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LABOR STANDARDS / Midterms

SOURCES: Azucena, various Disini reviewers scattered throughout the internet

Sec. 1 ± Labor Law in General 1.01. LABOR LAW DEFINED Labor law is the field of law governing the relationship between employers and employees. Labor law is the law governing the rights and duties of the employer and employees: 1. with respect to the terms and conditions of employment, and 2. with respect to labor disputes arising from collective bargaining respecting such terms and conditions. 1.02. LAW CLASSIFICATION ± LABOR STANDARDS, LABOR RELATIONS, AND WELFARE LAWS Philippine labor laws can be classified into three (3) categories: labor standards, labor relations, and welfare laws. Labor standards: that which sets out the minimum terms, conditions and benefits of employment that employers must provide or comply with and to which employers are entitled to as a matter of legal right. Labor standards are dealt with in the following books of the Labor Code: o Book I: Pre-employment (Arts. 1242) o Book II: Human Resources Development Program (Arts. 2381) o Book III: Conditions of Employment (Arts. 82-155) o Book IV: Health, Safety, and Social Welfare Benefits (Arts. 156210) o Book VI: Post-employment Labor relations: that which defines the status, rights and duties, and the institutional mechanisms that govern the individual and collective interactions of employers, employees or their representatives. Labor relations are dealt with in: o Book V: Labor Relations (Arts. 211-277) REV 6:15-17

Welfare laws: that which is designed to take care of the contingencies which may affect the workers (e.g. where there is loss of income for reasons beyond control like sickness, death or accident). Some Philippine welfare laws are the following: o Social Security Act of 1997 (RA 8282) o Philippine Government Service Insurance System Act of 1997 (RA 8291) o Employment Compensation and State Insurance Fund o National Health Insurance Act of 1195 (RA 7875) Labor Standards Batong Buhay Goldmines, Inc. v. de la Serna: Labor standards refers [sic] to the minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost of living allowance and other monetary and welfare benefits, including occupational, safety and health standards. Labor standards cases are governed by Article 128(b) of the Labor Code. Peñaranda v. Baganga Plywood Corp.: Labor standards provide the working conditions of employees, including entitlement to overtime pay and premium pay for working on rest days. 1.03. BASIS FOR CONSTITUTION (1987) ENACTMENT ±

Art. II, Sec. 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. Art. XIII, Sec. 1. The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good. Police Power

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LABOR STANDARDS / Midterms

Police power is the state authority to enact legislation that may interfere with personal liberty or property in order to promote the general welfare. CMS Estate, Inc. v. Social Security System: It (compulsory coverage of employers and employees under the SSS as required by RA 1161) is actually a legal imposition on said employers and employees, designed to provide social security to the working men. Membership in the SSS is therefore in compliance with the lawful exercise of the police power of the State. 1.04. SOURCES OF LAW

DOLE Phils., v. Pawis ng Makabayang Obrero: The CBA is the norm of conduct between the parties and compliance therewith is mandated by the express policy of the law. D. Past Practices To be a source of rights and obligations, the following requisites must be present: 1. The practice must be freely, voluntarily and continuously given within a considerable length of time (Davao Fruits Corp. v. Associated Labor Union) The practice must be not just a single instance; i.e. not granted only once (Samahang Manggagawa, etc. v. NLRC) The practice should be done over a long period of time and must be shown to have been consistent and deliberate (American Wire and Cable Daily Rated Employers Union v. American Wire and Cable Co., Inc.) The practice must not be by reason of a strict legal or contractual obligation, but by reason of an act of liberality on the part of the employer (Pag-asa Steel Works, Inc. v. CA)

2. A. Labor Code and Related Special Legislation (including IRR) 3. Mariveles Shipyard Corp. v. CA: Labor laws are considered written in every contract. Stipulations in violation thereof are considered null. Similarly, legislated wage increases are deemed amendments to the contract. 4. B. Contract (Art. 1305 ± 1306, NCC) Art. 1305. A contract is a meeting of minds between two persons whereby one binds himself with respect to the other, to give something or to render some service. Art. 1306. The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy. Kasapian ng Malayang Manggagawa sa CocaCola v. CA: The MOA, being a contract freely entered into by the parties, now constitutes as the law between them, and the interpretation of its contents purely involves an evaluation of the law as applied to the facts herein. C. Collective Bargaining Agreement ± Book V, Rule I, Sec. 1(j), Omnibus Rules Rule I, Sec. 1(j). ³Collective Bargaining Agreement´ or ³CBA´ refers to the contract between a legitimate labor union and the employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit.

E. Company Policies China Banking Corp. v. Borromeo: Company policies are generally binding and valid on the parties and must be complied with until finally revised or amended unilaterally o preferably through negotiation by competent authority, unless shown to be grossly oppressive or contrary to law. 1.05. LAW AND WORKER Amkor Technology v. Juangco: While the Constitution is committed to the policy of social justice and the protection of the working class, it should not be expected that every labor dispute will be automatically decided in favor of labor. Management also has its own rights which, as such, are entitled to respect and enforcement in the interest of simple fair play. Cebu Royal Plant v. Deputy Minister of Labor: We take this opportunity to reaffirm our concern for the lowly worker who, often at the mercy of his employers, must look up to the law for his protection. Page 2

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.Unfair labor practices. 2. two elements must concur: 1. the presence of an employer-employee relationship. v. The limitations to the exercise of management prerogatives are as follows: 1. as a general rule. CASE DECISION Anino v. Pascua: The exercise of management prerogative is not absolute. 1. CA) 1. rates of pay. including questions involving legality of strikes and lockouts. VIII of the Constitution. 4. including those of persons in domestic or household service. Such decision is a nullity. Airlines v.Termination disputes. those cases that workers may file involving wages. arising from employeremployee relations. 2. and instructions of the employer. there is no labor case. (Lapanday Agricultural Development Corp.) The factual and legal bases of public respondent's conclusions were bereft of substantial evidence ² the quantum of proof in labor cases ² its disposition is manifestly a violation of the constitutional mandate and an exercise of grave abuse of discretion. and . and willful or intentional disobedience thereof.08. . MANAGEMENT FUNCTION Recognition Gustilo v. 14.07. Page 3 . Law and public policy on labor on social justice Terms and conditions of the collective bargaining agreement (CBA) negotiated between labor and capital Principles of fair play and justice That the exercise of management prerogatives be in good faith to advance its interest and not for the purpose of defeating or circumventing the rights of employees under the laws or valid agreements (Valiao v.Except claims for Employees Compensation. Social Security.000. At the same time.If accompanied with a claim for reinstatement. . we must resolve to lighten "the weight of centuries" of exploitation and disdain that bends his back but does not bow his head.LABOR STANDARDS / Midterms Fittingly. hours of work and other terms and conditions of employment. Art. moral exemplary and other form of damages arising from employer-employee relations. . CA) Without these two elements. justifies rescission of the contract of service and the preemptory dismissal of the employee.06. involving an amount exceeding five thousand pesos (P5. the exercise of management prerogative cannot be utilized to circumvent the law and public policy on labor and social justice. 217 enumerates acts that fall under the jurisdiction of labor arbiters: . NLRC: A decision should faithfully comply with Sec. Medicare and maternity benefits. While the employer may be conceded that management is in the best position to know its operational needs. It must always be exercised with the principles of fair play at heart and justice in mind. orders. and a violation of the Labor Code ± Art. (No decision shall be rendered by any court [or quasijudicial body] without expressing therein clearly and REV 6:15-17 3. that law regards him with tenderness and even favor and always with faith and hope in his capacity to help in shaping the nation's future « If we cherish him as we should. LABOR CASE To determine whether or not there is a labor case. 1. Limitations Phil.00) regardless of whether accompanied with a claim for reinstatement. distinctly the facts of the case and the law on which it is based.Claims for actual. all other claims. it is one of the fundamental duties of the employee to yield obedience to all reasonable rules. Wyeth: It is the employer¶s prerogative to prescribe reasonable rules and regulations necessary or proper for the conduct of its business or concern to provide certain disciplinary measures to implement said rules and to assure that the same be complied with.Cases arising from any violation of Article 264 of this Code.

Airlines.01. Labor Sector ± Characterized ± Art. shall be final and binding upon the parties. no moral ascendancy over the other STATUTORY REFERENCE ± 1935. A compromise is a contract whereby the parties. Santos: The sympathy of the Court is on the side of the laboring classes. avoid a litigation or put an end to one already commenced. not all compromises and waivers are void or contrary to law ± labor law is not meant to suppress employers. Labor Code. the law bends over backward to accommodate the interests of the working class on the humane justification that those with less privileges in life should have more privileges in law. Art. NATURE OF PROVISION Phil. HISTORICAL RATIONALE BACKGROUND AND Antamoc Goldfields Mining Co. Compromise agreements ± Any compromise settlement. in custodia societatis. 5. Art. A general renunciation of rights is understood to refer only to those that are connected with the dispute which was the subject of the compromise. Under the policy of social justice. Waivers and compromise are frowned upon by law because it is subject to abuse (leading to instances when labor may be exploited by capital) Even so. To summarize.) And in order that this declaration of principle may not just be an empty medley of words. or coercion.LABOR STANDARDS / Midterms 1..03. it also protects employers. II. 2028. and employer¶s right to the return of his investment. just as it protects employees. or which by necessary implication from its terms should be deemed to have been included in the same. if not controlled. but because of the one-sided relation between labor and capital. The purpose is to place the workingman on an equal plane with management ² with all its power and influence ² in negotiating for the advancement of his interests and the defense of his rights. 227. by making reciprocal concessions. Art. 2036. 2 ± Labor and the Constitution A. Sec. as it were. general provisions were inserted in the Constitution which are intended to bring about the needed social and economic equilibrium between component elements of society « to be secured through the counterbalancing of economic and social forces and opportunities which should be regulated. (Sec. the Constitution in various sections thereof has provided the means towards its realization « 2. 2036. by the State or placed. Arts. The National Labor Relations Commission or any court shall not assume jurisdiction over issues involved therein except in case of non-compliance thereof or if there is prima facie evidence that the settlement was obtained through fraud. the interpretation of labor laws should be made in favor of the laborers.09. COMPROMISE AND WAIVER ± Art. Constitution. Embodying the spirit of the present epoch.02. Inc. A compromise comprises only those objects which are definitely stated therein. The constitutional mandate for the promotion of labor is as explicit as it is demanding. There¶s a shared responsibility: employee¶s right to the fruits of his labor. voluntarily agreed upon by the parties with the assistance of the Bureau or the regional office of the Department of Labor. 2. 'The promotion of social justice to in sure the well-being and economic security of all the people' was thus inserted as vital principle in our Constitution. v. There are three elements that must concur to determine the validity of a compromise or waiver: o The amount involved is reasonable and not unconscionable o It is voluntarily entered into o There is proximate equality. 1973. 227. CIR: « our Constitution was adopted in the midst of surging unrest and dissatisfaction resulting from economic and social distress which was threatening the stability of governments the world over. Civil Code Art. including those involving labor standard laws. v. II. 1987 CONSTITUTION Sec. and 1987 Constitutions 2. 2028. not only because the Constitution imposes such sympathy. misrepresentation. 18 REV 6:15-17 Page 4 .

10. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. 3. Art. Secs. XIII. (1973) The State shall promote social justice to ensure the dignity. Sec. XIII. and to expansion and growth. Secs. 3. 1935 Constitution. use. and disposition of property and its increments. (1987) The State shall promote social justice in all phases of national development. welfare. Art. Sec. NLRC: Social justice is not intended to countenance wrongdoing simply because it is committed by the underprivileged. B. It shall guarantee the rights of all workers to selforganization. C. Sec. ownership. Art. 2. (1987) The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity. 9. economic. Sec. 10. Sec. use. including conciliation. Equal Work Opportunities Star Paper Corp. To this end. XIII.LABOR STANDARDS / Midterms Art. and a living wage. II. II. Art. and 1987 Constitution. The State shall regulate the relations between workers and employers. Art. Dayan v. EX: The Constitution does not protect the employee when the employee is wrong and the employer is right. and security of all the people. Art. Sec. including the right to strike in accordance with law. and political inequalities. in protecting the rights of labor. Protection of Labor ± Guarantees ± Art. Social Justice ± Art II. local and overseas. the State shall regulate the acquisition. II. 1. 3. ownership. 3 (Compare: 1935 Constitution ± Art. The promotion of social justice shall include the commitment to create economic opportunities based on freedom of initiative and self-reliance. The State shall afford full protection to labor. XIII. The RIGHTS AND REV 6:15-17 Page 5 . Sec. 1. and disposition of private property. humane conditions of work. 10. Williams: Social justice is the 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. 2. CONSTITUTIONAL LABOR LAW Management of the Constitution GR: The Constitution protects and promotes the welfare of the employee. Limits of Use PLDT v. II. 1973 Constitution. II. 5. The State affirms labor as a primary social economic force. Sec. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes. and peaceful concerted activities. II. organized and unorganized. Definition ± Social Justice Calalang v. It shall protect the rights of workers and promote their welfare. and remove cultural inequities by equitably diffusing wealth and political power for the common good. Simbol: The absence of a statute expressly prohibiting marital discrimination in our jurisdiction cannot benefit the petitioners. XIII. Compassion for the poor is an imperative of every humane society but only when the recipient is not a rascal claiming an underserved privilege. the State shall regulate the acquisition. Towards this end. 1973 Constitution ± Art. 6. recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments. 18. BPI: Law. and shall enforce their mutual compliance therewith to foster industrial peace. reduce social. 5. and promote full employment and equality of employment opportunities for all.04. 1-2 Art. Secs. II. Sec. Sec. They shall be entitled to security of tenure. XIV. Sec. v. and equitably diffuse property ownership and profits. authorized neither oppression nor self-destruction of an employer company which itself is possessed of rights that must be entitled to recognition and respect. Sec. Art. collective bargaining and negotiations. (1935) The promotion of social justice to insure the well-being and economic security of all the people should be the concern of the State. 1987 Constitution. enjoyment. 18) Art.

NLRC: A worker¶s employment is property in the constitutional sense. v. It is implicit in quite a few of its provisions. Welfare State Alalayan v. It is the employer who has the burden of proving that the dismissal was with just or authorized cause. we rule that the questioned policy is an invalid exercise of management prerogative. Unlike management prerogative regarding business operations. They should be properly informed of the decision and the modes through which they were arrived at. for failure of petitioners to present undisputed proof of a reasonable business necessity. not only must it be based on just cause supported by clear and convincing evidence.LABOR STANDARDS / Midterms protection given to labor in our jurisdiction is vast and extensive that we cannot prudently draw inferences from the legislature¶s silence that married persons are not protected under our Constitution and declare valid a policy based on a prejudice or stereotype. v. Independent consideration of judge. Inc. NLRC: 8. The attainment of a harmonious labor-management relationship and the then already existing state policy of enlightening workers concerning their rights as employees demand no less than the observance of transparency in managerial moves affecting employees¶ rights. Balatbat & Agabon v. He cannot be deprived of his work without due process. even if other minds equally reasonable would opine otherwise 5. the exercise of management prerogative regarding matters which affect the rights of employees should be made known to employees.A. Due Process Requirements Ang Tibay v. Decision must be rendered on the evidence presented at the hearing or at least contained in the record and disclosed to the parties affected 6. 386 as amended REV 6:15-17 Page 6 . includes the right of a part to present his own case and submit evidence in support thereof 2. relevant evidence as a reasonable mind might accept as adequate to support a conclusion. Liberty of Interference Contract/Laissez-faire and State Leyte Land Transportation Co. the employee must also be given an opportunity to be heard and defend himself. 3 ± Labor and the Civil Code STATUTORY REFERENCE ± Civil Code of the Philippines. The failure of the employer to discharge this burden means that the dismissal is not justified and that the employee is entitled to reinstatement and backwages. must not simply accept views of subordinate in arriving at a decision 7. Labor as Property Asuncion v. and one of competent jurisdiction 9. Specifically for termination case: twin notice rule. R. CIR: The procedural due process requirements are: 1. Leyte Farmers and Workers Union: The State still exercises control/power to interfere where the parties are not equal in standing. as well as the pledge of protection to labor with the specific authority to regulate the relations between landowners and tenants and between labor and capital. There is the clause on the promotion of social justice to ensure the well-being and economic security of all the people. Participation in Decision-Making Process Philippine Airlines. Inc. Sec. v. Air Manila. Thus. A tribunal so constituted as to give him reasonable assurance of honesty and impartiality. The tribunal must consider the evidence presented 3. Evidence must be substantial. In order for the dismissal to be valid. NLRC: Industrial peace cannot be achieved if the employees are denied their just participation in the discussion of matters affecting their rights. NPC: The welfare state concept is not alien to the philosophy of our Constitution. Decision rendered in such a manner as to let the parties know the various issues involved and the reasons for the decision rendered. Decision must be supported by evidence 4. No. Right to a hearing.

Therefore. All are entitled to equal protection against any Page 7 . 23.01. 19. and observe honesty and good faith. 7. All are equal before the law and are entitled without any discrimination to equal protection of the law. Employee Obedience and Compliance [to] Employer Orders PCIB v. As applied to contracts. strikes and lockouts. Inc. v. also known as the 'principle of abuse of right. More particularly. 3. 25 Art. liability for damages to the injured party will attach. or impair the interest of convenience of the public. 4 ± Labor and International Covenants (Labor Standards and Welfare Law) 4. Sec. there must be no intention to harm another. has a tendency to injure the public. a court.01. The measure of the responsibility of an employee is that if he performed his assigned task efficiently and according to the usual standards. give every one his due. EMPLOYER-EMPLOYEE STANDARD OF CONDUCT ± Art. Failing in this. ROLE OF LAW ± Art. then he may not be held personally liable for any damage arising therefrom. the employee must suffer the consequences of his negligence if not lack of due care in the performance of his duties. collective bargaining. Tuico: It must be stressed that while one purpose of the return-to-work order is to protect the workers who might otherwise be locked out by the employer for threatening or waging the strike. whether of personal liability or of private property. in the absence of express legislation or constitutional prohibition. The lack of a written or formal designation should not be an excuse to disclaim any responsibility for any damage suffered by the employer due to his negligence. not to mention possible cancellation of the contracts of the company with foreign importers. Quiamco: The basic principle of human relations.02. working conditions. liberty and security of person. Everyone has the right to life. 3. Jacinto: Any employee who is entrusted with responsibility by his employer should perform the task assigned to him with care and dedication. is against the public good. prescribes that a person should not use his right unjustly or contrary to honesty and good faith. 24. Labor Contracts 3. 7. They are so impressed with public interest that labor contracts must yield to the common good. UNIVERSAL DECLARATION OF HUMAN RIGHTS ± Arts. The relation between capital and labor are not merely contractual. 1700. 22. 1700 Art.LABOR STANDARDS / Midterms 3. or is inconsistent with sound policy and good morals. Fair Treatment dollar reserves. or the tendency to use.] Article 19. it is the national economy that will suffer because of the resultant reduction in our export earnings and our REV 6:15-17 Avon Cosmetics. a legal right (or duty) as a means to unjust ends. Public Policy Uypitching v. hours of labor and similar subjects. in order to declare a contract void as against public policy. 1701. Art. 17. act with justice. embodied in Article 19 of the Civil Code. or contravenes some established interests of society. or tends clearly to undermine the security of individual rights. 1701 Art. Luna: Public policy is that principle of the law which holds that no subject or citizen can lawfully do that which has a tendency to be injurious to the public or against the public good. Every person must in the exercise of his rights and in the performance of his duties. otherwise he opens himself to liability. The exercise of a right must be in accordance with the purpose for which it was established and must not be excessive or unduly harsh. provides: [Art. must find that the contract as to the consideration or thing to be done. closed shop. It seeks to preclude the use of. Neither capital nor labor shall act oppressively against the other. Law Compliance Sarmiento v. There is an abuse of right when it is exercised solely to prejudice or injure another. such contracts are subject to the special laws on labor unions. Otherwise. the more important reason is to prevent impairment of the national interest in case the operations of the company are disrupted by a refusal of the strikers to return to work as directed. wages.

SOCIAL AND CULTURAL RIGHTS ± Part III.LABOR STANDARDS / Midterms discrimination in violation of this Declaration and against any incitement to such discrimination. 25. the measures. The States Parties to the present Covenant recognize the right of everyone to social security. The States Parties to the present Covenant recognize the right of everyone to an adequate standard of living for himself and his family. 7. has the right to equal pay for equal work. of the economic. in particular: (a) Remuneration which provides all workers. Art. Art. 17. as well as remuneration for public holidays Art. 4. old age or other lack of livelihood in circumstances beyond his control. which are needed: Page 8 . social and cultural development and full and productive employment under conditions safeguarding fundamental political and economic freedoms to the individual. 2. by other means of social protection. as a member of society. including reasonable limitation of working hours and periodic holidays with pay. clothing. (2) Everyone. including food. The steps to be taken by a State Party to the present Covenant to achieve the full realization of this right shall include technical and vocational guidance and training programmes. widowhood. All children. clothing and housing. and will take appropriate steps to safeguard this right. recognizing to this effect the essential importance of international co-operation based on free consent. with: (i) Fair wages and equal remuneration for work of equal value without distinction of any kind. leisure and reasonable limitation of working hours and periodic holidays with pay. policies and techniques to achieve steady economic. (ii) A decent living for themselves and their families in accordance with the provisions of the present Covenant. (1) Everyone has the right to own property alone as well as in association with others. 22. 9. 9. (b) Safe and healthy working conditions. 11. including social insurance. whether born in or out of wedlock. Art. The States Parties to the present Covenant recognize the right of everyone to the enjoyment of just and favorable conditions of work which ensure. (2) No one shall be arbitrarily deprived of his property. social and cultural rights indispensable for his dignity and the free development of his personality. including specific programmes. and the right to security in the event of unemployment. with equal pay for equal work. The States Parties will take appropriate steps to ensure the realization of this right. which includes the right REV 6:15-17 of everyone to the opportunity to gain his living by work which he freely chooses or accepts. (1) Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family. shall enjoy the same social protection. housing and medical care and necessary social services. Everyone has the right to rest and leisure. to free choice of employment. if necessary. (4) Everyone has the right to form and to join trade unions for the protection of his interests. The States Parties to the present Covenant recognize the right to work. without any discrimination. recognizing the fundamental right of everyone to be free from hunger. and to the continuous improvement of living conditions. and supplemented. 23. shall take. (c) Equal opportunity for everyone to be promoted in his employment to an appropriate higher level. The States Parties to the present Covenant. 1. to just and favorable conditions of work and to protection against unemployment. Art. including adequate food. 24. (d) Rest. 11 Art. disability. individually and through international co-operation. 1. (3) Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity. Art.02. has the right to social security and is entitled to realization. subject to no considerations other than those of seniority and competence. through national effort and international co-operation and in accordance with the organization and resources of each State. Art. 7. 2. Arts. as a minimum. (1) Everyone has the right to work. INTERNATIONAL COVENANT ON ECONOMIC. (2) Motherhood and childhood are entitled to special care and assistance. Art. Everyone. 6. 6. sickness. in particular women being guaranteed conditions of work not inferior to those enjoyed by men.

5 ± The Labor Code of the Philippines 5. 8. not referred to in subparagraph (b). 6. and regulate the relations between worker and employers. 2(1). EFFECTIVITY Art.LABOR STANDARDS / Midterms (a) To improve methods of production. Quisumbing: The Constitution. or of a person during conditional release from such detention. Art. School: The Labor Code was promulgated to promote the welfare and well-being of the working man. 1. 4. Declaration of basic policy ± The State shall afford protection to labor. and REV 6:15-17 Cultural Rights impregnably institutionalize in this jurisdiction the long honored legal truism of "equal pay for equal work. 5. 1. Name of decree ± This Decree shall be known as the ³Labor Code of the Philippines. promote full employment.02. any national service required by law of conscientious objectors. Labor Code and the International Covenant on Economic. 1975. (iii) Any service exacted in cases of emergency or calamity threatening the life or well-being of the community. APPLICABILITY ± 276. POLICY DECLARATION CONSTITUTION. IX. slavery and the slave-trade in all their forms shall be prohibited. to ensure an equitable distribution of world food supplies in relation to need. 2. the performance of hard labor in pursuance of a sentence to such punishment by a competent court. should be paid similar salaries.05.03. normally required of a person who is under detention in consequence of a lawful order of a court. RATIONALE. race or creed. Art. (ii) Any service of a military character and. collective bargaining." Persons who work with substantially equal qualifications. Its spirit and intent mandate the speedy administration of justice.´ 5. except as may Page 9 .04. INTENT Magallanes v. ensure equal work opportunities regardless of sex. No one shall be held in slavery. (a) No one shall be required to perform forced or compulsory labor. effort and responsibility. CONSTITUTION Art. (b) Taking into account the problems of both foodimporting and food-exporting countries. Sec. conservation and distribution of food by making full use of technical and scientific knowledge. SPIRIT. Sun Yat Sen Elem. however. by disseminating knowledge of the principles of nutrition and by developing or reforming agrarian systems in such a way as to achieve the most efficient development and utilization of natural resources. 5.04. 2. DECREE TITLE Art. with least attention to technicalities but without sacrificing the fundamental requisites of due process. 1974 and hence took effect on November 1. in countries where imprisonment with hard labor may be imposed as a punishment for a crime. under similar conditions. (b) Paragraph 3 (a) shall not be held to preclude. B. Sec. Applicability ± All rights and benefits granted to workers under this Code shall. 3 ± CF. skill. 5. The State shall assure the rights of workers to self-organization. CONVENTIONS AND RECOMMENDATIONS OF THE INTERNATIONAL LABOR ORGANIZATION (ILO) International Conventions International School Alliance of Educators v. (iv) Any work or service which forms part of normal civil obligations. 1974. (c) For the purpose of this paragraph the term "forced or compulsory labor" shall not include: (i) Any work or service. security of tenure. Date of effectivity ± This Code shall take effect six (6) months after its promulgation. Social. Sec. 8 Art. XIII. ART. INTERNATIONAL COVENANT ON CIVIL AND POLITICAL RIGHTS ± Part III. PD No. The Labor Code was promulgated on May 1.01. No one shall be held in servitude. Art. 607 deferred the effectivity of portions of Book IV to January 1. 3. 4. and humane conditions of work.03. in countries where conscientious objection is recognized.

therefore. Test ± GOCC Light Railway Transit Authority v. (1) The civil service embraces all branches. (2) the teacher must have rendered three (3) consecutive years of service. in terms of wages. for a private school teacher to acquire a permanent status of employment and. IX-B. or non-agricultural.LABOR STANDARDS / Midterms otherwise be provided herein. including employees of governmentowned and controlled corporations. such as government employees and employees of GOCCs with original charters. which is to shield the affairs of international organizations. Art. The manner by which how a GOCC was created is important in determining which law applies to it: If with original charter: the Civil Service Law applies (Art. EX: The Labor Code does not apply to those specified as such therein. therefore. be entitled to security of tenure. it is the Manual of Regulations for Private Schools. (b) the teacher must have rendered three consecutive years of service. NLRC: An ecclesiastical affair involves the relationship between the church and its members REV 6:15-17 Page 10 . benefits and other terms and conditions of employment being enjoyed by them at the time of the adoption of the Code. NLRC. NLRC: The grant of immunity from local jurisdiction to [an international organization] is clearly necessitated by their international character and respective purposes. This was settled in University of Sto. including government-owned or controlled corporations with original charters. from political pressure or control by the host country to the prejudice of the member State of the organization. the following requisites must concur: (a) the teacher is a full-time teacher. However. instrumentalities. Requisite Relationship Uy v. subdivisions. However. whether agricultural. where we explicitly ruled that for a private school teacher to acquire permanent status in employment and. whether agricultural or non-agricultural (also see Requisite Relationship below). in accordance with international practice. The exercise of jurisdiction by the Department of Labor in these instances would defeat the very purpose of immunity. LC. and (3) such service must have been satisfactory. and (c) such service must have been satisfactory. 2. the Labor Code does not distinguish as to the nature of the GOCC ± its provisions on wages apply on both. Government employees ± The terms and conditions of employment of all government employees. International Agencies/Organizations Ebro III v. rules and regulations. which is applicable. Tomas v. the following requisites must concur: (1) the teacher is a full-time teacher. shall be governed by the Civil Service Law. School Teachers Chiang Kai Shek College v. National Mines and Allied Workers Union v. be entitled to a security of tenure. Sec. CA: Under the Manual of Regulations for Private Schools. San Ildefonso College: On the issue of whether the individual petitioners were permanent employees. Sec. The objective is to avoid the danger of partiality and interference by the host country in their internal workings. apply alike to all workers. Religious Corporations Austria v. and not the Labor Code. GR: The Labor Code applies to all workers. and to ensure the unhampered performance of their functions. Consti. Bueno: The requirement of employeremployee relationship is jurisdictional for the provisions of the Labor Code to apply. Venus: Labor law claims against government-owned and controlled corporations without original charter fall within the jurisdiction of the Department of Labor and Employment and not the Civil Service Commission. and agencies of the Government. Art. 276. 2 (1). the Labor Code is suppletory to the Manual. there shall be no reduction of existing wages.) If incorporated under the Corporation Code (no original charter): the Labor Code applies However. Their salaries shall be standardized by the National Assembly as provided for in the New Constitution. 276.

and erect no shield against merely private conduct.07. Glaxo-Wellcome: Glaxo¶s policy prohibiting an employee from having a relationship with an employee of a competitor company is a valid exercise of management prerogative. Duncan Association v. Clave: A labor regulation which in effect amends the Labor Code is null and void. administration of sacraments and other activities which attached religious significance. worship and governance of the congregation. petitioner is deemed a member of the managerial staff. Glaxo has a right to guard its trade secrets. CBTC Employees Union v. 5. Petitioner supervised the engineering section of the steam plant boiler. EX: when the state in any of its manifestations or actions has been found to have become entwined or involved in the wrongful private conduct ³In favor of labor´ ± Rationale´ Abella v. The commands of the equal protection clause are addressed only to the state or those acting under the color of authority. NLRC: In carrying out and interpreting the provisions of the Labor Code and its implementing regulations. The policy is to extend the applicability of the decree to a greater number of employees who can avail of the benefits under the law. In case of doubt. 40 by Minister of Labor said the types of employees in broadcast are the station and program employees. Art. 4. the workingman¶s welfare should be the primordial and paramount consideration. 5. which is in consonance with the avowed policy of the State to give maximum aid and protection to labor.LABOR STANDARDS / Midterms and relate to matters of faith. it is well-settled that in the implementation and interpretation of the provisions of the Labor Code and its implementing regulations. Baganga Plywood Corp. all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. 1702. This work necessarily required the use of discretion and independent judgment to ensure the proper functioning of the steam plant boiler. His work involved overseeing the operation of the machines and the performance of the workers in the engineering section. Construction in favor of labor ± All doubts in the implementation and interpretation of the provisions of this Code. LAW INTERPRETATION ± 4. religious doctrines. ABS-CBN: Sonza argues Policy Instruction No. the workingman's welfare should be the primordial and paramount consideration. including its implementing REV 6:15-17 Page 11 .06. Art. Court said this instruction is a mere executive issuance which does not have the force and effect of law and not binding on the Court. NCC Art. etc. 1702. Examples of this so-called ecclesiastical affairs to which the State cannot meddle are proceedings for excommunication. RULE-MAKING POWER ± 5 Limitation ± Instructions Rule-Making Power ± Policy rules and regulations. Liberal Construction Salinas v. It is the kind of interpretation which gives meaning and substance to the liberal and compassionate spirit of the law as provided for in Article 4 of the New Labor Code which states that ³all doubts in the implementation and interpretation of the provisions of this Code including its implementing rules and regulations shall be resolved in favor of labor.: Petitioner¶s duties and responsibilities conform to the definition of a member of a managerial staff under the Implementing Rules. As supervisor. however discriminatory or wrongful. NLRC: In any event. shall be resolved in favor of labor. ordinations of religious ministers." Sonza v. If ecclesiastical affairs: Labor Code does not apply If not ecclesiastical affairs: Labor Code applies Managerial Employees Peñaranda v. An administrative interpretation which diminishes the benefits of labor to less than what the statute delimits or withholds is obviously ultra vires.

not only because the Constitution imposes sympathy but because of the one-sided relation between labor and capital. we cannot adopt a sweeping interpretation of the law in favor of labor lest we engage in judicial legislation.´ Factual Considerations and Rationality Phil. or any organized group of persons. The Court must take care. CA: It is a time-honored rule that in controversies between a worker and his employer. NLRC: Considerations of "equity and social justice´ cannot prevail over against the expressed provision of the labor laws allowing dismissal of employees for cause and without any provision for separation pay. it falls squarely within the ambit of this Court¶s judicial review. As used in this title: (a) ³Person´ means an individual. the doubt shall be resolved in favor of the laborer. while our laws endeavor to give life to the constitutional policy on social justice and the protection of labor. the court finds that the same has no application in this case since the pertinent provisions of the Labor Code leave no room for doubt either in their interpretation or application. 6 ± Work Relationship 6. Duncan Association v. including its implementing rules and regulations. partnership. No Doubt Bonifacio v. Airlines.. GSIS: While the court does not dispute petitioner's contention that under the law. However. 97. Sweeping Interpretation Bravo v. in case of doubt in the implementation and interpretation of the provisions of the Labor Code. Doubt Clemente v. it does not mean that eveyr labor dispute will be decided in favor of the workers. v.LABOR STANDARDS / Midterms Acuña v. but that care and solicitude cannot justify disregard of relevant facts or eschewal of rationality in the construction of the text of applicable rules in order to arrive at a disposition in favor of an employee who is perceived as otherwise deserving of sympathy and commisseration. Inc. NLRC: [First. doubts reasonably arising from the evidence or in the interpretation of agreements and writing should be resolved in the worker's favor. Definitions: Employer and Employee Definition in relation to wages: Art. legal representative. NLRC: The sympathy of the Court is on the side of the laboring classes. however. the results achieved are fair and in conformity with the rules. Inc. Fairness Reliance Surety and Insurance Co. Equity and Moral Consideration Manning International Corp. Airlines. v. that in the contest between labor and capital. all Page 12 REV 6:15-17 . NLRC: That there should be care and solicitude in the protection and vindication of the rights of workingmen cannot be gainsaid. Balancing Conflicting Claims Phil. The policy is to extend the applicability of the decree to a greater number of employees who can avail of the benefits under the law. association. Inc. Thus.01. v. The law also recognizes that managements has rights which are also entitled to respect and enforcement in the interest of fair play. subdivision and instrumentalities. V. WORK RELATIONSHIP A. which is in consonance with the avowed policy of the State to give maximum aid and protection to labor. (b) ³Employer´ includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the government and all its branches. GSIS: Doubts should be resolved in favor of the claimant-employee. Sec. corporation. business trust. while the issue of labor-only contracting may involve some factual considerations] the existence of an employeremployee relation is nonetheless a question of law. Glaxo-Wellcome: Indeed. Employees Compensation Commission: ³We are aware of the mandate that social legislation should be applied in consonance with the principles of social justice and protection to labor.

« (e) ³Employer´ includes any person acting in the interest of an employer. or any person compulsorily covered by the SSS under Republic Act 1161.g. as well as non-profit private institutions. [t]he last factor. Broadcast ± Talents ± Performers Method of Wage Payment Lazaro v. the power to dismiss an employee is one of the indications of an employment relationship. temporary. substitute or contractual. Factors see Factual Test Control Test R. The term shall not include any labor organization or any of its officers except when acting as employer. 212. emergency. 67. MWSS: The existence of an EE-ER relationship cannot be negated by expressly repudiating it in the agreement and providing therein that the EE is ³not an employee´ when the terms and conditions show otherwise. Also considered are the economic conditions prevailing between the parties. (g) ³Employee´ means any person compulsorily covered by the GSIS under Commonwealth Act Numbered One hundred eighty-six. the ³right of control´ test has been used to determine the existence of an EE-ER relation: whether the person for whom the services are performed reserves a right to control not only the end to be achieved. SSS: Insurance agents are EE¶s of their insurance company. natural or juridical. Ejandra: According to the control test. (c) ³Employee´ includes any individual employed by an employer. who has the power to dismiss them. « (f) ³Employer´ means any person. JCT Group: The test for determining an employer-employee relationship hinges on resolving who has the power to select employees. The term shall not be limited to the employees of a particular employer. unless this Code so explicitly states. the ³control test´. but also the means to be used in reaching such end. The employment status of a person is defined and prescribed by law and not by what the parties say it should be. Employer-Employee Relationship Factual Test The existence of an EE-ER relationship is a question of fact. (f) ³Employee´ includes any person in the employ of an employer.. Definition in relation to the Employees Compensation and State Insurance Fund (now superseded/modified by the GSIS Act of 1997 and the SSS Act of 1996): Art. and who exercises control . and any person employed as casual. the inclusion of the EE in the payrolls. who pays for their wages. Economic Test In general. as amended. the control test Established Miguel v. or organizations.e. directly or indirectly.LABOR STANDARDS / Midterms government-owned or controlled corporations and institutions. Transport v. as amended. Hours of Work Page 13 . Agreement Lopez v. The relevant factor remains that determined by the control test. e. Definition as regards labor relations: Art. is the most important. employing the services of the employee. The elements of an EE-ER relationship are: o Selection and engagement of employee o Payment of wages o Power of dismissal o Employer¶s power to control the employee as regards the means and REV 6:15-17 methods by which work is accomplished. 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 labor substantially equivalent and regular employment.. i. including the members of the Armed Forces of the Philippines. even though the agents¶ compensation is not paid by the company but by the investor/person insured. Employee B.

partnership. Denial ± Negative Pregnant Rule 6. There is ³labor-only contracting´ where the person supplying workers to an employer does not have substantial capital or investment in the form of tools. pp.02. Lamadrid: There can be no EE-ER relationship where thereis no element of control. In the event that the contractor or sub-contractor fails to pay the wages of his employees in accordance with this Code. he may make appropriate distinctions between laboronly contracting and job contracting as well as differentiations within these types of contracting and REV 6:15-17 determine who among the parties involved shall be considerd the employer for purposes of this Code. they shall be considered as direct employers. by appropriate regulations. NLRC: In administrative and quasijudicial proceedings. if any. A sales supervisor.LABOR STANDARDS / Midterms Lazaro v. (Substantial evidence = such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. Independent Contractor Recognition Management Function ± Determination Need MERALCO v. For purposes of determining the extent of their civil liability under this Chapter. In so prohibiting or restricting. 634-645 Art. task. [is] exempt from the observance of normal hours of work for his compensation in measured by the number of sales he makes. 109. 109. although compensated on commission basis. The Secretary of Labor may. the employer shall be jointly and severally liable with his contractor or subcontractor to such employees to the extent of the work performed under the contract. Solidary liability ± The provisions of existing laws to the contrary notwithstanding. association or corporation which. 18-02. equipment. contracts with an independent contractor for the performance of any work. Contractor or subcontractor ± Whenever an employer enters into a contract with another person for the performance of the former¶s work. 107. to prevent any violation or circumvention of any provision of this Code. in the work performed under the contract. job or project. series of 2002 ± Azucena. Essentials of Labor Law. 106. Trilateral Relationship Requirements ± Independent Contractor Page 14 . SSS: It doesn¶t follow that a person who does not observe normal hours of work cannot be deemed an employee. INDEPENDENT CONTRACTOR AND LABOR CONTRACTOR ONLY ± 106-107. machineries. not being an employer. any competent and relevant evidence may be admitted. restrict or prohibit the contracting out of Labor to protect the rights of workers established under this Code. No particular form of evidence is required. among others. and the workers recruited and placed by such person are performing acivities which are directly related to the principal busines of such employer. Art. DOLE ORDER No. Indirect employer ± The privisions of the immediately preceding Article shall likewise apply to any person. Art. every employer or indirect employer shall be held responsible with his contractor or subcontractor for any violation of any provision of this Code. in the same manner and extent that he is liable to employees directly employed by him. Quisumbing: The company can determine in its best business judgment whether it should contract out the performance of some of its work for as long as the employer is motivated by good faith.) Absence of Relationship Abante v. work premises. and the contracting out must not have been resorted to circumvent the law or must not have been the result of malicious or arbitrary action. A. substantial evidence is sufficient as basis for judgment on the existence of an EE-ER relationship. the employees of the contractor and of the latter¶s subcontractor. Proof Domasig v. the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him. In such cases. shall be paid in accordance with the provisions of this Code.

is a labor-only contractor who acted as mere supplier of manpower. o Does not have substantial capital or investment which relates to the job. NLRC: It is settled that the contracting out of labor is allowed only in case of job contracting. Permissible job contracting. the former was found guilty of illegal dismissal. on the other hand. NLRC: The private respondents were doing work which are directly related to its nature of business. equipments. 106. v. free from control and direction of his employer or principal in all matters connected with the performance of work except as to the results thereof. G. Hence. works. Labor Contractor Only merely recruits. Rule I.] Sec. Bernardo: SMC played a large and indispendable part in the hiring of MAERC¶s workers. Liability Mariveles Shipyard v. CA: (see Arts. is an arrangement where the contractor REV 6:15-17 STATUTORY REFERENCE: Art. Sec. Book VI. directed and controlled by PAL¶s regular employees. V.C. Maraguinot v. the Court deemed them unnecessary in the conduct of the employer¶s principal business. 7 ± Employee Classification Requisites and Prohibition Labor-only contracting. But even by the preceding standards. NLRC: Although janitorial services may be considered directly related to the principal business of an employer. a prohibited act. Peña: These are what distinguishes an independent (job) contractor: a) carries on an indepentend business and undertakes the contract work on his own account under his own responsibility according to his own manner and method. Labor-only contractors: where the contractor/sub-contractor merely recruits. supplies or places workers to perform a job for a principal. V. machineries. Desirable ± Unnecessary Coca-Cola Bottlers Phils. B. is an agreement where a principal agrees to farm out with a contractor the performance of a specific job within a definite or predetermined period. or services for a principal. the associate producers of VIVA cannot be considered labor-only contractors as they did not supply. the law considers the person or entity engaged in the same a mere agent or intermediary of the direct employer. they are deemed regular employees pursuant to Art.LABOR STANDARDS / Midterms Manila Water Co. focus on 109) The solidary liability of petitioner with that of Longest Force does not preclude the application of the CC provision on the right of reimbursement from his co-debtor by the one who paid. They had been employed for a period ranging from 1 ± 4 months to 11 years & 10 months. work premises and other material swhich are necessary in the conduct of business. work or service to be performed o Does not exercise the right to control over the performance o f the work of the contractual employees C. 280. supplies or places workers to peform jobs. recruit nor hire the workers. Effect of Finding San Miguel Corp. Thus. The private respondents were supervised. As labor-only contracting is prohibited. 108 and 109 on preceding page. SMC also maintained a constant presence in the workplace thru its own checkers who are tasked to report on the identity of workers whose performance was not according to the rules and standards set by SMC. Omnibus Rules Page 15 . Majority of the complainants have also been working for SMC long before the service contract between SMC and MAERC was entered into. b) has substantial capital or investment in the form of tools. 5. The continuous employment indicates that their jobs are directly necessary to the daily operation of petitioner¶s business. 280 of the Labor Code. [An EE-ER relationship thuse found between SMC and the compalinants. Proof Employer-Employee Relationship Philippine Airlines v.

employment shall be deemed regular for purposes of Book VI of the Labor Code where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer. 278. 280. that any employee who has rendered at least one year of service. and. whether such service is continuous or not. As such. the same are accorded not only respect but even finality as long as they are amply supported by substantial evidence. shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. There are two separate instances whereby it can be determined that an employment is regular: (1) if the particular activity performed by the employee is necessary or desirable in the usual business or trade of the employer. that any employee who has rendered at least one year of service. Notwithstanding the foregoing distinctions. Coverage ± The provisions of this title shall apply to all establishments or undertakings.02. work or service which is merely incidental to the business of the employer. Page 16 . whether for profit or not. except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the job. Sec. An employment shall be deemed casual if it is not covered by the preceding paragraph: provided. Nature of Issue Universal Robina. (2) if the employee has been performing the job for at least a year. v. When the findings of the LA. EMPLOYEE CLASSIFICATION ± 280-281 Recognition and Types Pangilinan v. General Mining Corp. except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or services to be performed is seasonal in nature and the employment is for the duration of the season. work or service to be performed is seasonal in nature and the employment is for the duration of the season. and. COVERAGE ± 278 Art. and such job. work or service is for a definite period made known to the employee at the time of engagement: provide. as may be granted by law to regular employees during the period of their actual employment. etc. whether such service is continuous or broken.01. (b) Causal employment ± There is casual employment where an employee is engaged to perform a job. Caballeda: Whether or not an employee was a seasonal/project employee or a regular employee is a question of fact.: Article 280 of the Labor Code comprehends three kinds of employees: (a) regular employees or those whose work is necessary or desirable to the usual business of the employer.LABOR STANDARDS / Midterms Art. (c) casual employees or those who are neither regular nor project employees. the Supreme Court is not at liberty to review the said factual issue because our jurisdiction is generally limited to reviewing errors of law that the CA may have committed. every employee shall be entitled to the rights and privileges. Regular and casual employment ± The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties. (b) project employees or those whose employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or services to be performed is seasonal in nature and the employment is for the duration of the season. and shall be subject to the duties and REV 6:15-17 obligations. the NLRC and the CA are in absolute agreement. 7. Rule I. A regular employee is one who is engaged to perform activities which are necessary and desirable in the usual business or trade of the employer as against those which are undertaken for a specific project or are seasonal. (a) Regular employment ± The provisions of written agreements to the contrary notwithstanding and regardless of the oral agreements of the parties. shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. 5. an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer. 7.

But considered not regular under said Article (1) the socalled "project employment" the termination of which is more or less determinable at the time of employment. Fadriquela: According to Article 280 of the Labor Code. the applicable test is the reasonable connection between the particular activity performed by the employee in relation to the usual business or trade of the employer. and (2) those casual employees who have rendered at least one year of service. Contract to Contract Beta Electric v. with respect to the activities in which they are employed. Art.. Length of Time Maraguinot v.03. and. Seafarers Dela Cruz v. « except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee« Defined ALU-TUCP v. such as those connected. as defined under Article 280 of the Labor Code. 2nd par. NLRC: Thus. Instead. Maersk: Seafarers are not covered by the term "regular employment". such as the Christmas holiday season. MWSS: Where the employment of project employees is extended long after the supposed project has been finished. NLRC: The fact that employee¶s employment has been a contract-to-contract basis cannot alter the character of employment. National Organization. but merely considered on leave until re-employed. 8042. 281. because contracts cannot override the mandate of law. last sentence and 75(d) Types ± Regular Employees Philips Semiconductors. etc. an exception to this exception is made: any employee who has rendered at least 1 year of service. etc. Nature of Work Magsalin v. 280. which by its nature is only for one season of the year and the employment is limited for the duration of that season. the Rules and Regulations Governing Overseas Employment.. 280.: In determining whether an employment should be considered regular or non-regular. Nevertheless. whether continuous or intermittent. whether continuous or broken. an employment is deemed regular when the activities performed by the employee are usually necessary or desirable in the usual business or trade of the employer even if the parties enter into an agreement stating otherwise. 1st par. otherwise known as The Migrant Workers and Overseas Filipinos Act of 1995. by Republic Act No. REGULAR EMPLOYEES ± 280.04. 1st par. they are considered contractual employees whose rights and obligations are governed primarily by the POEA Standard Employment Contract for Filipino Seamen (POEA Standard Employment Contract). NLRC: Length of time is not a controlling factor as to whether the EE is projectbased or regular. Hacienda Fatima v. NLRC: As evident in Article 280 of the Labor Code. must be deemed regular. the principal test for determining Page 17 . under Article 280 of the Labor Code. v. National Federation of Sugarcane Workers Food and General Trade: The fact that respondents do not work continuously for one 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 the Supreme Court has already settled that seasonal workers who are called to work from time to time REV 6:15-17 and are temporarily laid off during off-season are not separated from service in said period. v. there are 2 kinds of regular employees: (1) those engaged to perform activities which are necessary or desirable in the usual business or trade of the employer. 7. Hiring Extend Period Lopez v. Length of time is merely a badge of employment. more importantly. with respect to the activity he performed and while such activity actually exists.LABOR STANDARDS / Midterms Employer Determination ± Effect San Miguel Corp. PROJECT EMPLOYEES ± 280. 7. the employees are removed from the scope of project employees and considered regular employees.

280. absent any other circumstance vitiating his consent. it would be unjust to require the employer to maintain them in the payroll while they are doing absolutely nothing except waiting until another project is begun. are non-project employees or employees for an indefinite period. NLRC: Members of a work pool from which a construction company draws its project employees. the duration (and scope) of which were specified at the time the employees were engaged for that project. Zamora. and identifiable as such.LABOR STANDARDS / Midterms whether particular employees are properly characterized as ³project employees´ as distinguished from ³regular employees´ is whether or not the ³project employees´ were assigned to carry out a ³specific project or undertaking. Rationale [re: ruling in Cartagenas case. Oreta and Co. Such job or undertaking begins and ends at determined or determinable times. In Brent School v. Secondly. or such type of work which is not done on a daily basis. Project Employees Sandoval Shipyards v. to be disbursed by the employer from profits not earned. as opposed to intermittently. This is not fair by any standard and can only lead to a coddling of labor at the expense of management. and (2) satisfactory appearance that the ER and EE dealth with each other on more or less equal terms. Aguilar Corp. necessary. that contract workers are not considered regular employees] De Ocampo v. these stand-by workers would be enjoying the status of privileged retainers. but only for a specific duration of time or until completion. Workpool Employees Maraguinot v. NLRC: A (project) employment ceases to be co-terminous with specific projects when the employee is continuously rehired and re-engaged for many more projects without interruption. if considered employees of the construction company while in the workpool. v. its completion or that of any phase thereof will not mean severance of the ER-EE relationship. Firstly. If they are employed in the particular project. In business and industry. then the employee must be deemed a regular employee. and indispensable. Such job or undertaking must also be identifiably separate and distinct from the ordinary or regular business operations of the employer. Inc. and not merely as a means of evading otherwise applicable requirements of labor laws. collecting payment for work not done. v. duress. from the other undertakings of the company. ³specific period or undertaking´ contemplates an activity which is not commonly or habitually performed. but which is distinct and separate. with no moral domonance exercised by the ER over the EE. the term ³project´ could also refer to a particular job or undertaking that is not within the regular business of the corporation. a common basic requisite is that the designation of named employees as ³project employees´ and their assignment to a specific project. a project could refer to a particular job or undertaking that is within the regular or usual business of the employer company. and (2) those tasks are vital. The job or undertaking also begins and ends at determined or determinable times. Specific Period Purefoods Corp. NLRC: Under Art. re-hired by the same employer for the same tasks.' Employer Obligation REV 6:15-17 A. NLRC: 'The rationale of this rule is that if a project has already been completed. Continuous Rehiring Chua v. v. NLRC: Once (1) a project/pool employee has been continually. the project employee should be paid his salary for the unexpired portion of his contract. if at all. NLRC: The completion of their work or project automatically terminates their employment. Whichever type of project employment is found in a particular case. ³project´ could refer to one or the other of at least two distinguishable types of activities. NLRC: If dismissal was unjustified and done before expiration of the term. the criteria by which term employment cannot be said to be a circumvention of the law on security of tenure are: (1) a fixed period of employment knowingly and voluntarily agreed upon without any force. Length of Service Page 18 . are effected and implemented in good faith. or improper pressure being brought to bear upon the employee. M. In effect.

05. unless it is covered by an apprenticeship agreement stipulating a longer period. Book VI. 6. Seasonal Employees REV 6:15-17 Manila Hotel v. 61. Sec. One Year Service Kimberly v. 2nd sentence. Rule I.01. Probationary employment ± (a) Where the work for which an employee has been engaged is learnable or apprenticeable in accordance with the standards prescribed by the Department of Labor. Rule I. Sec. duress or improper pressure o That ER and EE dealt with each other on more or less equal terms. An employee who is allowed to work after a probationary period shall be considerd a regular employee. (c) The services of an employee who has been engaged on probationary basis may be terminated only for a just cause or when authorized by existin glaws. Nature of Work A. Book VI. 6. the employment is deemed to last only for the duration of the season. 6. Rule I. PROBATIONARY EMPLOYEES ± 281. (b) Where the work is neither learnable nor apprenticeable. but the nature of the job (if usually necessary or desirable to the main business of the ER. Drilon: If the casual employee exceeds one year in service. which will garner him the consideration that he¶s merely on LOA with pay.M. Abella: On janitorial and messengerial services: may be considered directly related to business. 280 in its strictest interpretation appears to restrict without reasonable distinctions the right of an employee to freely stipulate with his employer the duration of his engagement. provided that it does not intend to circumvent the law on tenurial security. but are deemed necessary. CIR: The general rule is that where the work or service to be performed is seasonal in character. 8 ± Probationary Employee STATUTORY REFERENCE ± Probationary Employees ± 281. Puente: The length of service of a project employee is not the controlling test of employment tenure but WON ³the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee´. 2nd sentence. San Miguel Corp. only suspended. Sec. the probationary employment period of the employee shall be limited to the authorized learnership or apprenticeship period. Omnibus Rules 8. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in acordance with reasonable standards made known by the employer to the employee at the time of his engagement. Oreta & co. unless when the employee involved is constantly rehired after every season. no moral dominance over the other. NLRC: Test: not the employment contract. Omnibus Rules Art. Page 19 .06. CASUAL EMPLOYEES ± 280. Sec. There are two requisites for validity of fixed-term employment: o It should be entered knowingly and voluntarily by the parties without any force. 7.LABOR STANDARDS / Midterms Filipinas Pre-Fabricated Building Systems Inc. and that the employment relationship is never severed. v. EE = regular employee). 61. Probationary employment ± Probationary employment shall not exceed six (6) months from the date the employee started working. the status of regular employment attaches to him on the day immediately after the end of his first year of service. the probationary employment period shall not exceed six (6) months reckoned from the date the employee actually started working. v.) nothing in the law really prohibits fixed-term employment. (even as Art. CONTRACT ± FIXED PERIOD Tests [for] Validity Fixed-term employment is valid. whichever is applicable. 2nd par. 7. or when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer. 281. V.

g. Ees of the absorbed company are absorbed into the new company. tardiness. the extension made was] an act of liberality on the part of his employer affording him a second chance to make good after having initially failed to prove his worth as an employee. Duration/Exception Buiser v. 281. Extension of Contract Mariwasa Manufacturing v. NLRC: There can be no double probation: if EE is probationary then became regular. Absorbed Employees Absorption: merger of companies. 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. Definition International Catholic Migration Commission v. then was absorbed to another company. and to ascertain whether the prospective employee is qualified for permanent employment. It is within the exercise of his righ tot select his employees that the employer may set or fix a probationary period within which the latter may test and observe the conduct of the former before hirihg him permanently. failing to wear proper uniform and showing inferior skills) justifies ER to end employment relationship with EE. Chrysler Labor Union: ER has obligation to inform EE of the reasonable standards to qualify as regular EE. and to ascertain whether he will become a proper and efficient employee. Mariwasa v. NLRC: A probationary employee is made to afford the employer an opportunity to observe the fitness of a probationer while at work. LC. provided that: There is no indication that the extension s a mere strategem of ER to avoid legal REV 6:15-17 consequences of probe period satisfactorily completed There is written consent of the EE EE wanted the extension him/herself to improve performance and qualify for regular employment Criteria Regularization Mitsubishi v. ICMC v. Duration is immaterial. competence and attitude of a probationer while at work. Double Probation A Prime Security Services v. the EE¶s cannot be considered as probationaries because they were already well-trained in their functions. Leogardo.LABOR STANDARDS / Midterms (d) In all cases involving employees engaged on probationary basis. NLRC: Not being able to pass the standards (e. Page 20 . Regional Director: In this case. Purpose Dela Cruz v. They were absorbed as regular employees. Cebu Stevedoring v. skill. by means of absences. Employer¶s Right [to] Set Period/Obligation Grand Motors Corp.. the nature of the probationary period lies in the objective sought to be attained by both the employer and employee during the said period. NLRC: A probationary employment is made to afford the employer an opportunity to bserve the fitness. EE in effect waived any benefit attaching to the completion of said period. By voluntarily agreeing to an extension of the probationary period. v. [in this case. Alcira v. Leogardo. Failure to qualify as a regular employee in accordance of to reasonable standards of the employer is reasonable cause for terminating employment under Art. EE remains regular and cannot be subjected to another probationary employment.. MOLE: The employer has the right to choose as to who will be hired and who will be declined. NLRC: see subsequent general rule and exceptions GR: shall not exceed 6 months from date the employee started working EX: period may be extended if (1) the parties agree so or (2) a longer period is necessary to learn the nature of the work to be performed. Leogardo: Agreements stipulating longer probationary periods are considered lawful exceptions to the statutory prescription limiting such period to 6 months .

NLRC: As long as the temrination was made before the expiration of the 6-month probationary period.LABOR STANDARDS / Midterms Termination and Salary A probationary¶s services may be terminated: 1. For just cause 2. (see page 11) Good luck and God bless you! REV 6:15-17 Page 21 . Rule [on] Private School Teachers Requisites before a private teacher may be deemed to have acquired permanent employment: o Teacher is a full-time teacher o Teacher must have rendered 3 consecutive years of service o Teacher¶s service must have been satisfactory In determining the employment status of private school teachers. the Manual of Regulations for Private Schools. the ER may decide to sever the relationship [for just cause]. not the Labor Code. applies. Valid termination = EE not entltled to salary for unexpired portion of probationary period. When EE fails to qualify as regular EE in accordance with reasonable standards made known by ER to EE at the time of engagement Dela Cruz v.