutes of ratification and the list of members who took part in the ratification QuickTime™ and a b. 277. 240. Rights of legitimate labor organizations. officers/voters c. 6. Art. including the balance sheet and the profit and loss statement. To be certified as the exclusive representative for purposes of collective bargaining. 239. 242. for the use and benefit of the labor organization and its members. Cancellation of registration Grounds for Cancellation of Union Registration 1. mutual death and hospitalization benefits. Art. 238. To sue and be sued in its registered name. To be furnished by the employer. Action on application.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 employment for their member unions or for participating in the formulation of social and employment policies and standards and programs. Asking for or accepting attorney's fees or negotiation fees from employer 6. welfare and other projects not contrary to law. List of individual members to the BLR once a year or whenever required by the BLR 3. adoption/ratification of the CBL or amendments thereto. union dues. Equity of the incumbent. Art. Additional requirements for federations or national unions. housing. Art. 4. Grounds for cancellation of union registration. including cooperative. strike fund and credit and cooperative undertakings. Denial of registration. 237. ƒ The income and properties received by legitimate labor organization which are actually. Failure to Submit: a. 236. assessments and fines and other contributions for labor education and research. in the preparation of the financial reports 2. with its annual audited financial statements. To undertake all other activities designed to benefit the organization and its members. Registration of labor organizations Art. False Statement or Fraud in connection with: a. appeal. Cancellation of registration. Art. To own property. Registry of unions and file of collective bargaining agreements.

But by virtue of necessary implication. managerial employees are not eligible to join. 245.R. the rationale behind the ineligibility of managerial employees to form. assign or discipline employees ƒ Note that the management policies must pertain exclusively to labor relations. or have access to confidential matters of. 1994) ƒ Confidential employees assist and act in a confidential capacity to. confidential employees are not prohibited from joining. [Dionela v. Confidential Employees ƒ Confidential employees are also prohibited from forming. Effective. discharge. lay-off. Page 37 of 83 . assist or form any labor organization. 1. ƒ Compromise agreement between the union and the company is binding upon the minority members of the union. or forming any labor organization. Right to Represent its Members ƒ When a union files a case “for and in behalf of its members. SPECIAL GROUPS OF EMPLOYEES are needed to see this picture. 245. Within the last 60 days of the life of a CBA 5. handling. Confidential Employees – a confidential employee is one who is entrusted with confidence on delicate matters. ƒ Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees but may join. 241 (Rights and conditions of membership in a labor organization) C. recall. QuickTime™ and a TIFF (Uncompressed) decompressor Manager – one who is vested with the power or prerogative to lay down an execute management policies and/or to hire. Written request from the union 4. suspend. 2. 1992)] NOTE: Confidential employees may be managerial. No. confidential employees are similarly disqualified. 2. Requires the Use of Independent Judgment. effectively recommends managerial actions Power to recommend Must be both 1. or with custody. in the interest of the employer. ƒ Intervention will be allowed only if there is suggestion of fraud or collusion or that the representative will not act in good faith for the protection of all interest represented by the union. duties and other assessments. who. The beneficiaries are the individual complainants themselves. 8 SCRA 832 (1963)] Compromise of Money Claims ƒ Money claims due to laborers cannot be the object of settlement or compromise effected by a union or counsel without the specific individual consent of each laborer concerned. or care and protection of the employer’s property. joining or assisting any labor organization. (National Association of Trade Unions (NATU) – Republic Planters Bank Supervisors Chapter v. persons who exercise managerial functions in the field of labor relations [Philips Industrial Development v. Managerial & Supervisory Employees ƒ Under Art. Court of Industrial Relations. As such. Purpose of Employees Disqualification of Confidential Doctrine of Necessary Implication – what is implied in s statute is as much part thereof as that which is expressed ƒ Under Art. 277(a) and discussed under the topic of check-off under Art. or have access to confidential matters of. 88957 (June 25. During the collective bargaining negotiation Right to Collect Fees ƒ Right to collect fees is recognized in Art. supervisory or even a rank and file employee. Honorable Ruben Torres. After the union has been recognized by the employer as sole bargaining representative of the employees in the bargaining unit. Sarmiento 133 SCRA 220 (1984)] When the Union has the Right to be Furnished with Financial Statements 1. After the union is certified by DOLE as such sole bargaining representative. ƒ By the very nature of their functions. G. assisting. and 2. they assist and act in a confidential capacity to. The union can only assist them but cannot decide for them.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 exclusively used for their lawful purposes shall be free from taxes. 3. transfer. [Kaisahan ng mga Manggagawa sa La Campana v. NLRC. assist or form separate labor organizations of their own. Supervisor – one.” a member of that union will not be permitted to file in the same case a complaint-inintervention. persons who exercise managerial functions in the field of labor relations.

162 SCRA 367 (1988) This Court’s decision in Victoriano v.e. (Metrolab Industries. the law does not coerce them to join. upholds and reinforces it. Elizalde Rope Workers’ Union upholding the right of members of the Iglesia no Kristo sect not to join a labor union for being contrary to their religious beliefs. (Sugbuanon Rural Bank v. members of said religious sects cannot be refused employment or dismissed from their jobs on the sole ground that they are not members of the collective bargaining union. far from infringing the constitutional provision on freedom of association. they may now join a abor organization of the rank and file or that of the supervisory union. The legal protection granted to such right to refrain from joining is withdrawn by operation of law. power whereby an employee may. or assist a union does not apply. RoldanConfesor . If. Laguesma 1997) 3. namely: first. whereby an employee may act for himself without being prevented by law. the members of said religious sects prefer to sign up with the labor union.” it can be safely said that whatever theory one subscribes to. Inc. join.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 assist or join a labor union equally applies to them. liberty or freedom. Security Guards ƒ Under RA 6715. Members of Iglesia ni Kristo Victoriano v. that in spite of any closed shop agreement. to employees who are neither members nor co-owners of the cooperative they are entitled to exercise the rights to self-organization. It is clear. 20 May 1991) 4. does not bar the members of that sect from forming their own union. Members of Cooperatives Benguet Electric Cooperative v. al. v. however. the absence of legal restraint. When the employee does not have access to confidential labor relations information. It is therefore. and neither may the employer or labor union compel them to join. then the prohibition to form. 59 SCRA 54 (1974) What the Constitution and the Industrial Peace Act recognize and guarantee is the “right” to form or join associations.” It is the fact of ownership of the cooperative. Held: The right to collective bargaining is not available to an employee of a cooperative who at the same time is a member and co-owner thereof.1996) Access to Confidential Labor Relations Information ƒ The information must be related labor relations matters. 5. and not involvement in the management thereof. where a labor union and an employer have agreed on a closed shop. the access does not render the employee a confidential employee (San Miguel Corp. It does not prohibit the members of said religious sects from affiliating with labor unions. GR No. Supervisors & Exempt Union. FerrerCalleja. depending on their rank. assist or join a labor organization purposes of collective bargaining. therefore. they can do so. collective bargaining and negotiation. 91902. and second. that the right to join a union includes the right to abstain from joining any union. which disqualifies a member from joining any labor organization within the cooperative. Laguesma. (Manila Electric Co. It is clear therefore. Kapatiran sa Meat and Canning Division v. join or refrain from joining an association. i. as he pleases. a right comprehends at least 2 broad notions. neither does the law prohibit them from joining. Ferrer-Calleja. et. With respect. v. 180 SCRA 740 (1989) Issue: Whether employees of a cooperatove are qualified to form or join a labor organization for purposes of collective bargaining. that the assailed Act.2000) ƒ If the access is merely incidental to his duties and not necessary in the performance of such duties. The public respondent correctly observed that the “recognition of the tenets of that sect xxx should not infringe on the basic right of self-organization granted by the constitution to workers. the employee who should decide for himself whether he should join or not in an association. What the exception provides is that members of said religious sects cannot be compelled or coerced to join labor unions even when said unions have close shop agreements with the employers. They cannot invoke the right to collective bargaining for “certainly an owner cannot bargain with himself or his coowners. regardless of Page 38 of 83 . v. Secretary of Labor and Employment. Elizalde Rope Workers’ Union. Nothwithstanding the different theories propounded by the different schools of jurisprudence regarding the nature and contents of a “right. The fact that the member-employees of petitioner (cooperative) do not participate in the actual QuickTime™ and a management of the cooperative does not make them TIFF (Uncompressed) decompressor are needed to see this picture. notwithstanding their religious beliefs. eligible to form.

Ferrer-Calleja. ƒ 7. be considered as an employee for purposes of membership in any labor union. 277. Any understanding between the top officials of a government agency and the union which represent the rank-and-file is subordinate to the law governing the particular issue or situation. 248. Where the purpose is to influence the union activity of employees. shall. Kinds of Union Security Agreements 1.” “union shop. ACQUISITION AND RETENTION OF MEMBERSHIP. whether employed for a definite period or not.” which includes “any penal. Members of the Armed Forces 2.” or any other form of agreement which imposes upon employees the obligation to acquire or retain union membership as a condition of employment. Right of employees in the public service. 244. and to ensure the unhampered performance of their functions. o High level employees. Art. civil and administrative proceedings. the discrimination is unlawful. but must become union members after a certain period to retain employment. UNION SHOP – Nonmembers may be hired. the inclusion of union security clause in the CBA is not considered ULP. Police Officers/Policemen 3. ƒ What the law prohibits is discrimination to encourage or discourage membership in a labor organization. CLOSED-SHOP – only union members can be hired and they must remain as union members to retain employment. filed a petition for certification election.” D. Jail Guards ƒ High level employees are also not allowed to join the organization of rank and file government employees. both international are needed to see this picture. 2. Firemen 4. 3. 190 SCRA 130 (1989) Labor organizations in the International Catholic Migration Commission (ICMC) and International Rice QuickTime™ and a TIFF (Uncompressed) decompressor Research Institute (IRRI). UNION SECURITY AGREEMENTS Art. –(e) Discrimination.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 religious affiliation. A certification election cannot be viewed as independent or isolated process. Held: The grant of immunity from local jurisdiction to ICMC and IRRI is clearly necessitated by their international character and respective purposes. (c) Any employee. beginning on his first day of service. The exercise of jurisdiction by the DOLE in these instances would defeat the very purpose of immunity. It is clear that what has been excluded from the coverage of the CSC are those corporations created pursuant to the Corporation Code. from political pressure or control by the host country to the prejudice of member states of the organization. which is to shield the affairs of international organizations. managerial or one whose duties are highly confidential in nature. in accordance with international practice. we mean government owned or controlled corporation created by a special law and not under the Corporation Code of the Philippines. Davao City Water District v. Unfair labor practices of employers. 6. Government employees. Employees of International Organizations International Catholic Migration Commission v. MODIFIED UNION SHOP – Employees who are Page 39 of 83 .” it is inaccurate to state that a certification election is beyond the scope of that immunity for the reason that it is not a suit against ICMC. organizations.one whose functions are normally considered policy determining. Calleja. Art. 276. Government Employees Not Allowed To Unionize 1. 203 SCRA 596 (1991) The terms and conditions of employment in the government service are governed by law. Association of Court of Appeals Employees v. which could inevitably involve ICMC in the “legal process. The objective is to avoid the danger and partiality and Union Security Clause – generic term which comprehends “closed shop. The immunity granted being “from every form of legal process except in so far as in any particular case they have expressly waived in their immunity. 201 SCRA 593 (1991) By government owned or controlled corporation with original charter. interference by the host country in their internal workings. It could trigger off a series of events in the collective bargaining process together with related incidents and/or concerted activities. Civil Service Commission. ICMC and IRRI claimed immunity. Miscellaneous provisions. Government Employees Art. However.

Every income shall be evidenced by a record showing its source. right against excessive fees b. It is for QuickTime™ and a this reason that the law has sanctioned stipulations TIFF (Uncompressed) decompressor are needed to see this picture. 4. AGENCY SHOP – an agreement whereby employees must either join the union or pay to the union as exclusive bargaining agent a sum equal to that paid by the members. These union security agreements are opposite of OPEN SHOP. Labor organizations cannot knowingly admit or continue in membership any individual who belongs to a subversive organization or engaged directly or indirectly in any subversive activity. right against unauthorized disbursements d. ƒ Liberty Flour Mills Employees v. And every expenditure shall be evidenced by a receipt from the person who Page 40 of 83 5. POLITICAL RIGHT a. right to vote on officers’ compensation g. RIGHTS OVER MONEY MATTERS a. dues or other contributions by a member shall be evidenced by a receipt signed by the officer and entered into the record of the organization. EXCLUSIVE BARGAINING SHOP – Union is recognized as the exclusive bargaining agent for all employees in the bargaining unit. A member who has been convicted of a crime involving moral turpitude is ineligible for election or appointment in the union. 76989. collective bargaining and negotiations and peaceful concerted actions including the right to strike in accordance with law. 222. Visitorial power. right to require adequate records of income and expenses. right to be voted for 2. Inc. Rights and conditions of membership in a labor organization. e. Liberty Flour Mills. Other Rights & Conditions under Art. DELIBERATIVE AND DECISION-MAKING RIGHT a. Open shop does not require union membership as a condition of employment. for the union shop and the closed shop as a means of encouraging the workers to join and support the labor union of their own choice as their representative in the negotiation of their demands and the protection of their interest vis-a-vis the employer. 7." There is no question that these purposes could be thwarted if every worker were to choose to go his own separate way instead of joining his co-employees in planning collective action and presenting a united front when they sit down to bargain with their employers. the Constitution guarantees to them the rights "to self-organization. To this end. right to be informed about the organization’s constitution and by-laws and the collective bargaining agreement and about labor laws. (Manila Mandarin Employees Union v. 29 December 1989 Union and Company executed a CBA which contained a union shop clause Over a year after the execution of the CBA. MEMBERSHIP. decide on major policy questions by secret ballot 3. GR No. 4. right to participate in deliberations on major policy questions b. 2 employees were dismissed after they formed their own union. E. whether union members or not. RIGHT TO INFORMATION a. Appearances and Fees. 29 September 1987) 4. BARGAINING FOR MEMBERS ONLY – Union is recognized as the bargaining agent only for its own members. right against unauthorized collection c. right to deduction of special assessments only with written authorization from member. 6. and such a provision in a collective bargaining agreement is not a restriction of the .. but all present or future members must remain in good standing in the union. 241. 2. MAINTENANCE OF MEMBERSHIP SHOP – Employees are not compelled to join the union. but all workers hired after is required to join. Art. 3.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 not union members at the time of the signing the contract is not required to join the union. 274. right to vote on proposed special assessments h. ƒ A closed shop provision is a valid for of union security. 58768-70. Held: It is the policy of the State to promote unionism to enable the workers to negotiate with management on the same level and with more persuasiveness than if they were to individually and independently bargain for the improvement of their respective conditions. 241 1. Every payment of fees. NLRC. RIGHTS OF MEMBERS Art. right to access financial records f. GR Nos. Art. right to vote b. right of freedom of association guaranteed by the constitution. Rights of Union Members 1.

2. fines or assessments. the Union must submit to the company a written resolution of a majority of all the members at a general membership meeting called for Page 41 of 83 . (n). Individual written authorization for check-off duly signed by the employee concerned – to levy such assessments Palacol v. 277. . Held: The failure of the union to comply strictly with the requirements set out by the law invalidates the questioned special assessments. Submission of the employees’ name with the BLR as qualified members of the union is not a condition sine qua non to enable said members to vote in the election of the union officers. Eligibility for Membership ƒ Eligibility for membership depends upon the union’s constitution and by laws. Substantial compliance is not enough in view of the fact that the special assessment will diminish the compensation of the union members. an employee is already qualified for union membership starting on his first day of service. o Membership in good standing – any person who has fulfilled the requirements for membership in the union and who has neither voluntarily withdrawn from membership nor has been expelled or suspended from membership. ƒ The only qualification requirement for candidacy shall be membership in good standing in labor organization. Secretary’s record of the minutes of the meeting. there ere 528 objectors and only 272 supporters. Subsequently. Convicted of a crime involving moral turpitude. Disqualification of Union Officers 1. Authorization by a written resolution of the majority of all the members at the general membership meeting duly called for that purpose. members of the union submitted documents stating that they were withdrawing their authorization such that in the end. by laws are silent or if there is no agreement. However. Agency Fee – amount equivalent to union dues. ƒ Deductions for union service fee are authorized by law and do not require individual check-off authorizations. o must include list of members present. 241. Under Art. place and purpose of such payment. 182 SCRA 710 (1990) The union president submitted the authorization for the company to deduct union dues and 10% by way of special assessments. Ferrer-Calleja. 78131 (1988) The question of eligibility to vote may be QuickTime™ and a determined through the use of decompressor the applicable payroll TIFF (Uncompressed) are needed to see this picture. and appointed officers or agents who are entrusted with the handling of funds within 30 days after the election ƒ Procedure of elections o GR: in accordance with the union’s constitution and by-laws or agreement among the members. Pura Ferrer-Calleja GR. period and employee’s status during the applicable period. 3. o If the constitution. Election of Union Officers ƒ Officers shall be elected directly by members in secret ballot voting. then Rule 12 of the Implementing rules will apply Elections under Rule 12 of the Implementing Rules (ANNEX F) Eligibility of Voters ƒ Only members of the union can take part in the election of union officers. which a nonunion member pays to the union because he benefits from the CBA negotiated by the union Requisites for a Valid Special Assessments 1. ƒ Election shall take place every 5 years. Tancinco v. ƒ The secretary or any other responsible union officer shall give the Secretary with a list of the newly-elected officers. the amounts due the union for fees.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 was paid. purpose of the special assessments and the recipient of such assessments. Petitioners question the special assessments. Individual who belongs to a subversive organization or engaged directly or indirectly in any subversive activity. under Art. The receipt shall state the date. No.one cannot even be a member of the organization Union Election Protest – complaints or protests regarding election of union officers is treated as an intra/inter-union dispute Check-Offs & Assessments Check-Off – a method of deducting from an employee’s pay at prescribed period. 2. votes cats.

this should be resorted to not only to give the grievance machinery or appeals’ body of the union the opportunity to decide the matter by itself. but also to prevent unnecessary and premature resort to administrative or judicial bodies. Civil Aspect 2. the attack to this constitutional right is considered a crime which carries both civil and criminal liabilities. Because self – organization is a prerequisite of industrial democracy. Violation of Rights of Members GR: Complaint for violation of rights must be reported by at least 30% of the union members. the list of all the members present as well as the votes cast. Diamonon v. No. The act done is expressly defined in the Code as an act of unfair labor practice. L-78061 (1988) Despite the practical difficulties in complying with the said procedure. right after he failed to appear before the first and only investigation scheduled. petitioners should have shown substantial compliance with said impeachment procedure. as contrasted to an outright impeachment. 247. 108951. Concept of Unfair Labor Practices ƒ The aim of labor relations policy is industrial democracy whose realization is most felt in a free collective bargaining or negotiation over terms and conditions of employment. refers only to acts opposed to workers’ right to organize. or grievance TIFF (Uncompressed) decompressor are needed to see this picture. is afforded a chance to pass upon the matter. GR No. Thus. by giving the union officer ample opportunity to defend himself. There can be no valid check-off considering that the majority of the union members had already withdrawn their individual authorization. then only one or two members can report such violation. ƒ ULP therefore. ƒ Art. al. 2. machinery. II. of Labor. it will decide the same correctly. among others. Dept. Cancellation of the union registration 2. et. 212(k) defines unfair labor practice as any unfair labor practice as defined by this Code. it follows that not every unfair act is unfair labor practice. supported by 20% of the membership. Exception: when the violation directly affects only one or two members. In addition.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 the purpose. must include. The law would not have specified a general membership meeting had the legislative intent been to allow local meetings in lieu of the latter. No organizational right can be negated or assailed if the employer – employee relationship is absent in the first place. Ferrer-Calleja. the secretary of the organization must record the minutes of the meeting which in turn. Expulsion of the cULPable officers. the right to self – organize has been enshrined in the Constitution. Because ULP is and has to be related to the right to self organization and to the observance of the CBA. Aspects of Unfair Labor Practice 1. UNFAIR LABOR PRACTICES Art. 07 March 2000 When the Constitution and by-laws of both unions dictated the remedy for intra-union dispute. GR. Consequence of Violation of Rights 1. and any attack to it – any attack to it – any act intended to defeat or debilitate the right – is regarded by law as an offense. ƒ The prohibited acts are all related to the workers’ self – organizational right and to the observance of a collective bargaining agreement. ƒ The victim of the offense is not just the workers as a body and the well – meaning employees who value peace. but the State as well. as in this case. Visitorial Power ƒ The Secretary or his duly authorized representative can inquire into the financial activities of any labor organization on the basis of a complaint under oath. When committed by the employer. Concept of unfair labor practice and procedure for prosecution thereof. Elements of Unfair Labor Practice 1. The underlying principle of the rule on exhaustion of administrative remedies rests on the presumption QuickTime™ and a that when the administrative body. Remedies for Violation of Rights Litton Mills Employees Association-Kapatiran v. it commonly connotes anti – unionism. ƒ ULP is negation of a counteraction to the right to organize which is available only to employees in relation to their employer. Criminal Aspect Page 42 of 83 . EER between the offender and the offended.

Inc. light of indefinite combinations of events which may be charged as violative of its terms. it is no excuse that his conduct was unintentional and innocent. Employees Union ns. Art. Rather. Rubberworld Phils. they cannot claim that they were dismissed Wise and Co.” 2. Conditions precedent to the ULP charge 1. Unless there are instances which directly point to interference by the company with the employees right’s to self – organization. v. ƒ The only condition imposed upon this control is that it must not be exercised so as to effect a violation of the Act and its several prohibitions. members of governing boards. GR No. 290). his original rank and salary remained undiminished. validly claim that the company committed unfair labor practice. it is the prerogative of the company to promote. The act charged as ULP must fall under the prohibitions of Art. The Hongkong and Shanghai Banking Corp. transfer or even demote its employees to other positions when the interests of the company reasonably demand it. e. 249). Prosecution of ULP as a criminal offense can be initiated only after the finality of judgment in the labor. 51382. v. 19 July 1989 As a rule. Prescription of actions for ULP The offense prescribes in 1 year (Art. The enumeration does not mean an exhaustive listing of ULP incidents. 248.. 87672.. ƒ Where. 06 QuickTime™ and a November 1997 TIFF (Uncompressed) decompressor are needed to see this picture. Wise & Co. In a Philippine Airlines case the courts said that the pilot’s protest retirement/resignation was not a concerted activity which was protected by law. Who are Liable when ULP is Committed by Other than a Natural Person The penalty shall be imposed upon the guilty officers of a corporation. It appears to have been done in good faith and without Page 43 of 83 Jurisdiction of Criminal Charge of ULP The criminal charge fall under the concurrent jurisdiction of the MTC or the RTC. GR No.. The Code enumerates the acts or categories of acts considered as ULP. et al. therefore. When There is no ULP: Instance of Valid Exercise of Management Rights ƒ The law on unfair labor practices is not intended to deprive the employer of his fundamental right to prescribe and enforce such rules as he honestly believes to be necessary to the proper. Enriquez v. association or entity (Art. 29 December 1986 Acceptance of a voluntary resignation is not ULP. productive and profitable operation of his business. The injured party is within the definition of “employee. Discrimination per se is not unlawful. 13 October 1989 There can be no discrimination committed by the employer as the situation of the union employees is different from that of the nonunion employees. The grant by the employer of profit – sharing benefits to the employees outside the bargaining unit falls under the ambit of its managerial prerogative. GR No. But judgment in the labor case will not serve as evidence of ULP in the criminal case.. Zamora. 75704. it leaves to the court the work of applying the law’s general prohibitory language in the . Art. There can be no discrimination where the employees concerned are not similarly situated. Inc. representatives or agents or members of labor associations or organizations who have actually participated in. NLRC. 125038. partnership. where despite his transfer to a lower position. 289). the transfer of an employee should be considered within the bounds allowed by law. an employer does violate the Act and is found guilty of the commission of an unfair labor practice. NLRC. Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code. The Labor Code does not undertake the impossible task of specifying in precise and unmistakable language each incident which constitutes an unfair labor practice. GR No. They did not assume the status of strikers. They cannot. 248 (acts of the employer) or 249 (acts of the union). authorized or ratified such (Art. When the pilots voluntarily terminated their employment relationship with the company. the parties liable are the officers.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ ƒ ƒ Civil aspect may include liability for damages and may be passed upon by the labor arbiter. Employees Union. Unfair labor practices of employers.g. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. ƒ ƒ Only substantial evidence is required in the labor case while proof beyond reasonable doubt is need in the criminal prosecution. If the ULP is committed by a labor organization. 261. however.

coupled with an intimate connection between the employer’s actions and the union affiliations or activities of the particular employee or employees taken as a whole raise a suspicion as to the motivation for the employer’s action. v. work assignments. determining the validity of an employer’s acts involve an appraisal of his motives. all aspects of employment. al. al. an employer is free to regulate. It is for the CIR [NLRC now]. violation of duty to bargain 8. 73721. is neither malicious. oppressive nor vindictive. et al. according to his own discretion and judgment. GR No. violation of CBA First ULP: Interference (Art. place and manner of work. NLRC Bandolino Shoe Corp. supervision of workers. Thus. [Republic Savings Bank v. there must be a measure of reliance on the administrative agency. GR TIFF (Uncompressed) decompressor are needed to see this picture. GR No. discrimination because of testimony 7. work supervision. 21 SCRA 226 (1967)] QuickTime™ and a AHS/Philippines Employees Union v. working methods. process to be followed.. where the attendant circumstances. Prohibiting organizing activities However. Samahan ng mga manggagawa sa Bandolino – LMLC et. 2 SCRA 924 (1961) Except as limited by special laws. v. In the case of the union members. LVN Picture Workers v. 248 (A)) Interference with employee organizational rights were found where the superintendent of the employer threatened the employees with cutting their pay.. Unfair Labor Practice of Employers 1. contracting out 4. transfer of employees. 248 (a) of the Labor Code of the Philippines.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ulterior motive. lay – off workers and the discipline. 17 July 1997 In short. the private respondents were dismissed. tools to be used. Paragraph (d) of said Article also considers it an unfair labor practice for an employers “to initiate. or their services were terminated. 35 SCRA 147 (1970) So long as a company’s management prerogatives are exercised in good faith for the advancement of the employer’s interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements. 125195. LVN. to weigh the employer’s expressed motive in determining the effect on the employees of management’s otherwise equivocal act. discrimination for or against union membership 6. including the giving of financial “or other support to it. working regulations. the same does not constitute an unfair labor practice Page 44 of 83 . NLRC. or closing the plant if they supported the union and where the employer encouraged the employees to sign a petition repudiating the union ULP Even Before Union is Registered Judric Canning Corporation v. CIR.” In this particular case. assist or otherwise interfere the formation or administration of any labor organization. Inciong. company unionism 5. increasing rent of the company houses. restrain. in the first instance. However. “to interfere with. No. Inc. time. dismissal and recall of work. dominate. More so when as in this case there is a clause in the CBA where the employees are classified into those who are members of the union and those who are not. the history of the employer’s past conduct and like considerations. 29 September 1988 Where the vacation leave without pay. an employer who interfered with the right to self – organization before the union is registered can be held guilty of ULP. including hiring. L51494. yellow dog condition 3. ULP is not committed NLU v. the failure of the employer to ascribe a valid reason therefore may justify an interference that his unexplained conduct in respect of the particular employee or employees was inspired by the latter’s union membership or activities. they derive their benefits from the terms and conditions of the CBA which constitutes the law between the contracting parties. 19 August 1982 Under Art.. GR No. in the absence of showing that the illegal dismissal was dictated by anti – union motives. NLRC. L-80737. paid negotiation 9. or coerce employees in their exercise of their right to self – organization” is an unfair labor practice on the part of the employer. et. 30 March 1987 An employer may treat freely with an employee and is not obliged to support his actions with reason or purpose. interference 2. the Court will uphold them Determination of validity Necessarily. Insular La Yebana Co.. Both the employer and the union members are bound by such agreement Philippine Graphic Arts. because they were soliciting signatures in order to form a union within the plant. which the employer requires employees to take in view of the economic crisis.

BCI Employees and Workers Union. Gr. 12 October 1989) 5. Inc. Similar or substantially the same work or production under SIMILAR OR SUBSTANTIALLY THE SAME WORKING CONDITIONS 5. ƒ However. 4. al. refusal over a period of years to give salary adjustments according to the improved salary scales in the collective bargaining agreements (Benguet Consolidated v. subject to comprise.R. v. supervisors or managers 4. 59012-13. CIR. No. Totality of Conduct Doctrine ƒ The culpability of employer’s remarks is to be evaluated on the basis of their implication. L-67158. ƒ The successor-employer doctrine is just an enforcement of the piercing the veil of corporate entity. PAFLU. actual or threatened. GR No. PAFLU. 29 October 1971) Doctrine of Successor-Employer ƒ A new company will be treated as a continuation or successor of the one that closed in the new or take-over company is engaging in the same business as the closed company or department. 16 SCRA 820).G. Use of the SAME MACHINERY AND EQUIPMENT 6. expressions of opinion by an employer. the history of the particular employer’s labor relations or anti – union bias or because of their connection with an established collateral plan of coercion or interference. A company’s capital reduction efforts. 87321.R. dismissal of union members upon their refusal to give up their membership. L-26519. TIFF (Uncompressed) decompressor are needed to see this picture. ƒ This doctrine. (Madrigal & Company. No. on account of her having joined a union and engaging in union activities (East Asiatic Co. to camouflage the fact that it has been making profits to justify the mass lay-off of its employees especially union members. v. Dismissal of teachers for fear by the school that there would be strike the following semester (Rizal Memorial Colleges Faculty Union. NLRC. Lockout or Closure Amounting to ULP ƒ A lockout. NLRC. G.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 as would be a valid ground for strike. 14 SCRA 953) 2. (Cruz v. et. workers. and the "closure" is calculated to defeat the worker's organizational right in which case the closure may be declared a subterfuge. Sale in Bad Faith ƒ The sale of a business enterprise to avoid the legal consequences of an unfair labor practice is necessarily attended with bad faith and both the vendor and the vendee continue to be liable to the affected workers. 22 SCRA 129) 3. Gochangco Workers Union v. The latter is in the position of tort – feasor. or is owned by the same people. NLRC GR. (Cruz v. though innocent in themselves. CIR. No. 29 October 1971) ƒ Where the sale of a business enterprise was attended with bad faith. v. The remedy is an action for reinstatement with backwages and damages. 30 May 1988 We have held that unfair labor practice cases are not. there is no need to consider the applicability of the rule that labor contracts being in personam are not enforceable against the transferee. Manufacture of the SAME PRODUCTS or the performance of the same services Page 45 of 83 . against the background of and in conjunction with collateral circumstances. v. Zamora. No. 31 March 1987) Examples of unlawful acts to discourage membership in a labor organization: 1. Retention of CONTROL 2. and consequently actionable as an QuickTime™ and a unfair labor practice. might be deemed improper when spoken by a more hostile employer. in view of the public interest involved. G. as a means of dissuading the employees from exercising their rights under the Act is clearly an unfair labor practice. Use of the SAME OR SUBSTANTIALLY THE SAME EMPLOYEES. Nos. having been a party likewise responsible for the damage inflicted on the members of the aggrieved union and therefore cannot justly escape liability. G. the evidence must establish that the purpose thereof was to interfere with the employee’s exercise of their rights. Factors to Determine Continuity: 1.R. an expression which might be permissibly uttered by one employer. ƒ Under this doctrine. dismissal of an old employee allegedly for inefficiency. (AHS/Philippine Employees Union v. 30 June 1987) CLLG E. to hold an employer who actually or who threatens to lock out his employees guilty of a violation of this Act. frequently were held to be culpable because of the circumstances under which they were uttered. under the pretext of retrenchment due to reduced dollar allocations (Manila Pencil Co. Use of the SAME PLANT OR FACTORY 3. L-26519. L-4823.

after they had presented demands for the improvement of the working conditions despite its alleged retrenchment policy. 248 (D)) Manifestations of Domination of a Labor Union 1. Employer encouragement and assistance.. after dismissal of the aforesaid officers of the rival labor union. Runaway shop ƒ An industrial plant moved by its owners from one location to another to escape union labor regulations or state laws or to discriminate against employees at the old plant because of their union activities. Initiation of the company union idea. a promise by the employee not to join a labor union 3. Philippine American Cigar & Cigarette Mfg. CIR. the discrimination committed by the Page 46 of 83 .Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Second ULP: Yellow Dog (Art. Financial support to the union. even if the employer’s estimate of his cost is based on a projected increase attributable to unionization. 248 (c)] Contracting Out as ULP ƒ Contracting out services or functions being performed by union members when such act will interfere with. restrain. or coerce employees in the exercise of their right to self – organize. that key officials of the company. employee formation on outright demand or influence by employer c. outright formation by the employer or his representatives b. 4. al. as well as its legal counsel. Oceanic Air Products. have attended the election of officers of the former union. v. managerially motivated formation by employees 2. upon joining a labor union. al. et. v. 248 (B)) Yellow Dog Contract – a promise exacted from workers as a condition of employment that they are not to belong to. 7 SCRA 375). 127 SCRA 390 (1984)] Fourth ULP: Company Domination Of Union (Art. that officers and members of the rival union were dismissed allegedly pursuant to a retrenchment policy of the company.. 3. L-22273. the early removal is unfair labor practice. GR No. ƒ However. et. This takes the form of soliciting membership. This may further occur in three styles: a. It is immaterial that the relocation is accompanied by a transfer of title to a new employer who is an alter ego of the original employer. [Sunio v. Ang Tibay. L18704. a promise by the employee that. ƒ Where a plant removal is for business reasons but the relocation is hastened by anti – union motivation. the company engages the services of new laborers Fifth ULP: Discrimination (Art. Inc. ƒ Resorting to runaway shop is ULP. 248 (E)) Pagkakaisang Itinataguyod ng mga Manggagawa sa Ang Tibay. permitting union activities during working time or coercing employees to loin the union by threats of dismissal or demotion (Philippine American Cigar & Cigarette Factory Workers Union v. By defraying the union expenses or pays the attorney’s fees to the attorney who drafted the constitution and by – laws of the union. a union during their period of employment 3 Usual Provisions under the Yellow Dog Contract 1. NLRC. GR No. the inadequacy of his equipment. he will quit his employment Third ULP: Contracting Out [Art. a representation by the employee that he is not a member of a labor union 2. or the need to reduce the cost. Inc. is not of itself capital stock of are aneeded corporation sufficient ground for disregarding the separate corporate personality. or attempt to foster. to constitute an unfair labor practice. 31 January 1963 A labor union is company – dominated where it appears that key officials of the company have been forcing employees belonging to rival labor union to join the former under pain of dismissal should they refuse to do so. and that. an employer is not guilty of an unfair labor practice in contracting work out for business reasons such as decline in business. ƒ Mere ownership by a single stockholder or by QuickTime™ and a another corporation of all or nearly all of the TIFF (Uncompressed) decompressor to see this picture. 16 May 1967 Under the Industrial Peace Act (as under the present Labor Code). Co.. Immediately granting the union exclusive recognition as a bargaining agent without determining whether the union represents the majority of employees. Supervisory assistance.

. it is necessary that the underlying reason for the discharge be established. No. L-18467. GR Nos. L-34948 – 49. unfair labor practices in the form of discriminatory dismissal were found where only unionists were permanently dismissed while non – unionists were not. engaged in union activities at the time will not lie against the employer and prevent him from the exercise of his business judgment to discharge an employee for cause. (Soriano v. (CUGCO) and CIR. If the discharge is actually motivated by and a a lawful reason. Advantages of Closed Shop Agreement Page 47 of 83 . L-30818. Pines Hotel Employees Ass’n. It is implicit in the freedom of association ordained by the Constitution. 2 841) Discharge due to union activity. Atienza. it is a valid kind of discrimination.. from strikers returning to work. maintenance of membership or any other form of agreement which imposes upon employees the obligation to acquire or retain union membership as a condition affecting employment.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 employer must be in regard to the hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization. ƒ The fact that a lawful cause for discharge is available is not a defense where the employee is actually discharged because of his union activities. union shop. But a closed shop is a valid form of union security. 28 September 1972) Discrimination in Layoff or Dismissal ƒ Even where business conditions justified a layoff of employees. Victorias – Manapla Workers Organization – PAFLU. Ace Comb Co. CIR. there is discrimination when certain employees are obliged to join a particular union. should be subordinated to the constitutional provision protecting the sanctity of contracts. (Manila Hotel Company v. v. v. 30 September 1963 Another reason for enforcing the closed – shop agreement is the principle of sanctity or inviolability of contracts guaranteed by the Constitution. When there is Valid Discrimination: Union Security Clause ƒ Union security is a generic term which is applied to and comprehends closed shop. a question of fact Philippine Metal Foundries. As a matter of principle. GR No. 342 F. the provision of the Industrial Peace Act granting freedom to employees to organize themselves and select their representative for entering into bargaining agreements. 121 SCRA 444 (1983) It is true that disaffiliation from a labor union is not open to legal objection. 68619. the QuickTime™ fact decompressor that the employee is TIFF (Uncompressed) are needed to see this picture. Inc. But it is discrimination favoring unionism. cannot be considered as intended to encourage or discourage Union membership. Taking the circumstances surrounding the prescribing of that condition. and (c) the total salary adjustments given every ten of its unionized employees would not even equal the salary adjustments given one employee in the non – unionized branch. 15 May 1979 The question of whether an employee was discharged because of his union activities is essentially a question of fact as to which the findings of the court of Industrial Relations are conclusive and binding if supported by substantial evidence considering the record as a whole. Test of Discrimination ƒ For the purpose of determining whether or not a discharge is discriminatory. 16 March 1989) Villar vs Inciong. Victorias Milling Co.unionized branches although it was losing in its operations. The exaction by the Company. G. Inc. of a promise not to destroy company property and no to commit acts of reprisal against the Union members who did not participate in the strike. ƒ The employer is not guilty of unfair labor practice if it merely complies in good faith with the request of the certified union for the dismissal of employees expelled from the union pursuant to the union security clause in the collective bargaining agreement. (NLRB v. and such provision in a collective bargaining agreement is not a restriction of the right of freedom of association guaranteed by the Constitution. It is indeed compulsory union membership whose objective is to assure continued existence of the union. the requirement by the Company is actually an act of self – preservation and designed to inure the maintenance of peace and order in the Company premises Discrimination in Bonus Allocation or Salary Adjustments There is unfair and unjust discrimination in the granting of salary adjustments where the evidence shows that (a) the management paid the employees of the unionized branch. (b) where salary adjustments were granted to employees of one of its non . In a sense.R.. GR No.

prevents the weakening of labor organizations by discrimination against union members. Thus. 4. 6. Villar v. facilitates the use of labor organizations by unscrupulous union leaders for the purpose of extortion.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 1.. compels employers to discharge all non – union workers regardless of efficiency. Due process required in enforcing union security clause. if freely and voluntarily entered into. Ramos. 5. 4.. 28 February 2000 Union security clauses in the collective bargaining agreements. et. Petitioners. under the collective bargaining agreement between the union and the employer. 2. restraint of trade. interferes with the freedom of contract and personal liberty of the individual worker 3. increases the strength and bargaining power of labor organizations. 30 October 1967 A union member who is employed under an agreement between the union and his employer is bound by the provisions thereof since it is a joint and several contract of the members of the union entered into by the union as their agent. etc. 76989. The employer would not have compelled the employee to go on forced leave were it not for the union’s insistence and demand to the extent that because of the failure of the employer to dismiss the employee as requested. Liability of union to pay wage and fringe benefits of illegally dismissed employee Where the employer compelled the employee to go on forced leave upon recommendation of the union for alleged violation by the employee of the closed – shop agreement. although entitled to disaffiliation from their union and to forma new organization of their own. results in monopolistic domination of employment by labor organizations 2. 2898) Disadvantages of a Closed Shop Agreement 1. must. al. enables labor organizations effectively to enforce collective agreements. 51 O. L-20432. 7. 29 September 1987) Employer in good faith not liable . are valid and binding. v. intra – union in character. Aguinaldo’s Echague. 5. etc. eliminates the lowering of standards caused by competition with non . Artex Development Co.union workers. denies to non – union workers equal opportunity for employment 6. suffer the consequences of their separation from the union under the security clause. ƒ While it is true that the issue of expulsion of the local union officers is originally between the local union and the federation. Inciong. 121 SCRA 444 (1983) Page 48 of 83 QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.G. The reason behind the enforcement of union security clauses which is the sanctity and inviolability of contracts cannot override one’s right to due process. intra – union matter becomes termination dispute with employer ƒ Although a union security clause in a CBA may be validly enforced and dismissal pursuant thereto may likewise be valid. (Manila Mandarin Employees Union v. 113907. notwithstanding the fact that the dismissal was at the instance of the federation and that it undertook to hold the company free from any liability resulting from such a dismissal. Moreover. hence. al. length of service. however. Thus. the dismissal of an employee by the company pursuant to a labor union’s demand in accordance with a union security agreement does not constitute unfair labor practice.. the union filed a notice of strike on the issue of unfair labor practice. et. Manalang. the company may still be held liable if it was remiss in its duty to accord the would – be dismissed employees their right to be heard on the matter. GR No. 3. facilitates the collection of dues and enforcement of union rules. creates harmonious relations between the employer and employee (NLU v. Inc. prevents non – union workers from sharing in the benefits of the union’s activities without also sharing its obligations. this does not erode the fundamental requirement of due process. the union holds the company free and blameless from any liabilities that may arise should the employee question the dismissal. GR No. the NLRC correctly ordered the reinstatement of the employee and directed the union to pay the wages and fringe benefits which employees failed to receive as a result of her forced leave and to pay attorney’s fees. NLRC. Greenfield v. enables union to charge exorbitant dues and initiation fees Valid dismissal because of application of union security clause Malayang Samahan ng mga Manggagawa sa M. GR No. the issue was later on converted into a termination dispute when the company dismissed the petitioners from work without the benefit of a separate notice and hearing.

Such act. ƒ The Court is not authorized to issue blank cease and desist orders. the noncompliance amounts to a ULP. an QuickTime™ and a the union as a employee is not required to join TIFF (Uncompressed) decompressor are employment. the record must show that the restrained misconduct was an issue in the case. It is a punishable act of ULP for the employer to pay the union or any of its officers or agents any negotiation fee or attorney’s fees as part of the settlement in collective bargaining or any labor dispute.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Where the employer dismissed his employees in the belief in good faith that such dismissal was required by the closed – shop provisions of the collective bargaining contract with the union. 30 October 1962) Agency fee instead of union membership Under the agency – shop clause of a CBA. closed – shop provisions in a collective bargaining agreement apply only to persons to be hired or to employees who are not yet members of any labor organization and that said provisions of the agreement are not applicable to those already in the service at the time of the execution. The law zealously shields them from corruption.. L-18112. both union and non – union. et. Gross violation of the CBA Eighth ULP: Paid Negotiation [Art. To do so is not only unlawful. 248 (f)] ƒ The testimony or proceedings might involve wages. and good faith implies faithful observance of what has been agreed upon. condition of continued but must pay the union a service fee (usually equivalent to union dues and initiation fees). needed to see this picture. GR No. Ninth ULP: Violation of the CBA ƒ Implementation of the CBA is still part of the bargaining process. 29 April 1960) Employees not covered by the closed shop provision 1. is a ground for cancellation of union registration under Art. It logically follows that noncompliance with the agreement is non – observance of good faith in bargaining. Art. 248 (H)] ƒ Self – organization and collective bargaining are treasured rights of the workers. ƒ Violation of the CBA must be gross. Relief In ULP Cases 1. It is ethically reprehensible. employees excluded from the closed – shop by express terms of the agreement It is well – settled in this jurisdiction that. a right guaranteed by the Industrial Peace Act as well as by the Constitution. employee’s benefits disciplinary rules. including failure or refusal to execute the collective agreement. he may not be ordered to pay back compensation to such employees although their dismissal is found to be illegal. Sixth ULP: Discrimination Because Of Testimony [Art. therefore. al. in the absence of a manifest intent to the contrary. To hold that the employees in a company who are members of a minority union may be compelled to disaffiliate from their union and join the majority or contracting union. et. or anything covered by the Labor Code. confidential employees who are excluded from the rank and file bargaining unit 4. (Confederated Sons of Labor v. L-12503. Anakan Lumber co.. 249 prohibits union officers or agents from asking for or accepting such payments. Evading the mandatory subjects of bargaining c. Failure or refusal to meet and convene b. but must confine its Page 49 of 83 . Hamilton Distellery Co. employees already in service and already members of a labor union or unions other than the majority union at the time the closed – shop agreement took effect 3. Since a union is required by statute to act as the bargaining representative of all employees. ƒ Correspondingly. Seventh ULP: Violation of the Duty to Bargain [Art. GR No. the justification for the clause is that the nonmember should contribute towards the cost of collective bargaining process without supporting it financially.. (Kapisanan ng mga Manggagawa ng Alak (NAFLU) v. What is chargeable as ULP is the employer’s retaliatory act regardless of the subject of the employee’s complaint or testimony.. al. 239 (g). Bad faith in bargaining. join or assist labor organizations of their own choosing. Cease and Desist Order ƒ To support a cease and desist order. any employee who at the time the closed – shop agreement takes effect is a bona fide member of a religious organization which prohibits its members from joining labor unions of religious grounds 2. within their bargaining unit. if requested d. furthermore. 248 (g)] Four Forms of ULP in bargaining: a. would render nugatory the right of all employees to self – organization and to form. or organizational rights. that there was a finding of fact of said misconduct and such finding was supported by evidence. The duty to bargain requires good faith.

it: o assaults or threatens to assault them o threatens them with the loss of their jobs o blocks their ingress to and egress from the plant o damages nonstrikers’ automobiles or forces them off the highway o physically preventing them from working o sabotages the employer’s property in their presence. CIR et. Violation of CBA. ULP in a given period should be included in a single charge Dionela. the affirmative order shall direct the respondent to dismiss these hired laborers to make room for the returning employee. Affirmative Order ƒ In addition to a cease and desist order. ƒ A union violates the law when. in the nature of an exaction. 67158. be allowed to split its cause of action and harass the employer with subsequent charges. to restrain or coerce nonstrikers from working during the strike. ƒ A labor organization may interfere in the employees’ right to self – organization as long as the interference does not amount to restraint or coercion. To ask or accept negotiations or attorney’s fees from employers as part of the settlement in any dispute. This includes fee for union negotiations.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 injunction orders to specific act or acts which are related to past misconduct.. Union cannot coerce employees to join a strike ƒ Similarly. NLRC. To refuse to bargain collectively with the employer. if it is the representative of the employee. labor practices of labor membership or continuation of membership is made available to other members. for services which are not performed or not to be performed. 30 May 1988 ULP cases are not. v. 2. v. thereby creating an atmosphere of fear or violence o demonstrates loudly in front of a nonstrikers’ residence with signs and shouts accusing the nonstriker of “scabbing” o holding the nonstriker up to ridicule o seeking public condemnation of the nonstriker Union-Induced Discrimination Arbitrary use of union security clause ƒ The broad rule is that the union has the right to determine its membership and to prescribe the conditions for the acquisition and retention TIFF (Uncompressed) decompressor Unfair Labor Practices of Labor Organization are needed to see this picture. To restrain or coerce employees in the exercise of their right to self organization. 249 (a)] ƒ A labor organization commits ULP when it restrains or coerces employees in their right to self – organization. al. GR No. et. To attempt to or cause an employer to discriminate against an employee to whom membership in the labor organization was denied or to terminate an employee on any ground other than he usual terms and conditions under which QuickTime™ and a Page 50 of 83 . in view of the public interest involved. 2. CBA may be imposed 4.G. Interference by Union is not ULP [Art. 6. Strike by union members ULP is not subject to compromise CLLC E. upon the dismissal of the charges first preferred. 4. al. Court may order the Employer to Bargain. subject to compromises. al. 1. The relation between capital and labor are not merely contractual. Unfair organizations. 3. the charges should include all acts of unfair labor practice committed against any and all members of the union during that period. Restraint or Coercion by Labor Organization. 5. 249. Art. GR No. violation is committed when a union threatens the employees with bodily harm in order to force them to strike. The union should not. et. To attempt to or cause the employer to pay money or other things of value. based upon acts committed during the same period of time. the court may issue an affirmative order to reinstate the said employee with back pay from the date of the discrimination. 31 August 1963 When a labor union accuses an employer of acts of unfair labor practice allegedly committed during a given period of time. 3. L-18334. They are so impressed with public interest that labor contracts must yield to the common good. ƒ If other laborers have been hired. Gochangco Workers Union.

the employer cannot be in default. Duty to bargain collectively when there exists a collective bargaining agreement. QuickTime™ and a fairness. RIGHT TO COLLECTIVE BARGAINING A. (Uncompressed) decompressor are needed to see this picture. prudence TIFF and judiciousness. or a union in insisting upon the discharge of. ƒ This rule. Proof of majority representation 3. Art. Featherbedding – employee practices which create or spread employment by unnecessarily maintaining or increasing the number of employees used. 252. 250 (a) (Kiok Loy v. to work on a particular job ƒ It may take the form of minimum – crew regulations on the railroad. Duty to bargain collectively in the absence of collective bargaining agreements. 250. an employee whom the union thus refuses to admit to membership. is qualified in the case of labor unions holding a monopoly in the supply of labor. except with a high sense of responsibility. Registry of unions and file of collective bargaining agreements. including proposals for adjusting any grievance or questions under the agreement Parties to Collective Bargaining 1. admission to membership may not be compelled. 249 (d)] Jurisdictional Requirements 1. Company finally granted the request of the union and terminated the employee. Art. petitioner is entitled to reinstatement as member of the union and to his former or substantially equivalent position in the company. Procedure in collective bargaining. Art. stand – by pay for musicians when a radio station broadcasts music from phonograph records or production ceilings for work on the assembly lines or at the construction site Salunga v. Held: Labor unions are not entitled to arbitrarily exclude qualified applicants for membership and a closed – shop provision will not justify the employer in discharging. 2. Consequently. Demand to bargain under art. When there is a legitimate representation issue. Page 51 of 83 ƒ . 253.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 thereof. NLRC. 249(c)] ƒ A union violates its duty to bargain collectively by entering negotiations with a fixed purpose of not reaching an agreement or signing a contract. qualified applicants may not be barred by unreasonable rules. The union requested the company to enforce the closed shop provision of the CBA. Employee tried to revoke his resignation from the union but this denied by the union. Art. Company deferred action and informed the employee of the possible effects of his resignation from the union. or as regards a particular employer by reason of a closed – shop or similar agreements. 231. and with back pay. Court of Industrial Relations. without prejudice to his seniority and/or rights and privileges. however. hours of work and all other terms and conditions of employment. Art. Meaning of duty to bargain collectively. NLRC. Union security clauses cannot be used by union officials against an employer. 251. or the amount of time consumed. Status of majority representation of the employees’ representative. 154 SCRA 369 (1987) Union security clauses are also governed by law and by principles of justice. either in a given locality. without any reasonable ground thereof. Employee complained of illegal dismissal. Collective Bargaining Agreement – a contract executed upon request of either the employer or the exclusive bargaining representative of the employees incorporating the agreement reached after negotiations with respect to wages. Manila Mandarin Employees Union v. make – work rules such as the setting of and prompt destruction of unneeded bogus type in the newspaper industry. Employees. much less their own members. 141 SCRA 179) ƒ The duty of the employer to bargain collectively arises only after the union requests the employer to bargain. Having been dismissed from service owing to unfair labor practice on the part on the part of the union. Terms of a collective bargaining agreement. III. Injunction prohibited. In such case. fair play. 254. represented by bargaining agent the exclusive Refusal To Bargain [Art. DUTY TO BARGAIN COLLECTIVELY Art. If there is no demand. Featherbedding And Make – Work Arrangements [Art. Employer 2. Art. 253-A. 21 SCRA 216 (1967) Employee resigned from the union. and legality.

the Labor Code Procedure applies suppletorily. a party may not insist on bargaining to the point of impasse. NLRC. The company did not reply. Wages 2. may indicate bad faith and this is especially true where the Union’s request for a counter proposal is left unanswered. promptly and expeditiously in good faith 3. 118 SCRA 425 (1982)] Commencement of Bargaining ƒ During Certification Year – within 12 months after the determination and certification of the employees’ exclusive bargaining representative. But an erring party should not be tolerated and allowed with impunity to resort to schemes feigning negotiations by going through empty gestures. This is not a case where private respondent Page 52 of 83 Failure or Refusal to Meet and Convene . Held: It is unfair labor practice for an employer to refuse to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement for wages. Kiok Loy v. Duty to Bargain Collectively when there is a Collective Bargaining Agreement ƒ When there is a CBA. Bargaining Procedure under the Labor Code (Art. and 4. 141 SCRA 179 (1986) The union gave the employer copies of its proposed CBA and requested the company to make counter-proposals. The union again wrote the company but this was also ignored. His insistence may be construed as evasion of the duty to bargain. Hours of Work 3. hours of work and other terms of employment. NLRC. Samahang Manggagawa sa Top Form Manufacturing-United Workers of the Philippines v. 2. The good faith or bad faith is an inference to be drawn from the facts and is largely a matter for the NLRB’s expertise. . either party may notify the other in writing that it wants to terminate or modify the agreement. GR No. Other Terms and Conditions of Employment ƒ ƒ Where the subject of the dispute is a mandatory bargaining subject. Marcelo Enterprises. All provisions in the CBA are supposed to have been jointly and voluntarily incorporated therein by the parties. Where the subject is nonmandatory. We agree with the pronouncement that it is not obligatory upon either side of a labor controversy to precipitately accept or agree to the proposals of the other. either party may bargain to an impasse as long as he bargains in good faith. Bad faith in bargaining 4. The CBA remains in full force and effect during the 60 day period and until a new agreement is reached. If there is a procedure agreed upon. the performance of a mutual (employer and the exclusive bargaining agent) obligation to meet and convene.Violation of the Duty to 4 Forms of 7 ULP Bargain Collectively 1. hours of work and all other terms and conditions of employment. including proposals for adjusting any grievances or questions arising under such agreement. 07 September 1998 With the execution of the CBA. 250) (ANNEX G) Duty to Bargain Collectively When There Is No Collective Bargaining Agreement 1. ƒ But 60 days before the CBA expires. A company’s refusal to make counter-proposal if considered in relation to the entire bargaining process. Evading the mandatory subjects of bargaining 3. 13856. Gross violation of the CBA QuickTime™ and a TIFF (Uncompressed) decompressor Bargaining in Bad Faith ƒ There is no per test of good faith in bargaining. bad faith can no longer be imputed upon any of the parties thereto. ƒ ƒ The duty does not compel any party to agree to a proposal or to make any concession. Executing a contract incorporating such agreements. Evading the Mandatory Subjects Mandatory Subjects 1. th are needed to see this picture. Failure or refusal to meet and convene 2. Bargaining Procedure ƒ The parties may agree on the bargaining procedure.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 there is no duty to bargain collectively on the part of the employer [Lakas ng Manggagawang Makabayan v. for the purpose of negotiating an agreement with respect to wages. ƒ The charge of bad faith should be raised while the bargaining is in progress. the duty to bargain also means that neither party shall terminate nor modify such agreement during its lifetime.

such charge is valid as only against the complainant LAKAS. Procedure 1. ƒ ƒ The following documents must be certified under oath by the representative of the employer and the labor union. The Regional Office or the Bureau shall act on the applications within 5 days form receipt of the application. The Regional Office or Bureau may within 5 days from receipt of the application. 1967 could not have been the strike notice for the first strike because it was already withdrawn on July 14. deny the application for failure to comply with the requirements. the agreement shall be filed with the Regional Office which has jurisdiction over the place where it principally operates ƒ Multi-employer collective bargaining agreements shall be filed with the Bureau. 6. from these stated facts can be seen that the first strike was held while the parties were in the process of negotiating. There is reason to believe that the first strike was staged only for the purpose of compelling the respondent companies to accede to the inflexible demands of the complainant LAKAS. Thus. It is worth considering that the first strike of Sept. it must be stated that the notice of strike filed on June 13. as the case may be. L-38258. The denial by the Regional Office of the registration of single enterprise collective bargaining agreements may be appealed to the Bureau while the denial by the Bureau of the registration of multi-employer collective bargaining agreements may be appealed to the Office of the Secretary. Marcelo Enterprises. Registration of Collective Bargaining Agreements Where to file ƒ With the Regional Office which issued the certificate of registration/certificate of creation of chartered local. 4 1967 was staged less than a week after the 4th CBA conference and without any benefit of any previous strike notice. or are not verified under oath. If the supporting documents are not complete. both within 10 days from receipt of the notice of denial. 4. o If the applicant fails to complete the requirements within 10 days from receipt of notice. In fact. approve the application and issue the certificate of registration or b. No other document shall be required in the registration of the CBA. the Regional Office or the Bureau shall notify the applicants in writing of the requirements needed to complete the registration. 38260. The memorandum of appeal is filed with the Regional Office or the Bureau. c.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 exhibited an indifferent attitude towards collective bargaining because the negotiations were not the unilateral activity of petitioner union. 5. Page 53 of 83 . In this connection. The parties had a total of 5 conferences for purposes of collective bargaining. 2. 19 November 1982 It is also evident from the records that the charge of bargaining in bad faith imputed to the respondent companies. 1. The memorandum of appeal and the entire records of the application shall be transmitted to the Bureau or the Office of the Secretary within 24 hours from receipt of the memorandum of appeal. a. Statement that the CBA was ratified by the majority of the employees in the bargaining unit. 2 conspicuous places in the establishment concerned for at least 5 days before its ratification. o The denial shall be in writing. stating in clear terms the reason therefore and served upon the applicant union and employer within 24 hours from issuance. Bureau or the Office of the Secretary shall resolve within the same period and in the same manner as that prescribed for inter/intra-union disputes. The company’s refusal to accede to the demands of LAKAS appears to be justified since there is no showing that these companies were in the same state of financial and economic affairs. is hardly credible. When to file ƒ within 30 days from execution of the CBA. ƒ If the certificate of creation of the chartered local was issued by the bureau. 1967. 3. application is denied without prejudice. 3. GR Nos. A statement that the CBA was posted in at least QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.” Lakas ng Manggagawang Makabayan v. CBA 2. The CBA is good enough that private respondent exerted “reasonable effort of good faith bargaining. Requirements for registration The application for CBA registration shall be accompanied by the original and 2 duplicate copies of the following documents.

Organized Establishment – an enterprise where there exists a recognized or certified sole and exclusive bargaining agent Run-off Election – an election between the labor unions receiving the 2 highest number of votes in a certification or consent election with 3 or more choices. it must be understood as encompassing all the terms and conditions in the said agreement. Art. 258. comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit Certification Election/Consent Election – The process of determining through secret ballot the sole and exclusive representative of the employees in an appropriate unit for purposes of collective bargaining or negotiation. v. Effectivity of new CBA entered into within 6 months after the expiration of the old CBA: QuickTime™ and a TIFF (Uncompressed) decompressor retroact to the date following the expiry date. while a consent election is voluntarily agreed upon by the parties. With Previous CBA 1. 257.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Duration of CBA 1. economic as well as non-economic other than representational. Arbitral award final within 6 months from old CBA: retroact to the date following the expiry of the old CBA. therefore. Arbitral award final after 6 months following the expiration of the old CBA: ƒ General Rule: the agreement between the parties. Art. Appeal from certification election orders. 2. New and First-Ever CBA (No previous CBA) – effective on date agreed upon by the parties II. New Pacific Timber & Supply Company Inc. It is the duty of both parties to continue in full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties. 253) that until a new CBA has been executed by and between the parties. ƒ If there is no agreement. CBA as a Result of Negotiations A. Art. When an employer may file petition. To rule otherwise would be to create a gap during which no agement would govern. Art. from the time the old contract expired to the time a new agreement shall have been entered into. 255. B. are needed to see this picture. With Previous CBA 1. Petitions in unorganized establishments. the arbitral award will retroact to the day after the end of the 6-month period after the expiry of the old CBA. NLRC. where such a certified or consent results in Page 54 of 83 . they are duty-bound to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement. 328 SCRA 404 (2000) It is clear from the above provision of law (Art. 256. A certification election is ordered by the Department. 259. BARGAINING AGENT & CERTIFICATION ELECTION PROCEEDINGS Art. ƒ If there is no agreement. New and First-Ever CBA (No previous CBA) Labor Secretary’s discretion will be followed. Hold Over Principle The CBA shall be in full force and effect until the parties reach a new agreement. Exclusive bargaining representation and workers’ participation in policy and decisionmaking. 2. retroact to the st 1 day following the 6-month period B. Arbitral Awards A. with or without the intervention by the Department. Effectivity of new CBA entered into after 6 months following the expiration of the old CBA: ƒ GR: effective on the date agreed upon by the parties. The law does not provide for any exception nor qualification as to which of the economic provisions of the existing agreement are to retain force and effect. B. All other provisions should be renegotiated not later than 3 years from effectivity. Representation Aspect: 5 years • Refers to the identity and majority status of the union that negotiated the CBA as the exclusive bargaining representative. Representation issue in organized establishments. • Refers to the rest of CBA. Rules on Effectivity and Retroactivity of New CBA (Apply Only to Provisions Other than Representational) I. Bargaining Unit – a group of employees sharing mutual interests within a given employer unit. 2.

A petition for certification election cannot be filed for 1 year from the date of entry of the voluntary recognition. the Regional Office shall record the fact of voluntary recognition within 10 days from receipt of notice. 2. The recognized labor union shall enjoy the rights. Where to file ƒ Regional Office which issued the recognized labor union’s certificate of registration or certificate of creation of a chartered local. 4. Where notice of voluntary recognition is insufficient. 4. . Grounds for Denying Petition 1. 2. the petitioner is not listed in the Department’s registry of legitimate labor unions or that its legal personality has been revoked or cancelled with finality in accordance with Rule XIV of these Rules. 3. Approximate number of employees in the bargaining unit. when requested to bargain collectively Where to file ƒ Regional Office which issued the certificate of registration/certificate of creation. 2. Effects of recording of fact of Voluntary Recognition 1. A joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition. section 2 of these Rules. Voluntary Recognition 2. Registered CBA – may file only within 60 days prior to the expiration of the CBA. Certificate of posting of the joint statement of voluntary recognition for 15 consecutive days in at least 2 conspicuous places in the establishment or bargaining unit where the union seeks to operate. Consent Election Voluntary Recognition When to file ƒ In unorganized establishments with only one legitimate labor organization. ƒ These documents shall be certified under oath by the employer’s representative and president of he recognized labor union.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 none of the 3 or more choices receiving the majority of the valid votes cast. except: 1. any legitimate labor organization 2. provided that the total number of votes for all contending unions is at least 50% of the number if votes cast Voluntary Recognition – process by which a legitimate labor union is recognized by the employer as the exclusive bargaining representative or agent in a bargaining unit. A statement that the labor union is the only legitimate labor organization operating within the bargaining unit. the employer and union shall submit a notice of voluntary recognition. privileges and obligations of an existing bargaining agent of all the employees in the bargaining unit. the Regional Office shall return. employer. ƒ If the employer or union failed to complete the requirements for voluntary recognition within 30 days from receipt of advisory. 2. When to file ƒ Anytime. bargaining deadlock had been submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout. If notice of voluntary recognition is sufficient in form. Certification Election 3. Page 55 of 83 Procedure: Voluntary Recognition 1. comprising at least a majority of the members of the bargaining unit. When voluntary recognition has been entered. Requirements for Voluntary Recognition The notice of voluntary recognition shall be accompanied by the original copy and 2 duplicate copies of the following documents: 1. ƒ Within 30 days from such recognition. 3 Methods to Determine the Bargaining Union 1. the Regional Office shall notify the labor union of its findings and advise it to comply with the necessary requirements. number and substance. and there is no other registered labor union operating within the bargaining unit. reported with the Regional Office in accordance with Rule VII. the employer may voluntarily recognize the representation status of the union. or a valid certification. accompanied by the names of QuickTime™ and a those who support the voluntary recognition TIFF (Uncompressed) decompressor are needed to see this picture. negotiations in good faith with the employer 3. consent or run-off election has been conducted within 1 year prior to the filing. Certification Election Who may file 1.

list of eligible and challenged voters 3. consent or run-off election and no appeal on the results of the certification. the bargaining unit to be represented. of certification order calling for the to conduct election. Procedure: Petition for Certification Election (ANNEX H) Procedure: Conduct of Certification Election (ANNEX I) Preliminary Conference ƒ The Med-Arbiter shall conduct a preliminary conference and hearing within 10 days from the receipt of the petition to determine the following: a. Pre-election Conference ƒ Within twenty-four (24) hours from receipt of the assignment for the conduct of a certification election.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 2. Prohibited Grounds for Denial of Petition (must be heard and resolved by the Regional Director in an independent petition for cancellation of registration: 1. (Contract Bar) 3. (12-month Bar/Certification year bar) 4. validity of petitioning union’s certificate of registration 2. and e. or there exists a bargaining deadlock which had been submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout to which an incumbent or certified bargaining agent is a party. ƒ ƒ In organized establishments. within 10 days from receipt thereof. (Negotiation Bar) 5. order granting conduct of certification election in unorganized establishments – NOT appealable b. but shall enter the fact of the agreement in the minutes of the hearing. ƒ Must be completed within 30 days from the last hearing. Name of the employer or establishment b. in case of an organized establishment. the certified list of employees in the bargaining unit. Directive upon the employer and the contending union(s) to submit within 10 days from receipt of the order. all others – appealed to the DOLE Sec. Page 56 of 83 . extension or renewal of the collective bargaining agreement. The order granting the petition shall state the following: a. the petition was filed within 1 year from entry of voluntary recognition or a valid certification. existence of any of the bars to certification election. d. validity of registration 4. such other matters as may be relevant for the final disposition of the case ƒ In case the contending unions agree to a consent QuickTime™ andnot a election. the Election Officer shall cause the issuance of notice of pre-election conference upon the contending unions and the employer. the Med-Arbiter shall issue a formal order granting or denying the petition. c. a duly certified union has commenced and sustained negotiations with the employer in accordance with Article 250 of the Labor Code within the one-year period referred to in Section 14. consent or run-off election is pending. date. provided that the sixty-day period based on the original collective bargaining agreement shall not be affected by any amendment. number and location of polling places or booths and the number of ballots to be prepared with appropriate translations. the petition was filed before or after the freedom period of a duly registered collective bargaining agreement. Description of the bargaining unit c.c of this Rule. unless circumstances require otherwise 2. Names of contending labor unions e. ƒ Must be scheduled within 10 days from receipt of the assignment. execution of CBAs Appeal a. time and place of the election. no order or decision shall be issued during the freedom period. possibility of consent elections. ƒ not be later than forty-five (45) days from the date of the first pre-election conference ƒ on a regular working day ƒ within the employer’s premises. failure to submit the 25% support requirement for the filing of the petition for certification election. contending labor unions. if necessary Order/Decision on the Petition – within 10 days from the date of the last hearing. legal personality as a labor organization 3. b. Statement that none of the grounds for dismissal exists d. Purpose of Pre-election Conference The pre-election conference shall set the mechanics for the election and determine the following: 1. the Med-Arbiter shall issue a formal TIFF (Uncompressed) decompressor are needed see this picture.

2. Procedure in Challenging of Votes 1. the information required to be included therein and the duration of posting cannot be waived by the contending unions or the employer. The Election Officer shall note all challenges in the minutes of the election and shall be responsible for consolidating all envelopes containing the challenged votes. (See Annex H) Effect of failure to appear during the pre-election conference ƒ considered as a waiver to be present and to question or object to any of the agreements reached in said pre-election conference ƒ However. that there is no employer-employee relationship between the voter and the company. Inclusion-Exclusionare of Voters In case of disagreement over the voters’ list or over the eligibility of voters. names of all contending unions 3. at least 10 days before the actual date of the election Page 57 of 83 . ƒ The minutes of the hearing shall be signed by the parties and attested to by the Med-Arbiter. the description of the bargaining unit and the list of eligible and challenged voters ƒ The posting of the notice of election. the date and time of the election 2. b. Protest ƒ Any party-in-interest may file a protest based on the conduct or mechanics of the election. ƒ indicate on the envelope the voter’s name. with specific grounds. But their votes shall be segregated and sealed in individual envelopes. QuickTime™ and a TIFF (Uncompressed) decompressor 2. Challenging of Votes ƒ An authorized representative of any of the contending unions and employer ƒ Before it is deposited in the ballot box ƒ Grounds: a. that the voter is not a member of the appropriate bargaining unit which petitioner seeks to represent. the Med-Arbiter shall not issue a formal order calling for the conduct of certification election. The envelopes shall be opened and the question of eligibility shall be passed upon only if the number of segregated voters will materially alter the results of the election. ƒ Protests shall be recorded in the minutes of the election proceedings. ƒ envelope shall be signed by the Election Officer and the representatives of the contending unions and employer. immediately thereafter. The Election Officer shall place the ballot in an envelope. ƒ An employee who has been dismissed from work but has contested the legality of the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for the conduct of a certification election shall be considered a qualified voter o unless his/her dismissal was declared valid in a final judgment at the time of the conduct of the certification election. the non-appearing party or the employer still has the right to be furnished notices of subsequent pre-election conferences and to attend the same Qualification of Voters ƒ All employees who are members of the appropriate bargaining unit at the time of the issuance of the order granting the conduct of a certification election shall be eligible to vote. in 2 most conspicuous places in the company premises Contents of the Notice 1.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 4. ƒ The Med-Arbiter shall. forward the records of the petition to the Regional Director or his/her authorized representative for the determination of the Election Officer by the contending unions through raffle. 3. Posting of Notices of Election 1. and the ground for the challenge. all contested voters shall be allowed to vote. mechanics and guidelines of the election Consent Election ƒ In case the contending unions agree to a consent election. needed to see this picture. the union or employer challenging the voter. name of watchers or representatives and their alternates for each of the parties during election 5. ƒ sealed in the presence of the voter and the representatives of the contending unions and employer. ƒ The first pre-election conference shall be scheduled within ten (10) days from the date of entry of agreement to conduct consent election. Protests not so raised are deemed waived. ƒ The protesting party must formalize its protest with the Med-Arbiter. but shall enter the fact of the agreement in the minutes of the hearing.

Run-off Election When an election which provides for 3 or more choices results in none of the choices (unions or “no union” choice) receiving a majority of the valid votes cast. If not recorded in the minutes and formalized within the prescribed period. ƒ A failure of election shall not bar the filing of a motion for the immediate holding of another certification or consent election within 6 months from date of declaration of failure of election. provided no protest is recorded in the minutes of the election. or consent election is less than the majority of the number of eligible voters and there are no material challenged votes. ƒ Each representative entitled to a copy of the minutes of the election proceedings and results of the election. the Election Officer shall motu propio conduct a run-off election within 10 days from the close of the election proceedings between the labor unions receiving the two highest number of votes. “No Union” shall not be a choice in the run-off election. the same was not perfected within the fiveday period for perfection of the protest. Conduct of Election and Canvass of Votes ƒ The election precincts shall open and close on the date and time agreed upon during the preelection conference. that the total number of votes for all contending unions is at least 50% of the number of votes cast. Failure of Election and a in a certification ƒ Where the number ofQuickTime™ votes cast TIFF (Uncompressed) decompressor are needed to see this picture. the protest shall be deemed dropped. within 24 hours from the completion of the canvass ƒ Where the election is conducted in more than one region. within five (5) days after the close of the election proceedings. ƒ The ballots and the tally sheets shall be i. privileges and obligations of a duly certified collective bargaining agent from the time the certification is issued. Proclamation and Certification of the Result of the Election ƒ Within twenty-four (24) hours from final canvass of votes. under any of the following conditions: a. ƒ Failure of any party or the employer or his/her/their representative to appear during the election proceedings shall be considered a waiver to be present and to question the conduct thereof. transmitted to the Med-Arbiter. together with the minutes and results of the election. even if one was filed. Certification of Exclusive Bargaining Agent The union which obtained a majority of the valid votes cast shall be certified as the sole and exclusive bargaining agent of all the employees in the appropriate bargaining unit within 5 days from the day of the election. ƒ There being a valid election. signed by the Election Officer and the representatives of the contending unions iii. ƒ the Election Officer shall transmit the records of the case to the Med-Arbiter ƒ Med-arbiter shall issue an order proclaiming the results of the election and certifying the union which obtained a majority of the valid votes cast as the sole and exclusive bargaining agent in the subject bargaining unit. sealed in an envelope ii. consolidation of results shall be made within 15 days from the conduct thereof. b. ƒ Canvassing of Votes ƒ Counted and tabulated by the Election Officer in the presence of the representatives of the contending unions. ƒ The winning union shall have the rights. no challenge or eligibility issue was raised or. Action on the motion for the immediate holding of another certification or consent election Within 24 hours from receipt of the motion. The same guidelines and list of voters shall be used in the election. the resolution of the same will not materially change the results of the elections. ƒ ƒ And there are no objections or challenges which if sustained can materially alter the results. Provided.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 arguments and evidence. even if one was raised. the Election Officer shall immediately schedule the conduct of another certification or consent election within 15 days from receipt of the motion and cause the posting of the notice of certification election at least 10 days prior to the scheduled date of election in 2 most conspicuous places in the establishment. no protest was filed or. Page 58 of 83 . ƒ The opening and canvass shall proceed immediately after the precincts have closed.

Although filed outside the 12-month bar. hence another union filed a petition for certification election. Petition is filed during the 60-day freedom period Deadlock Bar A petition for certification election cannot be entertained if.” ƒ Certification year rule will not apply if in fact there was a failure of election because less than majority of the CBU members voted. Another petition for certification election may be filed within 6 months. CBA deregistered 3. (Samahang Manggagawa sa Permex v.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ Notice of run-off elections shall be posted by the Election Officer at least five (5) days before the actual date of run-off election. GR No. CBA was concluded in violation of an order enjoining the parties from entering into a CBA until the issue of representation is resolved 6. When contract bar rule not applied 1. 118915. GR No. and the court upheld the dismissal and explained that ordinarily. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators Art. v. Secretary of Labor. Deadlock Bar 2. etc. Laguesma. 106830. 232. Contract Bar 3. Laguesma. 261. 04 February 1997 But in one case the winning union failed to conclude a CBA with the employer within one year. 250 of the Labor Code within 1 year prior to the filing of the petition for certification election. consent. ballots were cats and there was a counting of votes. The situation takes the nature of a “deadlock bar. 260. GR No. 16 November 1993 . 262. the certification year bar does not apply. CBA is not registered 2. BARS TO CERTIFICATION ELECTION Art. CBA is incomplete in itself 4. i. Miscellaneous provisions. Prohibition on certification election Grounds for denying petition for certification election 1. Certification Year Rule Bar No petition for certification election may be filed within one year from the date of a valid certification. including the Arbitrator’s fees. GRIEVANCE AND VOLUNTARY ARBITRATION Art. Art. 12-month bar/certification year bar 4. The Board shall administer the Special Voluntary Arbitration Fund in Page 59 of 83 ƒ R. the petition was nonetheless dismissed. In a case where there was no certification election conducted precisely because the first petition was dismissed on the ground that it did not include all the employees who should be properly included in the collective bargaining unit. had been submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout. or run-off election or from the date of voluntary recognition. 277. C. before the filing of the petition for certification election. 02 March 1998) D. (f) A special Voluntary Arbitration Fund is hereby established in the Board to subsidize the cost of voluntary arbitration in cases involving the interpretation and implementation of the Collective Bargaining Agreement. are needed to see this picture. a bargaining agent who failed to secure a CBA within 12 months could be suspected as a tool of management and should deserve to be replaced. the BLR is not allowed to hold an election contesting the majority status of the incumbent union.e. Capitol Medical Center Alliance. a bargaining deadlock to which an incumbent or certified bargaining agent is a party. Grievance machinery and voluntary arbitration. such union should not be blamed. Certification year rule will apply even if the “No union” choice won. Negotiation Bar Contract Bar While a valid and registered CBA is subsisting. and a certification election should not be authorized even though no CBA has been concluded despite passage of 12 months. QuickTime™ and a TIFF (Uncompressed) decompressor The 12 month prohibition presupposes that there was an actual conduct of election. Negotiation Bar A petition for certification election cannot be filed if the duly certified union has commenced and sustained negotiations in good faith with the employer in accordance with Art. CBA does not foster industrial peace 5. ADMINISTRATION IF AGREEMENT. and for such other related purposes to promote and develop voluntary arbitration. But if circumstances show that the reason for not having concluded a CBA was not the union’s fault. Transport Corp v. Jurisdiction over other labor disputes Art. 107792.

Grievance committee shall be created within 10 days from the signing of the CBA. working conditions and the quality of working life. order or award within the prescribed period. (g) The Ministry shall help promote and gradually develop. the training and education of Voluntary Arbitrators.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 accordance with the guidelines it may adopt upon the recommendation of the Council. ƒ The voluntary arbitrator may conciliate or mediate to aid the parties in reaching a voluntary settlement. the records of the case within 10 calendar days from demand thereof. unless otherwise agreed upon by the parties.00) shall be provided in the 1989 annual general appropriations acts. o Failure on the part of the voluntary arbitrator to render a decision. 2. with the agreement of labor organizations and employers. Arising from interpretation and implementation of the productivity incentive programs under RA 6971 ƒ ƒ Any other labor disputes upon agreement by the parties. The amount of subsidy in appropriate cases shall be determined by the Board in accordance with established guidelines issued by it upon the recommendation of the Council. ƒ Hearing may be adjourned for cause or upon agreement by the parties. Grievances arising from the implementation or interpretation of CBAs. resolution. No MR allowed. The Fund shall also be utilized for the operation of the Council. pursuant to the guidelines issued by the Secretary. interpretation or implementation of the CBA 2. (h) In establishments where no legitimate labor organization exists. Continuing funds needed for this purpose in the initial yearly amount of fifteen million pesos (P15. take whatever action is necessary to resolve the dispute. be sufficient ground for the Board to discipline said voluntary arbitrator. labor-management cooperation programs at appropriate levels of the enterprise based on the shared responsibility and mutual respect in order to ensure industrial peace and improvement in productivity. ƒ Grievance committee shall be composed of at least 2 representatives each from the members of the bargaining unit and the employer. Agreement by the parties 2. Wage distortion issues arising from the application of any wage orders in organized establishments 4. Arising from interpretation or enforcement of company personnel policies 3. The Department of Labor and Employment shall endeavor to enlighten and educate the workers and employers on their rights and responsibilities through labor education with emphasis on the policy thrusts of this Code.000. Powers of the Voluntary Arbitrators 1. ƒ It shall be mandatory for the voluntary arbitrator to render an award or decision within 20 calendar days from the date of submission for resolution unless the parties agree otherwise. interpretation or enforcement of company personnel policies Procedure in handling grievances (ANNEX J) Jurisdiction of Voluntary Arbitrators Procedure: Voluntary Arbitration ƒ All parties to the dispute shall be entitled to attend the arbitration proceedings. o In cases that the recommended sanction is de-listing. labor-management committees may be formed voluntarily by workers and employers for the purpose of promoting industrial peace. shall upon complaint of a party. o Representatives of the employers designated by the union. QuickTime™ and a TIFF (Uncompressed) decompressor 1. hold hearings 2. Page 60 of 83 . which guidelines shall be subject to the approval of the Secretary of Labor and Employment. and the Voluntary Arbitration Program. are needed toMachinery see this picture. Establishment of Grievance Machinery 1.000. The attendance of any third party or the exclusion of any witness from the proceedings shall be determined by the voluntary arbitrator or panel of voluntary arbitrators. ƒ Decision final and executory after 10 calendar days from receipt of the copy by the parties. Disputes under Grievance 1. receive evidence 3. it shall be unlawful for the voluntary arbitrator to refuse or fail to turn over to the board. The parties may choose to submit the dispute to voluntary arbitration proceedings before or at stage of the compulsory arbitration proceedings. for its further disposition.

as well as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance to and exit from said establishment Characteristics of a Strike 1. Monitor the activities of labor-management structures as may be necessary and conduct studies on best practices aimed at promoting harmonious labor-management relations. Voluntary arbitrator shall turn over the records of the case to the regional branch of the Board within 10 days upon satisfaction of the final award. Traditional areas of bargaining Services to be rendered by the Department in line with the said policy 1. Existence of a dispute. Conduct awareness campaigns 2. Page 61 of 83 . or vice-versa. including any violation of the rights and conditions of union membership provided for in this Code Strike-breaker – any person who obstructs. Not covered by the Labor-Management Councils 1. 5. plants or offices. 3. Strikes. Those covered by CBAs 2. Organized establishments: Nominated by the exclusive bargaining representatives 2.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ The voluntary arbitrator or labor arbitrator (if there voluntary arbitrator is absence or incapacitated) may issue a writ of execution upon motion of any interested party. impedes. E. warehouses. violence. benefits and welfare. becomes ULP. 263. of the employer struck against. Concerted Action – an activity undertaken by two or more employees. coercion. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. threats. including the sites or premises used as runaway shops. 6. or intimidation any peaceful picketing affecting wages. it must be the employees’ sole bargaining representative. Employment relation is deemed to continue although in a state of belligerent suspension. Conversion Doctrine A strike may start as economic and. by one on behalf of others Strike – any temporary stoppage of work by the concerted action of the employees as a result of an industrial or labor dispute Lockout – temporary refusal of any employer to furnish work as a result of an industrial or labor dispute Internal union dispute – includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by laws of a union. functions and procedures 3. The striking group is a legitimate labor organization. Selection of employees’ representatives to the council 1. There is temporary work stoppage. Purpose of the Labor-Management Councils To enable the workers to participate in policy and decision-making processes in the establishment. insofar as said processes will directly affect their rights. Assist the parties in setting up labor-management structures. There must be an employer-employee relationship. Work stoppage is done through concerted action. In case of bargaining deadlock. LABOR MANAGEMENT COOPERATION SCHEMES Creation of Labor Management and Other Councils The Department shall promote the formation of labor-management councils in organized and unorganized councils. Prohibited activities Art. Unfair Labor Practice ƒ violations of CBA must be gross to be considered as ULP ƒ IV. Grounds for lockout 1. Collective Bargaining Deadlock 2. hours or conditions of work or in the exercise of the right of self-organization or collective bargaining Strike Area – establishment. Improved offer balloting. 264. 2. STRIKES. 4. LOCKOUTS AND CONCERTED ACTIONS Art. Provide process facilitators upon request of the parties 4. depots. or interferes with by force. picketing and lockouts Art. 265. Where there is no legitimate labor organization: by the employees at large. as it progresses.

the parties shall not do any act which may disrupt or impede the early settlement of the dispute. by a secret ballot 3. This seven-day reporting period is intended to give the Dept. It shall also encourage the . upon agreement of the parties. of Labor and Employment an opportunity to verify whether the projected strike really carries the imprimatur of the majority of the union members. in a meeting called for that purpose ƒ ƒ The regional branch may supervise the conduct of the secret balloting at its own initiative or upon request of any party. 248 SCRA 96 (1995) The result of the strike (or lockout voting) should be reported to the NCMB at least 7 days before the intended strike or lockout. 2. ƒ ƒ ƒ Preventive Mediation The regional branch may treat the notice as preventive mediation case upon agreement of the parties. NLRC. and the efforts taken to resolve QuickTime™ and a the dispute TIFF (Uncompressed) decompressor are needed to see this picture. written proposals of the union. seven days must pass before the union can actually commence the strike. In case of bargaining deadlocks: at least 30 days before the intended date of strike 2. In case of ULP involving the dismissal of a union officer which may constitute union-busting: union may take action immediately after the strike vote and the submission of the results of the strike vote to the regional branch of the Board Contents of the notice of strike or lockout 1. Other relevant data 7. treat a notice as a preventive mediation case. including voluntary arbitration. may be referred to alternative modes of dispute resolution. Workers in the bargaining unit 6. et. After certification or submission of dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for strike or lockout. upon agreement of the parties. the regional branch of the Board shall exert all efforts at mediation and conciliation to enable the parties to settle the dispute amicably. Union involved 3. parties to submit the dispute to voluntary arbitration. GR No. ƒ Board shall inform the concerned party in case notice does not conform with the requirements. Names and addresses of employer 2. approved by majority of total union membership or by majority of the BOD or partners 2. A notice.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 When strike or lockout cannot be declared 1. This means that after the strike vote is taken and the result reported to NCMB. and the results of the voting must be given at least 7 days before the intended strike or lockout to the regional branch of the Board. Lapanday Workers’ Union. Who may declare a strike or lockout 1. After assumption of jurisdiction by the Secretary 5. They are obliged.al. 01 February 2000 A strike tagged without the submission of the result of the strike vote is illegal. al. v. Employer ƒ If there is certified or duly recognized bargaining representative. subject to the cooling off period. During the proceedings. Any certified or duly recognized bargaining representative 3. Nature of industry to which the employer belongs 4. as part of their duty to bargain collectively in good faith and to participate fully and promptly in the conciliation meetings called by the regional branch of the Board. Page 62 of 83 Action on notice of strike or lockout ƒ Upon receipt of the notice. Strike or lockout vote 1. al. Violations of CBA which are not gross. any legitimate labor organization may declare a strike but only on grounds of unfair labor practice. The regional branch of the Board may. Grounds involving inter/intra union disputes 3. When there is no notice of strike or lockout or without the strike or lockout vote 4. NLRC. Any legitimate labor organization 2. This is subject to the cooling-off period. et. et. v. In case of bargaining deadlocks: the unresolved issues. Samahan ng Manggagawa in Moldex Products. In case of unfair labor practice: at least 15 days before the intended date of strike 3. Notice of the meeting must be given at least 24 hours before such meeting. Number of union members 5. Notice of strike or lockout 1. counterproposals of the employer and proof of request for conference to settle differences 8. In case of unfair labor practice: the acts complained of. 119467.

or interfere with by force. Discretionary ƒ In his opinion there exists a labor dispute causing or likely to cause a strike or lockout in an INDUSTRY INDISPENSABLE TO THE NATIONAL INTEREST ƒ may certify the same to the commission for COMPULSORY ARBITRATION ƒ Effect: AUTOMATICALLY ENJOINS the intended on impending strike or lockout but if one has already taken place. coercion. Prohibited activities during strikes and lockouts 1. Mandatory: (within 24 hours) ƒ In labor disputes adversely affecting the continued operation of HOSPITALS. coercion or intimidation while engaged in picketing or obstruct the ingress or egress from the employer's premises for lawful purposes or obstruct public thoroughfares (must be pervasive and widespread/consistently and deliberately QuickTime™ and a resorted to as a matter of policy) TIFF (Uncompressed) decompressor are needed to see this picture. When prohibited or unlawful acts are being or about to be committed that will cause grave or irreparable damage to the complaining party. bringing in. threats. In case of lockout • The regional branch of the Board shall also conduct a referendum by secret balloting on the reduced offer of the union. 2. th • on or before the 30 day of the lockout. Exceptions: 1. 2. strike or lockout. • When at least a majority of the board of directors or trustees or the partners holding the controlling interest in the case of partnership vote to accept the reduced offer. all striking or locked out employees SHALL IMMEDIATELY RETURN TO WORK and the employer shall immediately resume operations and re-admit all workers under the same terms and conditions prevailing before the strike or lock-out 2. National Interest Assumption of Jurisdiction by DOLE Secretary 1. violence. • When at least a majority of the union members vote to accept the improved offer. or escorting by any public officer or employee. conduct a referendum by secret balloting on the improved offer of the employer. strike or lock-out without first having bargained collectively strike or lock-out without the necessary notice being filed with the DOLE 2. strike or lock-out after DOLE has assumed jurisdiction or the President or after certification or submission of dispute to the compulsory arbitration/voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout 4. the workers shall immediately return to work and the employer shall thereupon readmit them upon the signing of the agreement. In case of strike • Regional branch of the Board shall. or any armed person in any manner of any individual who seeks to replace strikers in entering or leaving the premises of a strike area or work in place of strikers 8. obstruct. Injunction GR: No court or entity shall enjoin any picketing.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 When labor may strike or when the employer may lock out its workers If the dispute remain unsettled after the lapse of the requisite number of days from the filing of the notice of strike or lockout and of the results of the election. impede. knowingly participating in illegal strike or knowingly participates in the commission of illegal acts during a strike Æ ground for termination of employment 5. CLINICS. commit any act of violence. or intimidation any peaceful picketing by employees during any labor controversy or shall abeit or aid such obstruction or interference 6. OR MEDICAL INSTITUTIONS ƒ May assume jurisdiction or certify it to the NLRC for compulsory arbitration ƒ Duty of striking union or locking out employer to provide and maintain an effective Page 63 of 83 Improved Offer Balloting 1. • on or before the 30th day of strike. . • at its own initiative or upon the request of any affected party. The regional branch of the Board shall continue mediating and conciliating. including officers and personnel of the AFP or PNP. strike or lock-out without the necessary vote first having been obtained and reported to the DOLE 3. employment or use of any strikebreaker/ employed as a strike breaker 7. the striking workers shall immediately return to work and the employer shall thereupon re-admit them upon the signing of the agreement. introducing.

Scholastica’s College v. DOLE Secretary is final and executory after receipt thereof by the parties. Sanchez GR. St. those workers who refuse to obey said order and instead wage a strike are not entitled to be paid for work not done or to reinstatement to the positions they have abandoned by their refusal to return thereto as ordered. 05 November 1986) Consequences of Illegal Strike Good-Faith Doctrine . Sarmiento v. Tuico. GR No. ƒ The discretion to assume jurisdiction may be QuickTime™ and a exercised by TIFF the Secretary of Labor and (Uncompressed) decompressor are needed to see this picture. Where the return to work order is issued pending the determination of the legality of the strike. Page 64 of 83 Sarmiento v. A strike may be considered legal when the union believed that the respondent company committed unfair labor acts and the circumstances warranted such belief in good faith although subsequently such allegation of unfair labor practices are found out as not true. may intervene at any time and assume jurisdiction over any such labor dispute in order to settler or terminate the same ƒ Decision of the President. regardless of whether or not the strike was the consequence of the employer’s ULP. 2. more particularly if the national economy will suffer because if the resultant reduction in our export earnings and our dollar reserves. any striker/union member who knowingly participates in the commission of illegal acts during the strike.al. 162 SCRA 676 (1988) The return-to-work order not so much confers a right as it imposes a duty. with the return-to-work order following as a mater of course under the law. While as a right it may be waived. 76227-28. but the employer refused to accept the offer [e. 263(g) 1. Tuico. GR No. Exceptions: The following strikers are NOT entitled to reinstatement: 1. v. Torres. in the discretion of the authority deciding the case. If the stoppage of work will be unfruitful not only to bith the employer and the employees. 37687 15 March 1982) Rule on Wages of Strikers GR: Strikers are not entitled to their wages during the period of a strike. Exceptions: 1. not to mntion possible cancellation of the contracts of the company with foreign exporters. 2. (People’s Industrial and Commercial Employees and Workers Organization (FFW) v. 3. People’s Industrial and Commercial Corp. where movement and service shall be unhampered and unrestricted as are necessary to insure the proper and adequate protection of the life and health of its patients most especially emergency cases for the duration of the strike or lock-out Power of the President under Art.g. 162 SCRA 676 (1988) The return-to-work order should benefit only those workers who comply with it and. o They are entitled to backwages from the date of discrimination. even if the strike is legal. regardless of the outcome of the compulsory arbitration proceedings. In case of a ULP STRIKE. Precisely. the purpose of the return to work order is to maintain the status quo while the determination is being made. are entitled to be paid for the work they have actually performed. to avoid such a development. of an “unconditional offer”: “we will return tomorrow” and NOT “willing to return provided] o They are entitled to backwages from the date the offer was made. Rule on Reinstatement of Striking Workers GR: Striking employees are entitled to reinstatement. Where the strikers voluntarily and unconditionally offered to return to work.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 SKELETAL WORKFORCE of medical and other health personnel. union officers who knowingly participate in an illegal strike. et. the labor dispute may properly be certified to the National Labor Relations Commission. Where there is RETURN-TO-WORK ORDER and the employees are discriminated against. Nos. it must be discharged as a duty even against the worker’s will. may determine the industries. Employment without the necessity of prior notice of hearing given to any of the parties disputants (Magnolia Poultry Employees Union. Returning to work in this situation is not a matter of option or voluntariness but of obligation. which are in his opinion indispensable to national interest 2. it is not correct to say that it may be enforced only if he strike is legal and may be disregarded if illegal. Conversely.

Casual Employment ƒ Activity performed is not usually necessary or desirable in the usual business or trade of the employer. POST-EMPLOYMENT A. The practice of entering into employment contracts which would prevent the workers from becoming regular should be struck down as contrary to public policy and morals. The respective liabilities of striking union officers and members who failed to immediately comply with the return-to-work order is outlined in Art. 264 makes a distinction between workers and union officers who participate in a strike. There must be proof that he committed illegal acts during a strike. he is considered a REGULAR employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. It must be strictly complied with even during the pendency of any petition questioning its validity. 101858. CASUAL. Catapang. every employee shall be entitled to the same rights and privileges. 141717. becomes regular. Probationary employment Regular Employment ƒ Engaged to perform tasks usually necessary and desirable to the business of the employer ƒ Regular employment does not mean permanent employment . 19 June 1992 A return to work order is immediately effective and executory notwithstanding the filing of a motion for reconsideration.” Batangas Laguna Tayabas Bus Company v. ƒ Brent case: fixed-term employment repealed by LC. REGULAR. may be terminated from work when he knowingly participates in an illegal strike. on the other hand. A union officer. NLRC.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 100158. duress. Inc. not project and not seasonal ƒ Except: if he has rendered at least 1 year of service. GR No. some of them may have left Metro Manila and did not have enough time to return during the period given by the period given by petitioner. In one case the Court said that the mere fact that the majority of the strikers were able to return to work does not necessarily mean that the rest deliberately defied the return to work order or that they had been sufficiently notified thereof. The test is whether the former is usually necessary or desirable in the usual business or trade of the employer. 164736. Fadriquela. consequently “be declared to have lost his employment status. a general law. or when he commits an illegal act during a strike. 281. the defiance of the returnto-work order must be proved. 21 August 1992 But to justify dismissal. . QuickTime™ and a PROBATIONARY EMPLOYMENT TIFF (Uncompressed) decompressor are needed to see this picture. GR No. and shall be subject to the same duties as may be granted by law to regular employees during the period of their actual employment. GR No. But the Civil Code.A probationary employee is considered regular after 6 months. Any worker or union office who knowingly participates in a strike defying a return-to-work order may. This is the rule even if its performance is not continuous and merely intermittent. As the Solicitor General correctly adds. or improper pressure exerted on the employee. 264 of the Labor Code which provides that any declaration of a strike or lockout after the Secretary of Labor and Employment has assumed jurisdiction over the labor dispute is considered an illegal act. Art. 2005 The primary standard of determining regular employment is the reasonable connection between the particular activity performed by the employee to the usual trade or business of the employer. allows fixedterm employment ƒ Employee hired on a fixed-term is regular if job is necessary and desirable to business of employer. Fixed-Term Employment ƒ Period is agreed upon knowingly and voluntarily by the parties without force. NLRC. v. April 2004) Page 65 of 83 V. whether such service is continuous or broken. the performance of a job for at least a year is sufficient evidence of the job’s necessity if not indispensability to the business. ƒ Despite the distinction between regular and casual employment. 280. but only with respect to such activity and while such activity exists. May be terminated only for just / authorized causes ƒ Test to determine regular employment Universal Robina Corporation v. The employment is considered regular. October 14. (Philips Semiconductor v. Gold City Integrated Port Services. An ordinary striking worker cannot be terminated for mere participation in an illegal strike. Also. Regular and casual employment Art. 245 SCRA 627 (1995) Art.

(LC does not apply to migrant workers. the period is not the determining factor. The services of an employee who has been engaged on probationary basis may be terminated only for a just cause. the employer gives the employee a second chance to pass the standards set Termination of Probationary Employment a. Inc. 18 March 2005 Repeated hiring does not necessarily mean regular employment. just / authorized causes b. locally-hired employees. employee does not necessarily become regular Maraguinot v. he shall be considered a REGULAR employee QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.) Poseidon Fishing case: if engaged in deep-sea fishing. GR No. Leogardo. In all cases of probationary employment. It is a mandate of law. when he fails to qualify as a regular employee in accordance with the reasonable standards prescribed by the employer. Art. Thus. (PAL v. Pascua. Jr. v. so that even if the period is more than 1 year. when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to employee at the time of his engagement If allowed to work after the probationary period. Seasonal Employment Probationary Employment GR: Not to exceed 6 months Exceptions: a. upon his engagement. but on the completion of the project. (2) the teacher must have rendered three consecutive years of service. 26 January 1989 Issue: May the employer and the employee validly agree to extend the probationary period beyond six months? Held: YES. based on reasonable standards made known to him at the time of engagement. 153832. NLRC. Puente. Agustin. Phil. (Voyeur Visage. and (3) such service must have been satisfactory. Such an extension may be lawfully agreed upon. 280 does not apply to OFWs. RA 8042 does. voluntary agreement of parties (especially when nature of work requires a longer period) c. 2005) Probationary employee may be dismissed before end of the probationary period. NLRC. v. 13 April 2005 There is probationary employment where the employee. the employee becomes regular. he shall be deemed a regular employee. Inc.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ Project Employment ƒ One whose employment has been fixed for a specific project or undertaking the completion of which has been determined at the time of engagement of the employee. is made to undergo a trial period during which the employer determines his fitness to qualify for regular employment. what are the legal requirements for acquisition of permanent employment? Held: (1) The teacher is a full-time teacher. Where no standards are made known to the employee at that time. FilSystems v. covered by an apprenticeship agreement stipulating a longer period b. 280 applies ƒ After lapse of probationary period (6 months). 149371. A voluntary agreement extending the original probationary period to give the employee a second chance to pass the probation standards constitutes a lawful exception to the statutory limit. despite the seeming restrictive language of Article 281. 15 February 1990 Issue: For private school teachers. ƒ ƒ ƒ ƒ ƒ ƒ “Day Certain” Rule – project employment ends on a certain date does not end on an exact date. Regularization is not a management prerogative. the employer shall make known to the employee the standards under which he will qualify as a regular employee at the time of his engagement. Global Communication case: usual and desirable does not matter because employer hires without intent of making them regular. employee is regular. Page 66 of 83 . 15 August 2003) Nature of employment determines regular employment. Mariwasa Manufacturing. Aberdeen Court. 284 SCRA 539 (1998) Repeated hiring on a project to project basis is considered necessary and desirable to the business of the employer.. UST v. GR No.

AUTHORIZED CAUSES. 3. 04 October 2005) Elements of Serious Misconduct 1. Thus. 279. or the entire absence of care. It evinces a thoughtless disregard of consequences without exerting any effort to avoid them. B. Fraud or Willful Breach of Trust ƒ Can be committed only by confidential and managerial employees . ƒ Previous infractions by the employee should have been acted upon appropriately by the employer before terminating the former. you cannot demand wages for the time when there is no project.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ Work or services to be performed is seasonal in nature and the employment is for the duration of the season Serious Misconduct Improper or wrong conduct. 2. and implies wrongful intent and not mere error in judgment. Gross And habitual N eglect by the employee of TIFF (Uncompressed) decompressor are needed to see this picture. serious. lawful. Analogous Cases. a forbidden act. Aeolus v NLRC. Serious Misconduct or Willful Disobedience by the employee of the lawful orders of his employer or representative in connection with his work (work-related) QuickTime™ and a 2. the Court has already settled that seasonal workers who are called to work from time to time and are temporarily laid off during off-season are not separated from service in said period. willful in character. Commission of acts constituting a crime is sufficient. employer Just Causes for Termination by Grounds: (SoMe WiD GAN FWeT CO) 1. 28 January 2003 The fact that seasonal workers do not work continuously for one (1) whole year but only for the duration of the season does not detract from considering them in regular employment since in a litany of cases. CONSTRUCTIVE DISMISSAL Art. SECURITY OF TENURE Art. Workers who have performed the same tasks every season for several years are considered regular employees for their respective tasks. NLRC. relate to the performance of the employee’s duties. made known to the employee and must pertain to the duties which he has been engaged to discharge (Micro Sales Operation Network v. C. To be serious within the meaning and intendment of the law. GR No. ƒ Implies a want or absence of or failure to exercise slight care or diligence. 279 does not apply to project employees. (see how full backwages are computed) ƒ Full backwages are computed from the time wages are withheld up to the time the employee is actually reinstated. Examples ƒ violation of safety rules ƒ gross inefficiency ƒ wrongful acts of employee against the company ƒ violation of code of discipline Page 67 of 83 Hacienda Fatima v. Other analogous cases . the misconduct must be of such grave and aggravated character and not merely trivial or unimportant (Villamor Golf Club v. ƒ In the case of project employees. employee’s assailed conduct was willful or intentional. 2. Pehid. his duties 3. the transgression of some established and definite rule of action. JUST CAUSES. 282. National Federation of Sugarcane Workers-Food and General Trade. Commission of a Crime or offense by the employee against the person of his employer or any immediate member of his family or duly authorized representative 5. but merely considered on leave until re-employed. the willfulness being characterized by a wrongful and perverse attitude. employee has become unfit to continue working for the employer (Phil.11 October 2005) Gross and Habitual Neglect ƒ GROSS and HABITUAL must concur together. 149440. 2000) Elements of Willful Disobedience 1. a dereliction of duty. the order violated must have been reasonable.confidential employees – charged with custody and protection of employer’s property like a cashier (this is different from the “confidential employees” in labor relations) ƒ A criminal case need not be actually filed. Fraud or Willful breach by employee of the Trust reposed in him by his employer or duly authorized representative (not mere suspicion) 4. Security of tenure ƒ Applies to all establishment or undertakings whether for profit or not ƒ Project employees have no security of tenure.

ƒ If the dismissal is based on a just cause under Article 282 but the employer failed to comply with the notice requirement. Vargas. the sanction to be imposed upon him should be tempered because the dismissal process was. Closure not due to losses Redundancy ƒ Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. Art. insensibility or disdain on the part of the employer has become so unbearable as to leave an employee with no choice but to forego continued employment. it must NOT be in BAD FAITH. 159293. requires a deliberate and unjustified refusal of an employee to resume his work. Abandonment is incompatible with constructive dismissal. Veterans Security Agency v. Redundancy 3. 14 October 2005) ƒ Difference between redundancy and retrenchment: In redundancy. Closure of business as a result of grave financial loss 5. Retrenchment 4. 165811. The employee is placed in a situation by the employer such that his continued employment has become UNBEARABLE. Page 68 of 83 . GR No. Validity of a Redundancy Program DAP v. company suffers from financial problems. Standards to Justify Retrenchment 1. No formal dismissal 2. The substantial loss apprehended must be reasonably imminent. fair and reasonable criteria in ascertaining what positions are to be declared redundant and QuickTime™ and a accordingly abolished TIFF (Uncompressed) decompressor are needed to see this picture. the sanction should be stiffer because the dismissal process was initiated by the employer’s exercise of his management prerogative Constructive Dismissal 1. ƒ A position has become superfluous as an outcome of a number of factors such as overhiring of workers. company has no financial problems. 3. dropping of a particular product line or service activity previously manufactured or undertaken by the enterprise (thus it only requires superfluity not duplication of work) ƒ The redundancy SHOULD NOT have been created by the EMPLOYER. The alleged losses if already realized. GR No. as a just and valid cause for termination. coupled with a clear absence of any intention of returning to his or her work. The losses expected should be substantial and not merely de minimis in extent. v Fuentes. Closure Not Due to Losses ƒ In cases of closure not due to losses. whichever is higher 3. in effect. initiated by an act imputable to the employee. The employer should have taken other measures prior or parallel to retrenchment to forestall losses. 283. 16 December 2005 Constructive dismissal exists when an act of clear discrimination. a written notice served on both the employees and the Department of Labor and Employment (DOLE) at least one month prior to the intended date of retrenchment 2. Authorized Causes for Termination Grounds: 1. payment of separation pay equivalent to at least one month pay or at least one month pay for every year of service. in retrenchment. Retrenchment ƒ Resorted primarily to avoid or minimize business losses. good faith in abolishing the redundant positions 4. CA. and the expected imminent losses must be proved by sufficient and convincing evidence. 14 December 2005 The employer must comply with the following requisites to ensure the validity of the redundancy program: 1. It be reasonably necessary and likely to effectively prevent the expected losses. Abandonment. (Oriental Petroleum & Minerals Corp. ƒ If the dismissal is based on an authorized cause under Article 283 but the employer failed to comply with the notice requirement.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ ƒ ƒ failure to heed an order not to join an illegal picket immorality sexual harassment 2. Introduction of labor-saving devices 2. decreased volume of business. 4.

The exercise of the prerogative should not defeat an employee's right to security of tenure. being placed “off detail” or on “floating” status means “waiting to be posted. serious insult on the honor and person of QuickTime™ and a employee by employer or his TIFFthe (Uncompressed) decompressor are needed to see this picture. Options of employer (i. closure – must comply with 1 month advanced notice.. unjustified refusal of an employee to resume his/her employment Two elements must be proved 1. Waivers and Quitclaims. No Separation Pay in resignation. However.” It is the inherent prerogative of an employer to transfer and reassign its employees to meet the requirements of its business. 25 October 2005) Art. an overt act from which it may be inferred that the employee has no more intent to resume his/her work Page 69 of 83 . In security agency parlance. The employer’s privilege to transfer its employees to different workstations cannot be used as a subterfuge to rid itself of an undesirable worker. employee may be held liable for damages for failure to give notice Termination with Just Cause 1. (Manly Express v. Not all waivers and quitclaims are invalid as against public policy. In all such cases. separation pay need not be paid to an employee who voluntarily resigns. an employer who agrees to expend such benefit as an incident of the resignation should not be allowed to renege in the performance of such commitment. If the agreement was voluntarily entered into and represented a reasonable settlement. 285. When employment not deemed terminated ƒ The bona-fide suspension of the operation of a business or undertaking for a period not exceeding 6 months. security agency) in case of pull out by client: 1. inhumane and unbearable treatment accorded to the employee c. at least 1 month prior notice 2. commission of a crime against person of the employee or any of the immediate members of his family d. Art. the prerogative of the management to transfer its employees must be exercised without grave abuse of discretion. Temporary Lay-off ƒ Must not exceed 6 months. pay separation pay 2. et al. Notice not necessary ƒ Resigning employee not entitled to separation pay. Art. Disease as ground for termination Disease as Ground for Termination ƒ When his continued employment is prohibited by law or prejudicial to his health or to the health of his co-employees ƒ There is a certification by a competent public health authority that the disease is of such nature or at such stage that it cannot be cured within a period of 6 months even with proper medical treatment ƒ The requirement for a medical certificate cannot be dispensed with. otherwise. GR No. simply because of a change of mind. or the fulfillment by the employee of a military or civic duty shall not terminate employment. Exceptions.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Article 286 applies only when there is a bona fide suspension of the employer’s operation of a business or undertaking for a period not exceeding 6 months. CA. Termination by employee Termination without Just Cause 1. 140812. Grounds a. 284. unless company policy gives it. it would sanction the unilateral and arbitrary determination by the employer of the gravity or extent of the employee’s illness and thus defeat the public policy on the protection of labor. the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty. when valid Candido Alfaro v. the intention to abandon 2. other causes analogous to the foregoing 2.e. Be that as it may. 286. retrenchment – must give notice 1 month before retrenchment. representative b. no need to pay separation pay Abandonment ƒ means the deliberate. Payong. 28 August 2001 Generally. it is binding on the parties and may not later be disowned.

GR No. Miscellaneous Provisions (b) Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code. the employer QuickTime™ and a shall furnish the worker whose employment is sought TIFF (Uncompressed) decompressor are needed to see this picture. 117040. due process must be observed. if it does. 277. He shall however be entitled to SEPARATION PAY AND BACKWAGES. contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ This is negated by immediate filing of an action for ILLEGAL DISMISSAL. burden of proof refers to the amount of proof to be adduced In money claims. IT IS NOT A PENALTY. 277 (b) Authorized Causes Just Causes (282) (283) Twin Notice (Before and One notice only After Investigation . Any decision taken by the employer shall be without prejudice to the right of the worker to ƒ ƒ ƒ Due Process Requirements under Art. ƒ In cases of dismissal. D. w/o procedural due process is not an illegal dismissal Page 70 of 83 . 08 June 2005) Due process refers to the process to be followed. ƒ Such a status should not exceed six-months. the employee must be actually reinstated or reinstated in the payroll ƒ officers liable only if with malice and bad faith Floating Status ƒ It is legal. 160404. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the termination may cause a serious labor dispute or is in implementation of a mass layoff.notice to employee1 month before . In cases of just and authorized causes. it amounts to a dismissal. Employment Not Deemed Terminated a. employer has the burden of proof to show that the dismissal falls under the just and authorized causes. . It is valid although declared irregular / ineffectual. the burden of proof as to the amount to be paid the employee rests upon the employer since he is in custody of documents that would be able to prove the amount due. such as in the case of security guards who have no assignment. It states that termination due to authorized cause without giving the notice required under the Labor Code is not a violation of due process.notice that employee retrenchment.1 month advanced Investigation notice to DOLE Non-compliance with due process requirements Before the Agabon case. NLRC (GR No. to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment.notice of the charge installation of LSD. PLDT. NLRC. 27 January 2000) was followed. or is guilty (after closure investigation) . DUE PROCESS Art. fulfillment by the employee of a military or civic duty ƒ Employer shall reinstate the employee to his former position without loss of seniority rights IF employee indicates his desire to resume his work not later than 1 month from resumption of operations of his employer or his relief from the military or civic duty Preventive Suspension ƒ justified where the employee’s continued employment poses a serious and imminent threat to the life or property of the employer or of his co-workers (there is a REASONABLE POSSIBILITY of the employee posing such a threat) ƒ must not exceed 1 month ƒ It is only for the purpose of investigating the offense to determine whether he is to be dismissed or not. such as the payroll. bona fide suspension of the operation of a business/undertaking for a period of not more than 6 months b. 17 November 2004 modifies Serrano Dismissal for an authorized or just cause. the doctrine in Serrano v. (Tolentino v. Agabon v. ƒ if more than 1 month. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer.

which is adjudicated in order that a right of plaintiff. Unless the SC provides otherwise. 30 March 2006 Factors to be taken into account in the determination of the amount of nominal damages in dismissal cases: 1.000. the number of employees to be awarded 3. Payment of backwages and other benefits. Ababon.000 to Php 10. the sanction to be imposed upon him should be tempered because the dismissal process was. SC distinguished between non-compliance of due process requirements in just and authorized causes. Computation of Separation Pay Installation of labor1 month pay or 1 month saving devices pay for every year of service whichever is Redundancy higher. The indemnity should be stiffer than that provided in Wenphil to discourage the abhorrent practice of “dismiss now. Doctrine of Strained Relations (applies to confidential and managerial employees only) 2. initiated by an act imputable to the employee. ƒ Authorized causes – Php 50. the authorized cause invoked. Cases where reinstatement is impossible 1. the ruling would have no retroactive effect. Backwages + Separation Pay ƒ Where reinstatement is ordered. or if reinstatement impossible 2. taken into account their prevailing financial status as borne by the records 4. v. but the position is already filled up. which has been violated by the defendant.000 nominal damages ƒ Just causes – Php 30. the employer should indemnify the employee for the violation of his rights. 28 March 2005 If the dismissal is based on a just cause under Article 282 but the employer failed to comply with the notice requirement. 1 month pay or at least 1/2 month pay for every year of service whichever is higher Retrenchment to prevent losses Closures or cessation of operations of establishments or undertaking NOT due to serious business losses or financial reverses Disease Closures or cessation of operations due to serious business losses or financial reverses no separation pay Page 71 of 83 . may be vindicated. whether it was a retrenchment or a closure or cessation of QuickTime™ and a due to serious operation of the establishment TIFF (Uncompressed) decompressor are needed this picture. Jaka Food Processing v. Backwages + Reinstatement without loss of seniority rights. The Court interpreted Art. 1 month pay for every year is always higher if the employee has served for more than 1 year. 279 to the effect that termination is illegal only if it is not for any of the justified or authorized causes provided by law. is justified only if the employee was unjustly dismissed. RELIEFS FOR ILLEGAL DISMISSAL 1. business losses or to see financial reverses or otherwise 2. in effect. the dismissed employee must still be reinstated if it is still possible. pay later. including reinstatement.” The indemnity should be in the form of nominal damages. employee is being dismissed due to his fault) Industrial Timber Corp. employee entitled only to nominal damages. the lack of statutory due process should not nullify the dismissal or render it illegal. the capacity of the employers to satisfy the awards. Pacot. SC reduced the nominal damages from Php 30. On the other hand. E. In case of position has been abolished (applies to both managerial and rank and file) ƒ Moral and exemplary damages may also be awarded. Agabon not given retroactive effect The principle in law giving retroactive effect where the subsequent law is corrective in character does not necessarily apply to judicial decisions. if the dismissal is based on an authorized cause under Article 283 but the employer failed to comply with the notice requirement.000 nominal damages (because in just causes. However. the sanction should be stiffer because the dismissal process was initiated by the employer’s exercise of his management prerogative.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 which warrants backwages. the employer's grant of other termination benefits in favor of the employees 5. whether there was a bona fide attempt to comply with the notice requirements as opposed to giving no notice at all. The Court decided to follow Wenphil that where the dismissal is for a just cause.

2. DISPUTE SETTLEMENT A. but to seek new employment in order to earn a decent living. migrant workers Art. This depends on the stipulations in the CBA. RETIREMENT Art. to immediately execute the reinstatement aspect of the labor arbiter’s decision. 1 + no. their obligation to the illegally dismissed employee. agricultural establishments ƒ operations employing not more than employees Reinstatement. * without valid. 25 August 1999) F. v Ortega. payment of backwages Triad Security & Allied Services. In the meantime. whichever is less 10 Kinds 1. plus th 2. OPTIONAL – 60 years old / 5 years in service (includes authorized absences/vacations/regular holidays/mandatory military or civic service). VI. his placement fee with interest of 12% per annum Full backwages from the Salaries for the time his compensation unexpired portion of his was withheld from him employment contract or up to the time of his for 3 months for every actual reinstatement year of the unexpired term. an employee can get pay under the law. the employer cannot refuse to reinstate the illegally dismissed employee by claiming that the latter had already found a job elsewhere. Until the payment of separation pay is carried out. LC Sec. until the employer continuously fails to actually implement the reinstatement aspect of the decision of the labor arbiter. JURISDICTIONS OF THE DIFFERENT AGENCIES Bureau of Labor Relations ƒ Original jurisdiction: appeal to DOLE Secretary Page 72 of 83 . separation pay of 1 month for every year shall be paid. GR No. other benefits as maybe agreed upon by employer and employee (a fraction of at least 6 months considered as 1 year) Minimum benefits to be received = (no. et al. 15-day basic wage. Retirement (as amended by the Retirement Pay Law – RA 7641) Exempted: ƒ retail. or employment contract. 279. 160871.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 * a fraction of at least 6 months is considered 1 year ƒ If the retrenchment is later declared illegal. just. 2 + no. the illegally dismissed employee’s entitlement to backwages. if not outright refusal. company retirement plan. If the contract is shorter. Minimum wage earners are left with no choice after they are illegally dismissed from their employment. we could not fault them for their perseverance in looking for and eventually securing new employment opportunities instead of remaining idle and awaiting the outcome of the case. Reliefs of local workers vs. 5-day Service incentive leave pay plus 4. plus 3. or authorized cause The option of “three months for every year” is available only if the employment is for at least one year. insofar as accrued backwages and other benefits are concerned. Inc. (Marsaman Manning Agency v. Thus. 3) x years of service ƒ If CBA / retirement plan has no prohibition. and other benefits subsists. continues to accumulate. 1/12 of the 13 month pay. and the retirement plan. Further. the employer should not be allowed to remain unpunished for the delay. Surely. 10. Such computation is because the retrenchment was illegal and the employee was entitled to reinstatement. 287. CBA. 13th month pay. COMPULSARY – 65 years old/ regardless or years of service (company not bound to dismiss employee) Benefits 1/2 month salary per year of service which shall include: 1. service. It is only when the illegally dismissed employee receives the separation pay (in case of strained relations) that it could be claimed with certainty that the EER has formally ceased thereby precluding the possibility of reinstatement. 06 February 2006 An order of reinstatement by the labor arbiter is not the same as actual reinstatement of a dismissed or separated employee. the salary to be paid should be that for the unexpired portion. NLRC. RA 8042 (local workers) (migrant workers) QuickTime™ and a TIFF (Uncompressed) decompressor Reinstatement Full reimbursement of are needed to see this picture. ƒ If what is provided in the CBA is lower that what is provided for in law. the employee is entitled to the higher amount.

On appeal. moral. it is valid. It must be approved by the LA (NLRC Rules) At the DOLE Secretary’s level. As such... et. a member of a labor union and a party to a labor dispute executed a compromise settlement.. Mere appearance before BLR or the regional office of the DOLE to file the already executed compromise settlement is not the “assistance” required by the law. the BLR is not specifically empowered to adjudicate claims of such nature arising from intra-union or inter-union disputes. 08 June 2005 Article 277 of the labor code states that any compromise settlement. if there is prima facie evidence that the settlement was obtained through fraud. 31 January 2005 Issue: Does the bureau of labor relations have jurisdiction over claims for actual. industry unions. Without it. Jurisdiction 1. grave abuse of discretion QuickTime™ and a b. Bacay. An offer to settle is not proof that something is due to the employee. al. et. ƒ ƒ ƒ ƒ ƒ As long as the agreement is voluntarily entered into and has a reasonable award. He appeared before the Office of the Regional Director to file said compromise settlement together with a motion to dismiss the case. v. ULP (priority Æ resolved within 30 cal days from submission for decision) 2. voluntarily agreed upon by the parties with the assistance of the Bureau or the regional office of the Department of Labor shall be final and binding upon the parties. hours of work and other terms and conditions of employment 4. the Secretary must approve. can be reviewed by the CA in a petition for certiorari under Rule 65 Held: No. in case of non-compliance thereof b. Issue: Is the compromise settlement in compliance with Article 277? Held: The assistance of the BLR or the regional office of the DOLE in the execution of a compromise settlement is a basic requirement. there can be no valid compromise settlement. Complaint involving federations. claims for wages. ‘A’.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ Appellate jurisdiction: decision shall be immediately executory upon issuance of entry of final judgment. Inter-union conflicts 2. All disputes. al. al. exemplary and other forms of damages. Jr. misrepresentation or coercion Power to Issue Subpoena ƒ When relevant to a labor dispute under its jurisdiction either at the request of any interested party or at its own initiative Privileged Communication ƒ Information and statements made at conciliation meetings shall NOT be used as evidence in the NLRC ƒ Conciliators and similar officials shall not testify in any court or body regarding any matters taken up at conciliation proceeding conducted by them Appeal ƒ within 10 days to the DOLE Secretary ƒ Grounds: a. exemplary and other forms of damages arising from intra-union or inter-union disputes? . exemplary and other forms of damages arising from employeremployee relationship Page 73 of 83 Marino. Eduardo D. Mindoro Lumber and Hardware v. national unions. termination disputes 3. Gamilla. claims for actual. gross incompetence TIFF (Uncompressed) decompressor are needed to see this picture. the compromise settlement executed by ‘A’ cannot qualify as a valid compromise settlement. Jurisdiction of Labor Arbiters 1. grievances or problems arising from or affecting labor-management relations in all workplaces EXCEPT those arising from the implementation or interpretation of the CBA which shall be the subject of grievance procedure and/or voluntary arbitration 4. the NLRC must approve the agreement. including those involving labor standard laws. et. rates of pay. Unlike the NLRC which is explicitly vested with the jurisdiction over claims for actual. moral. its officers or member organizations Compromise Agreements ƒ If voluntarily agreed upon by the parties with the assistance of the BLR or the regional office of DOLE Æ final and binding upon the parties ƒ The only time NLRC or any courts can assume jurisdiction over issues involved therein: a. Intra-union conflicts 3. moral.

Technical rules not binding and prior resort to amicable settlement Art. 129) 3. 227 of the Code (Sec.000 (Art. visitorial power (Art. Enforcement of compromise agreements when there is non-compliance by any of the parties pursuant to Art. Exclusive Appellate Jurisdiction a. Rule V. claims not exceeding Php 5. they are not employees) – BUT in Prudential Bank v. 222. PROCEDURE Art.R. moral. violation of the constitution & by-laws and rights & conditions membership 4. Reyes (G. and voluntary arbitration cases (SEE ANNEX L) B. or or restrain are any actual threatened commission of any or all prohibited or unlawful acts or to require the performance of a particular act in any labor dispute which. It is the spirit and intention of this Code which shall be used as reasonable means to ascertain the facts in each case Page 74 of 83 c. Wage distortion cases in unorganized establishments 8. disciplinary cases filed against overseas contract workers Jurisdiction of DOLE Regional Directors 1. 128) 2. No. including claims for actual. inter-union and intra-union disputes involving independent unions and chartered locals Jurisdiction of the NCMB conciliation. may cause grave or irreparable damage to any party b. Cases decided by the DOLE Regional Directors or his duly authorized hearing officers involving recovery of wages. violation of overseas employment contracts 2. it was held that an employee who rose from the ranks is a regular employee and not a mere corporate officer ƒ Cases involving GOCCs with original charters ƒ Cases involving entities immune from suit (except when the entity performs proprietary functions) ƒ Local water districts (since they are quasi-public corporations) ƒ Actions based on tort (Tolosa v. NLRC. Appearances and Fees ƒ ƒ The rules of evidence prevailing in courts of law or equity shall not be controlling. Original Jurisdiction QuickTime™ and a a. regular court has jurisdiction.000 and not accompanied by a claim for reinstatement OCULAR INSPECTION by Labor Arbiter & NLRC at any time during working hours Jurisdiction of the POEA ƒ Cancellation / Suspension of License of Authority to recruit of Recruitment Agencies (until phase out within 5 years as provided in RA 8042) ƒ Disciplinary Action against OFWs ƒ Appeal to Secretary of DOLE within 10 calendar days Æ cancellation/ revocation/ supervision of license or authority ƒ Appeal to NLRC within 10 calendar days 1. 1. cases arising from prohibited activities during strikes. exemplary and other forms of damages (RA 8042) 9. all other claims arising from employer-employee relationship involving an amount exceeding P5000 regardless of whether accompanied by a claim for reinstatement except ECC. 10 April 2003 – Claim of a seaman for damages is under torts. SSS. 2005 NLRC Rules) Cooperatives ƒ Termination of members of cooperatives is not cognizable by the LA (members are not employees) ƒ LA has jurisdiction over illegal dismissal cases involving employees of cooperatives LA does NOT have jurisdiction over ƒ Intra-corporate disputes ƒ Cases involving corporate officers (bec. & maternity benefits 7. All monetary claims of OFWs arising from EER or by virtue of any law or contract involving Filipino workers for overseas deployment. 141093. 20 February 2001). All cases decided by the LAs. mediation. if not restrained or performed forthwith . Medicare. certified to it by the DOLE Secretary for compulsory arbitration 2. Injunction in strikes or lockouts under Art. . 221. 264 Certified labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest. simple money claims and other benefits not exceeding Php 5. including contempt cases b.) Jurisdiction of the NLRC 1. including questions involving the legality of strikes and lockouts 6. Injunction in ordinary labor disputes to enjoin TIFF (Uncompressed) decompressor needed to see this picture.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 5.

pure questions of law 4. the fees are shared by the parties Failure to implead a substitute party is not a fatal defect. If this is not complied with. 221 can be invoked. the decision. 130866. orders or awards are needed to see this picture. or surety bond. raised serious errors in the findings of facts which could cause grave or irreparable damage or injury to the appellant 5. Pasajo. proof of service to the adverse party Procedure 1. decision is still valid because of Art. remedy is to file a motion to dismiss Motion to Reduce Bond ƒ Page 75 of 83 . filed within the reglementary period 2. 3. C.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ ƒ Without regard to technicalities of law and procedure all in the interest of due process Parties may be represented by legal counsel but it shall be the duty of the Chairman. Verification and Certification of Non-Forum Shopping are required BUT Art. (Chu v. if judgment involves monetary award 5. NLRC. Martin Funeral Home vs. counted from receipt of decision 2. 13 March 1996) Payment of docket fees is not required in labor standards claims under Art. Execution of decisions. (St. order or award was secured through fraud or coercion including graft and corruption 3. NLRC decision becomes final and executory 10 days after it is rendered Appeal Involving Monetary Award ƒ No monetary award. no appeal bond is required to be filed. Appeal Art. appeal fee 4. (Santos v. Holding of trial on the merits is discretionary on the part of the LA. additional Requirement: in case of judgment involving a monetary award-employer (appellant) may perfect the appeal only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the NLRC in the amount equivalent to the monetary award in the judgment appealed from Requisites for Perfection of Appeal 1. File Memorandum of Appeal within 10 calendar days. 218(c) cannot be invoked to support a faulty decision of the LA. any presiding Commissioner or any labor arbiter to exercise compete control of the proceedings at all stages GR: The only way to acquire jurisdiction is to serve summons Voluntary appearance of the lawyer amounts to voluntary submission to the jurisdiction of the LA. 223. there is no appeal. 16 September 1998) ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ Grounds 1. no appeal bond required ƒ If LA’s decision does not provide for a computation of the monetary award. ƒ From the decision of the NLRC. LA must inform parties that the case has been submitted for decision. appeal is not perfected ƒ Remedy in case of failure to post bond. Due process in Art. 101699. GR No. From the ruling of the Court of the Appeals. 224. NLRC. Rule V of the NLRC Rules allows parties to submit position papers with attachments and they can be made basis of the LA’s decision. APPEALS Art. GR No. prima facie evidence of abuse of discretion on the part of LA 2. property. 13 April 2003) Sec.. Memorandum of Appeal under oath 3. cash. it may be elevated to the SC by way of ordinary appeal under Rule 45 of the Rules of Civil Procedure. Appeal of LA’s Decision ƒ Appeal from the decision of the Labor Arbiter is brought by ordinary appeal to the NLRC within 10 calendar days from receipt by the party of the decision. 277(b). 221. 277(d). 221 Æ opportunity to be heard It is wrong to apply opportunity be heard in due process under Art. NLRC decides 4. ƒ Bond should be posted within the 10-day period for filing of appeal ƒ If no bond is filed. EXCEPT: in case of bargaining deadlock. 277(b) (termination disputes) Æ end line is hearing with representative of own choice Due process in Art. NLRC Rules provide that before deciding. et al. Art. Other party can file an Answer within 20 calendar days from receipt of Appeal 3. The provision refers to a power of the NLRC and not the LA. QuickTime™ and a TIFF (Uncompressed) decompressor ƒ ƒ ƒ ƒ The only way to elevate the case to the CA is by way of the special civil action of certiorari under Rule 65 of the Rules of Civil Procedure.

appeal may be had to the DOLE Secretary 2. 08 August 1996) Partial payment of the bond is deemed substantial compliance with the rules while the motion to reduce bond is still pending with the NLRC. (Christian Literature Crusade v. NLRC. the case may be elevated to the Supreme Court by way of ordinary appeal under the same Rule 45. the dismissal of the employee was held not to be illegal. 120319. ƒ From the CA. GR No. (Roquero v. i. it is immediately executory even pending appeal QuickTime™ and a for ƒ Self-executing TIFF with no need a writ of (Uncompressed) decompressor are needed to see this picture. does not necessarily give the employerappellant a ‘meritorious case’ and does not automatically warrant a reduction of the appeal bond. NLRC. 222 SCRA 707) In order to effectively stop the running of the period within which to perfect the appeal. 10 April 1989) LA upheld the validity of the dismissal. the employee ordered reinstated under Article 223 should be admitted back to work in a substantially equivalent position. filed within the reglementary period 2. the remedy is not the grant of additional backwages to serve as damages but to file a motion to cite the employer for contempt.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ Motion to reduce bond does not toll the running of the period to perfect appeal ƒ ƒ The unjustified refusal of the employer to reinstate an illegally dismissed employee entitles the employee to payment of his salaries.. G. GR No. but the choice must be communicated to the employee by the employer) ƒ Posting of a bond shall not stay the execution of reinstatement . Decision of the BLR rendered in its original jurisdiction may be appealed to the DOLE Secretary whose decision thereon may only be elevated to the CA by way of certiorari under Rule 65. GR No. NLRC. the employer still refuses to reinstate the employee. NLRC reversed. (Luzon Development Bank v. [Rosewood Processing v. If despite several writs of execution. PAL. Decision of the BLR rendered in its appellate jurisdiction may not be appealed to the DOLE Secretary but may be elevated directly to the CA by way of certiorari under Rule 65. (Medina v. Consolidated Broadcasting System. Association of Luzon Development Bank Employees. 4. (Calabash Garments v. 152329. appeal to DOLE Secretary by ordinary appeal 3. CA held that dismissal was valid. Suffice it to say that the law does not require outright payment of the total monetary award. 110827. appeal to the BLR ƒ Denial is originally made by the BLR. the motion to reduce bond must comply with the requisites that: 1. ƒ Cancellation by the BLR in a petition filed directly. even if it runs into millions. (Abbott Page 76 of 83 Enforcement ƒ Any law enforcement agency may be deputized by the DOLE Secretary or the NLRC ƒ Issuance of writ of execution on a judgment within 5 years from date it becomes final and executory motu proprio or in motion of any interested party Reinstatement Pending Appeal ƒ If reinstatement is ordered in an illegal dismissal case. appeal to the BLR.e. 171 SCRA 712. execution ƒ Either admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or merely reinstated in the payroll (at the option of the employer. 06 October 1995) Appeal of BLR’s Decision 1. (Times Transportation v. et al. 22 April 2003) If the former position is already filled up. 352 Phil 1013 (1998)] But the partial payment must be made within the reglementary period.R. NLRC. No. based on meritorious grounds 3. 16 February 2005) ƒ ƒ ƒ ƒ Appeal of Voluntary Arbitrator’s Decision ƒ Appealable by ordinary appeal under Rule 43 of the Rules of Civil Procedure directly to the Court of Appeals. confidential employee. a reasonable amount of bond in relation to the monetary award should be posted together with said motion ƒ A substantial monetary award. Denial of application for registration of a union ƒ Denial by the Regional Office. Cancellation of registration of a union ƒ Cancellation by the Regional Office. An appellant cannot invoke financial difficulties as a ground in support of a Motion to Reduce Bond. 16378. HELD: The employer is liable to pay for the salary of the employee previously ordered reinstated by the NLRC although later on. but only the posting of a bond to ensure that the award will be eventually paid should the appeal fail.

ƒ 10 days to perfect appeal by filing a Memorandum of Appeal ƒ Property bond is now allowed. Inc. 26 January 2000) Appeal of Regional Director’s Decision under Art. Decision of the LA 2. ƒ Decisions of the BLR in its appellate– certiorari under Rule 65 (UST Employees Union v. the writ of execution is NOT appealable.000. ƒ ƒ ƒ ƒ ƒ Only 1 MR is allowed. Thus. et al.e. if the appellants are the employees). QuickTime™ and a TIFF (Uncompressed) decompressor ƒ ƒ ƒ ƒ NLRC cannot order a refund of benefits or salaries. only payroll reinstatement is required. Receipt of LA’s decision ƒ Even if NLRC reverses LA decision. Prescriptive period of offenses penalized by the Labor Code GR: 3 years from the time the cause of action accrued Exception: ULP cases prescribe within 1 year from accrual of such unfair labor practice ƒ are needed to see this picture. the employee is still entitled to the benefit of RPA. ask for an injunction under Art. LA cannot entertain an MR or a petition for relief of judgment After the decision has become final and executory. SC entertained appeals filed out of time under the interest of justice rule (esp. Independent right 3. 131374. Payroll reinstatement 4. or both at the discretion of the court. GR No.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Laboratories Philippines. not NLRC decision Relief of the employer is to ask for an injunction under Art. closure of company) requires payment of separation pay and full backwages up to the time of the closure of the company. Reinstatement Pending Appeal (RPA) 1. the recourse is certiorari under Rule 65.000 to Php 10. To stay writ of execution. 269 SCRA 70 (1997)] ƒ Appeal bond must be strictly complied with. Persons liable if an offense is committed by a juridical person The penalty shall be imposed upon the guilty officer or officers of such corporation. 129 ƒ Appeal to NLRC Summary ƒ Decision of the Voluntary Arbiter – appeal to CA under Rule 43 (Luzon Dev’t Bank) ƒ Decision of the DOLE and other attached agencies (including NLRC) should be brought to the CA under Rule 65 (St. Doctrine of supervening event (i.. vs. [UERM-Memorial Medical Center v. NLRC. association or entity. or imprisonment for 3 months to 3 years. ƒ NLRC cannot resuscitate a lost appeal. firm. trust. SOCIAL LEGISLATION THIRTEENTH-MONTH PAY (PD 851) Page 77 of 83 . VII. Bitonio) ƒ Certiorari is not a substitute for lost appeal. Laguesma) ƒ Order of the Med-Arbiter in CE in organized establishments – not appealable under DO 40-03 (2003). partnership. Martin Funeral Homes) ƒ Decision of the DOLE Secretary – certiorari to the CA under Rule 65 (NAFLU v. 218(e) Period to appeal cannot be extended BUT in a number of cases. 218(e) If the employee is confidential. Abbott Laboratories Employees Union. Rationale: for the employee to earn after all he won in the LA level Time to reckon reinstatement is the date of receipt of LA’s decision. PENAL PROVISIONS AND LIABILITIES Penalties for Violations of the Provisions of the Labor Code Fine of Php 1.

and those who are paid a fixed amount for performance of a specific work. unused VL and sick leave credits. professor 9. requests. or task basis. Exempted Employees: 1. Non-inclusion in Regular Wage – benefit need not be credited as part of regular wage of employees for purposes of determining OT pay and premium pays. 3. reckoned from the time he started working during the calendar year up to the time of his resignation or termination from the service ƒ Basic Salary – includes all remunerations or earnings paid by an employer to an employee for services rendered but does not include cost of living allowances (COLA). training environment (WET) Who Commits 1. employee 3.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 ƒ All employers are required to pay all their rankand-file employees a 13th month pay not later than December 24 of every year. night differential and holiday pay) which are not considered or integrated as part of the regular or basic salary of the employee. fringe benefits as well as contributions to the state insurance fund. without regard to the time spent in producing the same. influence or moral ascendancy over another How Committed Person liable demands. teacher 7. agent of the employer 6. Employers of those who are paid on commission. Government and any of its political subdivisions. coach 10. or otherwise requires any sexual favor from the other. trainor 11. cash bonuses and other payments amounting to not less than 1/12 of the basic salary but shall not include cash and stock dividends. manager 4. 13th Month Pay – 1/12th of the basic salary of an employee within a calendar year 13th Month Pay for Certain Types of Employees 1. the above should be included in the computation if by individual or collective agreement. during a calendar year. and private retirement plans ANTI-SEXUAL HARASSMENT ACT OF 1995 (RA 7877) Where Committed working. Private School Teachers – entitled regardless of the number of months they teach or are paid within a year.g. ƒ Piece Rate – employees who are paid a standard amount for every piece or unit of work produced that is more or less regularly replicated. irrespective of QuickTime™ the time consumed in the and a (Uncompressed) decompressor performance TIFF thereof. boundary. company practice or policy. except those corporations operating essentially as private subsidiaries of the Government. Employers already paying their employees 13th month pay or more in a calendar year or its equivalent at the time of issuance of PD 851 ƒ “Its equivalent” – includes Christmas bonus. mid-year bonus. workers are paid on a piece-rate basis. Those with Multiple Employers – entitled to the 13th month pay from all their private employers regardless of their total earnings from each or all of their employers 3. instructor 8. education. EXCEPT where the are needed to see this picture. Such employees are entitled to the benefit regardless of their designation or employment status and irrespective of the method by which their wages are paid. COLA and all other allowances regularly enjoyed by the E’ee as well as non-monetary benefits. any other person having authority. Social Security. Employers of household helpers and persons in the personal service of another in relation to such workers 4. provided that they have worked for at least 1 mo. supervisor 5. ƒ May be demanded by the employee upon the cessation of EER. regardless of whether the demand. in which case the employer shall grant the required 13th month pay to such workers. Employees paid by results – entitled to 13th month pay 2. Medicare. including GOCCs. th Month Pay of Resigned or Separated 13 Employee – entitled to the benefit in proportion to the length of time he worked during the year. profit-sharing payments and all allowances and monetary benefits (e. if they have rendered service for at least 1 month within a year. request or requirement for submission is accepted by the object of said Act Page 78 of 83 . However. employer 2. OT premium. 2.

instrumentalities. and QuickTime™ and a agencies of the government. File application with BLR or Regional Office. (§9) Sole and Exclusive Representative of Employees EXECUTIVE ORDER NO. and for other purposes. including GOCCs with TIFF (Uncompressed) decompressor original charters (§1) are needed to see this picture. Coverage It applies to all government employees--employees of all branches. hostile or offensive environment for the employee Duty of Employer 1. reemployment or continued employment of said individual b. a registration certificate will be issued. in granting said individual favorable compensation.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Work-Related/Employment Environment. deprive or diminish employment opportunities or otherwise adversely affect said employee 2. education or training environment if the employer is informed of such acts by the offended party and no immediate action is taken Prescription: 3 years All government employees can form. subdivisions. policemen. recognizing it as a legitimate employees’ organization with the right to represent its members and undertake activities to further and defend its interests 4. in conjunction with appropriate government authorities. Promulgate appropriate rules and regulations prescribing the procedure for investigation of sexual harassment cases as well as guidelines on proper decorum in the workplace 2. Their employment shall not be subject to the condition that they shall not join or shall relinquish their membership therein (§5) Non-Interference of Government Authorities Government authorities shall not interfere in the establishment. Liability of Employer / Head of Office Solidarily liable for damages arising from the acts of sexual harassment committed in the employment. including police officers. They can also form. labor-management committees. 180 Guidelines for the exercise of the right to organize of government employees. and other forms of workers’ participation schemes for the same objectives (§2) Who are Ineligible to Join Organization of Rank & File Government Employees High-level employees whose functions are normally considered as policy-making or managerial or whose duties are of a highly confidential nature (§3) Protection of Right to Organize They shall not be discriminated against in respect of their employment by reason of their membership or participation in employees’ organizations. creating a public sector labor-management council. firemen and jail guards (§4) Right to Organize Page 79 of 83 . work councils. Create a committee on decorum and investigation of cases on sexual harassment. the refusal to grant the sexual favor results in limiting. conditions. The above acts would result in an intimidating. join or assist employees’ organizations of their own choosing for the furtherance and protection of their interests. promotions or privileges c. segregating or classifying the employee which in any way would discriminate. in hiring or in the employment. Excluded from Coverage Members of the Armed Forces of the Philippines. BLR shall process the application in accordance with the Labor Code (§7) 3. The above acts would impair the employee’s rights or privileges under existing labor laws 3. The certificates of registration shall be jointly approved by the Chairman of the CSC and Secretary of DOLE (§8) Appropriate Organizational Unit It is the employers unit consisting of rank-and-file employees unless circumstances otherwise require. terms. The sexual favor is made as a condition a. functioning or administration of government employees' organizations through acts designed to place such organizations under the control of government authority (§6) Place of Registration CSC and DOLE (§7) Procedure for the Registration of Employees’ Organizations 1. Sexual Harassment Committed When 1. Upon approval. which shall transmit the application to the BLR within 3 days from receipt 2.

Member 4. household or group. based on salaries or wages in the case of formal sector employees. DOLE – Vice-Chairman 3. machinery and experience in this particular activity. CA. 123375. The Civil Service and labor and procedures. Composition of Council 1. the parties may jointly refer the dispute to the Council. create the National Health Insurance Program to serve as the means to help the people pay for health care services. CONTRIBUTION . personnel and experience in the conduct of certification elections. establish the Philippine Health Insurance Corporation that will administer the Program at central and local levels BENEFICIARY . (§16) CAPITATION . in the case of the self-employed. Secretary. except those that are fixed by law. 1991). upon petition. where it ruled that the BLR has the jurisdiction to call for and supervise the conduct of certification elections in the public sector. and QuickTime™ and a Settlement of Disputes TIFF (Uncompressed) decompressor are needed to seelaws this picture.Any person entitled to health care benefits under this Act. GR No. This ambivalence notwithstanding. DOJ – Member 5. family. Secretary. Secretary. EO 180 requires organizations of government employees to register with both DOEL and CSC. and 4. for appropriate action. whenever applicable. The Court stated that there is no constitutional objection to DOLE handling the certification process considering its expertise. . the CSC has no facilities. prioritize and accelerate the provision of health services to all Filipinos.Chairman 2. Department of Budget Management – Member (§15) Bautista v. 28 February 2005 The SC affirmed its ruling in Association of Court of Appeals Employees v Ferrer-Calleja (GR No. (§14) Public Sector Labor-Management Council It is the body charged with implementing and administering EO 180. or on the other Page 80 of 83 . 2. and that the said organization has the majority support of the R&F employees in the organizational unit (§11) Certification Election Where there are 2 or more duly registered employees’ organizations in the appropriate organizational unit.A payment mechanism where a fixed rate. In case any dispute remains unresolved after exhausting all the available remedies under existing laws and procedures. grievances and cases involving government employees. subject to any legislation that may be enacted by Congress. SALIENT PROVISIONS OF THE SSS LAW & GSIS LAW (ANNEX O) NATIONAL HEALTH INSURANCE ACT OF 1995 (RA 7875) General Objectives 1. and on household earnings and assets. 94716.The amount paid by or in behalf of a member to the Program for coverage. shall be followed in the resolution of complaints. 3.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 It is the duly registered employees’ organization having the support of the majority of the employees in the appropriate organizational unit (§10) Voluntary Recognition A duly registered employees’ organization shall be accorded voluntary recognition upon a showing that no other employees’ organization is registered or is seeking registration. especially that segment of the population who cannot afford such services. based on records of the BLR. the BLR shall.DOF . may be the subject of negotiations between duly recognized employees' organizations and appropriate government authorities (§13) Peaceful Concerted Activities and Strikes The Civil Service laws and rules governing concerted activities and strikes in the government service shall be observed. Chairman. Secretary. is negotiated with a health care provider who shall be responsible for delivering or arranging for the delivery of health services required by the covered person under the conditions of a health care provider contract. 15 Nov. provide all citizens of the Philippines with the mechanism to gain financial access to health services. order the conduct of a certification election and shall certify the winner as the exclusive representative of the R&F employees in said organization unit (§12) Subject of Negotiation Terms and conditions of employment or improvements thereof. whether per person. CSC . BLR has to do the job.

from buying and dispensing drugs and pharmaceuticals. EMPLOYEE . To serve as the means for the healthy to help pay for the care of the sick and for those who can afford medical care to subsidize those who cannot. (§5) Coverage All citizens of the Philippines (§6) Enrollment 1. To provide health insurance coverage and ensure affordable. 3. QuickTime™ and a TIFF (Uncompressed) decompressor PENSIONER . MEDICARE . available and accessible health care services for all citizens of the Philippines 2. EMPLOYER . RETIREE .Any person whose premiums have been regularly paid to the National Health Insurance Program. THE NATIONAL HEALTH INSURANCE PROGRAM Purpose 1. collection. or any disability acquired that renders them totally dependent on the member for support 4. Beneficiaries shall be enrolled in order for them to be placed under coverage that entitles them to avail of benefits. illegitimate. the parents who are 60 years old or above whose monthly income is below an amount to be determined by the Corporation in accordance with the guiding principles set forth of this Act. 2.The legal dependents of a member are: 1.The process to be determined by the Corporation in order to enlist individuals as members or dependents covered by the Program. He may be a paying member. which shall provide universal health insurance coverage and ensure affordable. acceptable. legitimated.The health insurance program currently being implemented by the Philippine Medical Care Commission.A member of the Program who has reached the age of retirement or who was retired on account of disability.Any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services. It consists of: a. 2. the legitimate spouse who is not a member 2.a person who works for himself and is therefore both employee and employer at the same time. DEPENDENT . management and disbursement for financing the availment of a basic minimum package and other supplementary packages of health insurance benefits by a progressively expanding proportion of the population. and b. Program II. Enrollment process includes the identification of beneficiaries. legally adopted or stepchildren below 21 years of age 3. ENROLLMENT .A natural or juridical person who employs the services of an employee. which is intended for those not covered under the Program I are needed to see this picture. Limited to paying for the utilization of health services by covered beneficiaries or to purchasing health services in behalf of such beneficiaries. from employing physicians and other professionals for the purpose of directly rendering care. which covers members of the SSS and GSIS including their legal dependents. Prohibited from providing health care directly. an indigent member or a pensioner/retiree member. SELF-EMPLOYED . available and accessible health care services for all citizens of the Philippines. either physical or mental. Include sustainable system of funds constitution. the unmarried and unemployed legitimate. MEMBER . 3.An SSS or GSIS member who receives pensions therefrom. and from owning or investing in health care facilities. and indicating how membership was obtained or is being maintained. acceptable. Program I. issuance of appropriate documentation specifying eligibility to benefits.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 criteria as may be defined by the Corporation in accordance with the guiding principles set of this Act. PROGRAM NATIONAL HEALTH INSURANCE The compulsory health insurance program of the government as established in this Act. children who are 21 years old and above who are suffering from congenital disability. acknowledged children as appearing in the birth certificate. (§5) Establishment 1. Enrollment shall proceed in accordance with these specific policies: Page 81 of 83 . where there is an employer-employee relationship.

or private non-profit health insurance plans shall be enrolled in the Program upon accreditation by the Corporation (§7) Benefit Package 1. drug and alcohol abuse or dependency treatment. Monthly contributions need not be paid by the following to be entitled to benefits: 1. laboratory and other medical examination services. He is not currently subject to legal penalties B. including SSS and GSIS members. c. d. Inpatient hospital care: a. home and rehabilitation services. 7. c. 2. or health care providers of the Program who believe they have been aggrieved by any decision of the implementors of the Program. b. and other medical examination services. may seek redress of the grievance in accordance with the provisions of this Article. use of surgical or medical equipment and facilities. and d. Procedure 1. Emergency and transfer services 4. and 8. cosmetic surgery. all persons eligible for benefits as members of other government initiated health insurance programs. (§40) Grievance and Appeal Procedure A. cooperatives. 4. retirees. shall immediately and automatically be made members of the National Health Insurance Program. Grounds for Grievances 1. or 3. all persons eligible for benefits through health insurance plans established by local governments as part of Program II of Medicare or in accordance with the provisions of this Act. subject to the limitations described in Section 37 of this QuickTime™ and a Act TIFF (Uncompressed) decompressor are needed to see this picture. Retirees and pensioners of the SSS and GSIS prior to the effectivity of this Act 2. Other health care services (§10) Excluded Personal Health Service 1. and d. cost-ineffective procedures which shall be defined by the Corporation. 2. prescription drugs and biologicals. subject to the limitations stated in Section 37 of this act f. Dependent. all persons eligible for benefits as members of local health insurance plans shall also be deemed to have enrolled in the Program. services of health care professionals. optometric services. c. diagnostic. community-based health care organizations. room and board. . 2. (§11) ENTITLEMENT TO BENEFITS A. Who may file complaint 1. 2. inpatient education packages 2. including indigent members. He can show that he contributes with sufficient regularity. b. dependents. delay in the processing of claims that extends beyond the period agreed upon. personal preventive services. laboratory. outpatient psychotherapy and counseling for mental disorders. a willful neglect of duties of Program implementors that results in the loss or nonenjoyment of benefits by members or their dependents. 4. all persons currently eligible for benefits under Medicare Program I. pensioners and their dependents. and 5. and 3. any other act or neglect that tends to undermine or defeat the purposes of this Act. and 3. Outpatient care: a. non-prescription drugs and devices. services of health care professionals. Members who reach the age of retirement and have paid at least 120 monthly contributions. diagnostic. unjustifiable delay in actions on claims. normal obstetrical delivery. Member. 5. A member whose premium contributions for at least 3 months have been paid within the 6 months prior to the first day of his or his dependents' availment. A complaint for grievance must be filed with the Local Health Office (LHO) Page 82 of 83 3. shall also be enrolled in the Program. any violation of the rights of patients. 3. 6. 3. Requisites: 1. prescription drugs and biologicals. e.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 a. b. Health care provider B. Enrollment of persons who have no current health insurance coverage shall be given priority by the corporation. Enrolled indigents (§11) GRIEVANCE SYSTEM Members.

or require the respondent to file a verified answer within 5 days from service of summons. GARC shall require the parties to submit. The hearing shall be terminated within 15 days. In the event GARC finds. Should the defendant fail to answer the complaint within the reglamentary five-day period. that a judgment may be rendered thereon and a hearing. imposition of charges on members or their dependents in case of revocation of their entitlement. suspension or revocation of accreditation 2. Such decision is appealable to the Board by filing the appellant's memorandum of appeal within 15)days from receipt of the copy of the judgment appealed from. After an answer is filed and the issues are joined. LHO shall rule on the complaint within 90 calendar days from receipt 3. 3. the affidavits of the witnesses and other evidence on the factual issues defined therein. or 3. the affidavits and other evidence. Appeals from LHO decisions must be filed with the Board within 30 days from receipt of notice of dismissal or disallowance by the Office C. or any other valid ground for dismissal of the complaint after consultation with the Board. proceed to render judgment not later 10 days from the submission of the position statements of the parties 4. The decision of GARC shall become final and executory 15 days after notice thereof 6. 2. In cases where GARC deems it necessary to hold a hearing to clarify specific factual matters before rendering judgment. Hearing Procedures of Grievance and Appeal Review Committee (GARC) 1. and the case decided by the Committee within15 days from such termination. it may without need of QuickTime™ a formal TIFF (Uncompressed) decompressor are needed to see this picture. The decision of the Board shall also become final and executory 15 days Such decision is reviewable by the Supreme Court on purely questions of law (§41) Page 83 of 83 . All decisions by the Board as to entitlement to benefits of members or to payments of health care providers shall be considered final and executory E. motu proprio or upon motion of the complainant. imposition of fines.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 2. upon consideration of the pleadings. and position statements submitted by the parties. At such hearing. GARC. failure to state the cause of action. GARC may dismiss the case outright due to lack of verification. shall render the judgment. Upon the filing of the complaint. witnesses whose affidavits were previously submitted may be asked clarificatory questions by the proponent and by the Committee and may be crossexamined by the adverse party. within 10 days from receipt of the order. it shall set the case for hearing for the purpose. together with a brief statement of their positions setting forth the law and the facts relied upon by them. LHO has NO jurisdiction over any issue involving: 1. 5. D. The appellees shall be given15 days from notice to file the appellee's memorandum after which the Board shall decide the appeal within 30 days from the submittal of the said pleadings. 7.

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