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- in its limited concept, refers to the physical or mental exertion necessary to
produce goods
-in its broader concept, it may include the labor force who are employed or those
who are able and willing to work by are temporarily or involuntarily unemployed

-the portion of the nations population which has actual or potential capability to
contribute to the production of goods and services

-includes all the rules of law governing the conditions under which persons may
work under the control of other persons called employers
-may also refer to labor standards and labor relations law governing hours of work,
weekly rest periods, minimum wage rates, unfair labor practices, strikes and
-designed to look more on the immediate results of the employer-employee

-prescribe the terms and condition of employment as affecting wages or monetary
benefits, hours of work, COLA, and occupational health, safety and welfare of

-denote all matters arising out of the employer-employee relationship involving
right to self-organization, collective bargaining, and negotiation process.
-all embracing to include labor standards benefits which are proper bargaining
issues that is ,with the domain of labor relations.

-law governing employer-employee relationship while the latter is not at work
due to hazards beyond his control arising from employment which immobilize him
from working. Ex. Retirement law


a. Protective legislations designed to protect the weaker party in an
employment contract such as laws protecting women against
discrimination or child-labor laws
b. Welfare or social legislations intended to remove or reduce the
insecurity of the workers such as laws on social security, eployees
conpensation etc.
c. Diplomatic legislations- designed to settle labor disputes through peaceful
modes such as laws providing for conciliation, mediation, grievance
d. Administrative legislations- laws creating labor bodies or agencies for
admin purpose such as DOLE, POEA, NLRC or TESDA
e. Labor relations legislations those passed concerning employee
organization, concerted activities, collective bargaining or negotiation
f. Labor standards legislations passed prescribing minimum requirements
relating to wages, hours of work, COLA, and other monetary and welfare
benefits including occupational, safety and health standards

-more direct in its application (ex.
Governs effect of employment such as
compensation for injuries and death
Designed to meet the daily needs of
Involves long-range benefits

Covers employment for profit or gain Covers employment for gain and even
Affects the work of the employee Affects the life of the employee
Benefits under labor law are paid by
workers employer
Benefits are paid by the government
agencies administering the program

Note: social legislation is broader in scope as it even encompasses the concept of
labor law


a. during the Spanish regime- traces of Phil labor and social legislation can be found
in the old Civil Code in Arts. 1583-1587 regulating the relations between master and
domestic servant and Art. 283 to 302 of the Code of Commerce

b. the earlier part of American regime bought significant labor legislations such as
Act. No. 702, the Chinese Registry Act, Employers Liability Act etc.

c. the assumption of Pres. Manuel Quezon in 1935 freed the laborers from
economic bondage: enacted the ff. laws
1. CA 103 creating the Court of Industrial Relations
2. CA 444- 8 hour labor law
3. CA 104- Industrial Safety Law
4. CA 213- Union Registration Act
5. CA 647- granting the maternity leave to women in the service

d. Philippine Republic:
1. Minimum Wage Law
2. Termination Pay Law
3. Woman and child labor law
4. The blue Sunday law
5. Industrial Peace Act
6. Peaceful Picketing Law
7. Social security law
8. Agricultural tenancy law
9. Agricultural land reform law

e. proclamation of martial law sept 21, 1972
-triggered the declaration of the entire Phils as a land reform area by virtue of PD
no. 2
-this was followed by the emancipation decree PD 27 emancipating tenants from
the bondage of soil

f.PD 442 May 1, 1974- Labor Code of the Philippines (took effect in Nov.1 1974)
- a dynamic instrument of social justice and economic devt
-incorporated several amendments such as the new labor relations law, the law
prohibiting discrimination against women, wage rationalization and an act
strengthening the workers consti right to self-organization

PURPOSE OF LABOR LEGISLATION- intended to protect the workers from
the mighty and to correct the injustices that are inherent in the employer-
employee relationship
- Ultimately to protect the welfare of the people based on the Latin Maxim
salus populi est suprema lex the welfare of the people is the first law

A. Primary
1. Philippine Constitution
2. Legislations passed by the Congress
3. Decisions of the Supreme Court
4. IRR of the DOLE
5. Decision of quasi judicial bodies such as the NLRC
6. ILO conventions

B. Auxiliary
1. Opinions of the Sec. of DOLE and Justice
2. Reports, debates, hearings made and conducted by congress
3. Labor law reviews
4. Labor law and social legislation textbooks
5. Opinions of Legal Luminaries
6. Foreign laws and decisions

The legal bases for the enactment of labor and social legislation are:
1. Police Power of the State
-to justify the states exercise of police power the ff. conditions must
a. interest of the public generally as distinguished from those of a
particular class require such inference
b. means are reasonably necessary for the accomplishment of the purpose
2. Social Juctice Clause (Sec. 10, Art. 2, 1987 Constitution)
the state shall promote social justice in all phases of national

- Accdg. To Justice Laurel in Calalang vs. Williams- social justice is neither
communism, nor despotism, nor atomism, nor anarchy but the
humanization of the laws and equalization of the social and economic
forces by the State so that justice in its rational and objectively secular
conception may at least be approximated .
- Promotion of the welfare of the people, the adoption of govt measures
calculated to insure economic stability of all the component elements
- The object of social justice clause is common man; his social economic
uplift is its concern.
- he who is less favoured in life is more favord in law Prof. Thomas
Reed Powell
- But not to the extent of tolerating usurpation of property- those who
invoke social justice may only do if their hands are clean and motives
- Thus, social justice or any justice for that matter is for the deserving
whether he be a millionaire in his mansion or a pauper in his hovel
- In case of reasonable doubt, courts are called upon to tilt the balance in
favor of the poor
- Regulation of wealth and diffusion of wealth are constitutionally decreed
to achieve social justice
- The social services clause of the constitution is an extension of the social
justice and this can also be afforded by the state in its capacity as parens
patriae- thus it may bring suit to protect the property rights of the people
- The concept of laissez faire - economic theory based on non-
governmental interference in business not fully embraced
- What the Constitution adopted in lieu of laissez faire is the welfare state
- Communism-ideology characterized economically by the States total
ownership of all the means of production and distribution and politically by
a rigid dictatorial control to individual under dictatorship of the proletariat

- Socialism- economic ideology which advocates substantial ownership of
the means of production and distribution by the state.

Rights guaranteed by Social Justice
o Equality of opportunity
o Equality of political rights
o Equality before the law
o Equality b/w values given and received
o Equitable sharing of social and material goods etc.

Social Services also include the ff:
1. Education
2. Health promotion of sound health
3. Housing low cost housing for the poor
4. Employment
5. Social security

3. Protection to Labor Clause (Sec. 3, Art XIII of the 1987 Consti)

The State shall afford full protection to labor, local and overseas, organized and
unorganized and promote fill employment and equality of employment
opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities including the right
to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and a living wage. They shall also participate in policy
and decision making process affecting their rights and benefits as may be
provided by law.

The state shall promote the principle of shared responsibility between workers
and employers and the preferential use of voluntary modes in settling disputes
including conciliation, and shall enforce their mutual compliance therewith to
foster industrial peace.

The state shall regulate the relations between workers and employers ,
recognizing the right to labor to its just share in the fruits of production and the
right of enterprises to reasonable return on investments, and to expansion and


-every man has a natural right to the fruits of his own industry- thus, right to labor is
a prooerty right
-due to labors economic dependence upon the capital, it is considered the weaker
facto of production, therefore needs protection from the state

4. Doctrine of Incorporation Clause
-this doctrine is clearly enshrined in the 1987 constitution, ART II, Sec. 2 The
Philippines...adopts the generally accepted principles of international law as part of
the law of the land
-contained in Art. 38 of the Statute of the International Court of justice
-also, the Phils as a signatory member if the UN
-the 1966 UN human rights covenant reaffirmed the ILO convention resolutions of
1948 and 1949 on Economic, Social and Cultural rights and political and civil rights.
Include: right to form trade union and join trade union of his choice, the right to
strike and the right to freedom of association

5. Full employment clause
The state shall promote full employment and equality in employment,
ensure equal work opportunities regardless of sex, race or creed

-full employment- those who want to work at the prevailing rates of pay are able
to find work without undue difficulty when there are more job openings than
there are job applicants

-unemployment- involuntary idleness on the part of an employee who is able and
willing to work but could hardly find one.

Significance of full employment:
1. It ushers economic gains
2. It promotes social and economic security
3. Promotes human dignity enjoy a decent standard of living
4. Antidote against revolutionary ideologies
5. It regulates employers discriminatory practices- with the scarcity of
workers under the state of full employment , the employer may not
engage in discriminatory practices because of the difficulty of hiring

6. Freedom from proverty clause
7. Due process clause
8. Equal Protection Clause

-equal conditions must receive equal treatment
-Legislative discrimination- is therefore allowed and in many cases has
been sanctioned provided there is a reasonable basis for classification

In conflict between property rights and human rights, the primacy of human
rights is recognized although the Bill of Rights protects both rights
- Property and property rights can be lost through prescription but human
rights are imprescriptible

1. Right to Self-Organization
-the right to form associations or societies for purposes not contrary to
law shall not be abridged

2. Right to Collective Bargaining
-it is through collective bargaining that employees are enabled to
obtain a relative equality of bargaining power with the employer for it
compels him to deal with them as a group rather than as isolated
individuals. the end result is the CBA or the Collective Bargaining

3. Right to Security of Tenure
-in cases of regular employment, the employer shall terminate the
services of an employee for just causes as provided in the labor code or
when authorized by existing law

Tenure- permanent or regular status granted a worker usually after
probationary or trial perios.

4. Right to Just and humane conditions of work
-refers to fair wages and equal renumeration for work of equal value,
safe and healthy working conditions, equal opportunity to promotion
and rest, leasure and reasonable limitation of working hours such as:
The right to
a. Right to regular working hours
b. Regular working days
c. Overtine work
d. Weekly rest periods
e. Additional compensation on scheduled rest days/special holidays
f. Compensation for holiday work
g. Right to hospitalization

5. Right to Collective Negotiations - refer to unionism in the govt or
public sector
-the employees in the govt sector cannot collectively bargain on terms
and conditions of employment simply because the same are fixed by
law and determined by civil service law, rules and reg.
-what has been granted to them instead is the right to collective

6. Right to peaceful concerted activities
- Designed by workers to express their collective demands through the
machinery of boycott, pickets and strikes

7. Right to strike
- Strike- any temporary stoppage of work by the concerted action of
employees as a result if any industrial or labor dispute designed to compel
the employer to accede to certain demands of the employees.

8. Right to a living wage
-not a mere subsistence wage but one sufficient to enable the worker
to live in reasonable comfort; a wage that can provide him and his
family a decent standard of living.

9. Right to participate in policy and decision-making process
-enunciate the principle of shared responsibility, co-determination, co-

10. Right to just share in the fruits of the production
-The state shall regulate the relations between workers and employers ,
recognizing the right to labor to its just share in the fruits of production and
the right of enterprises to reasonable return on investments, and to
expansion and growth. this is not self-executory , it needs an enabling

-fruits of production cover not only salaries, wages, benefits but also
includes profits. But the workers cannot demand as a matter of right,
profit0sharing benefits in the absence of an enabling law, unless the same
is granted on account of company policy or practice or collective

1. Observance on non-impairment of contracts- no law impairing the
obligation of contracts shall be passed.
-when the law deprives a party to the contract on the benefits provided
therein or changes the terms of the contract by imposing new conditions,
or dispensing with such conditions
-however, the obligation of contracts is subordinated to the valid exercise
of police power

2. Observance of non-delegation of legislative power
-the power conferred upon the Congress to make laws cannot be
delegated by that department to any other body or authority

3. Observance of the constitutional provision against involuntary servitude
-no involuntary servitude in any form shall exist except as punishment for a
crime whereof the party shall have been duly convicted.

1. Promotion of the common good
-found in the preamble in order to build a just and humane society
and establish a government that shall embody our ideals and
aspirations, promote the common good

2. Protective Service Clause (Sec. 5. ART II, 1987 Consti)
-the enjoyment by the people of the blessings of democracy can be
attained through the maintenance of peace and order, the protection
of life, liberty and property and promotion of general welfare
3. Freedom from poverty (Sec. 9, ART II, 1987)
-the state is mandated to free the people from poverty through
policies that provide adequate social services, promote full
employment, a rising standard of living and improved quality of life for

Poverty- generally means low status, with little to lose, little to
respect, little to be proud of, little to sustain efforts to improve.
-feeling of missing much in life

Standard of living- social and economic concept which deals with
what facilities are needed by an employee necessary to assure
himself and his family a life worthy of human dignity

Cost of living- economic and social concept which deals with how
much facilities that an employee could cost in order to maintain his
standard of living worthy of human dignity

Escalator Clause in the CBA
-wage rates rise periodically usually with specific rises in the
consumer price index or cost-of living index, but prohibit the decrease
to reflect a drop in the cost of living.

4. Promotion of Human Dignity (Sec. 11, ART II, 1987)
-the state values the dignity of every human person and guarantees full
respect for human rights

5. Principle of distributive justice
6. Freedom of initiative and self-reliance (Sec. 2, Art. XII , 1987 Consti)
7. Right to due process
-hears before it condemns
-proceeds upon inquiry
-renders judgment only after trial

8. Right to Equal Protection of the law extend only to civil rights

-no person or class of persons shall be denied the same protection of the
law which is enjoyed by other classes if persons under like circumstances,
in their lives, in their liberty, and in their pursuit of happiness.
-does not extend to rights which are political or which arise from the form
of govt and its mode of administration.
-thus, aliens cannot invoke denial of their right of suffrage in the Phils

9. Right to Self-Organization
-the right of the people, including those employed in the public and private
sectors, to form unions, associations, or societies for purposes not contrary
to law shall not be abridged

Government employees Employees of Private Sector
Established to promote the
common good
Created for profit or gain
Terms and conditions in govt
employment are fixed by law and
governed by civil service law
Governed by labor law and
determined through machinery of
collective bargaining
Public funds are appropriated
pursuant to law enacted by
Funds are contributed by private
individuals or institutions
Possess sovereign will- salus populi
est suprema lex
Possesses no sovereign will

10. Right to free access to the courts (Sec. 11, ART III, 1987)
-free access to the courts and quasi-judicial bodies and adequate legal
assistance shall not be denied to any person by reason of poverty

11. Right against involuntary servitude (Sec. 18, ART III, 1987)
-no involuntary servitude in any form shall exist except as a punishment for
a crime whereof the party shall have been duly convicted

12. Right against imprisonment for debt (Sec. 20, ART III, 1987)
-no person shall be imprisoned for debt or non-payment of poll tax

1. ART 1700- 1712
-(contract of labor which according to the Code Commission is in line
with the govt commitment to the principle of social justice
a. ART 1702 (Principle of Non-Oppression)
-neither capital nor labor shall act oppressively against the other,
or impair the interest or convenience of the public
-also under 1702- in case of doubt, all labor legislations and all
labor contracts shall be construed in favor of the safety and
decent living for the labourer.

b. ART 1708- Labors wages not subject to execution
-the laborers wages shall not be subject to execution or
attachment, except for debts incurred for food, shelter, clothing
and medical attendance.

c. ART 1709- employer cannot retain laborers tools
-the employer shall neither seize nor retain any tool or other
articles belonging to the labourer
-since such seizure, will result to starvation for that would deprive
worker of the essentials in earning a living.

d. ART 1710- Right to dismiss- subject to state regulation
-dismissal of laborers shall be subject the supervision of the
government under special laws
-it is a management prerogative to dismiss its employees only for
just or authorized causes provided by law.

1. ART. 272- Slavery
2. ART. 273 Exploitation of child labor
3. ART. 274- Services rendered under compulsion in payment of debt
4. ART. 278 Exploitation of minors
5. ART. 291- Revealing Secrets with abuse of office
6. ART. 292- Revelation of Industrial Secrets
7. ART. 289- Formation, maintenance and prohibition of combination of
capital or labor through violence or threats

1. SSS Law
2. GSIS Law
3. National Health Insurance Act
4. Paternity Leave Act
5. Retirement Pay Law
6. Home Mutual Development Fund Law
7. Anti-sexual harassment
8. Special protection of Children against Abuse, Exploitation and
Discrimination Act
9. 13
Month Pay Law
10. Migrant workers and Overseas Filipinos Act
11. CARL
12. Magna Carta for Public Health Workers

- Promulgated on May 1, 1974
- Took effect on Nov. 1, 1974
- charter of human rights and a bill of obligations for every working man.
- To afford protection to labor, promote employment and human resources
development and industrial peace based on social justice.

1. Anti-graft provisions are embedded to maintain industrial peace abd
harmony in the working world.
2. Emancipation of Labor Relations- NLRC was created to take the place
of the Court of Industrial Relations
-NLRC administers speedy labor justice for it is not governed by the
rigid and technical rules of procedure and evidence.

3. Transformation of Workmens Compensation speedy delivery of
benefits to an injured or disabled worker is effected
4. The code also integrates maternity benefits into the Social security
5. Abolition of Permit System- the reporting system is introduced in its
place to eradicate the breeding place of graft and corruption.
6. Placing of Government Corporations with original charters under the
Civil Service the scope of CSC has been expanded to embrace every
branch, agency, subdivision and instrumentality of the Govt, including
GOCCs with original charters.
-however, employees of GOCCs WITHOUT original charters are
governed by the Labor Code.

7. Creation of Overseas Employment Development Board and National
Seamen Boars- to promote the export of manpower, to protect OFWs
from economic exploitation and oppression. their offices have been
abolished and their functions assumed by POEA
8. Incorporation of Agrarian Reform
9. Updating, of all Labor and Social Legislations- such as:
-Woman and Child Labor Law
-Apprenticeship Law
-Industrial Safety Law to harmonize them with national devt priorities
based on social justice and human dignity

I. Pre-employment
II. Human Resource Development
III. Conditions of employment
IV. Health, safety and social welfare benefits
V. Labor relations
VI. Post employment
VII. Penal provisions, prescription, transitory and final provisions

Divided into three main parts:
1. Pre-employment
2. State of employment
3. Post employment

ART 3. Declaration of basic policy the state shall afford protection to labor,
promote full employment, ensure equal work opportunities regardless of sex, race
or creed and regulate the relations between workers and employers. The state
shall assure the rights of workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work

Purpose of affording protection to labor
- To place labor on equal place with the management with all its power and
influence in negotiating for the advancement of his interests and the
defense of his rights.
Extent and limits of the protection
- Principle of protection extends upon an employee who is abused either by
the employer or by the union leadership or their respective
representatives. However the right Is unavailing in the ff. instances:
1. Protection to labor is not a license to condone wrongdoings
2. Cannot justify disregard of relevant facts in the construction of the
text applicable rules in order to arrive at a disposition in favor of an
3. Not to disregard the employers own rights and interests solely on the
basis of concern and solicitude
4. Where both parties have violated the law
5. Not meant to be a sword to oppress employers
6. The liberal construction in favor of labor must not sacrifice the
fundamental principles of due process for the protection of the rich
and the poor in order to attain proper justice
7. Does not mean that every labor dispute will be decided in favor of the
8. Ensure equal work opportunities to all employees regardless of sex,
race or creed.

ART 4. Construction in favor of Labor- all 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.

Applies only in case there is doubt.
Reason: the workers welfare should be the primordial and paramount
consideration for an exploited working class is a discontented working class
-those who have less in life should have more in law

ART 5. Rules and Regulations- the DOLE and other govt agencies charged with the
administration and enforcement if this code or any of its parts shall promulgate
the necessary implementing rules and regulations. Such rules and regulations
shall become effective 15 days after announcement of their adoption in the
newspaper of general circulation

Implementing Agencies
4. National Wages and Productivity Commission
5. Employees Compensation Commission
6. Social Security Commission

Extent and limits of rule-making power
-regulations adopted under legislative authority by a particular department
must be in harmony with the provisions of the law and for the sole
purpose of carrying into effect its general provisions.
-by such regulations, the law itself cannot be extended
-so long as they relate solely to carrying into effect the provisions of the
law, they are valid.
-administrative rules and regulations must also be published if their
purpose if to enforce or implement existing law pursuant also to a valid
-however, interpretative regulations and those merely internal in nature,
that is regulating only the personnel of the admin agency and not the
public, need not be published.

ART 6- Applicability all rights and benefits granted to workers under
this code shall, except as may otherwise be provided herein, apply alike
to all workers, whether agricultural or non-agricultural.

Purpose of the law
- To encourage workers to seek jobs in agricultural undertakings.

Employer-employee relationship; jurisdictional foundation
-proof of employment relation is of first importance, for the reason that
the existence of the empoyer-employee relationship is the jurisdictional
foundation for a compensation claim.

Commencement of employer-employee relationship
- Employer-employee relationship is created by an employment contract,
whether express or implied.
- Such contract may be shown to exist by proof of hire by competent
person, either employer himself or through authorized representative or
- The contract of employment marks the beginning of employment , not
the commencement of work

Hiring by competent person
a. If it is done by an agent with actual authority
b. If it is done by an agent with apparent authority
c. If it is done w/o authority, but subsequently ratified either expressly or

FOUR-FOLD TEST (Indica of Determination) economic or Economic
reality test
1. The manner of selection and engagement of the putative
2. The mode of payment of wages
3. The presence or absence of the power of dismissal
4. The presence or absence of a power to control putative
employees conduct
-the power of employer to control the employee with respect to
the means and methods by which the work is to be accomplished

ECONOMIC TEST (also applied in determining employer-employee
-To bolster the payment of wages and control test, the existing economic
conditions prevailing between the parties, like the inclusion of the
employee in the payrolls, submission of his name with the SSS, PAG-IBIG,

1. Rules that fix the methodology and bind or restrict the party hired
to the use of such means or methods
2. The skills rendered, source of instrumentalities and tools, location
of the work, duration of the relationship, the hired partys
discretion when and how long to work, the manner of payment,
whether the work is part of the regular business of the hiring
party, the contract provisions on benefits. Sonza vs. ABS -CBN
3. The bus owner has control over a bus driver , an employee,
although paid on a commission basis
4. Employment does not exist for a sales agent who receives
commission on his gross sales
5. Where there is less control in the exercise, the more likely the
person hired is an independent contractor- Sonza vs. ABS -CBN
6. Where the hirer cannot discipline or dismiss hired person over his
7. The worker performs subject to employers specifications
indicating control
8. The company has direct control and supervision over the activities
of pakiao workers
9. Since the owner controls the work performance of a caretaker of
a barber shop, he is an employee of the establishment.

Not severed in the ff:
1. Regaular seasonal employees are not, strictly speaking, separated
from the service but are merely considered as on leave of absence
without pay until they are re-employed, their employment
relationship is never severed but only suspended
2. The cessation of the milling activities at the end of the season-
foreseeable suspension of work
3. Bonafide suspension of operation of a business or undertaking for a
period of not exceeding 6 months
4. Fulfilment by the employee of a military or civic duty
5. Regular employees of the work pool, while waiting for their
6. An employee who was dismissed for a specific cause which turned out
to be false or non-existent is entitled to reinstatement
7. Filing by the employee of an illegal dismissal case does not severe
employment relationship
8. Employee who stage a legal strike
9. Employees of employer whose fishing vessels are dry-docked or
undergoing repairs are not terminated from employment

-an employer may not terminate the services of an employee except for a
just or authorized cause
-on the other hand, an employee may terminate without just cause ,
employment relationship by serving a written notice on the employer at
least one month in advance

-employment relationship is not terminated in an illegal dismissal case
-an employee who was illegally dismissed is entitled to reinstatement
without loss of seniority rights full backwages inclusive of allowances,
damages and other benefits due him computed from the time of his
compensation withheld up to the time of his actual reinstatement

- By express provision of the Consti and Labor Code, terms and conditions of
employment if all government employees including employees of GOCCS
with original charters shall be governed by civil service law, rules and
- But the term GOCC must be interpreted in the light of Opinion No. 62 of
the Sec. of Justice series of 1976
a. Corporations organized pursuant to legislative character or a special
law governed by CSC Law
b. Corporations not directly chartered or created by special law but were
acquired or taken over by corporations created under special law
(subsidiaries or corporate offspring)- governed by Labor Code

-the SC voided opinion no. 62 of the Sec. of Justice and ruled that there
should no longer any question at this time that employees of GOCCs are
governed by the Civil Service Law and Civil Service Rules and Regulations

RESURRECTING Opinion No. 62 of the Sec. of Justice, s. 1976) on the
impact of constitutional provision on the scope of civil service which reads:
-the civil service embraces all branches, subdivisions, instrumentalities,
and agencies of the government, including government-owned or
controlled corporations with original charters
-by clear implication, the Civil service does not include GOCCs which are
organized as subsidiaries of GOCCs under the general corporation law
-Government corporations with original charter are those created by an
act if Congress or by special law and not under the general corporation
--Court affirmed the jurisdiction of the NLRC on a complaint filed by
NNASECO (a company that provide security guards as well as messengerial
, janitorial and other similar services to PNB and its agencies, being a
subsidiary of National Investment and Devt. Corp. (NIDC) a subsidiary
wholly owned by PNB, in turn a GOCC without original charter

-a corporation is GOCC if the capital stock is owned by the govt even if
corporation is organized in accordance with corporation law
-those created by special charters- subject to provisions of the Civil
Service Law
-those incorporated under the general Corporation Law- not covered by

1. Student who work for the school in exchange of the privilege to study
free of charge-NO ER-EE RELATIONSHIP
-but for purposes of imposing liability for tortious act, the working scholar
is considered an employee and the school employer

2. There exists ER-EE relationship between resident physicians and the
training hospitals unless:
A. There is training agreement between them
B. The training program is duly accredited or approved by the
appropriate government agency
3. In-house lawyers (handles business transactions, hired by companies)
are employees of the company
4. Professors of universities- employee
5. Stevedoring employees are not employed by shipping companies
6. Jeepney drivers under the boundary system- considered as employee
7. Caddies of golf clubs not employyes
8. Crew members not employees of boat owner; relationship assumes a
joint venture
9. Medical consultants not employees

Art. 7. Statement of objectives. Inasmuch as the old concept of land ownership by
a few has spawned valid and legitimate grievances that gave rise to violent
conflict and social tension and the redress of such legitimate grievances being one
of the fundamental objectives of the New Society, it has become imperative to
start reformation with the emancipation of the tiller of the soil from his bondage.
P.D. No. 2-the entire country was proclaimed as a land reform area
-this decree enjoins all agencies and offices of the govt to extend full
support, cooperation and assistance to the DAR to insure successful
prosecution of agrarian reform programs

Agrarian reform- the redistribution of lands regardless of crops or fruits
produced, to farmers and regular farm workers who are landless,
irrespective of tenurial arrangement , to include the totality of factors and
support services deisgned to lift the economic status of the beneficiaries
and all other arrangemetns alternative to the physical redistribution of
lands, such as production or profit sharing, labor administration, and the
distribution of shares of stocks, which will allow beneficiaries to receive a
just share of the fruits of the lands they work

Art. 8. Transfer of lands to tenant-workers. Being a vital part of the labor force,
tenant-farmers on private agricultural lands primarily devoted to rice and corn
under a system of share crop or lease tenancy whether classified as landed estate
or not shall be deemed owner of a portion constituting a family-size farm of five
(5) hectares, if not irrigated and three (3) hectares, if irrigated.
In all cases, the land owner may retain an area of not more than seven (7)
hectares if such landowner is cultivating such area or will now cultivate it.
Retention limit (under RA 6657 (CARL of 1988)
-landowner may retain not more than 5 hectares of his agri land
-3 hectares may be awarded to each child procided
1. he is at least 15 y/o
2. he is actually tilling the land or directly managing the farm
It must be noted that a landowner who had retained (7) hectares under
PD 27 will not be affected by the retention limit provided under RA 6657
RA 6657 contains a proviso supporting the inapplicability of PD 27 to lands
covered by homestead patents
However, original homestead grantees or their direct compulsory heirs
who still own the original homestead at the time of the approval of the law
shall retain the same areas as long as they continue to cultivate said
Livestock and poultry lands are not covered by agrarian reform
Art. 9. Determination of land value. For the purpose of determining the cost of the
land to be transferred to the tenant-farmer, the value of the land shall be
equivalent to two and one-half (2-1/2) times the average harvest of three (3)
normal crop years immediately preceding the promulgation of Presidential Decree
No. 27 on October 21, 1972.
The total cost of the land, including interest at the rate of six percent (6%) per
annum, shall be paid by the tenant in fifteen (15) years of fifteen (15) equal
annual amortizations.
In case of default, the amortization due shall be paid by the farmers cooperative
in which the defaulting tenant-farmer is a member, with the cooperative having a
right of recourse against him.
The government shall guarantee such amortizations with shares of stock in
government-owned and government-controlled corporations.
1. Titles to all expropriated properties shall be transferred to the Sate
only upon full payment of compensation to their respective owners
2. Rights acquired by tenant-farmers by virtue of PD 27 are retained
3. However, landowners who failed to exercise their rights of retention
under PD 27 can enjoy such rights under RA 6657 after fulfilling the
conditions prescribed therein.

Factors to consider in determining just compensation:
1. The cost of the acquisition of the land
2. Its nature, actual use and income
3. The sworn valuation by the owner
4. The tax declaration
5. The assessment made by the govt assessors
6. The social and economic benefits contributed by the farmers, farm
workers and by the government
7. Non-payment of taxes and loans

Valuation and mode of compensation
1. Landbank mandated by law to compensate the landowner in the
amount agreed upon by landowner, DAR and LBP.
2. In case of disagreement, the Sec. of Agrarian Reform shall determine
just compensation
3. In anyone disagrees, then to the Special Agrarian Court designate by
the SC (at least 1 branch of RTC within each province. )

Compensation shall be paid in the ff. manner:
1. Cash
2. Shares of stick in GOCC. LBP preferred shares, physical assets and
other qualified investmens
3. Tax credit which can be used against any tax liability
4. LBP bonds
Art. 10. Conditions of ownership. No title to the land acquired by the tenant-
farmer under Presidential Decree No. 27 shall be actually issued to him unless and
until he has become a full-fledged member of a duly recognized farmers
Title to the land acquired pursuant to Presidential Decree No. 27 or the Land
Reform Program of the Government shall not be transferable except by hereditary
succession or to the Government in accordance with the provisions of Presidential
Decree No. 27, the Code of Agrarian Reforms and other existing laws and
Art. 11. Implementing agency. The Department of Agrarian Reform shall
promulgate the necessary rules and regulations to implement the provisions of
this Chapter.
DAR has the power to issue rules and regulations, whether substantive or
procedural to carry out the objects and purposes of the CARL of 1988
It has the exclusive original jurisdiction over all matters involving the
implementation of agrarian reform, except the following:
a. Those falling under the exclusive jurisdiction of the Dept. of
Agriculture and DENR
b. Petitions for the determination of just compensation to be paid to
c. Prosecution of all criminal offenses under RA 6657
Letters B and C are cognizable by the RTC acting as special agrarian court
Quasi- judicial powers of DAR
The DAR through its Adjudication Board has the ff powers
1. To summon witnesses, administer oaths, take testimonies, require
submission of reports
2. To compel production of books and docs and answers to
3. Issue subpoena ad testificandum and duces tecum
4. Enforce writs through sheriffs or duly deputized officers
5. Punish direct and indirect contempt
In order for DARAB to have jurisdiction over a case, there must exist a
tenancy relationship between parties.
Elements: (tenancy agreement to take hold over a dispute)
1. That the parties are the landowner and the tenant or agricultural
2. That the subject matter of the relationship is agricultural land
3. That there is consent between parties to the relationship
4. That the purpose of the rel is to bring about agricultural production
5. That there is personal cultivation on the part of the tenant or
agricultural lessess
6. That the harvest is shared between landowner and tenant or
agricultural lessee
DAR not governed by technical rules of procedure and evidence in
deciding all cases, disputes and controversies