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

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

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

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

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

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

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

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

Contracting or subcontracting – an arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the performance or completion of a specific job, work or service within a definite or predetermined period, regardless of whether such job, work or service is to be performed or completed within or outside the premises of the principal Contractor or subcontractor – any person or entity engaged in a legitimate contracting or subcontracting arrangement Contractual employee – one employed by a contractor or subcontractor to perform or complete a job, work or service pursuant to an arrangement between the latter and a principal Principal – any employer who puts out or farms out a job, service or work to a contractor or subcontractor Permissible Job Contracting; Conditions a. The contractor carries on an independent business; b. Undertakes the contract work on his own account under his own responsibility according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of the work except as to the results thereof; and c. The contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other materials which are necessary in the conduct of his QuickTime™ and a business. TIFF (Uncompressed) decompressor
are needed to see this picture.

Labor-only Contracting – an arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and any of the following elements are present: 1. The contractor or subcontractor does not have substantial capital or investment which relates to the job, work or service to be performed

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15 – Below 18

18 years and above

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

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Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
Employment for Certification – upon the severance of the household service relationship, the househelper may demand from the employer a written statement of the nature and duration of the service and his/her efficiency and conduct as househelper Apex Mining Co. Inc. v. NLRC, 196 SCRA 251 (1991) The criteria are the personal comfort and enjoyment of the family of the employer in the home of said employer. While it may be true that the nature of the work of a househelper, domestic servant or laundrywoman in a home or in a company staffhouse may be similar in nature, the difference in their circumstances is that in the former instance they are actually serving the family while in the latter case, whether it is a corporation or a single proprietorship engaged in business or industry or any other agricultural or similar pursuit, service is being rendered in the staffhouses or within the premises of the business of the employer. In such instance, they are employees of the company or employer in the business concerned entitled to the privileges of a regular employee. D. HOMEWORKERS Homeworker – applies to any person who performs industrial homework for an employer, contractor or sub-contractor Industrial Homeworker – system of production under which work for an employer or contractor is carried out by a homeworker at his/her home. Materials may or may not be furnished by the employer or contractor Employer of Homeworker – includes any person, natural or artificial who, for his account or benefit, or on behalf of any person residing outside the country, directly or indirectly, or through an employee, agent contractor, sub-contractor or any other person: a. Delivers, or causes to be delivered, any goods, QuickTime™ and a TIFF (Uncompressed) decompressor articles or materials to besee this picture. or fabricated processed are needed to in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his directions b. Sells any goods, articles or materials to be processed or fabricated in or about a home and then rebuys them after such processing or fabrication, either by himself or through some other person Deductions – No employee, contractor, or subcontractor shall make any deduction from the homeworker's earnings for the value of materials which have been lost, destroyed, soiled or otherwise damaged unless the following conditions are met: 1. The homeworker concerned is clearly shown to be responsible for the loss or damage; 2. The employee is given reasonable opportunity to show cause why deductions should not be made; 3. The amount of such deduction is fair and reasonable and shall not exceed the actual loss or damages; and 4. The deduction is made at such rate that the amount deducted does not exceed 20% of the homeworker's earnings in a week. Liability of employer and contractor – Whenever an employer shall contract with another for the performance of the employer's work, it shall be the duty of such employer to provide in such contract that the employees or homeworkers of the contractor and the latter's sub-contractor shall be paid in accordance with the provisions of this Rule. In the event that such contractor or sub-contractor fails to pay the wages or earnings of his employees or homeworkers as specified in this Rule, such employer shall be jointly and severally liable with the contractor or subcontractor to the workers of the latter, to the extent that such work is performed under such contract, in the same manner as if the employees or homeworkers were directly engaged by the employer. Prohibitions for Homework 1. explosives, fireworks and articles of like character 2. drugs and poisons 3. other articles, the processing of which requires exposure to toxic substance E. HANDICAPPED / DISABLED Handicapped Workers – those whose earning capacity is impaired by age or physical or mental deficiency or injury, disease or illness There must be a link between the deficiency and the work which entitles the employer to lessen the worker’s wage. If the disability of the person is not in any way related to the work for which he was hired, he should not be so considered as a handicapped worker. Handicapped Worker (Art. 78 LC) Handicapped Person (RA 7277 Magna Carta
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Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007
Those whose earning capacity is impaired by age or physical or mental deficiency or injury for Disabled Persons) Those suffering from restriction or different abilities as a result of a mental, physical or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being. which may be necessary to aid in enforcement of the Labor Code or any labor law or order 5. issue compliance orders to give effect to labor legislation based on the findings of employment and enforcement officers or industrial safety engineers made in the course of inspection Compliance Order – must observe due process in administrative proceedings: a. alleged violator must first be heard and given adequate opportunity to present evidence on his behalf b. evidence presented duly considered before any decision reached c. decision is based on substantial evidence d. decision based on evidence presented in the hearing, or at least contained in the record and disclosed to the parties e. decision is that of the decision-making authority and not mere views of subordinates f. decision should explain the issues involved and the reasons for the decisions rendered 6. Issue writs of execution to the appropriate authority for the enforcement of their orders, EXCEPT in cases where the employer contests the findings of the labor employment and enforcement officer and raises isues supported by documentary proofs which were not considered in the course of inspection – in the latter case, the case will have to be forwarded to a Labor Arbiter Appeal If order issued by duly authorized representative of DOLE Sec. – appeal to the latter If order involves monetary award – an appeal by the employer may be perfected upon only upon posting of CASH or SURETY bond in the amount equivalent to the monetary award in the order appealed from Power of DOLE Secretary May order stoppage of work OR suspension of any unit or department where non-compliance with the law or implementing rules and regulations poses grave and imminent danger to the health and safety of workers in the workplace. Within 24 hrs – a hearing shall be conducted to determine whether an order for the stoppage of work or suspension of operations shall be lifted If violation is attributable to FAULT OF THE EMPLOYER, he shall pay the employees concerned their salaries or wages during the period of such stoppage of work or suspension of operations.
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When Employable 1. their employment is necessary to prevent curtailment of employment opportunities 2. does not create unfair competition in labor costs 3. does not impair or lower working standards Handicapped Workers May Become Regular Employees – if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they were hired. Equal Opportunity for Employment – no disabled person shall be denied access to opportunities for suitable employment. Qualified disabled employees shall be subject to same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied person Employment Agreement; Contents 1. Names and addresses of the employer and the handicapped worker 2. Rate of pay of the handicapped worker which shall not be less than 75% of the legal minimum wage 3. Nature of work to be performed by the handicapped worker 4. Duration of the employment

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

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

NATURE OF POWER

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

EXISTENCE OF EER

HOW INITIATED

Enforcement power is an offshoot of visitorial power No limit

APPEAL

Appeal to Sec. of Labor within 10 calendar days

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

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

WHO EXERCISES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and voluntary arbitration cases (SEE ANNEX L) B. No. 221. claims not exceeding Php 5. 20 February 2001). 227 of the Code (Sec. Original Jurisdiction QuickTime™ and disputes to enjoin a. SSS. disciplinary cases filed against overseas contract workers Jurisdiction of DOLE Regional Directors 1. violation of the constitution & by-laws and rights & conditions membership 4. Medicare. certified to it by the DOLE Secretary for compulsory arbitration 2.000 (Art. 1. visitorial power (Art. 222. It is the spirit and intention of this Code which shall be used as reasonable means to ascertain the facts in each case Page 74 of 83 c. 141093. all other claims arising from employer-employee relationship involving an amount exceeding P5000 regardless of whether accompanied by a claim for reinstatement except ECC. Injunction in strikes or lockouts under Art. moral.Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 5. Exclusive Appellate Jurisdiction a. including questions involving the legality of strikes and lockouts 6.000 and not accompanied by a claim for reinstatement OCULAR INSPECTION by Labor Arbiter & NLRC at any time during working hours Jurisdiction of the POEA Cancellation / Suspension of License of Authority to recruit of Recruitment Agencies (until phase out within 5 years as provided in RA 8042) Disciplinary Action against OFWs Appeal to Secretary of DOLE within 10 calendar days cancellation/ revocation/ supervision of license or authority Appeal to NLRC within 10 calendar days 1. violation of overseas employment contracts 2. simple money claims and other benefits not exceeding Php 5. 10 April 2003 – Claim of a seaman for damages is under torts. 2005 NLRC Rules) Cooperatives Termination of members of cooperatives is not cognizable by the LA (members are not employees) LA has jurisdiction over illegal dismissal cases involving employees of cooperatives LA does NOT have jurisdiction over Intra-corporate disputes Cases involving corporate officers (bec. NLRC. All monetary claims of OFWs arising from EER or by virtue of any law or contract involving Filipino workers for overseas deployment. & maternity benefits 7. it was held that an employee who rose from the ranks is a regular employee and not a mere corporate officer Cases involving GOCCs with original charters Cases involving entities immune from suit (except when the entity performs proprietary functions) Local water districts (since they are quasi-public corporations) Actions based on tort (Tolosa v. if not restrained or performed forthwith .R. Rule V. . 264 Certified labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest. cases arising from prohibited activities during strikes. Appearances and Fees The rules of evidence prevailing in courts of law or equity shall not be controlling. Technical rules not binding and prior resort to amicable settlement Art. Wage distortion cases in unorganized establishments 8.) Jurisdiction of the NLRC 1. or threatened actual commission of any or all prohibited or unlawful acts or to require the performance of a particular act in any labor dispute which. may cause grave or irreparable damage to any party b. including claims for actual. including contempt cases b. they are not employees) – BUT in Prudential Bank v. Cases decided by the DOLE Regional Directors or his duly authorized hearing officers involving recovery of wages. 128) 2. Reyes (G. exemplary and other forms of damages (RA 8042) 9. mediation. 129) 3. inter-union and intra-union disputes involving independent unions and chartered locals Jurisdiction of the NCMB conciliation. PROCEDURE Art. Injunction in ordinary labor a TIFF (Uncompressed) decompressor needed or restrain are any to see this picture. Enforcement of compromise agreements when there is non-compliance by any of the parties pursuant to Art. regular court has jurisdiction. All cases decided by the LAs.

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

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

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

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

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

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

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

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

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

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