A. FUNDAMENTAL PRINCIPLES AND POLICIES 1. Constitutional Provisions a.

Article II - Declaration of Principles and State Policies The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all.1 The State shall promote social justice in all phases of national development.2 The State values the dignity of every human person and guarantees full respect for human/rights.3 The State recognizes the vital role of the youth in nation-building and shall promote and protect their physical, moral, spiritual, intellectual, and social well-being. It shall inculcate in the youth patriotism and nationalism, and encourage their involvement in public and civic affairs.4 The State recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men.5 The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare.6 The State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.7 b. Article III– Bill of Rights No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws. 8 No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of the people peaceably to assemble and petition the government for redress of grievances.9
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Sec. 9 Sec.10 3 Sec.11 4 Sec. 13 5 Sec. 14 6 Sec. 18 7 Sec. 20 8 Sec. 1.

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The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged.10 c. Article XIII – The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good. To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its increments.11 The promotion of social justice shall include the commitment to create economic opportunities based on freedom of initiative and self-reliance.12 The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.13 The State shall protect working women by providing safe and healthful working conditions, taking into account their maternal functions, and such facilities and opportunities that will enhance their welfare and enable them to realize their full potential in the service of the nation.14

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Sec. 4. Sec. 8. 11 Sec. 1. 12 Sec. 2. 13 Sec. 3. 14 Sec. 14.
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2. New Civil Code The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects.15 3. Labor Code The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self- organization, collective bargaining, security of tenure, and just and humane conditions of work.16 A. It is the policy of the State: (a) To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes; (b) To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; (c) To foster the free and voluntary organization of a strong and united labor movement; (d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees; (e) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes; (f) To ensure a stable but dynamic and just industrial peace; and (g) To ensure the participation of workers indecision and policy-making processes affecting their rights, duties and welfare. B. To encourage a truly democratic method of regulating the relations between the employers and employees by means of agreements freely entered into through collective
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Art. 1700 Art. 3

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no court or administrative agency or official shall have the power to set or fix wages. 1. 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. Includes any person in the employ of an employer. The term shall not include any labor organization or any of its officers or agents except when acting as employer. rates of pay. as amended. The Tripartite Voluntary Arbitration Advisory Council established under Executive Order No. in the Department of Labor.bargaining. unless the Code so explicitly states. 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. 211 4 . Commission The National Labor Relations Commission or any of its divisions. directly or indirectly. as the case may be. Includes any person acting in the interest of an employer. The Bureau of Labor Relations and/or the Labor Relations Divisions in the regional offices established under Presidential Decree No. 126. The National Conciliation and Mediation Board established under Executive Order No.17 Definitions. The term shall not be limited to the employees of a particular employer. except as otherwise provided under this Code. 126. Bureau Board Council Employer Employee Labor organization 17 Art. hours of work or other terms and conditions of employment.

Includes any controversy or matter concerning terms and conditions of employment or the association or representation of persons in negotiating. One who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire. in the interest of the employer. function or administration has been assisted by any act defined as unfair labor practice by this Code. Any person accredited by the Board as such or any person named or designated in the Collective Bargaining Agreement by the parties to act as their Voluntary Arbitrator. discharge. fixing. A legitimate labor organization whether or not employed by the employer. recall. changing or arranging the terms and conditions of employment regardless of whether the disputants stand in the proximate relation of employer and employee. transfer. Any labor organization whose formation. suspend. or one chosen with or without the assistance of the National Conciliation and Mediation Board. effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. maintaining. assign or discipline employees Those who. Any unfair labor practice as expressly defined by the Code. pursuant to a selection procedure agreed upon in the Collective 5 Company union Bargaining representative Unfair labor practice Labor dispute Managerial employee Supervisory employees Rank-and-file employees Voluntary Arbitrator .Legitimate labor organization Any labor organization duly registered with the Department of Labor and Employment. lay-off. All employees not falling within any of the above definitions. and includes any branch or local thereof.

an individual employee or group of law to the contrary notwithstanding. threats. The establishment. or any official that may be authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a labor dispute. or interferes with by force. of the employer struck against. to participate in policy and decision-making processes of the establishment where they are employed insofar as said processes will directly affect their rights. benefits and welfare. However. 212 6 .Bargaining Agreement. Strike Any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute. depots. including the sites or premises used as runaway shops. 18 Art. warehouses. coercion. or intimidation any peaceful picketing affecting wages. impedes. violence. plants or offices. Includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by-laws of a union.18 Lockout Internal union dispute Strike-breaker Strike area The labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit shall be the exclusive representative of the employees in such unit for the purpose of collective bargaining. including any violation of the rights and conditions of union membership provided for in this Code Any person who obstructs. hours or conditions of work or in the exercise of the right of self-organization or collective bargaining. workers shall have the right. subject to such rules and regulations as the Secretary of Labor and Employment may promulgate. Any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. 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.

19 19 Art. workers and employers may form labor-management councils: Provided. 255 7 .For this purpose. That the representatives of the workers in such labor-management councils shall be elected by at least the majority of all employees in said establishment.

utilizing. R.25 20 Some relevant principles: Mere impression that recruiter is capable of providing work abroad is sufficient. promising or advertising for employment. Recruitment and placement. Only one (1) person recruited is sufficient to constitute recruitment. Any act of canvassing.A. 8042 24 See Reference 25 Art. enlisting.B. 23 Art. in any manner. locally or abroad. to be undertaken by non-licensees or non-holders of authority. transporting. Illegal Recruitment23 Under the Labor Code: Any recruitment activities. offers or promises for a fee employment to 2 or more persons22 is deemed engaged in recruitment and placement b. RECRUITMENT AND PLACEMENT 1. 38 (Local). Illegal recruitment is deemed committed in large scale if committed against three (3) or more persons individually or as a group. contracting. A person convicted for illegal recruitment may still be convicted for estafa 21 Art. hiring or procuring workers. whether for profit or not. Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring and/or confederating with one another in carrying out any unlawful or illegal transaction. Recruitment of Local and Migrant Workers a.20 defined 1. "Referral" of recruits also constitutes recruitment activity. Migrant Workers Act. Sec. and 2. 13 [b] 22 Ibid. Non-prosecution of another suspect is not material.21 Any person or entity which. 6. 38 8 . Includes referrals. Absence of receipt to prove payment is not essential to prove recruitment. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage. enterprise or scheme. contact services. including the prohibited practices enumerated under Article 3424 of this Code.

(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency or who has formed. joined or supported. enlisting. (b) To furnish or publish any false notice or information or document in relation to recruitment or employment. (f) 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. Whose license or authority has been suspended. It shall likewise include the following acts. 804226 Any act of canvassing. testimony. whether for profit or not.Under R. whether a non-licensee. contracting. licensee or holder of authority: (a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment. revoked or cancelled by the POEA or the SLE 9 . in any manner. offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. whether committed by any person. or to make a worker pay or acknowledge any amount greater than that actually received by him as a loan or advance. hiring. or for the purpose of documenting hired workers with the POEA. Which has not been issued a valid license or authority to engage in recruitment and placement by the Secretary of Labor and Employment (SLE) or 2. placement vacancies. work different from the actual overseas work. non-holder. 13 (f) 28 Any person. remittance of foreign exchange earnings. departures and such other matters or information as may be required by the Secretary of Labor and Employment. which include the act of reprocessing workers through a job order that pertains to nonexistent work. information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code. utilizing.A. (h) To fail to submit reports on the status of employment. or has contacted or is supported by any union or workers' organization. (d) To include or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment. promising or advertising for employment abroad. (c) To give any false notice. or work with a different employer whether registered or not with the POEA. corporation or entity: 1. 26 27 as amended by R. transporting. 10022 under Art.A.27 Any such non-licensee or non-holder28 who. separation from jobs. or procuring workers and includes referring. contract services. when undertaken by non-licensee or nonholder of authority.

a licensed Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring or confederating with one another. other than those authorized under the Labor Code and its implementing rules and regulations. 10 . Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage. (a) License29 vs. nor may such license or authority be transferred. undertake recruitment and placement activities only at their authorized official addresses. (k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations. engage in recruitment and placement activities as a private recruitment entity. (m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment. 29 No license or authority shall be used directly or indirectly by any person other than the one in whose favor it was issued or at any other place other than that stated in the license or authority. employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment. Change of ownership or relationship of single proprietorship licensed to engage in overseas employment shall cause the automatic revocation of the license. as a rule. It is deemed committed in large scale if committed against three (3) or more persons individually or as a group. or for any other reasons. Authority License Authority A document issued by the Department of A document issued by the Department of Labor authorizing a person or entity to Labor authorizing a person or association to operate a private employment agency. (j) For an officer or agent of a recruitment or placement agency 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 travel agency. conveyed or assigned to any other person or entity. in cases where the deployment does not actually take place without the worker's fault.(i) To substitute or alter to the prejudice of the worker. (l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment. and (n) To allow a non-Filipino citizen to head or manage recruitment/manning agency. Licensees or holders of authority or their duly authorized representatives may.

Any act of canvassing. locally or abroad. enlisting. contracting. (d) Illegal recruitment in large scale32 (e) Illegal recruitment as economic sabotage When it is committed:: By a syndicate In large scale If carried out by a group of 3 or more If committed against 3 or more persons persons conspiring and confederating with individually or as a group one another. whether for profit or not. utilizing.31 (c) Simple illegal recruitment When it involves less than three (3) victims or recruiters. 13[b] supra 32 infra 11 . and includes referrals. 34. 30 31 Art.30 or b. hiring or procuring workers. Any of the prohibited practices under Art. contact services.(b) Essential elements of illegal recruitment 1. promising or advertising for employment. Offender undertakes: a. transporting. Offender is a non‐licensee or non‐holder of authority to lawfully engage in the recruitment/placement of workers 2.

and vice versa. 2. 182978‐79. If the recruitment/placement agency is a juridical being. Comila. or by means of similar deceits executed prior to or simultaneously with the commission of fraud ( People v. April 7.thus: 1. 171448. par. Criminal intent is necessary 2. Illegal recruitment and estafa cases may be filed simultaneously or separately.R. agency. or falsely pretends to possess power. influence. qualifications. A crime which involves moral turpitude Estafa Malum in se. 517 SCRA 153. Estafa33 Illegal recruitment Malum prohibitum. The filing of charges for illegal recruitment does not bar the filing of estafa. No. 35 It is essential that the false statement or fraudulent representation constitutes the very cause or the only motive which induces the complainant to part with the thing of value. Cuaresma. 315. business or imaginary transactions. thus: 1. Estafa is committed by any person who defrauds another by using fictitious name.(f) Illegal Recruitment vs. (Becmen Service Exporter and Promotion v. Criminal intent is not necessary 2. property. credit. G. A crime which involves moral turpitude It is not required that it be shown that the Accused defrauded another by abuse of recruiter wrongfully represented confidence.35 34 himself as a licensed recruiter. RPC. G. 36 This joint and solidary liability imposed by law against recruitment agencies and foreign employers is meant to assure the aggrieved worker of immediate and sufficient payment of what is due him.36 33 under Art. Double jeopardy will not set in (g) Liabilities (a) Local employment agency (b) Foreign employer They are jointly and severally liable for any violation of the recruitment agreement and the contracts of employment.R. or by means of deceit. 167) 34 It is enough that the victims were deceived as they relied on the misrepresentation and scheme that caused them to entrust their money in exchange of what they later discovered was a vain hope of obtaining employment abroad. Nos. shall themselves be jointly and solidarily liable with the corporation or partnership for the claims and damages. 2009) 12 . February 28. 2007. the corporate officers and directors and partners as the case may be.

Filipinas Compania.R. 2 43 Sec. Ocampo. vide Air France v. et al. Theory of imputed knowledge37 A rule in insurance law that any information material to the transaction.. 15. 8042 41 Ibid. 391 SCRA 176. 55-96 provides Underage migrant worker Seafarer 37 38 knowledge of the agent is knowledge of the principal. or other similar events Shall be borne by the migrant worker41 disasters. 48 OG 243 39 Rovels Enterprises.i. remains of the deceased worker and his personal belongings. No. worker and his personal belongings. 16. October 17. at least so far as the transaction is concerned. Leonor v. Court of Appeals. 40 Sec. done by the responsible officers of the foreign service where the underage migrant worker is found. 136821.42 Shall be mandatory upon discovery. either possessed by the agent at the time of the transaction or acquired by him before its completion. 2002.43 POPEA Memo Circular No. R.38 Ascribes the knowledge of the agent to the principal employer.40 Fault of the migrant worker In cases of war. 1. calamities. 42 id. Shall be borne by OWWA. 211 Phil. is deemed to be the knowledge of the principal. without prejudice to reimbursement by the principal or local agency. Par.A. 2. v. G. epidemic.39 (h) Pretermination of contract of migrant worker Rules on Repatriation of Overseas Workers: Without fault of the worker His repatriation shall be borne by the local agency and/or principal over the 1. 13 . Inc. even though in fact the knowledge is not communicated to the principal at all. 601 (1983). not the other way around. par. id.

Employers cannot directly hire workers for overseas employment except through authorized entities duly authorized by POEA as follows: a. termination pay of one (1) month basic salary. Direct hiring45 General Rule: An employer may only hire Filipino worker for overseas employment through POEA or entities authorized by DOLE. b. public employment offices. d. 3. of Labor. if seaman has at least ten (10) months original contract. b.NLRC. Members of the diplomatic corps. all his earned wages. 14 . construction contractors. 511 SCRA 44 (2006) It is when an employer hires a Filipino worker for overseas employment without going through the POEA or entities authorized by the Secretary of Labor. c. c. shipping or manning agents or representatives. Exceptions: Direct hiring by 1. International organizations 2. f. vs. 44 45 PCL Shipping Pils. but only upon payment of a. Philippine Overseas Employment Administration (POEA). and g. leave pay for the entire contract. and 4. Name hires. such other persons or entities as may be authorized by the Secretary of Labor and Employment.that a seaman can be repatriated without cause if the vessel arrives at a convenient port within three (3) months before the expiration of his contract. private employment agencies. private recruitment entities. Such other employers as may be allowed by the Dept.44 c. e.

857 48 Art. Inter‐Agency Committee for Implementation of E.Charging or accepting any amount greater than that specified by DOLE or make a worker pay any amount greater than actually received by him 8. beneficiaries and dependents are residing with him abroad 2. Immigrants and Filipino professionals and employees working with the UN agencies or specialized bodies 3. Filipino servicemen working in U. The worker’s immediate family members. Substituting or altering employment contracts without approval of DOLE 7. Failure to file reports required by SLE 3.46 Exceptions: 1.O. Inducing or attempting to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions 4. dependents.2.Recruitment/placement of workers in/jobs harmful to public health or morality or to the dignity of the country 5. 34 15 . Prohibited activities48 1. military installations.S. POEA Rules Resolution No. Furnishing or publishing any false notice/information/document related to recruitment/employment 2. Regulation and Enforcement a. Book III. Remittance of foreign exchange earnings General Rule: It shall be mandatory for all OFWs to remit a portion of their foreign exchange earnings to their families. Committing any act of misrepresentation to secure a license or authority 46 47 Rule VIII. 1‐83.47 b. Engaging directly or indirectly in the management of a travel agency 6. and/or beneficiaries ranging from 50% ‐ 80% depending on the worker’s kind of job.

Withholding or denying travel documents from applicant workers before departure for monetary considerations other than authorized by law 12. To undergo training of any kind only from designated institutions.A. as provided under the compulsory wor ker's insurance coverage 16.To undergo health examinations only from specifically designated medical.Refusing to condone or renegotiate a loan incurred by an OFW after his employment contract has been prematurely terminated through no fault of his or her Own. 10022 16 .Influencing or attempting to influence any person/entity not worker who has not applied of employment through his agency atives to employ any 10. entities or persons.For a recruitment/manning agency or a foreign principal/employer to pass on the OFW or deduct from his or her salary the payment of the cost of insurance fee. except for recommendatory trainings mandated by principals /shipowners. Avail a loan only from specifically designated institutions.9. 6. entities or persons. and 15. entities or b. R.49 49 Sec. except seafarers whose medical examination cost is shouldered by the shipowner c. 14.Granting a loan to an OFW which will be used for payment of legal and allowable placement fees 13. For a suspended recruitment/manning agency to engage in any kind of recruitment activity including the processing of pending workers' applications. premium or other insurance related charges.Imposing required to: persons a compulsory and exclusive arrangement whereby an OFW is a.Obstructing or attempting to obstruct inspection by SLE or by his represent 11.

Penalties for illegal recruitment50 Offender / Offense Penalty IR as economic sabotage Provided: 1. If person illegally recruited is below 18 years of age or 2. wage order.Restrict and regulate the recruitment and 1.c.Question any employee and investigate any fact. condition or matter which may be necessary to determine violations or which may aid in the enforcement of the Labor Code and of any labor law. Issue orders and promulgate rules and regulations 2. To copy from said records 3. d. Access to employer’s records and placement activities of all agencies premises at any time of the day or night. Illegal recruitment is committed by a non‐ licensee/non‐holder Any person found guilty of illegal recruitment 12 yrs. imprisonment.A. or Fine: P1M‐P2M 6 yrs. 10022 17 . or Fine of P500K ‐ P1M 50 Penalty Life imprisonment fine of P2M‐P5M + Maximum penalty shall be imposed Any person found guilty of the prohibited acts under R. imprisonment. and 1 day ‐ 12 yrs. whenever work is being undertaken 2. and 1 day ‐ 20 yrs. Regulatory and visitorial powers of the Labor Secretary Regulatory powers Visitorial powers 1. or rules and regulation issued pursuant thereto.

association. + Deportation without further proceedings Automatic revocation of license or authority and all permits and privileges of the recruitment or manning agency. 4‐8 yrs imprisonment. partnership.Licensee/holder of authority violates provisions Alien Non‐licensee/non‐holder of authority violates provisions 2‐5 yrs imprisonment.A. In every case 18 . or entity Penalty imposed upon officer/s responsible for violation Alien Penalties prescribed under R. 10022. lending institutions. training school or medical clinic. or Fine: P20K ‐ P100K Corporation. or Fine: P10K ‐ P50K.

5. 2.not prohibited by law provided there is no reduction in pay of workers. domestic helpers. They must meet all of the ff. "Work week" is a week consisting of 168 consecutive hours or 7 consecutive 24-hour work days beginning at the same hour and on the same calendar day each calendar week. 82[2]) 53 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 19 . Execute under general supervision special assignment and tasks. 4. 2. or their suggestions and recommendations as to the hiring and firing and as to the promotion or any change of status of other employees are given particular weight. (Art. and other officers or members of the managerial staff. undertakings. Do not devote more than 20% of their hours worked to activities which are not directly and closely related to performance of the work described. Workers who are paid by results 51 Work day" means 24 consecutive-hour period which commences from the time the employee regularly starts to work.52 3. Customarily or regularly direct the work of 2 or more employees 3. or knowledge 5. Coverage/Exclusions Coverage Exclusions Employees in all establishments and 1. It does not necessarily mean the ordinary calendar day from 12:00 midnight to 12:00 midnight unless the employee starts to work at this unusual hour. Government employees. and 6. namely: 1. whether for profit or not.payment of wage should be in proportion only to the hours worked. conditions. 52 Those whose primary duty consists of the management of the establishment in which they are employed or a department or subdivision thereof. LABOR STANDARDS 1.Primary duty: management of the establishment in which they are employed or of a department or sub‐division thereof. Field personnel.C. Hours of work of part-time workers . and 6.Execute under general supervision work along specialized or technical lines requiring special training. experience.Has the authority to hire or fire other employees of lower rank. Persons in the personal service of another.53 4. Reduction of eight-hour working day . Members of the family of the employer who are dependent on him for support. Hours of Work51 a. Managerial employees.

Exceptions Health Personnel54 1.Hospitals and clinics with a bed capacity more than 8 hours but not to exceed of at least 100 12 hours.b. dietitians. 57 Department Advisory Order No.57 56 8 hours/5 days. laboratory technicians. or Compressed Work Week55 The normal workweek is reduced to less than 6 days but the total number of Work hours of 48 hours per week shall remain. The concept can be adjusted General Rule: accordingly depending on the normal workweek of the company. Series of 2009 20 . social workers. Health personnel in cities and municipalities with a population of at least 1 million. The normal workday is increased to 2. Hours of Work). nutritionists. exclusive of time for meals. Normal Hours of Work Eight (8) hours per day in a general working day. supra 56 40‐hour work week Does not apply if there is a training agreement between the resident physician and the hospital and the training program is duly accredited or approved by appropriate government agency. they shall be entitled to an additional compensation of at least 30% of their regular wage for work on the 6th day. midwives. nurses. paramedical technicians. 2. attendants and all other hospital or clinic personnel 55 See shortening of work week (under 1. Exceptions Where the exigencies of the service require that such personnel work for 6 days or 48 hours. 54 Include resident physicians. pharmacists. without corresponding overtime premium. psychologists. 1.

Work interruption due to brownouts a.considered coffee break or rest period of short duration and. machineries. Industrial enterprises with 1 or 2 work shifts may adopt any of the work shift prescribed for enterprises with 3 work shifts to prevent serious loss or damage to materials. If shortened to less than 20 minutes . Meal Break Every employee is entitled to not less than one (1) hour (or 60 minutes) time-off for regular meals.compensable hours worked. b. Being time-off. Brown-outs of short duration not exceeding twenty (20) minutes . Brown-outs running for more than twenty (20) minutes may not be treated as hours worked provided any of the following conditions are present: 1. In each case. 36 21 . If meal time is shortened to not less than twenty (20) minutes . he should be compensated therefor. The employees can leave their workplace or go elsewhere whether within or without the work premises. it is not compensable hours worked and employee is free to do anything he wants. d. The employees can use the time effectively for their own interest.58 3. except to work.2. compensable. the employer may extend the working hours of his employees outside the regular schedules to compensate for the loss of productive man‐ hours without being liable for OT pay. therefore.compensable hours worked whether used productively by the employees or not. or equipment that may result case of power interruptions. 58 Policy Instruction No. If he is required to work while eating. c. or 2.

Idle time.59 waiting is an integral part of the employee's work or he is Except: required or engaged by the employer to wait. waiting time. He is completely relieved from all duty until 6pm. When the employee is idle or inactive by reason of interruptions beyond his control -considered working time. it is not Considered compensable if compensable. when he again goes on duty for the return trip to Vigan.compensable hours worked.not compensable working time b. Travel that is all in the day’s work . c. Travel away from home compensable hours worked. His route is from Vigan to Baguio. whether part of hours of work or not Idle time Waiting time Travel time time. travel time. Stiller works as a Partas Trans bus driver.4. He is merely waiting to be engaged. because during his idle time. he is specifically relieved from all duty. Is his idle time working time? No.g. commuting Not working time. 22 . Travel from home to work . commuting time. 59 e. leaving at 6am and arriving at 12nn. a.

working days. 23 . When overtime work is necessary to prevent loss of life or property or in case of imminent danger to public safety due to actual or impending emergency in the locality caused by serious accident.5. said undertime hours should not be offset against the overtime hours on the same day or on any other day. When an employee refuses to render emergency overtime work under any of the foregoing conditions. 88 63 It is governed by law and not merely by the agreement of the parties. When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive b. 61 In computing overtime work. c. When overtime work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon. It is both prohibited by the statute and by jurisprudence. When there is urgent work to be performed on machines. 62 Sec. "regular wage" or "basic salary" means "cash" wage only without deduction for facilities provided by the employer. epidemic or other disasters or calamities. Exceptions: a. typhoons. he may be dismissed on the ground of insubordination or willful disobedience of the lawful order of the employer. such as rest days and special days. When the work is necessary to prevent loss or damage to perishable goods.62 cannot be waived. earthquake. 60 General Rule: No employee may be compelled to render overtime work against his will. floods. "Premium pay" means the additional compensation required by law for work performed within 8 hours on non. e. "Overtime pay" means the additional compensation for work performed beyond 8 hours.61 Undertime not offset by overtime Waiver of overtime pay Undertime work on any particular day shall The right of the laborers to overtime pay not be offset by overtime on any other day. Every employee entitled to premium pay is also entitled to the benefit of overtime pay. When the completion or continuation of work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer. installations or equipment.63 Where a worker incurs undertime hours during his regular daily work. fire. Overtime work60 Work beyond eight(8) hours of work within the worker’s 24 hour workday. or in order to avoid serious loss or damage to the employer or some other causes of similar nature d. and f.

the premium for work performed on the employee’s rest days or on special days or regular holidays are included as part of the regular rate of the employee in the computation of overtime pay for any overtime work rendered on said days especially if the employer pays only the minimum overtime rates prescribed by law. however. CBA provision vis-à-vis overtime work Generally. 64 National Rice & Corn Corp.64 d. 105 Phil 891 24 . Night Work Any and all work rendered between 6:00 pm and 6:00 am. Such agreement may be considered valid only if the stipulated overtime pay rates will yield to the employees not less than the minimum prescribed by law. v. may stipulate in their collective agreement the payment of overtime rates higher than those provided by law and exclude the premium rates in the computation of overtime pay. The employees and employer.c. NARIC.

the ATM system of payment is with the written consent of the employees concerned. No. Prevented by management. Illegally suspended. Exceptions: The laborer was able. 3. Illegally dismissed 5. There is a bank or ATM facility within a radius of one (1) kilometer to the place of work. as a general rule. 2000 25 . shall be considered compensable hours worked. Illegally locked out. there can be no wage or pay. without the fault of the emp loyer. Otherwise illegally prevented from working. the employer shall issue a record of payment of wages. coupons or any other form alleged to represent legal tender is prohibited even when expressly requested by the employee Exceptions : A. promissory notes. as amended. Wages65 a. G.benefits and deductions for a particular period. "No work no pay" principle66 Actual work is the basis of claim for wages. General Rule: If there is no work performed by the employee. The employer shall assume responsibility in case the wage protection provisions of law and regulations are not complied with under the arrangement 66 applies to special days but not to unworked regular holidays where employees are always paid “100%” of their basic pay. wages shall be paid in legal tender and the use of tokens. 3. 7. 4. if done during working hours. Jan. The employees are given reasonable time to withdraw their wages from the bank facility which time.2.67 65 Under the Civil Code.R. vouchers. Payment through automated teller machine (ATM) of banks provided the following conditions are met: 1. Upon request of the concerned employee/s. Under the Labor Code and its implementing rules. The system shall allow workers to receive their wages within the period or frequency and in the amount prescribed under the Labor Code. There shall be an additional expenses and no diminution of benefits and privileges as a result of the ATM system of payment. v. 6. 5. NLRC. 2. 129246. 67 Aklan Electric Coop. willing and ready to work but was: 1. it is mandated that the laborer’s wages shall be paid in legal currency. 25. 4. 2.

2. G.the fair and reasonable value of board. Coverage/Exclusions Coverage It applies to all employees Exclusions 1. 1955 26 .A.70 Forms part of the wage Independent of wage 68 69 R. 3. Facilities69 vs. July 19.. his acceptance of such facilities must be voluntary (Sec. Rule VII. supplements Facilities Items of expenses necessary for the laborer’s and his family’s existence and subsistence but does not include tools of the trade or articles or services primarily for the benefit of the employer or necessary to the conduct of the employer’s business. Rules to Implement the Labor Code) 70 Atok Big Wedge Mining Co.68 c.b.R. Workers in duly registered cooperatives when so recommended by the Bureau of Cooperative Development and upon approval of the Secretary of Labor and Employment. L‐7349.Household or domestic helpers. Workers of a barangay micro business Enterprise. Book III. v. 4. Farm tenancy or leasehold. 5. Atok Big Wedge Mutual Benefit Assoc. 9178 Value of facilities . lodging and other facilities customarily furnished by an employer to his employees both in agricultural and non-agricultural enterprises In order that the cost of facilities furnished by the employer may be charged against an employee. Supplements Extra remuneration or special privileges or benefits given to or received by the laborers over and above their ordinary earnings or wages.Home workers engaged in needlework or in any cottage industry duly registered in accordance with law. including family drivers and persons working in the personal service of another. No. 7.

position in office. d. Wage distortion72 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 71 72 Subject to execution skilled or unskilled Elements: 1. An existing hierarchy of positions with corresponding salary rates. 2. clothing and medical attendance. NLRC. and implies a week. e. 140689. No.R. Feb. paid a higher degree of employment. fixed compensation for more important services. 3. Wages vs. 17. Salaries Compensation for manual labor71 Paid to “white collared workers” and denotes also known as “blue collared workers”. Indicates inconsiderable pay for a lower or Suggests a larger and more permanent or less responsible character of employment. and 4. superior grade of services. General Rule: Not subject to execution Exceptions: Debts incurred for food. 2004) 27 . The WD exists in the same region of the country (Alliance Trade Unions v. salaries Wages Not wage deductible Granted for the convenience of the employer. shelter. month or season. A significant change or increase in the salary rate of a lower pay class without a corresponding increase in the salary rate of a higher one. The elimination of the distinction between the 2 groups or classes.Deductible from wage For the benefit of the worker and his family. or a at stated times and measured by the day. G.

f. 100 76 Exception: To correct an error.76 73 74 R. The practice is consistent and deliberate. and It is not due to an error in the construction/ application of a doubtful or difficult question of law. or Has ripened into practice over a long period of time. It can be Administrative issuance which results from entered into only by an exclusive a statute. It is incumbent upon the employer to compensate the employees according to the provisions of the CBA with respect to wages.judicial tribunals. it ripens into a company policy and employees can demand it as a matter of right. If the CBA provides better benefits.73 bargaining agent or unit. 6727 The rule is applicable if it is shown that the grant of the benefits is: Based on an express policy. Only sets the minimum A CBA provision regarding wages prevails over a Wage Order where the CBA provides a wage or salary to be received by the employees which is more than the amount set by the Wage Order. written or unwritten. The issue of whether or not a wage distortion exists is a question of fact that is within the jurisdiction of the quasi. otherwise. Non-diminution of benefits74 This principle mandates that the reduction or diminution or withdrawal by employers of any benefits. if the error is not corrected for a reasonable time. 28 . whether issued prior to or after the conclusion of the CBA. 75 See Art. CBA vis-à-vis Wage Orders – CBA creditability CBA Wage order Not an ordinary contract.A. length of service. g. is not allowed. individual agreements or collective bargaining agreements between workers and employers or voluntary employer practice or policy. supplements or payments as provided in existing laws. then the employees shall be entitled to the same.75 The benefits being given to employees cannot be taken back or reduced unilaterally by the employer because the benefits have become part of the employment contract.embodied in such wage structure based on skills. or other logical bases of differentiation.

18. it also extends to termination pay and other monetary claims. 18. Applicable only to ordinary preferred credit.R.79 No employer in his own behalf or in behalf of any person. 113 29 . (b) For union dues. The preference does not only cover unpaid wages. 82763 Mar. after all. Declaration of bankruptcy or judicial liquidation before enforcement of the worker’s preferential right. No. compel or oblige his employees to purchase merchandise. G. No.80 77 78 DBP vs. 1993 Termination pay.h. shall make any deduction from the wages of his employees. hence. Filing of claims by workers. The preference in favor of the employees applies to discharge of funds. Dec. Labor Code provisions for wage protection No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. The right does not constitute a lien to the property of the insolvent debtor in favor of workers. 2. or otherwise make use of any store or service of such employer or any other person. i. 1989) 79 Art.78 5.77 4. 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. 19. ( PNB vs. commodities or other properties from the employer or from any other person. 80 Art. it is computed on the basis of length of service. He shall not in any manner force. must yield to special preferred credits. except: (a) In cases where the worker is insured with his consent by the employer. Worker’s preference in case of bankruptcy 1. and the deduction is to recompense the employer for the amount paid by him as premium on the insurance. NLRC. 97176.R. Mar. 80593. is considered as additional remuneration for services rendered to the employer for a certain period of time. 112.R. No. G. 3. Cruz. and (c) In cases where the employer is authorized by law or regulations issued by the Secretary of Labor. 1990 and G.

materials or equipments supplied by the employer. 118 30 . directly or indirectly. discharge or in any manner discriminate against any employee who has filed any complaint instituted any proceeding under this Title or has testified or is about to testify in such proceedings. 114 Art. and his responsibility has been clearly shown.83 It shall be unlawful to make any 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 or retention in employment. occupations or business where the practice of making deductions or requiring deposits is a recognized one. except when the employer is engaged in such trades.No employer shall require his worker to make deposits from which deductions shall be made for the reimbursement of loss of or damage to tools. stealth. 115 83 Art 116 84 Art 117 85 Art.84 It shall be unlawful for an employer to refuse to pay or reduce the wages and benefits.82 amount from the wages of a worker or induce him to give up any part of his wages by force. intimidation. or desirable as determined by the Secretary of Labor in appropriate rules and regulations.81 No deduction from the deposits of an employee for the actual amount of the loss ordamage shall be made unless the employee has been heard thereon. to withhold any 81 82 Art. threat or by any other means whatsoever without the worker’s consent. or is necessary.85 It shall be unlawful for any person.

91 11. Deductions for value of meals and facilities freely agreed upon 10. NCC 92 Art. Allowable deductions without employee’s consent General Rule It is strictly prohibited Exceptions 1. Union dues 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. Deductions86 for insurance premiums 2. Taxes withheld pursuant to the Tax Code 5. Book III of the IRR 89 Opinion dated March 10. and medical attendance. Deductions for loss or damage to tools. 31 .87 Art. In case where the employee is indebted to the employer where such indebtedness has become due and demandable. wages may be subject of execution or attachment. id. 1975 of the SLE 90 under Art. Agency fees90 9. 1703. Medicare and Pag‐ibig premiums 4.89 8.In court awards. Deductions made with the written authorization of the employee for payment to a third person. materials or equipments 6.j. 113 ibid. 241(o) provides that special assessments may be validly checked-off provided that there is an individual written authorization duly signed by every employee. Deductions as disciplinary measures for habitual tardiness.88 7. but only for debts incurred for food. 248(e) 91 Art.92 86 87 under Art. 88 Sec 13. Rule VIII. shelter. 3. clothing. 1706. Deductions for SSS.

59 in any judicial or administrative proceedings for the recovery of wages 95 The prohibition on atty’s lien refers to proceedings for recovery of wages and not to services rendered in connection with CBA negotiations. Attorney’s fees and union service fee in labor cases Attorney’s fees Union service fee 1.95 l. f) Improvements in standards of living.A. Mar. 222 of the Labor Code (Pacific Banking Corp.In case of unlawful withholding of wages The appearance of labor federations and local unions as counsel in labor proceedings has been given legal sanction96 – 10% of the amount of wages to be which allows non-lawyers to represent recovered. i) Effects on employment generation and family income. Clave. c) The cost of living and changes or increases therein. It shall be unlawful for any person to claim to atty’s fees which is called the demand or accept94 atty’s fees that exceed Union Service Fee. No. and 93 94 R. g) The prevailing wage levels. 6938.222 of the LC 32 . d) The needs of workers and their families. 56965.R. 96 under Art. Art.12. Criteria/Factors for Wage Setting a) The demand for living wages. v.93 k. their organization thereof. 7. b) Wage adjustment vis-à-vis the consumer price index. The said labor federations and local unions have a valid 2. 1984). h) Fair return of the capital invested and capacity to pay of employers. e) The need to induce industries to invest in the countryside. In the latter case. G. the amount of atty’s fees may be agreed upon by the parties and the same is to be charged against union funds as provided for in Art. 10% of the amount of wages recovered. Salary deduction of a member of a legally established cooperative.

equipment. Right to weekly rest day Every employer. 2. Abnormal pressure of work due to special circumstances. fire. epidemic or other disaster or calamity to prevent loss of life and property. c. 3. where the employer cannot ordinarily be expected to resort to other measures. 92 33 .j) The equitable distribution of income and wealth along the imperatives of economic and social development97 3. 5. The employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement and to such rules and regulations as the Secretary of Labor and Employment may provide b. The nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer. whether operating for profit or not. When work on rest day authorized 1. Other analogous or similar circumstances as determined by the Secretary of Labor and Employment. to avoid serious loss which the employer would otherwise suffer. 4. and 6. To prevent loss or damage to perishable goods. shall provide each of his employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days.98 97 98 See Art. Actual or impending emergencies caused by serious accident. or imminent danger to public safety. earthquake. or installation. 124 Art. typhoon. Rest Day a. Preference of the employee The employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds. Urgent work to be performed on the machinery. flood.

employees LoA without pay on the day immediately preceding a RH General Rule: are entitled to An employee may not be paid the required holiday pay if he has not worked on such regular holiday. (2) In case of temporary cessation of work Instances 1. When the repair machineries is undertaken or cleaning Rule RH falling within the period shall be of compensated. The scheduled rest day of the employee. Right to holiday pay99 (1) In case of absences LoA100 with pay on the day immediately preceding a RH101 General Rule: All covered holiday pay. It is limited to the 11 regular holidays. 3. Non‐working day in the establishment or 2. Yearly inventory or 2. Exception: Where the day immediately preceding the holiday is a: 1. 100 Leave of Absence 101 Regular Holiday 34 . Due to business reverses RH may not be paid by the employer 99 Art. Every worker shall be paid his regular daily wage during regular holidays. also called legal holidays listed by law. Holidays a. 94 It is a premium given to employees pursuant to law even if he has not been suffered to work on a regular holiday. The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate.4. The employee should not have been absent without pay on the working day preceeding the regular holiday.

seafarers. Employees Private school teachers102 Rule 1. output103 Seasonal Workers HP shall not be less than his average daily earnings for the last 7 actual work days preceding the RH. results or 2. Shall be entitled to HP Workers having no regular work days Seafarers Shall be entitled to HP b. RH during Christmas vacation . 102 103 Faculty members of colleges and universities Piece work payment 35 . Exclusions from coverage In retail and service establishments regularly employing less than ten (10) workers.Not entitled to HP 2.Shall be paid HP Paid by: 1.(3) Of teachers. RH during semestral vacations . etc. seasonal workers. Provided: HP shall not be less than the statutory minimum wage rate. piece workers. May not be paid the required HP during offseason where they are not at work.

or those who are paid in a fixed amount of performing work irrespective of the time consumed in the performance thereof.106 104 It is 5 days leave with pay for every employee who has rendered at least 1 yr. Engaged on task or contract basis. or that provided in the employment contract is less than 12 months. in which case said period shall be considered as one year. Book III. purely commission basis. Those already enjoying the benefit c. of service. including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy. Those already enjoying vacation leave with pay of at least 5 days e. Employed in establishments regularly employing less than 10 workers h. Leaves a. Service Incentive Leave Pay104 (1) Right to service incentive leave Every employee who has rendered at least one (1) year of service105 shall be entitled to a yearly service incentive leave of five (5) days with pay.5. 95[b] 36 . Managerial employees f. Field personnel and other employees whose performance is unsupervised by the employer g. 3. including GOCCs b. whether continuous or broken reckoned from the date the employee started working. IRR) 106 Art. (2) Exclusions from coverage a. 105 Service for not less than 12 months. It is commutable to its money equivalent if not used or exhausted at the end of year. (Sec. Exempt establishments i. Domestic helpers and persons in the personal services of another d. Government employees and any of its political subdivisions. Rule V.

Voluntary or self-employed members are not entitled to the maternity benefit because to be entitled thereto. The maternity benefits shall be paid only for the first four deliveries after March 13. Payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same compensable period of sixty (60) days for the same childbirth. In case of caesarian delivery. like other benefits granted by the SSS. abortion or miscarriage and who is currently employed. are granted to employees in lieu of wages and. the 107 Maternity benefits. f. . 1973.(3) Commutable nature of benefit It is commutable to cash if unused at the end of the year. If an employee should give birth or suffer abortion or miscarriage without the required contributions having been remitted for her by her employer to the SSS. 108 Shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her present basic salary. corresponding maternity contributions should be paid by employers. abortion or miscarriage. the employee shall be paid the daily maternity benefit for 78 days. therefore. or without the latter having been previously notified by the employer of the time of the pregnancy. b.108 (2) Conditions to entitlement a. b. Voluntary or self-employed members have no employers so they do not have maternity contributions. Maternity Leave107 (1) Coverage A covered female employee who has paid at least three (3) monthly maternity contributions in the twelve (12)-month period preceding the semester of her childbirth. d. 37 . The employee shall have notified her employer of her pregnancy and the probable date of her childbirth which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide. Payment shall be advanced by the employer in two equal installments within thirty (30) days from the filing of the maternity leave application. e. may not be included in computing the employee’s 13th-month pay for the calendar year. The SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof g. c. allowances and other benefits or the cash equivalent of such benefits for 60 days or 78 days in case of caesarian delivery.

the total number of days shall not exceed seven (7) working days for each delivery.109 (3) Availment Every pregnant woman in the private sector. 1992. supra 111 It is not convertible to cash if not availed of. and is cohabiting with the woman who delivers the baby 2. Only for the first 4 deliveries112 of legitimate spouse with whom he is cohabiting. supra 38 . (2) Conditions to entitlement The male employee is 1. March 3. 4.employer shall pay to the SSS damages equivalent to the benefits which said employee would otherwise have been entitled to. Legally married to. 7322. A.110 c.Notify his employer of the pregnancy of his legitimate spouse and the expec ted date of such delivery (3) Availment113 The paternity benefits may be enjoyed by the qualified employee before. However. see also Coverage. This benefit shall be availed of not later than sixty (60) days after the date of said delivery. during or after the delivery by his wife. Paternity Leave111 (1) Coverage Granted to a married male employee in the private and public sector allowing him not to report for work for seven (7) days but continues to earn the compensation therefor. 112 include childbirth or any miscarriage 113 see also (1) Coverage. 109 110 R. and 3. Employee of private or public sector. and the SSS shall in turn pay such amount to the employee concerned. whether married or unmarried. is entitled to the maternity leave benefits.

3. c. 5. Parent left solo or alone with the responsibility of parenthood due to: a. c. Parental Leave114 (1) Coverage Leave benefits of not more than seven (7) working days every year granted to a solo parent115 employee to enable him/her to perform parental duties and responsibilities where physical presence is required. provided. Nullity or annulment of marriage as decreed by a court or by a church as long as he/she is entrusted with the custody of the children. death.3) 39 . shall terminate his/her eligibility for these benefits. Must have at least rendered service of one (1) year to his or her employer 4. (Sec. Must have the actual and physical custody of the child or children 3. Any family member who assumes the responsibility of head of family as a result of the: a. A woman who gives birth as a result of rape and other crimes against chastity even without a final conviction of the offender. disappearance or d. b. Death of spouse. Appropriating Funds Therefor and for Other Purposes). otherwise known as “The Solo Parents’ Welfare Act of 2000. 4. having others care for them or b. f. (2) Conditions to entitlement 1. This leave privilege is an additional leave benefit which is separate and distinct from any other leave benefits provided under existing laws or agreements 115 Any individual who falls under any of the ff. e. Legal separation or de facto separation from spouse for at least 1 yr as long as he/she is entrusted with the custody of the children.d. That the mother keeps and raises the child. such that he/she is no longer left alone with the responsibility of parenthood. give them up to a welfare institution. Detention or service of sentence of spouse for a criminal conviction for at least 1 yr. abandonment. Unmarried mother/father who has preferred to keep and rear his or her child/children instead of: a. He or she must fall among those referred to as solo parent 2. b. Any other person who solely provides: a. support to a child or children. prolonged absence of the parents or solo parent. Physical and/or mental incapacity of spouse d. categories: 1. He or she must remain a solo parent 114 Republic Act No. 2. parental care and b. A change in the status or circumstance of the parent claiming benefits under this Act. Abandonment of spouse for at least 1 yr. 8972 (An Act Providing for Benefits and Privileges to Solo Parents and Their Children.

43. extendible when the necessity arises as specified in the protection order. IRR 122 ibid 40 .121 c. Leaves for victims of violence against women117 (1) Coverage (2) Conditions to entitlement (3) Availment A female employee who is a victim of violence118 is entitled to a paid leave of 10 days in addition to other paid leaves. 2. Service Charges a.(3) Availment116 e.A. ibid 120 See A. Distributed to employees receiving more than P2000 a month at the discretion of the management.. Exclusion120 Managerial employees. restaurants and similar establishments and shall be distributed at the rate of: Covered Employees 85% Equally distributed among them Management 15% 1. 9262 118 physical. 1 par. or psychological 119 st Sec. supra under R. sexual. Rule VI. 116 117 see (1) Coverage. Coverage These are charges collected by hotels. Book III. b.119 6. Distribution122 The share of the employee shall be distributed and paid to them not less than once every 2 weeks or twice a month at intervals not exceeding 16 days. Coverage 121 Sec. To answer for losses and breakages and 2.

Integration123 If the service charge is abolished. Employees paid purely on commission basis 4.d. 7. and Other cash bonuses amounting to not less than1/12 of its basic salary 125 Revised Guidelines on the Implementation of the 13 Month Pay Law 41 . Household helpers 3.125 b) Exclusion/Exemptions from coverage 1. if their employers are not otherwise exempted from paying the 13th month pay. 851 which is equivalent to 1/12 of the total basic salary earned by an employee within the calendar year. Government employees 2. It may be given anytime but not later than December 24. provided that they have worked for at least one (1) month during a calendar year. Employees already receiving 13th month pay c) Nature of 13th month pay It is in the nature of wages. Midyear bonus. This is a year-end pay established by P. which is demandable as a legal obligation.D. and irrespective of the method by which their wages are paid. Thirteenth (13th) Month Pay and other bonuses a) Coverage All rank-and-file employees are entitled to a 13th-month pay124 regardless of the amount of basic salary that they receive in a month. the share of the covered employees shall be considered integrated in their wages on the basis of the average monthly share of each employees for the past 12 months immediately preceding the abolition. 123 124 ibid Forms: Christmas bonus. Profit sharing payments. Such employees are entitled to the 13th month pay regardless of their designation or employment status.

Favoring a male applicant with respect to hiring where the particular job can equally be handled by a woman 4. 135 st Ibid. or 2. discharge.. Payment of lesser compensation to a female employee as against a male employee for work of equal value 2.136 42 .128 126 127 Art. 128 Art. Upon getting married. a woman employee shall be deemed resigned or separated. study and scholarship grants on account of gender. Favoring a male employee with respect to promotion. Discrimination sex With respect to the terms and conditions of employment solely on account of 1. discriminate or otherwise prejudice a woman employee merely by reason of her marriage. the payment of a 13th month pay being a statutory grant.127 b. or to actually dismiss. A woman employee shall not get married. e) CBA vis-à-vis 13th month pay The absence of an express provision in the CBA obligating the employer to pay the members of a union 13th month pay is immaterial. Notwithstanding therefore the absence of any contractual agreement. comprising a pre-determined percent of the selling price of the goods sold by each salesman. compliance with the same is mandatory and is deemed incorporated in the CBA. Women Workers a. 1 par.126 3. Stipulation against marriage Whether as a condition of employment or continuation of employment 1.d) Commissions vis-à-vis 13th month pay The salesman’s commissions. 8. were properly included in the term basic salary for purposes of computing their 13th month pay. training opportunities. Favoring a male employee over a female employee with respect to dismissal of personnel.

c. Prohibited Acts 1. Denying any woman employee the benefits provided for by law or to discharge any woman employed by him for the purpose of preventing her from enjoying any of the benefits provided for by law. 2. Discharging such woman on account of her pregnancy, or while on leave or in confinement due to her pregnancy; 3. Discharging or refusing the admission of such woman upon returning to her work for fear that she may again be pregnant.129 d. Classification of certain women workers Any woman who is permitted or suffered to work 1. with or without compensation, 2. in any nightclub, cocktail lounge, massage clinic, bar or similar establishments of time 3. under the effective control or supervision of the employer for a substantial period

4. shall be considered as an employee of such establishment for purposes of labor and social legislation.130

A woman worker may not be dismissed on the ground of dishonesty for having written ‘’single ” on the space for civil status on the application sheet, contrary to the fact that she was married. (PT&T Co. v. NLRC, G.R. No. 118978, May 23, 1997) 129 Art. 137 130 Art. 138

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e. Anti-Sexual Harassment Act131 The Act punishes sexual harassment if the same is: 1. work-related; or 2. Education-related; or 3. training-related.132 Sexual harassment may be committed by an: 1. Employee 2. Manager 3. Supervisor 4. Agent of the employer 5. Teacher, instructor, professor 6. Coach, trainer, or 7. Any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment: a. Demands b. Requests or c. Requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of R.A.8777.133

131

R.A. 7877 - declares sexual harassment unlawful in the employment, education or training environment. 132 Sec. 3, id. 133 ibid. It is not necessary that the demand, request or requirement of a sexual favor be articulated in a categorical manner. It may be discerned, with equal certitude, from the acts of the offender. Likewise, it is not essential that the demand request or requirement be made as a condition for continued employment or for promotion to a higher position. It is enough that the respondent’s acts result in creating an intimidating, hostile or offensive environment for the employee. (Domingo v. Rayala, G.R. No. 155831, Feb. 18, 2008)

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9. Minor Workers134 a. Regulation of working hours of a child135 General Rule 1. No person under 18 years of age will be allowed to be employed in an undertaking which is hazardous or deleterious in nature. Exceptions A. Below 15 yrs. Old

1. The child works directly under the sole responsibility of his parents, or 2. No employer shall discriminate against guardians who employ members of any person in respect to terms and his family, subject to the following conditions of employment on account of his conditions: age. a. Employment does not endanger the child’s safety, health and morals b. Employment does not impair the child’s normal dev’t. c. Employer‐parent or legal guardian provides the child with the primary and/or secondary education prescribed by the Dept. of Education 2. The child’s employment or participation in public entertainment or information through cinema, theater, radio or television is essential provided: a. Employment contract is concluded by the child’s parents or legal guardian, b. With the express agreement of the child concerned, if possible, and c. The approval of DOLE, the following must be complied with: i. The employment does not involve advertisement or commercials promoting alcoholic beverages, intoxicating drinks, tobacco and its by‐

134 135

R.A. 7678, R.A. 9231 The term "child" shall apply to all persons under eighteen (18) years of age .

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No. 137 Sec. or (2) Where a child's employment or participation in public entertainment or information through cinema. Above 15 but below 18 – may be employed in any non‐hazardous work C. B. safety. and morals. however. a continuing program for training and skills acquisition of the child. That the parent or legal guardian shall provide the said child with the prescribed primary and/or secondary education. health. A child below fifteen (15) years of age136 may be allowed to work for not more than twenty (20) hours a week: Provided. radio. 137 136 Children below fifteen (15) years of age shall not be employed except: (1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where only members of his/her family are employed: Provided. 9231. there is a written contract approved by DOLE iii. 2003). as amended by R. That the following requirements in all instances are strictly complied with: (a) The employer shall ensure the protection. television or other forms of media is essential: Provided. before engaging such child. health. December 19. No. No. as amended by R. and the duration and arrangement of working time. 9231.products or exhibiting violence ii. In the above exceptional cases where any such child may be employed. December 19. (b) The employer shall institute measures to prevent the child's exploitation or discrimination taking into account the system and level of remuneration. 3. A. A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8) hours a day. and (c) The employer shall formulate and implement. No. morals and normal development of the child. Above 18 – no prohibition 1. 7610. further. (Section 12. 7610. No child below fifteen (15) years of age shall be allowed to work between eight o'clock in the evening and six o'clock in the morning of the following day and no child fifteen (15) years of age but below eighteen (18) shall be allowed to work between ten o'clock in the evening and six o'clock in the morning of the following day. That his/her employment neither endangers his/her life. That the work shall not be more than four (4) hours at any given day.A. 46 . 12-A. and the approval of the Department of Labor and Employment: Provided. with the express agreement of the child concerned. R. the employer shall first secure.A. theater. safety. if possible. R. nor impairs his/her normal development: Provided. and in no case beyond forty (40) hours a week. That the employment contract is concluded by the child's parents or legal guardian. subject to the approval and supervision of competent authorities. 2. the conditions provided in the first instance are met. further. A. 2003. a work permit from the Department of Labor and Employment which shall ensure observance of the above requirements.

. R. as amended by R. and 4.R. Book III.141 b. 141. Services are usually necessary or Desirable for the maintenance and enjoyment thereof. G. Ministers exclusively to the personal comfort and enjoyment of employers’ family The children and relatives of a househelper who live under the employers’ roof and who share the accommodations provided for the househelper by the employer shall not be deemed as househelp ers if/they are not otherwise engaged as such and are not required to perform any substantial hous ehold work. 146 47 . No.000 per month. (APEX Mining CO. 3.143 3. unless there is a stipulation to the contrary. 142 Art. including services of family drivers. 9231. December 19. 2 par. intoxicating drinks. (Sec 3. 1991) 141 nd Art. 144 144 Art. Prohibition of employing minors in certain undertakings and in certain advertisements No child shall be employed as a model in any advertisement directly or indirectly promoting alcoholic beverages. Who renders services in and about the employers home and. Sec. 2. Definition “Domestic or household service” means service in the employer’s home 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. No. 140 A househelper is synonymous to domestic servant 1. male or female. If the househelper is under the age of eighteen (18) years. A.. No. supra. Employment of the child in public entertainment138 c.144 138 139 see Exceptions (2). and medical attendance. Benefits accorded househelpers 1.A. Entitled to minimum wage in addition to lodging. IRR) The definition of a househelper cannot be interpreted to include househelp or laundry women working in staffhouses of a company. tobacco and its byproducts. v. NLRC. food. Rule XII. 14. 2003. Employment of Househelpers 140 a. Any person. The cost of education shall be part of the househelper’s compensation. 143 143 Art. gambling or any form of violence or pornography. the employer shall give him or her an opportunity for at least elementary education. April 22. 94951. Inc.142 2. SSS benefits for those who are receiving at least P1. 7610.b.139 10.

and thereafter to be returned to the latter. 149 Rule XIII. Termination The termination of the employment of a househelper should be: 1. the employer should provide in such contract that the employees or homeworkers of the contractor and the latter’s subcontractor shall be paid in accordance with these regulations. If the househelper leaves without justifiable reason. Employment of Homeworkers a. the homeworker shall be paid within one (1) week after the contractor or subcontractor has collected the goods or articles from the homeworker. If the househelper is unjustly dismissed. or 2. b. he or she shall forfeit any unpaid salary due him or her not exceeding 15 days.c. When payment is made to a contractor or sub-contractor. 3 & 4. Rights and benefits accorded homeworkers i. Definition Homeworkers refer to workers who perform in or about their homes any processing of goods or materials in whole or in part which have been furnished directly or indirectly by an employer or contractor. 11.146 ii. where work performed therein is under the active or personal supervision by or for the latter. The term does not include those situated within the premises or compound of an employer or contractor. 3. neither the employer nor the househelper may terminate the contract before the expiration of the term except for just cause. In the event that such contractor or subcontractor fails to pay the wages or earnings of his employees or 145 146 Art. 2. Secs. Whenever an employer contracts with a contractor in this regard. Reliefs for unjust termination Rules: 1. Book III. Based on just cause145 d. The employer is required to pay the homeworker or the contractor or subcontractor for the work performed immediately upon receipt of the finished goods or articles. Upon expiration of the term of employment. he or she shall be paid the compensation already earned plus that for the 15 days by way of indemnity. OR 48 . If the period for household service is fixed.

in the same manner as if the employees or homeworkers were directly engaged by the employer. Sec. and shall not exceed the actual loss or damage. 8.147 c.homeworkers. and d) the deduction is made at such rate that the amount deducted does not exceed 20 percent of the homeworker’s earnings in a week. OR. This is to ensure the homeworker’s right to due process. Rule XIII. destroyed. Conditions for deduction from homewoker’s earnings No deductions shall me made from the homeworker’s earnings for the value of materials lost. OR. 49 . such employee shall be jointly and severally liable with the contractor or subcontractor to the workers of the latter. 5. soiled or otherwise damaged unless the following conditions are met: a) the homeworker concerned is clearly shown to be responsible for the loss or damage: b) the employee is given reasonable opportunity to show cause why deductions should not be made: c) the amount of such deductions is fair and reasonable. Sec.148 147 148 ibid. to the extent that the work is performed under such contract.

Training in trades which are apprenticeable. Wage rate is 75% of the statutory minimum wage rate. Apprentices and Learners149 a. that is.12.A. Duration of training With commitment to employ the learner as a regular employer if he desires upon completion of learnership. practical training on the job supplemented by related theoretical instruction for more than 3 months. Coverage Semi‐skilled/Industrial occupations There is a list of learnable trades by TESDA Highly technical industries and only in industrial occupation No list Written agreement Require Learnership Agreement Requires Apprenticeship Agreement 149 Under R. No commitment to hire In case of pretermination of contract Worker not considered as regular employee. 7277. Considered a regular employee if pretermination occurs after 2 months of training and the dismissal is without fault of the learner. Distinctions between Learnership and Apprenticeship Learnership Nature Apprenticeship Training on the job in semi-skilled and other industrial occupation or trades which are non‐apprenticeable and which may be learned thru practical training on the job in a relatively short period of time. 50 .

or b. whether or not such practical training is supplemented by theoretical instructions.a person hired as a trainee in industrial occupations which are non-apprenticeable and which may be learned through practical training on the job for a period not exceeding three (3) months. Vocational guidance and counseling. 150 Ibid If disability is not related to the work for which he was hired. 122917 51 . Handicapped Workers 150 a.Vocational rehabilitation152 5. fringe benefits. He may have a disability but since the same is not related to his work. July 12. Apprenticeship 4. incentives or allowances as a qualified able-bodied person. No disabled person shall be denied access to opportunities for suitable employment.a worker who is covered by a written apprenticeship agreement with an employer Learner . 153 Apprentice . Qualified disabled employees shall be subject to the same terms and conditions of employment and the same compensation. he should not be so considered as handicapped worker. Handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they are hired. benefits. Even a handicapped worker can acquire the status of a regular employee if the factors that make for a regular employment are present. Rights of disabled workers 1. Definition of "handicapped workers" injury.Sheltered employment151 3. NLRC. he cannot be considered a handicapped worker insofar as that particular work is concerned. Equal opportunity for employment 2. 1999 – GR No. physical or mental deficiency. especially if his appointment was repeatedly renewed. 151 The gov’t shall endeavor to provide them work if suitable employment for disabled persons cannot be found through open employment 152 means to develop the skills and potentials of disabled workers and enable them to compete in the labor market 153 Bernardo vs.13. privileges. One whose earning capacity is impaired by age.

even as the law gives incentives to employers of disabled persons.A. 8. R. A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation. equivalent to twentyfive percent (25%) of the total amount paid as salaries and wages to disabled persons: Provided. benefits. fringe benefits. Culture and Sports. incentives or allowances as a qualified able bodied person. and other government agencies. further. Education. from their gross income. however. This does not apply to improvements or modifications of facilities required under Batas Pambansa Bilang 344. Private entities that improve or modify their physical facilities in order to provide reasonable accommodation for disabled persons shall also be entitled to an additional deduction from their net taxable income. Health. Five percent (5%) of all casual emergency and contractual positions in the Departments of Social Welfare and Development. That such entities present proof as certified by the Department of Labor and Employment that disabled persons are under their employ: Provided. 7277 52 . privileges. office or corporations engaged in social development shall be reserved for disabled persons.c. skills and qualifications. equivalent to fifty percent (50%) of the direct costs of the improvements or modifications. Incentives for employers Entitled to an additional deduction. 155 Sec. That the disabled employee is accredited with the Department of Labor and Employment and the Department of Health as to his disability.155 154 The Magna Carta strictly prohibits discrimination against a qualified disabled person. Prohibitions on discrimination against disable persons No disable person shall be denied access to opportunities for suitable employ ment.154 d.

Is made to undergo a trial period 2. Employer-Employee Relationship a. During which the employer determines his fitness to qualify for regular employment. 3. Four-fold Test a. Power of control156 b.157 156 157 the most important test Sec 6.D. upon his engagement: 1. 53 . Based on reasonable standards made known to the employee at the time of engagement. Selection and engagement of employee. and d. b. Rule I. Power of dismissal. Book VI. IRR The services of an employee who has been engaged on probationary basis may be terminated only for just cause. TERMINATION OF EMPLOYMENT 1. Payment of wages. c. when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer. Probationary Employment Employment where the employee.

v. if not indispensability. with respect to the activity in which he is employed and his employment shall continue while such activity exists. 2003) Regular employment does not mean permanent employment. If the employee has been performing the job for at least one year. Aug.. Additionally.c. 1998 54 . G. Oct. Ricardo Coros . 164736. even if the performance is not continuous or only intermittent. 2005) 159 International Pharmaceuticals. the employee has rendered at least one (1) year of service. the employee is allowed to work after a probationary period. (PAL v. the law deems the repeated and continuing need for its performance as sufficient evidence of the necessity. Kinds of Employment (1) Regular employment158 Where: i. No. G. A regular employee may only be terminated for just/authorized causes.161 (2) Project employment162 158 Regularization is not a management prerogative. 287 SCRA 213). vs. et al. of the activity of the business159 The primary standard of determining regular employment is the reasonable connection between the particular activity performed by the employee in relation to the usual trade or business of the employer.160 The connection can be determined by considering the nature of the work performed and its relation to the scheme of the particular business or trade in its entirety. it is the nature of employment that determines it. 2010) 161 Highway Copra Traders v. NLRC. 15.R. Catapang. No. March 9. 1998. 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.R. (a) Reasonable connection rule The primary standard is the reasonable connection between the particular activity performed by the employee in relation to the usual business or trade of the employer. whether such service is continuous or broken. iii. the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer. A probationary employee becomes a regular employee after 6 months. 14. 108889. 157802.R. NLRC. No. G. (Universal Robina Corp. ii. Pascua. It is a mandate of the law. et al. Inc. 160 Matling Industrial and Commercial Corp. No. 143258. v.. G. "an employee is regular because of the nature of work and the length of service. not because of the mode or even the reason for hiring them. July 30. October 13.R.

(5) Fixed term employment163 (a) Requisites for validity i.(a) Indicators of project employment i. (4) Casual employment Where an employee is engaged to perform a job. They also include contracts to which the parties by free choice. The termination of his employment in the particular project/undertaking is reported to the Department of Labor and Employment (DOLE) Regional Office having jurisdiction over the workplace within 30 days following the date of his separation from work. (3) Seasonal employment Where the work or service to be performed by the employee is seasonal in nature and the employment is for the duration of the season. as well as the specific work/service to be performed. v. is defined in an employment agreement and is made clear to the employee at the time of hiring. iv. ii. The duration of the specific/identified undertaking for which the worker is engaged is reasonably determinable. ii. is free to offer his services to any other employer. An undertaking in the employment contract by the employer to pay completion bonus to the project employee as practiced by most construction companies. vi. and such job. seasonal or for specific projects with pre-determined dates of completion provided under the Labor Code. work or service which is merely incidental to the business of the employer. have assigned a specific date of termination 164 Brent School Ruling. The employee. work or service is for a definite period made known to the employee at the time of engagement. 163 Not limited to those by nature. iii. The fixed period was knowingly and voluntarily agreed upon by the parties. while not employed and awaiting engagement. Such duration. The employer and the employee dealt with each other on more or less equal terms with no moral dominance being exercised by the employee 164 162 Where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee. 55 . The work/service performed by the employee is in connection with the particular project/undertaking for which he is engaged. using the prescribed form on employees' terminations dismissals suspensions.

DOLE Primer on Contracting and Subcontracting. (3) Conditions that must concur in legitimate job contracting i. Since the act of an agent is the act of the principal. Job contracting and Labor-only contracting (1) When is there "job contracting"? It refers to 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 is to be performed or completed within or outside the premises of the principal. The principal will become the employer as if it directly employed the workers engaged to undertake the subcontracted job or service. iv. It will be responsible to them for all their entitlements and benefits under the labor laws. (2) When is there "labor-only contracting"? It refers to an arrangement where the contractor or subcontractor merely recruits. Series of 2001. a petition for cancellation of union registration may be filed against it. representations made by the subcontractor to the employees will bind the principal. Effects of Department Order No. supplies or places workers to perform a job.167 165 166 Art.iii. supplied or placed by such contractor or subcontractor are performing activities which are directly related to the main business of the principal. ii. work or service within a definite or predetermined period. The contractor or subcontractor does not have substantial capital or investment which relates to the job.166 If the labor-only contracting activity is undertaken by a legitimate labor organization.165 (4) Effects of finding that there is labor-only contracting i. 3. 106 No. 167 Ibid. work or service to be performed and the employees recruited. iii. regardless of whether such job. or ii. 13. 56 . d. It is not valid if it is apparent that periods have been imposed to preclude acquisition of tenurial security by the employee. The principal and the subcontractor will be solidarily treated as the employer. The subcontractor will be treated as the agent or intermediary of the principal. The contractor does not exercise the right to control over the performance of the work of the contractual employee. The employees will become employees of the principal. work or service for a principal.

Must show that the employee has become or instructions of the employer must be: unfit to continue working for the employer. and 2. G. The employees assailed conduct must have been willful or intentional. and implies wrongful intent and not mere error in judgment. Must be in connection with the work of the employee. Termination of Employment a. regulations or instructions are Reasonable and lawful Sufficiently known to the employee In connection with his duties 170 Philippine Aeolus Automotive United Corp. the willfulness being characterized by a 2. a forbidden act. NLRC.R. Must relate to the performance of the wrongful and perverse attitude.2. perverse mental attitude It must be established that the said orders. 2000 171 Cosep v. Grave and aggravated character and not merely trivial or unimportant. 1998 57 . willfulness characterized by a wrongful. willful in character. Sufficiently made known to the employee c. No. NLRC. 124617. regulations 3. No.170 a. Must be serious or of such a grave and aggravate character. April 28. 169 Elements: Assailed conduct must have been willful or intentional. G. Must pertain to or be in connection with the duties which the employee has been engaged to discharge. Substantive Due Process (1) Just Causes (a) Serious misconduct168 or willful disobedience169 i.171 168 Transgression of some established and definite rule of action. Willful disobedience 1.R. Requisites Serious misconduct 1.The disobeyed orders. v. Reasonable and lawful b. a dereliction of duty. 124966 June 16. employee’s duties.

7. NLRC. and 5. It evinces upon the circumstance. The loss of confidence must not be simulated. v. However. Requisites174 (c) Fraud175 or willful breach of trust176 i. April 29. 10939. 3. It may not be arbitrarily asserted in the face of overwhelming evidence to the 4. 172 173 Judy Phils. Requisites 1. 1998 JGB and Associates v.172 i.173 thoughtless disregard of consequences without exerting any effort to avoid them.R. 111934. Mar. not a mere afterthought. It must be genuine. improper or unjustified. GR No. 176 loss of trust and confidence In order to constitute a just cause for dismissal. to justify earlier action taken in bad faith. NLRC. such neglect must not only be gross but habitual in character. No. contrary. 1996 174 See table 175 Commission of fraud by an employee against the employer will necessarily result in the latter's loss of trust and confidence in the former.(b) Gross and habitual neglect of duties Gross negligence Habitual Neglect Implies a want or absence of or failure to Implies repeated failure to perform one’s exercise slight care of diligence or the duties over a period of time. 2. It should not be used as a subterfuge for causes which are illegal. The employee involved holds a position of trust and confidence. Proof of loss is not required under this ground. depending entire absence of care. the act complained of should be “work-related” and must show that the employee concerned is unfit to continue to work for the employer. G. 58 .

24. (f) Totality of infractions doctrine179 It is the totality.R. 1996 59 . which justifies the penalty of dismissal. (2) the union is requesting for the enforcement of the union security provision in the CBA. A clear intention to sever the employer-employee relationship. No. Elements that must concur 1. cannot override one’s right to due process. 14. In the case of Alabang Country Club. 2008]. Although the Supreme Court has ruled that union security clauses embodied in the CBA may be validly enforced and that dismissals pursuant thereto may likewise be valid. the Supreme Court declared that in terminating the employment of an employee by enforcing the union security clause. not the compartmentalization of company infractions employee has committed.R. and 2. G. Feb. the employer needs only to determine and prove that: (1) the union security clause is applicable. NLRC.180 that the Dismissal due to repetition of related offenses. and (3) there is sufficient evidence to support the union’s decision to expel the employee from the union. Inc. 177 178 This is the more determinative factor being manifested by some overt acts. 114129. [G. NLRC. The foregoing requisites constitute just cause for terminating an employee based on the CBA’s union security provision.177 (e) Termination of employment pursuant to a Union Security Clause178 Employer should still afford due process to the expelled unionists. The reason behind the enforcement of union security clauses which is the sanctity and inviolability of contracts. Oct. 170287. even if already punished with less punitive sanctions.(d) Abandonment of employment. 179 Cognate offenses rule 180 MERALCO v. vs. this does not erode the fundamental requirement of due process. No. The failure to report for work or absence without valid or justifiable reason.

3. Procedural steps required 1. A position is redundant when it is superfluous. the failure of the employer to observe the procedural requirements184 taints their actuations with bad faith if the lay‐ off was temporary but then serious business losses prevented the reinstatement of respondents.(2) Authorized Causes (a) Redundancy. An employer has no legal obligation to keep on the payroll employees more than the number needed for the operation of the business. 181 A position is redundant when it is superfluous. 283 of the LC and its IRR 184 under Art. i. Written notice to employee concerned 30 days prior the intended date of termination. An employer has no legal obligation to keep on the payroll employees more than the number needed for the operation of the business. Retrenchment Cutting of expenses and includes the reduction of personnel. In the absence of justifying circumstances. Closure The reversal of fortune of the employer whereby there is a complete cessation of business operations to prevent further financial drain upon an employer who cannot pay anymore his employees since business has already stopped.182 2. 183 required in Art. which is after all a drastic recourse with serious consequences for the livelihood of the employee’s or otherwise laid‐off.181Retrenchment and Closure Redundancy Exists where the services of an employee are in excess of what would reasonably be demanded by the actual requirements of the enterprise. 182 Purpose: To enable it to ascertain the veracity of the cause of termination. Written notice to DOLE 30 days prior to the intended day of termination. the employer’s should have complied with the requirements of written notice. a means to protect and preserve the employer’s viability and ensure his survival. To be an authorized cause it must be affected in good faith and for the retrenchment. It is a management prerogative. Payment of separation pay ‐ Serious business losses do not excuse the employer from complying with the clearance or report183 before terminating the employment of its workers. 284 60 .

g. 1998 188 See table under Retrenchment (no. There should. Criteria in selecting employees for dismissal 188 iv. whichever is higher 3. Standards to be followed Firstly. Good faith in abolishing redundant position 4. the losses expected should be substantial and not merely de minimis in extent. Tuberculosis Society. No. 1999). National Labor Union . efficiency. G. temporary employee 187 Phil.185 2. Efficiency and c. the bona-fide nature of the retrenchment would appear to be seriously in question. Requirements for valid retrenchment/redundancy Retrenchment Redundancy 1.Payment of separation pay equivalent to at least 1 month pay or at least 1 month pay for every year of service. 131108. 25. If the loss purportedly sought to be forestalled by retrenchment is clearly shown to be insubstantial and inconsequential in character. Mar. G. seniority. Fair and reasonable criteria in ascertaining what positions are to be declared redundant: a. 25.ii. Secondly. after all. NLRC. in other words. v. the substantial loss apprehended must be reasonably imminent. No. The employer used fair and reasonable criteria in ascertaining who would be retained among the employees. and financial hardship of certain workers (Asian Alcohol Corp. 5) 61 . Less preferred status186 b. 185 such as status.Payment of separation pay equivalent to at least one month pay or at least 1/2 month pay for every year of service. Inc. v. a drastic recourse with serious consequences for the livelihood of the employees retrenched or otherwise laid off. Proof of expected or actual losses 5. Written notice served on both the employee and the DOLE at least 1 month employees and the DOLE at least 1 prior to the intended date of retrenchment month prior to separation from work 2. Good faith 4.Written notice served on both the 1. physical fitness. Aug. whichever is higher 3.R. 186 e. as such imminence can be perceived objectively and in good faith by the employer.R. be a certain degree of urgency for the retrenchment which is. age. Seniority187 iii. 115414.

retrenchment. Lastly. Company physician is not a “competent public health authority. 116175.192 b. vs.” Medical certificate issued by company doctor is not sufficient 191 Sec. 3. Rule I. any less exacting standard of proof would render too easy the abuse of this ground for termination of services of employees. The employer should have taken other measures prior or parallel to retrenchment to forestall losses. G. June 27. 148372.. the alleged losses. Pizza Inc. 2005 190 Burden of proof rests on the employer. Requisites 1. 152039. 189 (b) Disease or illness190 i. 2005. A written notice of termination . No. at least one month prior to his termination. No. present his evidence and present the evidence presented against him. His continued employment is prohibited by law or prejudicial to his health or to the health of his co‐employees. must be reasonably necessary and likely to effectively prevent the expected losses.If termination is the decision of the employer. Procedural Due Process (1) Procedure to be observed in termination cases 1. grounds have been established to justify his termination. G. 2. Inc. May 9.1996 193 This first written notice must apprise the employee that his termination is being considered due to the acts stated in the notice. Marine Corporation vs.191 3. if the employee so desires.R.A written notice should be served to the employee specifying the ground/s for termination and giving the said employee reasonable opportunity to explain. No. is given the opportunity to respond to the charge. The reason for requiring this quantum of proof is apparent. April 8. G. R. must be proved by sufficient and convincing evidence. The Honorable Second Division NLRC . and the expected imminent losses sought to be forestalled. With a certification by competent public health authority that the disease is incurable within 6 months despite due medication and treatment. v. Book VI. with the assistance of counsel. because of its consequential nature. F. See also Clarion Printing House.Thirdly. The employee suffers from a disease. NLRC. it should be served on the employerindicating that upon due considerations of all the circumstance. IRR 192 Solis v. NLRC. Bungabong.194 189 F. A hearing or conference should be held during which the employee concerned. (Phil. 2005) 62 .e. if already realized. i. G.8. No. Oct. R. 154315. cut other costs than labor costs.R. 28.193 2.

or when similar circumstances justify it. A formal hearing or conference becomes mandatory only when requested by the employee in writing or substantial evidentiary disputes exist or a company rule or practice requires it. July 28. Reliefs for illegal dismissal (1) Reinstatement aspect196 (a) Immediately executory197 i. Inc. the dismissal should be upheld. the employer should indemnify the employee for the violation of his right to procedural due process. the lack of statutory due process should not nullify the dismissal or render it illegal or ineffectual." which we sought to deter in the Serrano ruling. The "ample opportunity to be heard" standard in the Labor Code prevails over the "hearing or conference" requirement in the implementing rules and regulations. pay later.. (3) Agabon doctrine Enunciates the rule that if the dismissal was for just cause but procedural due process was not observed. 194 Single notice of termination does not comply with the requirements of the law.00. The indemnity to be imposed should be stiffer to discourage the abhorrent practice of "dismiss now.R. Honeyline Tomboc) G. whether in a hearing. c. 2008) 195 verbal or written 196 restoration to a state from which one has been removed 197 Under Art 223. iii. vs. the nominal damages awarded was P30. Where the dismissal is for just cause. However. just and reasonable way. 147633. 63 . (Aldeguer & Co. the decision of the Labor Arbiter reinstating a dismissed employee is immediately executory even while the case is brought up on appeal. Actual reinstatement The employee is admitted back to work. No.(2) Guiding Principles in connection with the hearing requirements in dismissal cases i. ii.000. "Ample opportunity to be heard" means any meaningful opportunity 195 given to the employee to answer the charges against him and submit evidence in support of his defense. In Agabon. conference or some other fair. (b) Payroll reinstatement The employee is merely reinstated in the payroll.

120677.201 2. should be taken into account in the computation of backwages. NLRC. separation pay may be allowed as a measure of social justice 199 Globe Mackay v. Inc. including 13th month pay202 198 Reinstatement can no longer be effected in view of the long passage of time or because of the realities of the situation. Dec. if applicable: 1. 1992 There is a resultant strained relations or irretrievable estrangements between the employer and the employee where the employee concerned occupies a position of trust and confidence and it is likely that if reinstated an atmosphere of antipathy and antagonism may be generated as to adversely affect the efficiency and productivity of the employee. No. (3) Backwages200 (a) Components of the amount of backwages Following several decisions of the Supreme Court. reinstatement could not effectively serve as a remedy. R. Full Backwages have to be paid by an employer as part of the price or penalty he has to pay for illegally dismissing his employee. NLRC. 200 A form of relief that restores the income of the employee that was lost by reason of the unlawful dismissal. The computation should be based on the wage rate level at the time of the illegal dismissal and not in accordance with the latest.(2) Separation pay198 in lieu of Reinstatement (a) Strained Relation rule When the employer can no longer trust the employee and vice versa. G. No. or there were imputations of bad faith to each other. the following benefits.199 Under the circumstances where the employment relationship has become so strained to preclude a harmonious working relationship and that all hopes at reconciliation are naught after reinstatement. 82511. in addition to the basic salary. Separation pay is payable to an employee whose services are validly terminated for authorized causes (Article 283 and 284). G. 152308. Exception: Where the employee is dismissed for causes other than serious misconduct or those reflecting on his moral character. R. This doctrine applies only to positions which require trust and confidence. 26. vs.R. Increases in compensation and other benefits. 201 Acesite Corporation vs. Fringe benefits or their monetary equivalent. Jan. It is the amount that an employee receives at the time of his severance from the service and is designed to provide the employee with the wherewithal during the period that he is looking for another employment. Other benefits must be paid in addition to backwages. An employee dismissed for a just cause is not entitled to separation pay (Article 282). No. 300 SCRA 360 64 . it would be more beneficial to accord the employe backwages and separation pay. NLRC. current wage level of the employee’s position. G. 200 202 Traders House. March 3. 21. 1998.

Inc. Soriano vs. if the worker’s continued employment poses a serious and imminent threat to life and property of employer. 23. the employee must be reinstated and compensated for the period of his suspension Suspension beyond 30 days ripens to dismissal 212 Max period: 30 days 65 . if exonerated. 2000 An employee is deemed constructively dismissed where his status is changed from regular to casual. R. or when a clear discrimination.207 The computation of said benefits should be up to the date of reinstatement as provided under Article 279208 of the Labor Code. Jan. 210 Leonardo v. 205 Maranaw Hotels & Resort Corporation vs. vacation and sick leaves and service incentive leaves204 5. St. 76721. 20. hence. insensibility or disclaim by an employer becomes unbearable to an employee.210 (5) Preventive Suspension211 During pendency of the investigation. 74214. 31. 1987. G.3. NLRC. On service incentive leave. G. Holiday pay. G. June 16. Oct. R. NLRC. NLRC.212 Can be extended provided the employer pays the suspended employee his wages and other benefits. NLRC. 1987. 129843. NLRC.209 (4) Constructive dismissal An involuntary resignation resorted to when continued employment becomes impossible. R. 208 See Reference 209 Fernandez vs. NLRC. No. Sept. 123880. Louise College of Tuguegarao vs. Transportation and emergency allowances203 4. 21. 14. 206 Consolidated Rural Bank [Cagayan Valley]. No. 27. 203 204 Santos vs. or unlikely. R. or of his co-employees. car and representation allowances206 7. G. No. G. 1999. 1998. Any other allowances and benefits or their monetary equivalent.. R. NLRC. supra. R. 211 Rule pending appeal: Preventive suspension is punitive already. 301 SCRA 223. No. vs.R. Sept.. Jan. G. 123810. Just share in the service charges205 6. L-75510. 1999). NLRC. G.125303. 285 SCRA 149. No. 207 Blue DairyCorporation vs. R. 28. Gasoline. No. when there is a demotion in rank or a diminution in pay. No. Aug. see Fernandez vs. 105892. No. unreasonable. Feb. 1989. G. NLRC. 1999.

he is thereby estopped from filing any further money claim. it is binding on the parties. It should be voluntarily signed. Serious insult by the employer or his representative on the hour and person of the employee214 b. (7) Termination of employment by employee Without just cause With just causes By serving written notice on the employer An employee may put an end to at least one (1) month in advance. But even if voluntary. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family216 213 Not all waivers and quitclaims are invalid as against public policy. No gas masks provided by employer although employees’ work deals with smoke-producing chemicals amounts to inhuman treatment 66 . it is deemed invalid. a. Once an employee resigns and executes a quitclaim in favor of the employer. if it is contrary to public policy. If the agreement was voluntarily entered into and represents a reasonable settlement. employment without serving any notice on the employer for any of the following The employer upon whom no such just causes: notice was served may hold the employee liable for damages. 215 Any conduct which will affect the mind and body or where continuance of it involves the life or health of the employee No comfort room provided by the employer compelling the employees to go outside employer’s business premises to heed the “call of nature” constitutes unbearable treatment. 214 Implies malice or denotes ill-will or an intent to injure or to offend. or to wound the feelings of another. Inhuman and unbearable treatment accorded the employee by the employer or his representative215 c. It is only when there is clear proof that the waiver was wangled from an unsuspecting or gullible person.(6) Quitclaims213 A quitclaim is a document executed by an employee in favor of the employer preventing the former from filing any further money claim against the latter arising from employment. “Dire necessity” is not an acceptable ground for annulling the releases. or the terms are unconscionable that the law will step in to annul it.

the cultivation and tillage of soil. Unsanitary or unhygienic working conditions 218 one principally engaged in the sale of goods to end-users for personal or household use. Employees of retail218. abaca. production. but does not include the manufacture and/or processing of sugar. 217 1. 220 refers to an employer which is engaged in agriculture. This term refers to all farming activities in all branches and includes. except those specifically exempted. Coverage Applies to all employees in the private sector. Domestic helpers and persons in the personal service of another 3. and any activities performed by a farmer or on a farm as an incident to. Rule II. employees of service and other job contractors and domestic helpers or persons in the personal service of another. 221 216 The act of slapping the employee plus the threat of scratching her face with a pair of scissors constitute an offense which would justify employees’ severing employer-employee relationship. or in conjunction with. the culture of fish and other aquatic products in farms or ponds. 219 one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such. tobacco. Exclusions from coverage 1. growing and harvesting of any agricultural or horticultural commodities. raising of livestock or poultry. regardless of their position. 2. It also includes and covers part-time employees. coconut. aquatic or other farm products 221 Sec. Employees of the National Government and its political subdivisions.2. Violation of employment term and condition 3. if they are covered by the Civil Service Law and its regulations. dairying. such farming operations. cultivation. IRR 67 . pineapple. b. designation or status and irrespective of the method by which their wages are paid. service219 and agricultural220 establishments or operations regularly employing not more than ten (10) employees.d. Retirement Pay Law a. Undue delay in the payment of employees’ salaries or wages 2. It shall lose its retail character qualified for exemption if it is engaged in both retail and wholesale of goods. Book VI. Other causes analogous to any of the foregoing217 3.. among others. including government-owned and/or controlled corporations.

60 years of age upon appointment to permanent 1. 7641 vis-à-vis retirement benefits under SSS and GSIS laws Social Security Law Revised Government Service Insurance Act Employees Compensation Act Compulsory upon all employers and their employees not over 60years of age. in basis.Filipinos recruited in the status. 222 d. (c) one-twelfth (1/12) of the 13th month pay due the employee. that an employee who is over 60 years of age and paying contributions to qualify for the retirement or life insurance benefit administered by the System shall be subject to compulsory coverage. whether the SSS on a voluntary elected or appointed. 287. Components of retirement pay In the absence of an applicable employment contract. . Compulsory upon all Compulsory for all employees not over 60 years permanent employees below of age and their employers. 222 Art.A.c. compensation for such service. (b) the cash equivalent of five (5) days of service incentive leave. Any person. Compulsory upon all self‐ employer is a covered employee if he receives employed persons earning P1. employers for employment abroad may be covered by 1. by foreign ‐ based of their tenure. the term “one-half month salary” shall include all the following: (a) fifteen (15) days salary of the employee based on his latest salary rate. Provided. a fraction of at least six (6) months being considered as one (1) whole year. an employee who retires shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service. and (d) all other benefits that the employer and employee may agree upon that should be included in the computation of the employee’s retirement pay 68 .800 or more per annum.For the purpose of determining the minimum retirement pay due an employee. Retirement pay under R. as amended Components. the service of an 2. and for all elective officials for the duration Phils.

10. 2001. vs. MANAGEMENT PREROGATIVE 1. when prescribed. (c) a transfer becomes unlawful where it is motivated by discrimination or bad faith or is effected as a 226 form of punishment or is a demotion without sufficient cause. (Associated Labor Unions-TUCP vs. NLRC. and the action is not motivated by discrimination. R. Management may lawfully impose reasonable penalties such as dismissal upon an employee who transgresses the company rules and regulations. Discipline223 The employer’s right to conduct the affairs of his business. level or salary without break 226 in the service or a lateral movement from one position to another of equivalent rank or salary. No. R. (d) the employer must be able to show that the transfer is not unreasonable. G. G. 155421. 120450. 158606. 228 223 subject to reasonable regulation by the State in the exercise of its police power. Santos. provided there is no demotion in rank or diminution of salary. or effected as a form of punishment or demotion without sufficient cause.227 3. 145280. 2004. 2000. Embroidery and Garment Workers . rules and regulations on work-related activities of the employees must always be fair and reasonable and the corresponding penalties. PLDT vs. R. Dec. 2004. R. made in bad faith. NRLC. 226 Jurisprudential guidelines: (a) a transfer is a movement from one position to another of equivalent rank. benefits.E. Transfer of employees226 The Supreme Court has recognized and upheld the prerogative of management to transfer an employee from one office to another within the business establishment. 276 SCRA 1 [1997]). 4. NLRC. This is a management prerogative where the free will of management to conduct its own affairs to achieve its purpose takes form. including dismissal. The only criterion to guide the exercise of its management prerogative is that the policies.224 Instilling discipline among its employees is a basic management right and prerogative. No. 224 St. 228 Philippine American Embroideries vs. No. according to its own discretion and judgment. R. Consolidated Food Corporation vs. (b) the employer has the inherent right to transfer or reassign an employee for legitimate business purposes. Benguet Electric Cooperative vs. 69 . G. Feb. Michael’s Institute vs. upon erring employees. 225 2. Rural Bank of Lucban. NLRC. This is a privilege inherent in the employer’s right to control and manage its enterprise effectively. Fianza. 1999. March 9. July 7. Jr. G. 121348. 639. inconvenient. 315 SCRA 129. 139 [1999] 225 Deles. March 9. No. or prejudicial to the employee 227 Mendoza vs. No. Productivity standard The practice of a company in laying off workers because they failed to make the work quota has been recognized in this jurisdiction. and other privileges. G. 26 SCRA 634. commensurate to the offense involved and to the degree of the infraction. includes the prerogative to instill discipline in its employees and to impose penalties.

G. 70 . an employer may not discriminate against an employee based on the 234 identity of the employee’s spouse.231 especially so if it is incapable of doing so. 119205. whenever exigencies of the service so require. Cebu Portland Cement Co . NLRC. lay-off of workers and the discipline. No. 233 6. 232 Sime Darby Pilipinas. place and manner of work. a "bonus" is a gratuity or act of liberality of the giver which the recipient has no right to demand as a matter of right230. There must be a compelling business necessity for which no alternative exists other than the discriminatory practice.R. supervision of workers. working methods. Sept. Traders Royal Bank v. (2) that there is a factual basis for believing that all or substantially all persons meeting the qualification would be unable to properly perform the duties of the job. 289 SCRA 86 233 Consolidated Food Corporation. 61 O. 1999. Marital discrimination234 It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married. work assignments. transfer of employees. 131 SCRA 151. vs. Since the finding of a bona fide occupational qualification justifies an employer’s no-spouse rule. Change of working hours Well-settled is the rule that management retains the prerogative. 234 Unless the employer can prove that the reasonable demands of the business require a distinction based on marital status and there is no better available or acceptable policy which would better accomplish the business purpose. Grant of Bonus By definition. and. No. 177 SCRA 160 (1989). work supervision. or to fulfill reasonable work assignments due to inefficiency may constitute just cause for dismissal. 23. The granting of a bonus is basically a management prerogative which cannot be forced upon the employer who may not be obliged to assume the onerous burden of granting bonuses or other benefits aside from the employee's basic salaries or wages. et al. 15 April 1998. NLRC. the employer must prove two factors: (1) that the employment qualification is reasonably related to the essential operation of the job involved. Jr.. 5. Inc. 232 The employer has the prerogative to control all aspects of employment in his business organization such as hiring. processes to be followed. Leogardo. working regulations. or to stipulate 229 230 Buiser v. dismissal and recall of workers. 189 SCRA 274 [1990] citing Aragon v. NLRC. NLRC. 158 (1984). G. et al..Failure to observe prescribed standards of work. time. the exception is interpreted strictly and narrowly by these state courts. Such inefficiency is understood to mean failure to attain work goals or work quotas.. To justify a bona fide occupational qualification. G. 231 Kamaya Point Hotel v. tools to be used. This is known as the bona fide occupational qualification exception. R. 118647. vs. to change the working hours of its employees. It is something given in addition to what is ordinarily received by or strictly due the recipient. This management prerogative of requiring standards may be availed of so long as they are exercised in good faith for the advancement of the employer's interest. 229 4. or by producing unsatisfactory results. either by failing to complete the same within the allotted reasonable period. 4567.

or to actually dismiss. Tomas vs. discriminate or otherwise prejudice a woman employee merely by reason of her marriage. Cruz vs.235 7. or the general principles of fair play and justice237 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. as well as to its public policy. NLRC. this Court will uphold them238. Medina (177 SCRA 565 [1989]) 237 University of Sto. Ople (170 SCRA 25 [1989]) 71 . Limitations in its exercise i. ii. a collective bargaining agreement.expressly or tacitly that upon getting married. 136. It is circumscribed by limitations found in law. 8. 238 San Miguel Brewery Sales Force Union (PTGWO) vs. a woman employee shall be deemed resigned or separated. 190 SCRA 758 [1990]). discharge. 235 236 Sec. It must be duly established that the prerogative being invoked is clearly a managerial one. Management's prerogatives must be without abuse of discretion 236. Post-employment ban Whether such an agreement would be held valid and binding will depend on its reasonableness in relation to the parties concerned. iii.

In the case of domestic helpers. iii. b. SSS Law239 a.A. SOCIAL LEGISLATION 1. R.Professional/athletes./and 5.A. 735. iv. may be covered by the SSS on a voluntary basis. Exclusions from coverage241 i. 2658 72 . Service performed by an individual in the employ of his son. iii. 242 As amended by Sec. their monthly income shall not be less than One thousand pesos (P1. 3./coaches. 4. directors. S-1975).240 ii.Actors and actresses. and service performed by a child under the age of twenty-one years in the employ of his parents.All/self-employed/professionals. Compulsory upon all employees not over sixty (60) years of age and their employers. P. Partners and single proprietors of businesses. Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on voluntary basis.Individual farmers and fishermen. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines. 2. unless they are also engaged in other vocation or employment which is subject to mandatory coverage. all provisions of the SSS LAW applicable to covered employees shall also be 241 Sec. scriptwriters and news correspondents who do not fall within the definition of the term "employee" 4.00) a month./trainers/and/jockeys.242 ii. No. including but not limited to the following: 1. 239 240 R. Domestic service in a private home. 8(j) of Social Security Act (As amended by Sec. daughter. 5.D.F. Coverage i. Unless otherwise specified in the law. Spouses who devote full time to managing the household and family affairs. Employment purely casual and not for the purposes of occupation or business of the employer. Agricultural labor when performed by a share or leasehold tenant or worker who is not paid any regular daily wage or base pay and who does not work for an uninterrupted period of at least six months in a year. 8282 Also compulsory upon such self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe. or spouse. v.000.

That the terms of such agreement shall conform with the provisions of this Act on coverage and amount of payment of contributions and benefits: Provided. the dependent parents who shall be the secondary beneficiaries of the member. and illegitimate children. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors 244. That the provisions of this Act shall be supplementary to any such agreement243. 735.D. international organization. Funeral benefit. any foreign government. Service performed in the employ of a foreign government or international organization. finally. Monthly pension. viii. vii. P. That his exemption notwithstanding. 3. S-1975 73 . Such other services performed by temporary employees who may be excluded by regulation of the Commission. Dependents’pension . Retirement benefits. Maternity leave benefit. 3839. and Sec. 5.vi. R. further.A.A. The dependent spouse until he or she remarries ii. iii. iv. 735. Service performed in the employ of the Philippine Government or an instrumentality or agency thereof. Beneficiaries i. Sec. Permanent disability benefits. 243 244 As amended by Sec. No. or their wholly-owned instrumentality: Provided. d. iii. S-1975 As amended by Sec. R. or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems: Provided. 5. c. The dependent legitimate. legitimated or legallyadopted. viii. vi. v.D. Benefits i. vii. P. In their absence. who shall be the primary beneficiaries of the member. Death benefits. No. ii. however. Sickness benefit. 4857. 1.

hospitalization. In the absence of all the foregoing. Members of the Armed Forces of the Philippines and the Philippine National Police. and ii. for the member and/or his dependents.A. and such other plans as may be designed by the GSIS. ii.Funeral/Benefits. education.Temporary Total Disability Benefits. Survivorship Benefits. Benefits i. v. vii. memorial plans. health. iii. ix.RetirementBenefits. b. Compulsory Life Insurance Benefit. Contractuals who have no employer and employee relationship with the agencies they serve. subject to the condition that they must settle first their financial obligation with the GSIS. viii. 2. Exclusions from coverage i. Optional Insurance and/or pre-need coverage embracing life. irrespective of employment status. c. Unemployment or Involuntary Separation Benefits. any other person designated by the member as his/her secondary beneficiary. 245 R.iv. iv. 8291 74 . vi. Monthly Pension. Separation Benefits. Coverage Compulsory for all employees receiving compensation who have not reached the compulsory retirement age. GSIS Law245 a. x. Permanent Disability Benefits.

246 247 R.D. ii. only his employment under the GSIS shall be considered for purposes of his coverage. 4.The dependent parents and. or otherwise provided under this Title. which shall be summed up for purposes of old age. Employee’s Compensation247 – Coverage and when compensable Coverage in the State Insurance Fund shall be compulsory upon all employers and their employees not over sixty years of age: Provided. Primary beneficiaries. further. 7699 P. Limited Portability Law246 Under this law. 626 75 . willful intention to injure or kill himself or another. Secondary beneficiaries. Beneficiaries i. an employee who has worked in both the private and public sectors and has been covered by both the Government Service Insurance System (GSIS) and the Social Security System (SSS) shall have his creditable services or contributions in both Systems credited to his service or contribution record in each of the Systems.The legal dependent spouse until he/she remarries and the dependent children. No.A. the legitimate descendants 3. That in case of an employee who is both covered by the SSS and GSIS. disability. notorious negligence. That an employee who is over sixty years of age and paying contributions to qualify for the retirement or life insurance benefit administered by the System shall be subject to compulsory coverage: Provided. The State Insurance Fund shall be liable for compensation to the employee or his dependents. except when the disability or death was occasioned by the employee's intoxication. subject to the restrictions on dependent children.d. survivorship and other benefits in case the covered member does not qualify for such benefits in either or both Systems without the totalization.

249 Three categories of employees: a. General rule: All aliens. LABOR RELATIONS LAW 1. 250 ibid. as well as foreign organizations are strictly prohibited from engaging directly or indirectly in all forms of trade union activities without prejudice to normal contacts between Philippine labor unions and recognized international labor centers. Any employee249. Exception: Alien employees with valid working permits issued by the DOLE may exercise the right to self-organization and join or assist labor organizations for purposes of collective bargaining. 76 .. Right to Self-organization248 The right to join. shall beginning on the first day of his/her service. assist or form labor organizations for collective bargaining and to engage in lawful concerted activities for the same purpose or for their mutual aid and protection. Rank-and-file. Who may unionize for purposes of collective bargaining All persons employed in: Commercial Industrial Agricultural Charitable Religious Educational Likewise: Ambulant workers Intermittent workers Rural workers 248 ) enterprises ) whether operating for profit or not ) Institutions Employees of government corporations established under the Corporation Code (without original charters) shall have the right to organize and to bargain collectively with their respective employers. b. See also Art. Basic Amendments under R. be eligible for membership in any labor organization. Supervisory. as certified by the Department of Foreign Affairs. A. if they are nationals of a country which grants the same or similar rights to Filipino workers. 250 a. 6715. prepared by Members of the Senate-House Conference Committee of Congress. 277. and c. Managerial.G. No. 10. whether employed for a definite period or not. natural or juridical. All other employees in the civil service shall have the right to form associations for purposes not contrary to law.

It cannot exercise the rights of a legitimate labor organization. 180 The right of government employees to form. In fact. the law does not allow mixed membership of both supervisory and rank-and-file employees in one union. 251 Not eligible for membership in a labor union of the rank-and-file employees but may form. join or assist employees organizations of their own choosing is not regarded as existing or available for purposes of collective bargaining but simply for the furtherance and protection of their interests 253.Workers with no definite employers Itinerant workers Self-employed Specific Coverage: Supervisory employees251 Terminated employees who are contesting their termination Aliens with valid work permit Government employees New employees Iglesia ni Kristo members Security guards (1) Who cannot form. 14. join or assist separate labor unions of their own. 1990 77 . Sept. (2) Executive Order No. A union with such mixed membership is no union at all. A union whose membership is a mixture of supervisors and rank-and-file is not and cannot become a legitimate labor organization A local supervisor’s union should not be allowed to affiliate with the national federation of union of rank-and-file employees where that federation actively participates in union activity in the company and the rank-and-file employees are directly under the authority of the supervisory employees 252 or supervisory employees 253 Arizala vs. First-line managers252 are allowed to join a supervisory union but not the union of rank-and-file employees or vice-versa. only top and middle managers are not allowed to join any labor organization. CA. join or assist labor organizations As a general rule.

b. 98 255 will of the employees 256 See also Mechanical Department Labor Union sa Philippine National Railways vs. Bargaining unit The group or cluster of jobs or positions that supports the labor organization which is applying for registration. Globe doctrine255 The determining factor is the desire of the workers themselves. R. CIR. G. Collective bargaining history. c. L28223. Concedes to government employees the right to engage in concerted activities. However. 30. 1968. Sept. No. It is characterized by similarity of employment status. 19. it being only those terms and conditions not otherwise fixed by law.Excluded from negotiation by government employees are the terms and conditions of employment that are fixed by law. No. b. 111262. 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. R. Substantial mutual interests principle or community or mutuality of interests rule. Confesor. The employees sought to be represented by the collective bargaining agent must have substantial mutual interests in terms of employment and working conditions as evinced by the type of work they perform. 262 SCRA 81. Aug. 78 . within the employer’s establishment Refers to a group of employees sharing mutual interests within a given employer unit. including the right to strike provided such activities are exercised in accordance with law. same duties and responsibilities and substantially similar compensation and working conditions254. G. (1) Test to determine the constituency of an appropriate bargaining unit Any of the following four (4) modes may be used: a. Consequently. the Supreme Court has categorically ruled that the existence of a prior collective bargaining history is 254 San Miguel Corporation Employees Union-PTGWO vs. Enunciates that the prior collective bargaining history and affinity of the employees should be considered in determining the appropriate bargaining unit. a certification election should be held separately to choose which representative union will be chosen by the workers256. 1996.

neither decisive nor conclusive in the determination of what constitutes an appropriate bargaining unit. 259 Effect of voluntary recognition: From the time of recording. G.statement261 must be published for 15 consecutive days in 2 conspicuous places in the establishment or CBU where the union seeks to operate 257 San Miguel Corporation vs. The joint. for purposes of collective bargaining. R. (a) Requirements 1. pp. R. In an organized setting. National Association of Free Trade Unions vs. No. This is allowed when there is only one union operating in the bargaining unit. Mainit Lumber Development Company Workers Union . No. 256. 79526. 21. Laguesma. 100485. 21. 260 by the employer and union president 261 The joint-statement should state the approximate number of employees in the CBU. The determination of appropriate bargaining unit based thereon is considered an acceptable mode.258 (2) Voluntary Recognition259 Voluntary recognition of bargaining agent is the free and voluntary act of the employer of extending and conferring full recognition to a union as the sole and exclusive bargaining representative of the employees in an appropriate bargaining unit. privileges and obligations of an exclusive bargaining representative Voluntary acknowledgement can ONLY take place when there is no dispute as to what union counts in its members a majority of the employees.257 d. The joint-statement should state that there are no other LLO’s operating within the CBU The joint-statement must be submitted to the Regional Office within 30 days from date of recognition 79 . the employer cannot voluntarily recognize any new union because Art. Employment status. 1990) 258 Rothenberg on Labor Relations. Sept. Voluntary recognition is possible only in an unorganized establishment. the union shall enjoy the rights. attesting to the voluntary 2. G. 482-510. LCP requires the employer to continue recognizing and dealing with the incumbent union if it has not been properly replaced by another union. accompanied by the names and signatures of at least a majority of the members of the CBU supporting the voluntary recognition. Submission to DOLE of a joint statement260 recognition. Dec. 1994.

(a) In an unorganized establishment Certification election shall be "automatically" conducted upon the filing of a petition for certification election by a legitimate labor organization. Bargaining deadlock-bar rule. otherwise. ii. 80 . Certification year-bar rule. and 3. Neither may a representation question be entertained if: i. before the filing of a petition for certification election. consent or run-off election. A certification election petition may not be filed within one (1) year: or i. The petition is supported by the written consent of at least twenty-five percent (25%) of all employees in the bargaining unit (c) Rules prohibiting the filing of petition for certification election 1. the duly recognized or certified union has commenced negotiations with the employer within the one-year period from the date of a valid certification.(3) Certification election It refers to the process of determining through secret ballot the sole and exclusive bargaining representative of the employees in an appropriate bargaining unit. from the date of voluntary recognition. it has no legal personality to file the petition for certification election. (b) In an organized establishment The following are the requisites for certification election in organized establishments. from the date of a valid certification. 1. However. consent or run-off election or from the date of voluntary recognition. a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been submitted to conciliation or arbitration or had become the subject of valid notice of strike or lockout. it must be emphasized that the petitioner-union should have a valid certificate of registration. 2. 2. or ii. Such petition is verified. A petition questioning the majority status of the incumbent bargaining agent is filed before the DOLE within the 60-day freedom period. for purposes of collective bargaining.

a petition for a CE may be filed again.when the collective bargaining agreement is not complete as it does not contain any of the requisite provisions which the law requires. provided. when the documents supporting its registration are falsified. Manalac. “no union” is one of the choices named in the ballot. 263 R. 262 The exceptions to the contract-bar rule are as follows: 1. when the CBA. 7. during the 60-day freedom period. 248 264 Some of the employees may not want to have a union. (d) Requirements for validity of certification election For a valid election. If “no union” wins. contains provisions lower than the standards fixed by law.264 (4) Run-off election It refers to an election between the labor unions receiving the two (2) highest number of votes when a certification election which provides for three (3) or more choices results in no choice receiving a majority of the valid votes cast. 3. when there is a schism in the union resulting in an industrial dispute wherein the collective bargaining agreement can no longer foster industrial peace. 81 . The veracity of majority membership claims of the competing unions so as to identity the one union that will serve as the bargaining representative of the entire bargaining unit. The labor union receiving the majority of the valid votes cast shall be certified as the exclusive bargaining agent of all the workers in the unit. Contract-bar rule262 The Bureau of Labor Relations shall not entertain any petition for certification election or any other action which may disturb the administration of duly registered existing collective bargaining agreements affecting the parties.. Phil. 5. when the CBA is not registered with the BLR or DOLE Regional Offices. 2. After that period. although registered. and 2. the period is known as 12‐month bar. p. 4. when the collective bargaining agreement was entered into prior to the 60-day freedom period. 6. the company or the bargaining unit remains un‐unionized for at least 12 months. 263 (e) Protests and other questions arising from conduct of certification election Certification proceedings directly involve two (2) issues: 1. Proper composition and constituency of the bargaining unit. that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. fraudulent or tainted with misrepresentation. Labor Laws and Jurisprudence. 2007 Ed.3. at least a majority of all eligible voters in the unit must have cast their votes. hence.

(a) Requirements 1. Where no petition for a CE had been filed but the parties themselves have agreed to hold consent election. the Med-Arbiter may persuade the contending unions to agree to a consent election. If one choice receives a plurality of the vote and the remaining choices results in a 2. Not one of the choices obtained the majority of the valid votes 4. (6) Consent election265 It refers to the election voluntarily agreed upon by the parties. the no union is also a choice. with or without the intervention of the Department of Labor and Employment. In both instances. the results of the election will NOT bar another CE. Neither does it shorten the terms of an existing CBA nor entitle the participants thereof to immediately renegotiate an existing CBA although it does not preclude the workers from exercising their right to choose their sole and exclusive bargaining representative after the expiration of the 60-day freedom period. In hearing a petition for a CE. The total votes of the unions is at least 50% of the votes cast 5. to determine the issue of majority representation of all the workers in the appropriate collective bargaining unit. bars the holding of a CE for one year. There is no unresolved challenge of voter or election protest (5) Re-run election tie. 265 The holding of a valid consent election. If all choices received the same number of votes. The election presented at least three choices 3. the Med-Arbiter shall enter in the minutes of the hearing the fact of the agreement and then cause the immediate scheduling of the pre-election conference. A valid election took place because majority of the CBU members voted 2. 82 . upon the intercession of the med-arbiter. If the unions do agree. UNLESS the winning union had been extended voluntary recognition by the employer Consent election is a separate and distinct process and has nothing to do with the import and effect of a certification election. or 1.

. the justification for said doctrine was: . BCI Employees & W Union-PAFLU.269 Requirements for validity By obtaining the individual written authorization duly signed by the employee which must specify: 1. By written resolution approved by majority of all the members at the meeting called for that purpose.267 (8) Union dues and special assessments Union dues Regular monthly contributions paid by the members to the union in exchange for the benefits given to them by the CBA and to finance the activities of the union in representing the union. They may bargain however for the shortening of said expiration date. In fact.g. Thus. the employees can change said agent but the contract continues to bind then up to its expiration date. That the majority of the employees. any exclusive interest claimed by the agent is defeasible at the will of the principal.. the only consideration involved is the employees' interest in the existing bargaining agreement. e. holding rights through the agency of the union representative. Special assessments These are assessments for any purpose or object other than those expressly provided by the labor organization’s constitution and by‐laws. The agent's interest never entered the picture. 23 SCRA. : no strike stipulation 267 Benguet Consolidated Inc. except to negotiate with the management for the shortening thereof Inapplicable to personal undertaking of deposed union. In formulating the "substitutionary" doctrine. Amount 266 Employees cannot revoke the validity of a validly executed CBA with their employer by the simple expedient of changing their collective bargaining agent The new agent must respect the subsisting CBA Employer cannot renege on the CBA. 465. as an entity under the statute. is the true party in interest to the contract.(7) Affiliation and disaffiliation of the local union from the mother union (a) Substitutionary doctrine266 This principle states that even during the effectivity of a collective bargaining agreement executed between employer and employees thru their agent. 471 83 . vs.

Legal principles applicable to Collective Bargaining Agreement: A proposal not embodied in CBA is not part thereof. Beneficiary268 (9) Agency fees270 (a) Requisites for assessment i. Signing bonus.(o) 270 It is an amount equivalent to union dues. hours of work and all other terms and conditions of employment in a bargaining unit. All other provisions (which refer to both economic and non-economic provisions except representation): Shall be renegotiated not later than three (3) years after its execution.no effect if its contents are not incorporated in the CBA.. Right to Collective Bargaining 271 a. Allegations of bad faith. The DOLE Secretary cannot order inclusion of terms and conditions in CBA which the law and the parties did not intend to reflect therein.241 Ibid. Adamant stance resulting in impasse. 269 268 Art.The term is 5 years which means that no petition questioning the majority status of the incumbent bargaining agent shall be entertained by DOLE and no certification election shall be conducted outside of the 60-day freedom period. Purpose 3. 84 . & in good faith & agree on Wages.2. The CBA is deemed the law between the parties during its lifetime. Making a promise during the CBA negotiation is not considered bad faith. Minutes of CBA negotiation . Duty to bargain collectively The performance of the mutual obligation of the employer and the sole bargaining representative to meet promptly. 271 Collective Bargaining Agreement (CBA) refers to the negotiated contract between a legitimate labor organization and the employer concerning wages. not demandable under the law. expeditiously. Its provisions are construed liberally. Hours of Work & Other terms & conditions of employment (WHO). He is not a member of the union iii. not bad faith. He partook of the benefits of the CBA 2. which a non-union member pays to the union because he benefits from the CBA negotiated by the union. The employee is part of the bargaining unit ii. wiped out with signing of CBA. Term (lifetime) of a CBA Representation aspect (sole and exclusive status of certified union): .

or a no strike clause. 1986. Other terms & conditions 3. Workload 12. It ruled that the former had thereby lost its right to bargain the terms and conditions of the CBA. Vacation & holidays 6. 188 85 .272 the Supreme Court found that petitioner therein. Bonuses 7. Seniority 9. Wages & Hours of Work 2.lock. Transfers 10. on the inclusion in a contract of a management prerogative clause. NLRC. It usually consists of successive steps starting at the level of the complainant and his immediate supervisor and ending. Sweden Ice Cream Plant.(1) Kiok Loy ruling In the case of Kiok Loy vs. It refers to the system of grievance settlement at the plant level as provided in the collective bargaining agreement. when necessary. stock and barrel. at the level of the top union and company officials 272 No. January 22. Rent of company houses 14. which are intended to resolve all issues arising from the implementation and interpretation of their CBA. refused to submit any counter proposal to the CBA proposed by its employees’ certified bargaining agent. Union security agreements An employer does not commit ULP by insisting to the point of a bargaining impasse. Thus. Mandatory provisions of CBA 1. b. the High Court did not hesitate to impose on the erring company the CBA proposed by its employees’ union . Work shifts 5. Lay-offs 11. 141 SCRA 179. Pensions & retirement plans 8. L-54334. Work rules & regulations 13. (1) Grievance Procedure The internal rules of procedure established by the parties in their CBA with voluntary arbitration as the terminal step. Other modes of compensation 4. or a union discipline clause.

trained and impartial third person who shall decide on the merits of the case and whose decision is final and executor.All grievances submitted to the grievance machinery 273 which are not settled within seven (7) calendar days from the date of their submission shall automatically be referred to voluntary arbitration prescribed in the CBA. 274 Section 1 [d]. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators. the NCMB shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators. Rule II. 92009. For this purpose. 2004. 277 Filcon Manufacturing Corporation vs. is illegal. ( Master Iron Labor Union v.277 273 The mechanism for the adjustment and resolution of grievances arising from the interpretation or implementation of a CBA and those arising from the interpretation or enforcement of company personnel policies.275 in the CBA applies only to economic Such no-strike provision in the CBA only bars strikes which are economic in nature. a strike declared by the union cannot be considered a violation of the no strike clause.276 The Supreme Court consistently ruled in a long line of cases that a strike is illegal if staged in violation of the “No Strike/No Lockout Clause” in the CBA stating that a strike.274 (3) No Strike-No Lockout Clause The “no strike no lockout” clause strikes. preferably from the listing of qualified Voluntary Arbitrators duly accredited by the NCMB. No. 326 SCRA 428 (2000). as may be necessary. No. parties to a CBA shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators. G. 2004]. NCMB Revised Procedural Guidelines in the Conduct of Voluntary Arbitration Proceedings [Oct. 86 . which is in violation of the terms of the CBA. especially when such terms provide for conclusive arbitration clause. Ramos.R. if the strike is founded on an unfair labor practice of the employer. Lakas Manggagawa sa Filcon-Lakas Manggagawa Labor Center [LMF-LMLC]. 17. pursuant to the selection procedure agreed upon in the CBA. NLRC 219 SCRA 47 [1993]). citing Master Iron Labor Union vs. 275 Hence. or include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators. It is part of the continuing process of collective bargaining. 150166. It does not apply to ULP strikes. July 26. NLRC. (2) Voluntary Arbitration Refers to the mode of settling labor-management disputes by which the parties select a competent. 15. but not strikes grounded on unfair labor practices. R. which shall act with the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as described above. G. 1993) 276 MSMG-UWP vs. Feb.

The basis of the prohibition regarding individual bargaining with the strikers is that although the union is on strike. insofar as said processes will directly affect their rights.279 (2) Refusal to bargain A union violates its duty to bargain collectively by entering negotiations with a fixed purpose of not reaching an agreement or signing a contract. The Department shall promote other labor schemes and. 195 87 . occupational quality improvement. 332 281 Arthur A. 7th Edition 1991. may assist in the productivity. product other similar schemes. Sloane and Fred Witney.(4) Labor Management Council The Department shall promote the formation of labor‐ management councils in organized and unorganized establishments to enable the workers to participate in policy and decision‐ making processes in the establishment. Imposing time limit on negotiations 280 Melo Photo Supply Corporation vs.S. ULP in Collective Bargaining (1) Bargaining in bad faith The good faith or bad faith is an inference to be drawn from the facts and is largely a matter for the NLRC’s expertise. the employer is still under obligation to bargain with the union as the employees' bargaining representative. (3) Individual bargaining It is an unfair labor practice for an employer operating under a collective bargaining agreement to negotiate or to attempt to negotiate with his employees individually in connection with changes in the agreement. The charge of bad faith should be raised while the bargaining is in progress. improvement of quality of work life. upon its own initiative or upon the request of both formulation and development of programs and projects on safety and health. p. benefits and welfare. National Labor Relations Board . except those which are covered by collective bargaining agreements or are traditional areas of bargaining. Rule XXI. Labor Relations.280 (4) Blue sky bargaining It means making exaggerated or unreasonable proposals.281 278 279 management cooperation parties. IRR Instances: 1. and Sec. 1. 321 U. Delay of negotiations 2. Book V.278 c.

To interfere with. R. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized collective bargaining agent as a condition for employment. 114974. Department Order No. (Standard Chartered Bank v. June 16. To require as a condition of employment that a person or an employee shall not join a labor organization or shall withdraw from one to which he belongs. G. yellow dog contract. hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization.k. including the giving of financial or other support to it or its organizers or supporters. 6 [f].R. To discriminate in regard to wages.k. Confesor. 283 Ibid. d. 284 Only the officers and agents of corporations. To initiate. Sec. authorized or ratified unfair labor practices shall be held criminally liable. G.a. [Feb. No. Series of 2002. associations or partnerships who have actually participated in. work or service being performed by union members will interfere with.(5) Surface bargaining It means “going through the motions of negotiating” without any legal intent to reach an agreement. It is only when the contracting out of a job. 2002). restrain or coerce employees in the exercise of their rights to selforganization. b. restrain or coerce employees in the exercise of their right to selforganization.a. June 16. Thus. d. 2004) 282 Standard Chartered Bank Employees Union [NUBE] vs. 18-02. LC.287 e.283 Occurs when the employer constantly changes its position over the agreement. company union 88 . 286 The act of an employer in having work or certain services or functions being performed by union members contracted out is not generally an unfair labor practice act. Unfair Labor Practice (1) ULP of Employers284 a. 114974.285 c.286. No. Confessor. dominate. except those employees who are already members of another union at the time of the Whether or not the union is engaged in blue‐sky bargaining is determined by the evidence presented by the union as to its economic demands. 285 a. 287 a. 2004). restrain or coerce employees in the exercise of their right to self-organization that it shall be unlawful and shall constitute unfair labor practice (Art. assist or otherwise interfere with the formation or administration of any labor organization. 248 [c]. 21.282 It involves the question of whether or not the employers conduct demonstrates an unwillingness to bargain in good faith or is merely hard bargaining. To contract out services or functions being performed by union members when such will interfere with. then it is guilty of ULP. if the union requires exaggerated or unreasonable ec onomic demands.

To violate a collective bargaining agreement. To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other dispute. for services which are not performed or not to be performed. To cause or attempt to cause an employer to discriminate against an employee. To violate the duty to bargain collectively as prescribed by this Code. feather-bedding 89 . To restrain or coerce employees in the exercise of their right to selforganization. To violate a collective bargaining agreement. h. in the nature of an exaction. or i. b. provided it is the representative of the employees. that the individual authorization required under Article 242. including discrimination against an employee with respect to whom membership in such organization has been denied or to terminate an employee on any ground other than the usual terms and conditions under which membership or continuation of membership is made available to other members. However. or refuse to bargain collectively with the employer. including the demand for fee for union negotiations. if such non-union members accept the benefits under the collective bargaining agreement: Provided. f. c. 288 289 but only if gross in character a. paragraph (o) of this Code shall not apply to the non-members of the recognized collective bargaining agent. d. To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or other things of value. a labor organization shall have the right to prescribe its own rules with respect to the acquisition or retention of membership.signing of the collective bargaining agreement.k. g. discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code. Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent. To ask for or accept negotiation or attorney’s fees from employers as part of the settlement of any issue in collective bargaining or any other dispute. To violate the duty.288 (2) ULP of Labor Organizations a.a. To dismiss.289 e. or f.

Forms of Concerted Activities Strike290 Any temporary stoppage of work by the concerted action of the employees as a result of an industrial or labor dispute. 8. placards and banners intended to inform the public about the dispute. 3... inter-union or intra-union disputes or wage distortion). Collective bargaining deadlock 2. blockades and obstructions of ingress to [entrance] or egress from [exit] the company premises). It consists not only of concerted work stoppages but also slowdowns. 6. A strike or lockout is illegal if any of the legal requisites (enumerated above) is not complied with. threats. Picketing292 The right of workers to peacefully march to and fro before an establishment involved in a labor dispute generally accompanied by the carrying and display of signs. No-Lockout” clause in the collective bargaining agreement. 5. coercion. 291 Grounds for Lockout 1. Right to Peaceful Concerted Activities a. 290 Summary of principles governing strikes: 1. A strike or lockout is illegal if unlawful means were employed or prohibited acts or practices were committed (e.g. mass leaves. A strike is illegal if staged by a minority union. Lockout291 Any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. A strike or lockout is illegal if staged in violation of the “No-Strike. sitdowns. Procedural requirements are mandatory. etc. 9. Use of force. 7. ULP act of a union 292 or peaceful picketing 90 . 4. 2. A strike or lockout is illegal if conducted for unlawful purpose/s (e. destroy or sabotage plant equipment and facilities and similar activities.g.: Strike to compel dismissal of employee or to compel the employer to recognize the union or the so-called “Union-Recognition Strike”) 10.. attempts to damage. A strike or lockout is illegal if it is based on non-strikeable issues (e. A strike or lockout is illegal if the notice of strike or notice of lockout is already converted into a preventive mediation case. (See further discussion below).3. A strike or lockout is illegal if staged in violation of a temporary restraining order or an injunction or assumption or certification order. violence.g. The local union and not the federation is liable to pay damages in case of illegal strike. Barricades. A strike or lockout is illegal if the issues involved are already subject of compulsory or voluntary arbitration or conciliation or the steps in grievance machinery are not exhausted.

6. Requisites for a valid lockout 1. or at least 30 days before the intended date thereof if the issue involves bargaining deadlock. A strike must be approved by a majority vote of the members of the Union and a lockout must be approved by a majority vote of the members of the Board of Directors of the Corporation or Association or of the partners in a partnership. In the absence of a certified or duly recognized bargaining representative. No. as amended NSFW vs. Omnibus Rules Implementing The Labor Code. 2. 3. Ovejera. the 15‐day cooling off period shall not apply and the union may take action immediately after the strike vote is conducted and the result thereof submitted to the Department of Labor and Employment. 4. shall “in every case” be complied with. Rule XIII Book V. which may constitute union busting where the existence of the union is threatened. G. It must be based on a valid and factual ground. Requisites for a valid strike d. the 7day requirement shall be counted from the day following the expiration of the cooling‐off period.Any certified or duly recognized bargaining representative may declare a strike in cases of bargaining deadlock and unfair labor practice. 293 294 Sec.293 c. Likewise. In the event the result of thestrike/lockout ballot is filed within the coolingoff period. A strike or lockout NOTICE shall be filed with the National Conciliation and Mediation Board (NCMB) at least 15 days before the intended date of the strike or lockout if the issues raised are unfair labor practices. 59743.R. May 31. A strike or lockout vote shall be reported to the NCMB DOLE Regional Branch at least 7 days before the intended strike or lock-out subject to the cooling‐ off period. 5. 1982 91 .b.294 In case of dismissal from employment of union officers which may constitute union busting. any legitimate labor organization in the establishment may declare a strike but only on the ground of unfair labor practice. Who may declare a strike or lockout? 1. being mandatory in character. the employer may declare a lockout in the same cases. the time requirement for the filing of the Notice of Strike shall be dispensed with but the strike vote requirement. In cases of dismissal from employment of union officers duly elected in accordance with the union constitution and bylaws. obtained by secret ballot in a meeting called for that purpose. 2. 2.

a certification for compulsory arbitration. coercion or intimidation or obstruct the free ingress to or egress from the employer’s premises for lawful purposes. The parties to the case should inform the DOLE Secretary of pendency thereof. On intended or impending strike or lockout . or obstruct public thoroughfares.All shall be subsumed/absorbed by the assumed or certified case except when the order specified otherwise. vs. 296 h. if.automatically enjoined even if a Motion for Reconsideration is filed. g. Stated differently. in his opinion.7. 3. 119360. are deemed to have lost their employment status for having knowingly participated in an illegal strike.298 295 296 Art. The loss of employment results from the striking employees’ own act . No. 264 (e). 1997 92 . or certify it to the NLRC for compulsory arbitration. On cases filed or may be filed . Effect of defiance of Assumption or Certification Orders A strike that is undertaken after the issuance by the Secretary of Labor and Employment of an assumption or certification order becomes a prohibited activity and thus illegal. Inc. Brillantes. 10. from the moment a worker defies a return-to-work order. it may cause or likely to cause a strike or lockout in an industry indispensable to the national interest. as amended The President may also exercise the power to assume jurisdiction over a labor dispute 297 See Reference 298 Philippine Airlines.strikers or locked out employees should immediately return to work and employer should readmit them back. G. e. or submission to compulsory or voluntary arbitration nor a subject of a pending case involving the same grounds for the strike or lockout. Oct. The dispute must not be the subject of an assumption of jurisdiction by the President or the Secretary of Labor and Employment. 2. an act in violation of the law and in defiance of authority. On actual strike or lockout . R. pursuant to the second paragraph of Article 264297 of the Labor Code. as a result.an act which is illegal. he is deemed to have abandoned his job. Nature of Assumption Order or Certification Order The DOLE Secretary may assume jurisdiction over a labor dispute. Assumption of jurisdiction by the Secretary of Labor or Certification of the Labor dispute to the NLRC for compulsory arbitration 1.295 f. The union officers and members. Requisites for lawful picketing No person engaged in picketing shall commit any act of violence.

NLRC. R.300 (2) Liability of ordinary workers The mere declaration of the illegality of strike would result in the termination of employment of union officers. This adverse consequence does not apply to ordinary union members except when they participated in the commission of illegal acts in the course of the strike. 218[e] 93 . The SLE or the NLRC may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same. 1998 301 Reformist Union v. When prohibited or unlawful acts are being or about to be committed that will cause grave or irreparable damage to the complaining party. On the ground of national interest 3. Exceptions: 1. Injunctions (1) Requisites for Labor Injunctions No temporary or permanent injunction or restraining order in any case involving or growing out of labor disputes shall be issued by any court or other entity. it waives the issue of the illegality of the strike. in which case.302 2. they shall be deemed to have also lost their employment status. 248 SCRA 95. 114521. they may not be held liable and. The penalty of dismissal could be imposed only on union officers serving and acting as such during the period of illegal strike299. They are deemed to have lost their employment status. therefore. As a necessary implication.R. NLRC. could not be terminated. 1997 302 Art.301 j.i. (3) Waiver of illegality of strike When an employer accedes to the peaceful settlement brokered by the NLRC by agreeing to accept all employees who had not yet returned to work.Jan. G. Illegal Strike (1) Liability of officers of the unions Only the union officers during the strike are liable. 120482. G. NLRC. 106. 27. CCBPI Postmix Workers Union vs. if employees acted as union officers after said strike. 27.303 299 300 Lapanday Workers Union vs. No. No. Nov.

(2) "Innocent Bystander Rule" The innocent by stander must show: 1. Compliance with the grounds specified in Rule 58 of the Rules of Court, and 2. That it is entirely different from, without any connection whatsoever to, either party to the dispute and, therefore, its interests are totally foreign to the context thereof.304

303 304

Art. 263[g] MSF Tire & Rubber v. CA, G.R. 128632, Aug. 5, 1999

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H. PROCEDURE AND JURISDICTION 1. Labor Arbiter a. Jurisdiction305 Exclusive and original jurisdiction to hear and decide the following cases306 invol ving all workers: 1. ULP cases 2. Termination disputes 3. If accompanied with a claim for reinstatement, those that workers file involving wages, rates of pay, hours of work and other terms and conditions of employment 4.Claims for actual, moral, exemplary and other forms of damages arising fro m employer‐employee relations 5. Cases arising from any violation of Art. 264,307 including questions involving the legality of strikes and lockouts; 6. Except claims for Employment Compensation, Social Security, Philhealth and maternity benefits, all other claims arising from employer-employee relations, including those of persons in domestic or household service, involving an amount exceeding P5000 regardless of whether accompanied with a claim for reinstatement 7. Monetary claims of overseas contract workers arising from employer‐ employee relations under the Migrant Worker’s Act of 1995 as amended by R.A. 10022

305 306

The jurisdiction is original and exclusive in nature. Labor Arbiters have no appellate jurisdiction. Including the following cases: 1. Wage distortion cases only in unorganized establishments. In organized establishments, jurisdiction is vested with Voluntary Arbitrators. 2. 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, including claims for actual, moral, exemplary and other forms of damages. 3. Illegal dismissal cases of employees of cooperatives, but not members of cooperatives because they are not employees. 4. Cases involving employees of government-owned or controlled corporations without original charters (organized under the Corporation Code). They have no jurisdiction if entity has original charter. Labor Arbiters have no jurisdiction over termination of corporate officers and stockholders which, under the law, is considered intra-corporate dispute. Labor Arbiters have no jurisdiction over labor cases involving entities immune from suit. Exception: when said entities perform proprietary activities (as distinguished from governmental functions). 307 See Reference

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8. Wage distortion disputes in un organized establishments not voluntarily settled by the parties pursuant to R.A. 6727 9. Enforcement of compromise compliance by any of the parties; and 10. Other cases as may be provided by law. b. Effect of self-executing order of reinstatement on backwages The decision of the LA reinstating a dismissed or separated employee, shall be executory, even pending appeal:308 The employee shall either be: 1. Admitted back to work under the same terms and conditions prevailing prior to the dismissal or separation; or 2. At the option of the employer, merely reinstated into the payroll. c. Requirements to perfect appeal to NLRC309 1. The appeal is perfected: a. Filed within the reglementary period provided in Sec. 1 of this Rules b. Verified by the appellant himself in accordance with Sec. 4, Rule 7 of the Rules of Court, as amended c. In the form of a memorandum of appeal which shall state the grounds relied upon and the arguments in support thereof, the relief prayed for, and with a statement of the date the appellant received the appealed decision, resolution or order d. In 3 legibly typewritten or printed copies
308

agreements when

there

is

non‐

The posting of a bond by the employer shall not stay the execution of reinstatement Even if the order of reinstatement of the LA is reversed on appeal, it is obligatory on the part of the employer to reinstate and pay the wages of the dismissed employee during the period of appeal until reversal by the higher court. On the other hand, if the employee has been reinstated during the appeal period and such reinstatement order is reversed with finality, the employee is not required to reimburse whatever salary he received for he is entitled to such, more so if he actually rendered services during the period. (Pfizer v. Velasco, G.R. No. 177467, March 9, 2011) Unless there is a restraining order, it is ministerial upon the LA to implement the order of reinstatement and it is mandatory on the employer to comply therewith. (Garcia v. PAL, G.R. No. 164856, Jan. 20, 2009) 309 Appeal from the decision of the Labor Arbiter is brought by ordinary appeal to the NLRC within ten (10) calendar days from receipt by the party of the decision.

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Injunction in ordinary labor disputes to enjoin or restrain any actual or threatened commission of any or all prohibited or unlawful acts or to require the performance of a particular act in any labor dispute which. 129 97 . 311 under Art. Cases decided by the DOLE Regional Directors or his duly authorized Hearing Officers311 involving recovery of wages. simple money claims and other benefits not exceeding P5. Jurisdictions310 Exclusive Original 1. Mere notice of appeal without complying with the other requisites aforestated shall not stop the running of the period for perfecting an appeal. If a claim does not fall within the exclusive original jurisdiction of the Labor Arbiter. 2. the NLRC cannot have appellate jurisdiction thereover.000 and not accompanied by claim for reinstatement. may cause grave or irreparable damage to any party. Exclusive Appellate 1. The NLRC does not have original jurisdiction on the cases over which Labor Arbiters have original and exclusive jurisdiction (see above enumeration). Certified labor disputes causing or likely to cause a strike or lockout in an industry indispensable to the national interest. certified to it by the Secretary of Labor and Employment for compulsory arbitration. 3. Injunction in strikes or lockouts under Article 264 of the Labor Code. 310 Distinction between the jurisdiction of the Labor Arbiters and the NLRC. 2. (ii) posting of a cash or surety bond. All cases decided by the Labor Arbiters including contempt cases. if not restrained or performed forthwith. (iii) a certificate of non‐forum shopping. The NLRC has exclusive appellate jurisdiction on all cases decided by the Labor Arbiters. 2. and (iv) proof of service upon the other parties. National Labor Relations Commission (NLRC) a.e. Accompanied by (i) proof of payment of the required appeal fee. 2.

Sep. it is ministerial upon the Labor Arbiter to implement the order of reinstatement and it is mandatory on the employer to comply therewith. 2000 314 Ginete v. Unless there is a restraining order. which requires that copies of final decisions. if the employee has been reinstated during the appeal period and such reinstatement order is reversed with finality. G. which is immediately executory. but being curative may be given retroactive application. certiorari as a special civil action will not lie unless a motion for reconsideration is filed before the NLRC to allow it an opportunity to correct its imputed error. Rule 65312 of the Rules of Civil Procedure. This amendment is effective September 1. it is obligatory on the part of the employer to reinstate and pay the wages of the dismissed employee during the period of appeal until reversal by the higher court.R. June 21. 2000. Article 224 of the Labor Code. orders or awards be furnished not only the party’s counsel of record but also the party himself applies to the execution thereof and not to the filing of an appeal or petition for certiorari. 00‐2‐03‐SC Narzoles v. No. 29. Sunrise Manning Agency. a dismissed employee whose case was favorably decided by the Labor Arbiter is entitled to receive wages pending appeal upon reinstatement. and not from the date the party himself receives a copy thereof. the petition must be filed within sixty (60) days from notice of the judgment or from notice of the resolution denying the petitioner’s motion for reconsideration. c. In other words. NLRC. G. No. Under Section 4.313 The period within which a petition for certiorari against a decision of the NL RC may be filed should be computed from the date counsel of record of the party receives a copy of the decision or resolution.314 312 313 as amended by A. Requirements to perfect appeal to Court of Appeals Generally.b. Effect of NLRC reversal of Labor Arbiter’s order of reinstatement Even if the order of reinstatement of the Labor Arbiter is reversed on appeal. 142023. the employee is not required to reimburse whatever salary he received for he is entitled to such.R. 141959. On the other hand. No. 2001 98 . more so if he actually rendered services during the period.M.

“Inter-union disputes” or “representation disputes” which refer to cases involving petition for certification election filed by a duly registered labor organization which is seeking to be recognized as the sole and exclusive bargaining agent of the rank-and-file employees in the appropriate bargaining unit of a company. grievances or problems arising from or affecting labor-management relations in all workplaces. except those arising from the interpretation or implementation of the CBA which are subject of grievance procedure and/or voluntary arbitration. Jurisdiction The BLR has original and exclusive jurisdiction over the following: 1. Collective bargaining registry and 3. 2. Labor education 99 .3. The BLR no longer handles “all labor management disputes. firm or establishment.” rather its functions and jurisdiction are largely confined to: 1. “Intra-union disputes” or “internal union disputes” which refer to disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by-laws of the union. Union matters 2. 3. All disputes. Bureau of Labor Relations (BLR) – Med Arbiters a. including any violation of the rights and conditions of union membership provided for in the Labor Code.

It is when a 3rd party studies each side of the dispute then makes proposals for the disputants to consider. The mediator cannot make an award nor render a decision. aids in reaching an agreement.4. relying on his persuasive expertise. National Conciliation and Mediation Board (NCMB) a. and generally being a good fellow who tries to keep things calm and forward‐looking in a tense situation. facilitating other procedural niceties. b. Conciliation vs. during a labor dispute or in collective bargaining conferences. carrying messages back and forth between the parties. and by cooling tempers. 100 . Mediation Conciliation Mediation Conceived of as a mild form of intervention A mild intervention by a neutral third by a neutral third party party The conciliator‐Mediator. whereby he Starts advising the parties or offering solutions or alternatives to the problems with the end in view of assisting them towards voluntarily reaching their own mutually acceptable settlement of the dispute. who takes an active role in assisting parties by trying to keep disputants talking. Preventive Mediation Refer to the potential labor disputes which are the subject of a formal or informal request for conciliation and mediation assistance sought by either or both parties or upon the initiative of the NCMB to avoid the occurrence of actual labor disputes. at their request or otherwise. It is the process where a disinterested 3rd party meets with management and labor. The conciliator-mediator.

condition or matter which may be necessary to determine violations or which may aid in the enforcement of the Labor Code and of any labor law. Right to copy records 3. wage 315 316 Enforcement Powers 1. the claim must arise from employer-employee relationship.Order stoppage of work or suspension of operation when non‐ Article 129 Visitorial and enforcement power by Secretary of Labor or duly authorized representative 1.Hearing within 24 hours . DOLE Regional Directors a. Right to question any employee 4. Access to employer's records and premises 2. whenever work is being undertaken therein 2. condition or matter which may be necessary to 5. Investigate any fact.00 315 6.000. Small money claims The Regional Director or any of the duly authorized hearing officers of DOLE have jurisdiction over claims for recovery of wages. provided that: i. Question any employee and investigate any fact. ii. the claimant does not seek reinstatement.No TRO or Temporary/Permanent injunction may be issued by an inferior court over any case involving the enforcement orders issued 101 . Issue writs of execution for the enforcement of their orders. Order stoppage of work or suspension of operations when non-compliance with law and implementing regulations poses grave and imminent danger to the health and safety of workers in the workplace (only Secretary of Labor has this power) . the aggregate money claim of each employee does not exceed P5. Issue writs of execution to the appropriate authority for enforcement of their orders 7. except in cases where the employer contests the findings of the labor officer and raise issues supported by documentary proof which were not considered in the course of inspection 3. Issue compliance orders 2. Visitorial and Enforcement Powers316 Visitorial Powers 1. and iii. Access to employer’s records and premises at any time of the day or night. after due notice and hearing.Employer liable for salaries during suspension of operations if found to have caused the violation .5. DOLE Secretary a. Order and administer. simple money claims and other benefits. To copy from said records 3. compliance with the Labor Standards provisions 6.

3. Power to suspend effects of termination The Secretary of the Department of Labor 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 lay-off.. last sentence or panel of Voluntary Arbitrators 319 Art. 321 b. Voluntary Arbitrators The Voluntary Arbitrator318 has original and exclusive jurisdiction over the following: i. and ii. V. 261 320 Art. all other labor disputes including unfair labor practices and bargaining deadlocks.order. or rules and regulation issued pursuant thereto. Before or at any stage of the compulsory arbitration process. Rule II.320 a. OR 322 Luzon Development Bank vs. upon agreement of the parties.317 7. G. the parties may opt to submit their dispute to voluntary arbitration.319 iii. compliance with the law or implementing rules and regulations poses grave and immi nent danger to health and safety of workers in the workplace b. 277. 120319. Rule 43. October 6. 262 321 Bk. all unresolved grievances arising from the interpretation or implementation of the collective bargaining agreement after exhaustion of the grievance procedure. 1995. R. et al. Association of Luzon Development Bank Employees . the case may be elevated to the Supreme Court by way of ordinary appeal under the same Rule 45. No. Rules of Court The decision of a Voluntary Arbitrator or panel of Voluntary Arbitrators is appealable by ordinary appeal under Rule 43 of the Rules of Civil Procedure directly to the Court of Appeals. Sec.322 317 318 Art. 102 . all unresolved grievances arising from the implementation or interpretation of company personnel policies. From the Court of Appeals. Submission Agreement It is the policy of the state to encourage voluntary arbitration on all other labormanagement disputes.

order or resolution.323 10. Rule 65. The petition shall raise only questions of law which must be distinctly set forth. Unfair labor practice . Rules of Court A party desiring to appeal by certiorari from a judgment or final order or resolution of the Court of Appeals. Both SC and CA has jurisdiction over the action. Court of Appeals a. Money claims . the Sandiganbayan. Offenses penalized by the Labor Code and IRR issued pursuant thereto – three (3) years Include: Pertinent Supreme Court decisions up to January 31. Rule 45. 9. however in line with the doctrine of minatory of warts. 323 Sec. as the law requires. where the tribunal. board or officer It may be filed not later than 60 days from notice of the judgment. that is. Illegal dismissal – four (4) years from accrual of cause of action. Prescription of Actions a. Rules of Court A party may avail itself of the civil action for certiorari. the petition should initially be presented to the lower of the two courts. d. the CA. or With grave abuse of discretion and praying that judgments be rendered annulling or modifying the proceedings.1 year from accrual of the cause of action.8. may file with the Supreme Court a verified petition for review on certiorari. Supreme Court a. b. and. the Regional Trial Court or other courts whenever authorized by law.three (3) years from accrual of cause of action. 2012. 1 103 . c. of such tribunal. board or office exercising juridical functions: Has acted without or in excess of jurisdiction.

104 . 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 liberate the worker from oppressive terms and conditions of employment. To give any false notice. Worker preference in case of bankruptcy. To fail to file reports on the status of employment. Such unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors may be paid. entity. information or document or commit any act of misrepresentation for the purpose of securing a license or authority under this Code. placement vacancies. 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. or holder of authority: To charge or accept. Prohibited practices. remittance of foreign exchange earnings. March 21. (As amended by Section 1.In the event of bankruptcy or liquidation of an employer’s business. his workers shall enjoy first preference as regards their wages and other monetary claims. departures and such other matters or information as may be required by the Secretary of Labor. any provisions of law to the contrary notwithstanding. licensee. 6715. 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. . testimony. 1989). To furnish or publish any false notice or information or document in relation to recruitment or employment. ARTICLE 110. directly or indirectly. 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.Reference Article 34. separation from jobs. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized representatives. and 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. Republic Act No. or to make a worker pay any amount greater than that actually received by him as a loan or advance. It shall be unlawful for any individual. 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. any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor.

Recovery of wages. Any sum thus recovered on behalf of any employee or househelper pursuant to this Article shall be held in a special deposit account by. through summary proceeding and after due notice. within thirty (30) calendar days after the submission of the case by the parties for decision without extension. ARTICLE 217.Upon complaint of any interested party. involving an amount exceeding five thousand pesos (P5. the following cases involving all workers. The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid wages and other monetary claims and benefits. March 21.ARTICLE 129. (b) The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters. including questions involving the legality of strikes and lockouts. Termination disputes 3.000. That such complaint does not include a claim for reinstatement: Provided further. the Secretary of Labor and Employment or the Regional Director directly to the employee or househelper concerned. Jurisdiction of the Labor Arbiters and the Commission. those cases that workers may file involving wages. Cases arising from any violation of Article 264 of this Code. and 6. 2. Any such sum not paid to the employee or househelper because he cannot be located after diligent and reasonable effort to locate him within a period of three (3) years. to hear and decide any matter involving the recovery of wages and other monetary claims and benefits. (a) Except as otherwise provided under this Code. including those of persons in domestic or household service. shall be held as a special fund of the Department of Labor and Employment to be used exclusively for the amelioration and benefit of workers. the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide. owing to an employee or person employed in domestic or household service or househelper under this Code. Unfair labor practice cases. That the aggregate money claims of each employee or househelper does not exceed Five thousand pesos (P5. Claims for actual. even in the absence of stenographic notes. to the National Labor Relations Commission which shall resolve the appeal within ten (10) calendar days from the submission of the last pleading required or allowed under its rules. exemplary and other forms of damages arising from the employer. the Regional Director of the Department of Labor and Employment or any of the duly authorized hearing officers of the Department is empowered. Except claims for Employees’ Compensation. hours of work and other terms and conditions of employment. and shall be paid on order of. found owing to any employee or househelper under this Code. Republic Act No. Social Security. Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on the same grounds provided in Article 223 of this Code. 4. rates of pay. arising from employer-employee relations: Provided. If accompanied with a claim for reinstatement. moral. all other claims arising from employer-employee relations.00).00) regardless of whether accompanied with a claim for reinstatement. (As amended by Section 2.000. simple money claims and other benefits. whether agricultural or non. 105 . The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30) calendar days from the date of the filing of the same.agricultural: 1. . within five (5) calendar days from receipt of a copy of said decision or resolution. including legal interest. including legal interest. 5.employee relations. 1989). 6715. Medicare and maternity benefits.

(As amended by Section 9. That mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his employment. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages. . the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. inclusive of allowances. That mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his employment. ARTICLE 279. and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment status: Provided. 6715. (paragraph 2) 106 .(c) Cases arising from the interpretation or implementation of collective bargaining agreement and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration as may be provided in said agreements. Security of tenure. even if a replacement had been hired by the employer during such lawful strike.In cases of regular employment. Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment status: Provided. even if a replacement had been hired by the employer during such lawful strike. Republic Act No. ARTICLE 264. 1989). March 21.

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