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SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW


Any form of reproduction of this copy is strictly prohibited!!!

PRELIMINARY TITLE
CHAPTER I
GENERAL PROVISIONS
ART 1. NAME OF DECREE
LABOR LEGISLATION - Consists of statutes,
regulations and jurisprudence governing the
relations between capital and labor, by providing
for certain standards of terms and conditions of
employment or providing a legal framework
within which these terms and conditions and the
employment relationship may be negotiated,
adjusted and administered. It is divided into
labor standards and labor relations.
LABOR STANDARDS - Are 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 RELATIONS LAW - defines the
status, rights, and duties and the institutional
mechanisms that govern the individual and
collective interactions of employers, employees
or their representatives.
- The law which
seeks to stabilize the relation between employer
and employee, to forestall and thresh out their
differences through the encouragement of
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and
arbitration.
ART. 2. DATE OF EFFECTIVITY
The Labor Code took effect on November 1,
1974 (six months after its promulgation on May
1,1974)

SEVEN (7) BASIC RIGHTS OF WORKERS


AS GUARANTEED BY THE
CONSTITUTION (OCESHLP):
1. Right to Organize
2. Right to Conduct Collective Bargaining
or Negotiation with Management
3. Right to Engage in Peaceful Concerted
Activities including strike in accordance
with law
4. Right to Enjoy Security of Tenure
5.Right to Work Under Humane Conditions
6.Right to Receive a Living Wage
7.Right to Participate in Policy &
Decision-Making Processes affecting
their rights and benefits as may be
provided by law
RELATED LAWS:
1. CIVIL CODE: see Arts. 1700, 1701and 1703
2. REVISED PENAL CODE: Art. 289
3. OTHERS: SSS Law, GSIS Law, Agrarian
Reform Law, the 13th month pay law, the
Magna Carta for Public Health Workers, etc.
RATIONALE :
- The raison d etre of labor laws is the POLICE
POWER of the State
ART 3. DECLARATION OF BASIC POLICY
The State shall afford protection to labor,
promote full employment, ensure equal work
opportunities regardless of sex, age or creed,
and regulate the relations between workers and
employers. The State shall assure the right of
workers
to
self-organization,
collective
bargaining, security of tenure, and just and
humane conditions of work.
EMPLOYER - one who employs the services
of others; one for whom employees work and
who pays their wages or salaries.

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon

SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW


Any form of reproduction of this copy is strictly prohibited!!!

EMPLOYEE - one who works for an employer;


a person working for salary or wages
ART 4. CONSTRUCTION IN FAVOR OF
LABOR
CONSTRUCTION IN FAVOR OF LABOR
CLAUSE -this is with a view to apply the Code
to the greater number of employees to enable
them to avail of the benefits under the law
(Abella vs. NLRC). The working mans welfare
should be the primordial consideration.
-

This rule is applicable if there is a doubt as


to the meaning of the legal or contractual
provision. If the provision is clear and
unambiguous, it must be applied in
accordance with its express terms.

These laws should be interpreted with a


view to the fact that they are remedial in
nature, they are enacted to better the lot

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon

Page 2 of 82

SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW


Any form of reproduction of this copy is strictly prohibited!!!

and promote the welfare of the members of the


laboring class.
-

Reservation of essential attributes of


sovereign power is read into contracts
as a postulate of the legal order.

Courts adopt a liberal approach that


favors the exercise of labor rights.
The mandate under Art. 4 is simply to
resolve doubt, if any, in favor of labor. If
there is no doubt in implementing and
interpreting the law, labor will enjoy no
built-in advantage and the law will have
to be applied as it is.

MANAGEMENT RIGHTS: (CPST)


C
P
S
T

Right to conduct business


Right to prescribe rules
Right to select employees
Right
to
transfer
or
employees

discharge

MANAGEMENT PREROGATIVE
Except as limited by special laws, an
employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including:
HIRING,
WORK
ASSIGNMENTS,
WORKING METHODS, TIME PLACE AND
MANNER OF WORK, TOOLS TO BE USED,
PROCESSES
TO
BE
FOLLOWED,
SUPERVISION OF WORKERS, WORKING
REGULATIONS, TRANSFER OF EMPLOYEES,
WORK
SUPERVISION,
LAY-OFF
OF
WORKERS, AND DISCIPLINE, DISMISSAL
AND RECALL OF WORKERS. (HW5T2PLSD)
-

ART 5. RULES AND REGULATIONS


- The rules and regulations issued by the DOLE
shall become effective 15 days after
announcement
of
their
adoption
in
newspapers of general circulation.

ART 6. APPLICABILITY
AGRICULTURAL OR FARM WORKER - one
employed in an agricultural or farm enterprise
and assigned to perform tasks which are directly
related to the agricultural activities of the
employer, such as cultivation and tillage of the
soil, dairying, growing and harvesting of any
agricultural and horticultural commodities, the
raising of livestock or poultry, and any activities
performed by a farmer as an incident to or in
conjunction with such farming operations.
-

There may be in one employer both


agricultural as well as industrial workers.

PURPOSE of the provision: intended to


encourage workers to seek employment in
agricultural enterprises instead of migrating
to already overcrowded urban areas to find
work in industrial establishments

- The LC applies to all workers, whether


agricultural
or
non-agricultural,
including
employees in a government corporation
incorporated under the Corporation Code.

Thus, so long as management prerogatives


are exercised in good faith for the
advancement of the employers interest and
not for the purpose of defeating or
circumventing the rights of employees under
special law or under valid agreements, it
shall be upheld.

FARM EMPLOYERFARM
WORKER
RELATIONSHIP

TENANCY
RELATIONSHIP

- The lease is one


of labor with the
agricultural laborer

- It is the landowner
who is the lessor
and the tenant the

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon

Page 3 of 82

as the lessor of his


services and the
farm employer as
the lessee
- The agricultural
worker works for
the farm employer
and for his labor he
receives a salary or
wage, regardless of
whether the
employer makes a
profit.

lessee of
agricultural land

- The tenant derives


his income from the
agricultural produce
or harvest

EMANCIPATION PATENT - is the title issued


to the tenant upon compliance with all the
requirements of the government. It represents
the full emancipation pf the tenant from the
bondage of the soil.
PROHIBITION AGAINST ALIENATION IS
INTENDED TO:
1. Preserve the landholding in the hands of the
owner-tiller and his heirs;
2. minimize land speculation; and
3. prevent a return to the regime of land
ownership by a few.
BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRUITMENT AND PLACEMENT OF
WORKERS

CHAPTER II
EMANCIPATION OF TENANTS
(Note: not included as per SC Memo)
ART 7-11
-

Share tenancy has been abolished


placing in its stead leasehold system.

Under Art. 8, the land covered by operation


land transfer must be private agricultural
land, tenanted, primarily devoted to rice
and/or corn, and more than seven
hectares in are.

Present retention limits:


- 5 hectares per landowner and 3 hectares
per child provided the child is:
1. Is at least 15 years of age; and
2. Actually tilling the land or directly managing
the farm
-

EXCEPTIONS:
those covered by homestead patents
those covered by PD 27

CHAPTER I
GENERAL PROVISIONS
ART 13. DEFINITIONS
WORKER -any member of the labor force,
whether employed or unemployed
RECRUITMENT AND PLACEMENT - any act
of
canvassing,
enlisting,
contracting,
transporting, utilizing, hiring or procuring
workers, and includes referrals, contract
services,
promising
or
advertising
for
employment, locally or abroad, whether for profit
or not; PROVIDED, that any person or entity
which, in any manner, offers or promises for a
fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
(CEC-TUCP) (RCPA)
-The number of persons dealt with is not
an essential ingredient of the act of recruitment
and placement of workers. The proviso merely
creates the presumption.

ART 16. PRIVATE RECRUITMENT


ENTITIES AUTHORIZED TO RECRUIT
1. Public employment offices
2. Private
recruitment
entities;
private
employment agencies
3. Shipping
or
manning
agents
or
representatives
4. The POEA
5. Construction contractors if authorized by the
DOLE and the Construction Industry
Authority
6. Members of the diplomatic corps (but hirings
must also go thru POEA)
7. Other persons or entities as may be
authorized by the DOLE secretary
DOCUMENTATION OF WORKERS:
1. Contract Processing workers hired thru the
POEA shall be issued the individual
employment contract and such other
documents as may be necessary for travel
2. Passport Documentation
3. Visa Arrangement
ART 17. (POEA)
-

POEA has taken over the functions of the


OEDB

ADJUDICATORY FUNCTIONS
POEA :

OF

THE

a. All cases which are administrative in


character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entities; and
b. Disciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting
partners and Filipino Migrant Workers
JURISDICTION TRANSFERRED TO THE
LABOR ARBITERS OF THE NLRC :

a. claims arising out of an employer-employee


relationship or by virtue of any law or
contract involving Filipino workers for
overseas deployment including claims for
actual, moral, exemplary and other forms of
damages.
Venue Money claims or claims for damages
should be filed before the Regional Arbitration
branch of the NLRC where the complainant
resides or where the principal office of the
respondent/employer is situated, at the option of
the complainant.
Compromise Agreement - Consistent with
the policy encouraging amicable settlement of
labor disputes, Sec 10, RA 8042 allows
resolution by compromise of cases filed with the
NLRC.

PREMATURE
TERMINATION
OF
CONTRACT - Where the workers employment
contract is terminated long before its agreed
termination date, and the termination is not
shown to be based on lawful or valid grounds,
the employer will be ordered to pay the workers
their salaries corresponding to the unexpired
portion of their employment contract. (Tierra
Intl Construction Corp. vs. NLRC).
HOWEVER, under R.A. 8042, if the illegal
dismissal took place on or after July 15, 1995,
the illegally dismissed overseas worker shall be
entitled to the full reimbursement of his
placement fee with interest at the rate of 12%
per annum plus salary for the unexpired
portion of his employment contract or for 3
mos. for every year of the unexpired term
whichever is LESS.
-

Claims for death and burial benefits


involving seamen OCWs which the POEA
has jurisdiction are not the same as the
claims against the State Insurance Fund
of the LC.

- The basis for the award of backwages is the


parties employment contract, stipulating the
wages and benefits.
-

The fact that the employee has signed a


satisfaction receipt does not result in
waiver; the law does not consider as

valid any agreement to receive less


compensation than what the worker is
entitled to recover.
(MR Yard Crew Union vs. PNR)
ART 18. BAN ON DIRECT-HIRING
Direct hiring of Filipino workers by a
foreign employer is not allowed.
EXCEPTIONS :
1.
2.
3.

the members of the diplomatic corps;


international organizations;
such other employers as may be allowed by
the Department of Labor and employment
4. name hirees individual workers who are
able to secure contracts for overseas
employment on their own efforts and
representations without the assistance or
participation or any agency
RATIONALE OF THE PROHIBITION
- Filipino workers hired directly by a
foreign employer, without government
intervention may not be assured of the
best possible terms and conditions of
work. The foreign employer must also be
protected and may chance upon a Filipino
worker who do not possess sufficient
knowledge for which he is employed.
MINIMUM EMPLOYMENT CONDITIONS OF
OVERSEAS EMPLOYMENT:
1. Guaranteed wages for regular working hours
and overtime pay for services rendered
beyond regular working hours in accordance
with the standards established by the
Administration

2. Free Transportation from point of hire to site


of employment and return;
3. Free emergency medical and dental
treatment and facilities;
4. Just causes for termination of the contract or
of the services of the workers;
5. Workmens compensation benefits and war
hazard protection;
6. Repatriation of workers remains and
properties in case of death to the point of
hire, or if this is not possible the possible
disposition thereof
7. Assistance on remittance of workers
salaries, allowances or allotments to his
beneficiaries; and
8. Free and adequate board and lodging
facilities or compensatory food allowance at
prevailing cost of living standards at the
jobsite.
ART 22. MANDATORY REMITTANCE OF
FOREIGN EXCHANGE EARNINGS
MANDATORY REMITTANCE
REQUIREMENTS:
1. Seamen or mariners: 80% of the basic
salary;
2. Workers for Filipino Contractors and
Construction Companies: 70% of the basic
salary;
3. Doctors, engineers, teachers, nurses, and
other professionals whose employment
contract provide for lodging facilities: same
as #2
4. All other professionals without board and
lodging: 50% of the basic salary;
5. Domestic and other service of workers; 50%
of the basic salary.
ART 25. PRIVATE SECTOR PARTICIPATION
IN THE RECRUITMENT AND PLACEMENT OF
WORKERS
QUALIFICATIONS FOR PARTICIPATION IN
THE OVERSEAS EMPLOYMENT PROGRAM:

1. Filipino citizens, partnerships or corporations


at least 75% of the authorized and voting
capital stock of which is owned and
controlled by Filipino citizens;
2. Minimum capitalization of 1M in case of
single proprietorship or partnership and a
minimum of 1M paid-up capital for
corporations;
3. Those not otherwise disqualified by law or
these guidelines to engage in the
recruitment and placement of workers for
overseas employment
DISQUALIFICATIONS:
1. Travel agencies and sales agencies of
airline companies;
2. Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency;
3. Corporations and partnerships, when any of
its officers, members of the board or
partners, is also an officer, member of the
board or partner of a corporation engaged in
the business of a travel agency.
4. Persons, partnerships, or corporations which
have derogatory records;
5. Persons employed in the Department of
Labor or in other government agencies
directly involved in overseas employment
program and their relatives within the 4 th
degree of consanguinity or affinity; or
6. Those whose license has been previously
canceled or revoked.
CHAPTER II
REGULATIONS OF RECRUITMENT AND
PLACEMENT ACTIVITIES
ART 29. NON-TRANSFERABILITY OF
LICENSE OR AUTHORITY
-

No license or authority shall be used


directly or indirectly by any person other
than the one in whose favor it was issued
or at any place other than that stated in the
license or authority, nor may such license or

authority be transferred, conveyed


assigned to any other person or entity.

or

Licensees or holders of authority or their


duly authorized representatives may as a
rule, undertake recruitment and placement
activities only at their authorized official
addresses.

Change of ownership or relationship of


single proprietorship licensed to engage
in overseas employment shall cause the
automatic revocation of the license.

All overseas landbased workers shall be


provided both life and personal accident
insurance.

GROUNDS FOR DISCIPLINARY ACTION


(Under the MWA of 1995) ;
1. Commission of a felony punishable by the
laws of the Philippines or by the host
country;
2. Drug addiction or possession or trafficking of
prohibited drugs;
3. Desertion or abandonment;
4. Drunkenness, especially where the laws of
the of the host country prohibit the same;
5. Gambling, especially where the laws of the
host country prohibit the same;
6. Initiating or joining a strike or work stoppage
where the laws of the host country prohibit
strikes or similar actions;
7. Creating trouble at the worksite or in the
vessel;
8. Embezzlement of company funds or of
money an properties of a fellow worker
entrusted for delivery to kins or relatives in
the Philippines;
9. Theft or robbery;
10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly
weapons;
13. Unjust refusal to depart for the worksite after
all employment and travel documents have
been duly approved by the appropriate
government agency; and

14. Violation of the laws and sacred practices of


the host country and unjustified breach of
government approved employment contract
by a worker.
ART 31. BONDS
-

Cash bond filed by applicants for license


or authority is not subject to garnishment
by judgment creditor of agency

ART 32. FEES TO BE PAID BY WORKERS


-

Suspension or cancellation of licenses may


include award of damages to repair the
injury caused to its victims.

ART 34. PROHIBITED PRACTICES


-

A supplementary contract beneficial to


worker not violative of protection afforded
by the State to workers.

ART 35. SUSPENSION AND/OR


CANCELLATION OF LICENSE OR
AUTHORITY
NON-LICENSEE OR NON-HOLDER OF
AUTHORITY - any person, corporation or entity
which has not been issued a valid license or
authority to engage in recruitment and
placement by the Secretary of Labor, or whose
license or authority has been suspended,
revoked, or cancelled by the POEA and the
Secretary.

CHAPTER III
MISCELLANEOUS PROVISIONS
ART 38. ILLEGAL RECRUITMENT (as per
RA 8042 otherwise known as the Migrant
Workers Act of 1995)
ILLEGAL RECRUITMENT - Any act of
canvassing,
enlisting,
contracting,
transporting, utilizing, hiring or procuring
workers and includes referring contract
services, promising or advertising for
employment abroad, whether for profit or
not when undertaken by a non-licensee
or non-holder of authority.
PROVIDED that any such non-licensee
or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
to two or more persons shall be deemed so
engaged.
It shall likewise include the
commission of prohibited acts whether
committed by a non-licensee or non-holder of
authority or a licensee or holder of authority.
PROHIBITED PRACTICES:
(CFGIIEOFSBWF)
C
F
G
I

to charge or accept amount beyond


amount allowed by law
to furnish or publish false notice or
information in relation to Recruitment
and Placement
to give any false notice and information
or commit any act of misrepresentation
to secure license or authority
Induce or attempt to induce workers to
quit employment to offer him another
except if the transfer is to liberate a
worker from oppressive terms and
conditions of employment (NOTE: it is
not necessary that worker was actually
induced or did quit employment)
to influence or attempt to influence any
person or entity not to employ any
worker who has not applied for
employment in his agency
to engage in the recruitment or
placement of workers in jobs harmful to

O
F
S
B
W

F
F

public health or morality or to the dignity


of the Phil.
Obstruct or attempt to obstruct
inspection by Secretary
Fail to file reports
Substitute or alter employment contracts
Become officer or Board member of
corporation engaged in travel agency
Withhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authorized by the Code.
Failure to actually deploy without valid
reason as determined by the DOLE
Failure to reimburse expenses incurred
by the worker in connection with his
documentation and processing for
purposes of deployment, in cases where
the deployment does not actually take
place without the workers fault

THE QUALIFYING CIRCUMSTANCES THAT


WOULD MAKE ILLEGAL RECRUITMENT
AS A CRIME INVOLVING ECONOMIC
SABOTAGE ARE :
(a)

(b)

When committed by a SYNDICATE i.e.,


if it is carried out by a group of three (3)
or more persons conspiring and
confederating with one another; or
When committed in a LARGE SCALE
i.e., if it is committed against three (3) or
more persons

previously authorized by the POEA shall


likewise constitute illegal recruitment.
-

ART. 38 ( c ) declared unconstitutional


since only a judge may issue search
warrant/ warrant of arrest. The Sec. Of
Labor may only recommend not issue.
However, Closure of establishments of
illegal recruiters may still be ordered by
Secretary of Labor, same being essentially
administrative and regulatory in nature.
(Salazar vs. Achacoso and Marquez)

PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall
prescribe in five (5) years Provided, however,
That illegal recruitment cases involving
economic sabotage shall prescribe in twenty
(20) years.
TITLE II
EMPLOYMENT OF NON-RESIDENT ALIENS
ART 40. EMPLOYMENT PERMIT OF NONRESIDENT ALIENS
-Foreigners or domestic and foreign employers
desiring to employ aliens must secure
employment permit from the DOLE upon
determination of the non-availability of a person
in the Philippines who is competent, able and
willing at the time of the application to perform
the services for which the alien is desired.

VENUE OF ACTIONS ON ILLEGAL


RECRUITMENT:

1. RTC of the province or city where the


offense was committed; or
2. where the offended party resides at the time
of the commission of the offense
at the option of the complainant

- a non-resident alien worker and the


employer shall bind themselves to train at least
2 Filipino understudies.

These circumstances only qualify. They do


not define the offense themselves
Recruitment and placement activities of
agents or representatives appointed by a
licensee, whose appointments were not

Foreigners may not be employed in certain


nationalized business.

PROHIBITION AGAINST EMPLOYMENT OF


ALIENS
Section 2-A of the Anti-Dummy Law prohibits
the employment of aliens in establishment or
entities which have under their name or control a
right, franchise, privilege, property or business
the exercise or enjoyment of which property or

business the exercise or enjoyment of which is


expressly reserved by the Constitution or the
laws to
citizens of the Philippines or to
corporations or associations at least 60% of the
capital of which is owned by such citizens.
EXCEPTIONS TO THE PROHIBITION:
a.
b.

where the Secretary of Justice specifically


authorizes the employment of technical
personnel; or
where the aliens are elected members of
the board of directors or governing body of
corporations or association in proportion to
their allowable participation in the capital of
such entities.

ENTREPRENEURSHIP - training for selfemployment or assisting individual or small


industries within the purview of this the LC.
TITLE II
TRAINING AND EMPLOYMENT OF SPECIAL
WORKERS
CHAPTER I
APPRENTICES
Types of Special Workers:
1. Apprentice
2. Learners
3. Handicapped
ART 58. DEFINITION OF TERMS
APPRENTICESHIP - practical training on the
job supplemented by related theoretical
instruction
APPRENTICE - worker who is covered by a
written apprenticeship agreement with an
individual employer or any of the entities
recognized under this chapter

BOOK TWO
HUMAN RESOURCES DEVELOPMENT
TITLE I
NATIONAL MANPOWER DEVELOPMENT
PROGRAM
CHAPTER I
NATIONAL POLICIES AND ADMINISTRATIVE
MACHINERY FOR THEIR IMPLELENTATION
ART 45. DEFINITIONS
MANPOWER - that portion of the nations
population which has actual or potential
capability to contribute directly to the production
of goods and services.

APPRENTICEABLE OCCUPATION - any


trade, form of employment or occupation which
requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction

APPRENTICESHIP AGREEMENT an
employment contract wherein the employer
binds himself to train the apprentice and the
apprentice in turn accepts the terms of training
ON-THE-JOB TRAINING the practical work
experience through actual participation in
productive activities given to or acquired by an
apprentice
HIGHLY TECHNICAL INDUSTRIES trade,
business, enterprise, industry or other activity,

which is engaged in the application of advanced


technology

Requisites for tax deductions in case


employers have apprenticeship programs:

ART 59. QUALIFICATIONS OF


APPRENTICES

1. Program duly recognized by the Department


of Labor
2. Deduction shall not exceed 10% of direct
labor wage
3. Pay his apprentices the minimum wage

Qualifications of an Apprentice
1.

at least 15 years of age; provided those


who are at least 15 years of age but less
than eighteen may be eligible for
apprenticeship only in non-hazardous
occupations
and
the
apprenticeship
agreement shall be signed in his behalf by
the parent or guardian or authorized
representative of DOLE.
2. vocational aptitude/ capacity for appropriate
test
3. ability to comprehend and follow oral and
written instructions

ART 72. APPRENTICES WITHOUT


COMPENSATION
Apprentices who may be hired without
compensation:
1.those whose training on the job is
required by the school;
2.Training Program Curriculum;
3.Requisite for Graduation; or
4.A requisite for Board Examination

ART 60. EMPLOYMENT OF APPRENTICES


-

Only employers in highly technical


industries may hire apprentices and only in
apprenticeable
occupations
as
determined by the Sec. Of Labor

Requisites for a VALID APPRENTICESHIP


1. QUALIFICATIONS OF THE APPRENTICE
2.
APPRENTICESHIP AGREEMENT DULY
EXECUTED AND SIGNED PROVIDING FOR
COMPENSATION NOT LESS THAN 75% OF
THE APPLICABLE MINIMUM WAGE, EXCEPT
ON-THE-JOB TRAINING (OJT)
3.APPRENTICESHIP
PROGRAM
DULY
APPROVED BY DOLE
4. PERIOD OF APPRENTICESHIP SHALL NOT
EXCEED 6 MONTHS.

ART 71. DEDUCTIBILITY OF TRAINING


COSTS

CHAPTER II
LEARNERS
ART 73. LEARNERS DEFINED
LEARNERS - persons hired as trainees in
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be
learned thru practical training on the job in a
relatively short period of time which shall not
exceed 3 mos.
APPRENTICESHIP

LEARNERSHIP

1. Practical training on
the job
supplemented by
related theoretical
instruction.

1. Hiring of persons
as trainees in
semi-skilled and
other industrial
occupations which
are nonapprenticeable and
which may be
learned thru
practical training
on the job in a
relatively short

effectively impede the performance of job


operations in the particular occupations for
which they were hired.

period of time.
2. Not less than 3
months practical
training on the job
but not more than 6
months

2. Practical training
on the job not to
exceed 3 mos.

3. No Commitment to
hire

3. With Commitment
to employ the
learner as regular
employee if he
desires upon
completion of
learnership

4. In case of
pretermination of
the apprenticeship
agreement, the
worker is not
considered as a
regular employee

5. Highly technical
industries and only
in industrial
occupation
-

5. Semi-skilled /
industrial
occupations

Learners in piecework/ incentive - rate


jobs are to be paid in full for the work done.

ART 78. DEFINITION


HANDICAPPED WORKERS - Are those
whose earning capacity is impaired by age or
physical or mental deficiency or injury.
Subject to the provisions of the Code,
handicapped workers may be hired as
regular workers, apprentices or learners
if their handicap is not such as to

qualified disabled employee shall be


subject to the same terms and conditions
of
employment
and
the
same
compensation, privileges, benefits, fringe
benefits, incentives or allowances as a
qualified able-bodied person.
Even a
handicapped worker can acquire the
status of a regular employee.

Duration of employment - no minimum, no


maximum. Dependent on agreement but is
necessary that there is a specific duration

4. Learner is
considered as a
regular employee
in case of
pretermination of
contract after 2
mos. of training
and the dismissal
is without fault of
learner

CHAPTER III
HANDICAPPED WORKERS

BOOK THREE
CONDITIONS OF EMPLOYMENT
TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HOURS OF WORK
ART 82. COVERAGE
ELEMENTS OF EMPLOYER-EMPLOYEE
RELATIONSHIP:
1. selection and engagement of the
employee
2. the payment of wages
3. the power of dismissal
4. the employers power to control the
employee (with respect to the means
and methods by which the work is to
be accomplished)
-

The last element as mentioned above is


what is known as the CONTROL TEST whether the employer controls or has
reserved the right to control the employee
not only as to the result of the work to be
done but also as to the means and methods
by which the same is to be accomplished.

This last element is the most important index


of the existence of the relationship.
EMPLOYEE - A natural person who is hired,
directly or indirectly, by a natural or juridical
person to perform activities related to the
business of the hirer who, directly or
through an agent, supervises or controls
the work performance and pays the salary
or wage of the hire.
Employees Exempt from the Benefits of EE Relationship
1.
2.
3.
4.

Government Employees
Managerial Employees
Field Personnel
Family Members dependent on the
employer for support
5. Domestic Helpers
6. Persons on the Personal Service of another
7. Workers Paid by Result
GOVERNMENT EMPLOYEES - Refers only to
employees of government agencies,
instrumentalities or political subdivisions
and of government corporations that are
not incorporated under the Corporation
Code, meaning those which have original
charters.
MANAGERIAL EMPLOYEES - Refer to those
whose primary duty consists of the
management of the establishment in which
they are employed or of a department or
subdivision thereof and to other members
of the managerial staff
Note: Definition applies only to the 8hour Labor law

FIELD PERSONNEL - Refer to nonagricultural employees who regularly


perform their duties away from the principal
place of business or branch office of the
employer and whose actual hours of work
in the field cannot be determined with
reasonable certainty.

WORKERS PAID BY RESULTS - Method of


computing compensation based on the
work completed and not on the time spent
in working.
PIECE-RATE METHOD - Where pay is
dependent on unit of product finished, preferred
where the work process is repetitive and the out
put is standardized and easily countable.
DOMESTIC
HELPERS/
PERSONS
RENDERING PERSONAL SERVICES - Perform
services in the employers home which are
usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
to the personal comfort, convenience or safety
of the employer, as well as the members of the
employers household.
-

The existence of employment relationship is


determined by law and not by contract.

Whether or not an employer-employee


relationship exists between the parties is a
question of fact. The findings of the
NLRC are accorded not only respect but
finality if supported by substantial
evidence.

MANAGEMENT PREROGATIVE - except as


otherwise limited by special laws, an employer is
free to regulate, according to his own discretion
and judgment, all aspects of employment,
including hiring, work assignments, working
methods, time, place, and manner of work, tools
to be used, processes to be followed,
supervision of workers, working regulations,
transfer of employees, work supervision, lay-off
of workers and discipline, dismissal and recall of
workers.
-

Management prerogative recognizes the


right of the employer to advance its
interest to prescribe standards of work and
impose reasonable quotas or work
assignments, and failure on the part of the
employees to meet the requirement, impose
in good faith, constitutes a just cause for his
dismissal.

New owner/management group has no


obligation to re-employ workers who
freely and voluntarily accepted their
separation pay and other benefits. A
change of ownership in a business concern
is not proscribed by law.

ART 83. NORMAL HOURS OF WORK


- Shall not exceed 8 hours in a regular working
day
PURPOSE
- to safeguard the health and welfare of the
laborer and in a way to minimize
unemployment by utilizing different shifts
REGULAR WORKING DAYS: The regular
working days of covered employees shall not be
more than five days in a workweek. The
workweek may begin at any hour and on any
day, including Saturday or Sunday, designated
by the employer.
ART 84. HOURS WORKED

whether within or outside the premises of his


workplace;
3. If the work performed was necessary, or it
benefited the employer, or the employee
could not abandon his work at the end of his
normal working hours because he had no
replacement, all time spent for such work
shall be considered as hours worked if the
work is with the knowledge of his employer
or immediate supervisor
4. The time during which an employee is
inactive by reason of interruptions in his
work beyond his control shall be considered
time either if the imminence of the
resumption of work requires the employees
presence at the place of work or if the
interval is too brief to be utilized effectively
and gainfully in the employees own interest.
- Only the maximum is prescribed, not minimum.
Part- time work is therefore not prohibited.
ENGAGED TO WAIT - when waiting is an
integral part of the job, it is compensable
WAITING TO BE ENGAGED - idle time is not
working time, not compensable

SHALL INCLUDE:
1. All time during which an employee is
required to be on duty or to be at a
prescribed workplace; and
2. All time during which an employee is
suffered or permitted to work
PRINCIPLES IN DETERMINING HOURS
WORKED:
1. All hours are hours worked which the
employee is required to give to his employer,
regardless of whether or not such hour are
spent in productive labor or involve physical
or mental exertion;
2. An employee need not leave the premises of
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere

WHEN TRAVEL TIME COMPENSABLE:


1. Travel from home to work- refers to ordinary
work travel but where the worker is made to
work on an emergency call and travel is
necessary in proceeding to the workplace,
the time spent on travel is compensable
2. Travel that is all in a days work- time spent
by an employee in travel as part of his
principal activity, such as travel from jobsite
to jobsite during the workday, must be
counted as hours worked.
3. Travel away from home- travel that keeps an
employee away from home overnight.
-

Work hours of seamen are governed by


the same rules as land based employees.
Thus, they must show sufficient proof that
said work is actually performed.

Rest Periods of short duration during


working hours shall be considered as
hours worked.

Preliminary activities compensable when


controlled or required by employer and are
pursued necessarily and primarily for the
employers benefit,

3.
4.
5.
6.

existing before the effectivity of the


shortened meal period;
Work does not involve strenuous physical
exertion and they are provided with
adequate coffee breaks;
The value of benefits is equal with the
compensation due them for the shortened
meal period
OT pay will become due and demandable
after the new time schedule; and
The arrangement is of temporary duration.

ART 85. MEAL PERIODS

ART 86. NIGHT SHIFT DIFFERENTIAL

MEAL PERIODS

NIGHT SHIFT DIFFERENTIAL -Additional


compensation of not less than ten percent
(10%) of an employees regular wage for every
hour of work done between 10:00 PM and 6:00
AM, whether or not this period is part of the
workers regular shift.

1. Should not be less than sixty (60) minutes,


and is time-off/non-compensable
2. Under specified cases, may be less than
sixty (60) minutes, but should not be less
than twenty (20) minutes an must be with full
pay.
3. If less than twenty(20) minutes, it becomes
only a rest period and is thus considered as
work time
NOTE: Employee must be completely
relieved from duty. Otherwise, it is
compensable as hours worked.
-

Mealtime is not compensable EXCEPT in


cases where the lunch period or meal time is
predominantly spent for the employers
benefit or where it is less than 60
minutes.

If work done between 10 PM and 6 AM is


overtime work, then the 10% night shift
differential should be based on his
overtime rate.

RATIONALE
- it serves as an inducement of employment
ART 87. OVERTIME WORK
OVERTIME PAY- Additional compensation for
work performed beyond eight (8) hours
within the workers 24-hour workday.

REQUISITES :

30% of 130% if on a special holiday/rest


day
2. 25% of regular wage if done on a regular
workday
3. 30% of 150% if on special holiday AND rest
day
4. 30% of 200% if on a regular holiday

1. The employees voluntarily agree in writing to


a shortened meal period and are willing to
waive the overtime pay for such shortened
meal period;
2. No diminution whatsoever in the salary and
other fringe benefits of the employees

RATIONALE
- employee is given OT pay because he is made
to work longer than what is commensurate with
his agreed compensation for the statutorily fixed
or voluntarily agreed hours of labor he is
supposed to do.

Employees may request that their meal


period be shortened so that they can leave
work earlier that the previously established
schedule.

1.

As a rule, cannot be waived, as it is


intended to benefit laborers and employees.
But when the waiver is made in
consideration of benefits and privileges
which may even exceed the overtime pay,
the waiver may be permitted.

NOTE: OT pay will not preclude payment of


night shift differential pay.
-

Meal periods during overtime work is not


given to workers performing overtime for
the reason that OT work is usually for a
short period ranging from one to three hours
and to deduct from the same one full hour
as meal period would reduce to nothing the
employees OT work.

WORK DAY - the 24-hour period which


commences from the time the employee
regularly starts to work. e.g., if the worker starts
to work 8 am today, the workday is from 8am
today up to 8 am tom.
-

The minimum normal working hours fixed by


the Act need not be continuous to
constitute the legal working day

Express approval by a superior is not a


prerequisite to make overtime work
compensable.
HOWEVER,
written
authority after office hours during rest days
and holidays are required for entitlement to
compensation.

The right to OT pay cannot be waived.


Such waiver is contrary to law and public
policy.

COMPRESSED WORKWEEK -allowable


under the following conditions:
1. It is voluntary on the part of the worker
2. There will be no diminution of the weekly or
monthly take-home pay and fringe benefits
of the employees;
3. The value of the benefits that will accrue to
the employees under the proposed schedule
is more than or at least commensurate with
the one-hour OT pay that is due them during
weekdays based on the employees
quantification
4. The one-hour OT pay will become due and
payable if they are made or permitted to
work on a day not scheduled for work on the
compressed work week
5. The work does not involve strenuous physical
exertion and employees must have
adequate rest periods
5. The arrangement is of temporary duration.
ART 88. UNDERTIME NOT OFFSET BY
OVERTIME
-

Undertime work on any particular day


shall not be offset by overtime work on
any other day. Permission given to the
employee to go on leave on some other day
of the week shall not exempt the employer
from paying the additional compensation.

RATIONALE
- An employees regular pay rate is lower than
the overtime rate. Offsetting the undertime
hours against the overtime hours would
result in undue deprivation of the
employees extra pay for overtime work.

EXCEPTIONS:
1. When the waiver stipulates higher payment
or rate of OT pay; or
2. Where the contract of employment requires
work for more than eight hours of work at
specified wage per day providing for a fixed
hourly rate or that the daily wages include
overtime pay.

ART 89. EMERGENCY OVERTIME WORK

WHEN WORKER MAY BE REQUIRED TO


RENDER OT:
(WNUNCN)
W

N
U

N
C

1. Country is at war or any other


national/local emergency has been
declared
by
the
Chief
Executive/Congress
2. Necessary to prevent loss of
life/property/ in case of actual/impending
emergency in the locality
3. There is urgent work to be performed
on machines, installations, or equipment
in order to avoid serious loss/damage to
the employer or some other causes of
similar nature
4. Work is necessary to prevent
loss/damage to perishable goods; and
5. where the completion or continuation
of the work started before the eighth
hour is necessary to prevent serious
obstruction or prejudice to the business
or operations of the employer.
6. when it is necessary to avail of
favorable weather or environmental
conditions where performance or quality
of work is dependent thereon

ART 90. REGULAR WAGE


- include the cash wage only, without deduction
on account of facilities provided by the
employer
CHAPTER II
WEEKLY REST PERIOD
ART 91. RIGHT TO A WEEKLY REST DAY
-

religious grounds.
But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employees choice
for at least two (2) days a month
ART 92. WHEN EMPLOYER MAY REQUIRE
WORK ON A REST DAY
WHEN EMPLOYEE MAY BE REQUIRED TO
RENDER WORK ON A REST DAY:
1. In case of actual or impending emergencies
caused by serious accident, fire, flood
typhoon, earthquake epidemic or other
disaster or calamity, to prevent loss of life or
property or in cases of force majeure or
imminent danger to public safety
2. urgent work to be performed on the
machinery, equipment or installation to avoid
serious loss which the employer would
otherwise suffer
3. abnormal pressure of work due to special
circumstances, where the employer cannot
ordinarily be expected to resort to other
measures
4. prevent serious loss of perishable goods
5. nature of work requires continuous operation
for seven days a week
6. work is necessary to avail of favorable
weather or environmental conditions where
performance or quality of work depends
upon them
ART 93. COMPENSATION FOR REST DAY,
SUNDAY OR HOLIDAY WORK
this article does not prohibit a stipulation in
the CBA for higher benefits

Employees should be provided a rest period


of not less than twenty four (24)
consecutive hours after every six (6)
consecutive normal work days.

Employer shall schedule the weekly rest day


of his employees subject to collective
bargaining agreement.
However, the
employer shall respect the preference of
employees as to their weekly rest day
when such preference is based on

1. All Saints Day -November 1


2. Last Day of the Year-December 31
3. And all other days declared by law or
ordinances to be a special holiday or nonworking day

SPECIAL HOLIDAYS

NOTE: worked = regular wage plus 30%


premium pay
not worked = none
ADDITIONAL COMPENSATION FOR WORK
ON A REST DAY, SUNDAY OR HOLIDAY
WORK:
1. Work on a scheduled rest day - 30% of
regular wage
2. No regular workdays and rest days -30% of
regular wage for work on Sundays &
Holidays
3. Work on Special Holidays -30% of regular
wage
4. Holiday Work falls on Scheduled Rest Day 50% of regular wage
CHAPTER III
HOLIDAYS, SERVICE INCENTIVE LEAVES
AND SERVICE CHARGES
ART 94. RIGHT TO HOLIDAY PAY
HOLIDAY PAY - A days pay given by law to
an employee even if he does not work on a
regular holiday. It is limited to the ten (10)
regular holidays listed by law.
- employee should not have been absent
without pay on the working day preceding the
regular holiday
Art. 94(b) refers to regular holidays, special
holidays are taken care of under Art. 93.
PREMIUM PAY - Additional compensation for
work performed on a scheduled rest day or
holiday.

9. Christmas Day-December 25
10. Rizal Day-December 30
Note: Compensable
unworked.

New Years Day


-January 1
Maundy Thursday -Movable date
Good FridayMovable date
Araw ng Kagitingan -April 9
Labor Day -May 1
Independence Day -June 12
National Heroes Day`-Last Sunday
August
8. Bonifacio Day-November 30

of

worked

or

DOUBLE HOLIDAY PAY


1. 200% of the basic wage provided, he works
on that day and was present or on leave
with pay on the preceding
workday. If
on leave without pay, rate still applies if
leave is authorized.
2. 400% if he worked as per DOLE Memo if
there are 2 regular holidays in one day eg.
April 9 and Good Friday. Provided the
employee worked on the day prior to the
regular holiday or on leave with pay or on
authorized absence.
3. If there are two succeeding holidays eg.,
Maundy Thursday and Good Friday, the
employee must be present the day before
the scheduled regular holiday to be entitled
to compensation to both otherwise, he must
work on the first holiday to be entitled to
holiday pay on the second regular holiday.

REGULAR HOLIDAY

SPECIAL HOLIDAY

- compensable even
if unworked subject
to certain conditions

- not compensable if
unworked

- limited to the 10
enumerated by the
LC

- not exclusive since


law may provide for
other special
holidays

- rate is twice the


regular rate if
worked

- rate is 130% if
worked

REGULAR HOLIDAYS:
1.
2.
3.
4.
5.
6.
7.

whether

ART 95. RIGHT TO SERVICE INCENTIVE


LEAVE

SERVICE INCENTIVE LEAVE (SIL) - Five (5)


days leave with pay for every employee
who has rendered at least one (1) year of
service.
BUT DOES NOT APPLY TO THOSE WHO
ARE:
1. already enjoying the said benefits; or
2. enjoying vacation leave with pay for at least
5 days
3. those employed in establishments regularly
employing less than 10 employees
4. those employed in establishments exempted
from granting this benefit by the Secretary of
Labor.
ONE (1) YEAR OF SERVICE.- service within
12 months, whether continuous or broken,
reckoned from the date the employee started
working including authorized absences and paid
regular holidays unless the number of working
day in the establishment as a matter of practice
or policy, or provided in the employment contract
is less than 12 mos.
-

SIL is commutable i.e., convertible to cashthe cash equivalent is aimed primarily at


encouraging workers to work continuously
and with dedication to the company.

TITLE II
WAGES
CHAPTER I
PRELIMINARY MATTERS
ART 97. DEFINITION
WAGE - the remuneration or earnings,
however designated, capable of being
expressed in terms of money, whether fixed
or ascertained on a time, task, piece, or
commission basis or other method or
calculating the same, which is payable by
an employer to an employee under a
written or unwritten contract of employment
for work done or to be done or for services
rendered or to be rendered and includes
the fair and reasonable value of board,
lodging, or other facilities customarily
furnished by the employer to the employee.
FAIR DAYS WAGE FOR A FAIR DAYS
LABOR - if there is no work performed by
the employee, there can be no wage or
pay unless the laborer was able, willing,
and ready to work but was prevented by
management or was illegally locked out,
suspended or dismissed.
WAGE

ART 96. SERVICE CHARGES


TO BE DISTRIBUTED TWICE A MONTH AND
AT THE RATE OF:
1. 85% for all covered employees to be equally
distributed among them
2. 15% for management (may answer for
losses and breakages or distributed to
management)
-

If collection of service charges is abolished,


the share of covered employees shall be
considered integrated in their wages on
the basis of the average monthly share of
each employee for the past 12 months
immediately preceding the abolition.

- compensation
manual labor
-

Not subject
execution

SALARY
for

to

- denotes higher
degree of
employment
- subject to execution
(Gaa vs. CA)

FACILITIES shall include all articles or


services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
employer or necessary to the conduct of the
employers business.

FACILITIES

SUPPLEMENTS

- Are items of
expense necessary
for the laborers and
his familys
existence and
subsistence

- Constitute extra
remuneration or
special privileges or
benefits given to or
received by the
laborers over and
above their ordinary
earnings wages

- part of the wage

- independent of the
wage

- deductible from the


wage

- not wage
deductible

ART. 98. APPLICATION OF TITLE


This Title shall not apply to the following:
1. household or domestic helpers
2. homeworkers engaged in needle-work
3. workers employed in any establishment
duly registered with the National Cottage
Industry
4. Workers in any duly registered cooperatives
CHAPTER II
MINIMUM WAGE RATES
ART 100. PROHIBITION AGAINST
ELIMINATION OR DIMUNITION OF BENEFITS
LEGAL REQTS. BEFORE FACILITIES CAN
BE DEDUCTED FROM THE EMPLOYEES
WAGES:
1. Proof that such facilities are customarily
furnished by the trade ;
2. Voluntarily Accepted in writing by the
employee
3. Charged at Fair & Reasonable Value

THE NON-DIMINUTION RULE -the benefits


being given to employees cannot be taken
back or reduced unilaterally by the
employer because the benefit has become
part of the employment contract, written or
unwritten.
The rule is applicable if it is shown that the
grant of the benefit is:
1. based on an express policy, or
2. has ripened into practice over a long period
of time, and the practice is consistent and
deliberate.
3. It
is not due to an error in the
construction /application of a doubtful or
difficult question of law.
-

But even in cases of error, it should be


shown that the correction is being done
soon after the discovery of the error.

BONUS - A supplement or employment benefit


given under certain conditions, such as
success of the business or greater
production or output. As a rule, it is an
amount granted voluntarily to an employee
for his industry and loyalty which
contributed to the success and realization
of profits of the employers business.
Therefore, from a legal point of view, it is
not a demandable and enforceable
obligation. Unless, it was promised to be
given without any conditions imposed for its
payment, as such, it is deemed part of the
wage.
13TH MONTH PAY (OR ITS EQUIVALENT)
-additional income based on wage required by
P.D. 851 which is equivalent to 1/12 of the total
basic salary earned by an employee within a
calendar year.
- may be given anytime but not later than Dec.
24
COVERAGE:
- All rank-and-file employees regardless of their
designation or employment status and
irrespective of the method by which their wages

are paid, are entitled to this benefit, provided,


that they have worked for at least one (1)
month during the calendar year.
FORMS:
1.
2.
3.
4.

Christmas bonus
midyear bonus
profit sharing payments; and
other cash bonuses amounting to not less
than 1/12 of its basic salary.

Difference of opinion on how to compute the


13th month pay does not justify a strike

It must always be in the form of legal tender


. Free rice, electricity cash and stock
dividends, COLA not equivalent

ART 101. PAYMENT BY RESULTS


CATEGORIES OF PIECE-RATE WORKERS:
1. those who are paid piece rates
prescribed in Piece Rate Orders by
DOLE
2. Those who are paid output rates which
prescribed by the employer and are not
approved by the DOLE

as
the
are
yet

WORKERS PAID ON PIECE-RATE BASIS shall refer to those who are paid a standard
amount for every piece or unit of work produced
that is more or less regularly replicated, without
regard to the time spent in producing the same.
BENEFITS PAYABLE TO PIECE-RATE
WORKERS:
1. Applicable statutory minimum daily rate;
2. Yearly service incentive leave of five days
with pay;
3. Night shift differential pay

4.
5.
6.
7.
8.
9.

Holiday pay
Meal and rest periods
OT pay (conditional)
Premium pay (conditional)
13th month pay
other benefits granted by law, individual or
collective bargaining agreement or company
policy or practice.
CHAPTER III
PAYMENT OF WAGES

ART 102. FORMS OF PAYMENT


EMPLOYER CANNOT PAY HIS WORKERS
BY MEANS OF:
1.
2.
3.
4.
5.
6.
7.

promissory notes
vouchers
coupons
tokens
tickets
chits
or any object.

GENERAL RULE:
- payment by legal tender
EXCEPTIONS:
- checks or money orders may be paid if:
1. the same is customary on the date of
effectivity of the LC;
2. necessary because of special
circumstances; or
3. as stipulated in the CBA
ART 103. TIME OF PAYMENT
WHEN TO PAY:
- at least once every two (2) weeks or twice a
month at intervals not exceeding sixteen
(16) days
force
majeure
or
other
circumstances
beyond
the
employers control, payment must be

made
immediately
after
occurrence have ceased.

such

ART.104. PLACE OF PAYMENT


WHERE TO PAY:
- Shall be made at or near the place of
undertaking,
EXCEPTIONS:
1. When payment cannot be effected at or near
the place of work by reason of deterioration
of peace and security
2. When the employer provides for free
transportation to the employees back and
forth;
3. And under analogous circumstances
-

payment of wages in bars, night or day


clubs,
massage
clinics
or
similar
establishments are prohibited except for the
workers therein.

PAYMENT THRU BANKS:


REQUISITES :
1. There must be written permission of the
majority of the employees concerned in an
establishment;
2. The establishment must have 25 or more
employees; and
3. The bank must be located within one
kilometer radius to the bank from the
location of the establishment

wages shall be paid directly to the workers


to whom they are due.

EXCEPTIONS:
a. in
case
of
force
majeure/special
circumstances, payment may be made
through another person under written
authority where the worker has died, the
b. employer may pay the wages of the
deceased worker to the heirs of the latter,
through the Secretary of Labor or his
representative, without the necessity of
intestate proceedings, after the heirs have
executed an affidavit attesting to their
relationship to the deceased and the fact
that they are his heirs to the exclusion of all
others
ART 106. CONTRACTOR OR
SUBCONTRACTOR
LABOR ONLY CONTRACTING - where the
person supplying workers to an employer does
not have substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
performing activities which are directly related to
the principal business of such employer.
INDEPENDENT CONTRACTOR - one who
exercises
independent
employment
and
contracts to do a piece of work according to his
own methods and without being subject to
control of his employer except as to the result
thereof.

- payment through the ATM is allowed

ART 105. DIRECT PAYMENT OF WAGES

REQUISITES FOR A CONTRACTING OR


SUBCONTRACTING TO BE :

TO WHOM PAID

A mere statement in a contract with a


company that laborers who are paid
according to the amount and quality of work
are independent contractors does not
change their status as mere employees
in contemplation of labor laws.

1. where the contractor or subcontractor


carries on a distinct and independent

business and undertakes to perform the job


on his own account and under his own
responsibility, according to its own manner
and method and free from the control and
direction of the principal in all matters
connected with the performance of the work
except as to the results thereof;
2. the contractor or subcontractor has
substantial capital or investment; and
3. the agreement between the principal and
contractor or subcontractor assures the
contractual employees entitlement to all
labor and occupational safety and health
standards, free exercise of the right to selforganization, security of tenure and social
and welfare benefits.
-

Substantial capital need not be coupled


with investment in tools or equipment.
This is clear from the use of the conjunction
or.
JOB
C
O
NT
R
A
CT
IN
G

LABOR ONLY
CONTRACTING

1. No E- E
relationship exist
between
employer and the
contractors
employee except
when the
contractor or
subcontractor
fails to pay the
wages of his
employees

1. Employer is treated
as direct employer
of the person
recruited in all
instances

2. liability is limited
to unpaid wages
and other labor
standards

2. liable to all rights


duties and liabilities
under labor
standards laws

violations

including the right to


self- organization

3. Permissible

3. Prohibited by law

4. Contractor has
substantial capital
or investment

4. Contractor has no
substantial capital/
investment

WORKING CONDITIONS - Refers to the


terms and circumstances affecting the
employment of an employee, including
policies,
programs
and
regulations
governing his employment status, work,
and work relationships. They are, as a rule,
determined by the employer.

ART. 110. WORKER PREFERENCE IN CASE


OF BANKRUPTCY
-

This Article did not sweep away the


overriding preference accorded under the
scheme of the Civil Code to tax claims of the
government.

just a preference, must yield to special


preferred credit, e.g. secured creditors

The formal declaration of insolvency or


bankruptcy or a judicial liquidation of the
employers business is a condition sine
qua non to the operation of the preference
accorded to workers under Art. 110.
CHAPTER IV
PROHIBITIONS REGARDING WAGES

ART 112. NON-INTERFERENCE


DISPOSAL OF WAGES

IN

In relation to the Civil Code:


Art. 1705. The laborers wages shall be paid in
legal currency.

Art. 1706. Withholding of the wages except for


a debt due, shall not be made by the employer
Art. 1707. The laborers wages shall be a lien
on the goods manufactured or the work done.
Art. 1708. The laborers wages shall not be
subject to execution or attachment except for
debts incurred for food, shelter, clothing, and
medical attendance.
Art. 1709. The employer shall neither seize nor
retain any tool or other articles belonging to the
laborer.
PROHIBITIONS REGARDING WAGES:
1. Payment of wages with less frequency than
once (1) a month.
2. Limitations/Interference by the employer
with the employees freedom to dispose of
his wages.
3. Forcing, Compelling/Obliging employees to
purchase merchandise , commodities or
other properties from the employer or from
any other person, or to make use of any
store or service of such employer or any
other person
4. Withholding of wages
5. Deduction of wages as consideration of a
promise of employment or retention in
employment
6. Refusal to pay/ Reduction of wages and
benefits, discharge/ discrimination against
any employee as retaliatory measures
against any employee who has filed any
complaint or instituted any proceedings
against his employer
ART 113. WAGE DEDUCTION
ALLOWABLE DEDUCTIONS:
WITH EMPLOYEES CONSENT:
1.
2.
3.
4.
5.

SSS Payments
MEDICARE
Contributions to PAG-IBIG Funds
value of meals and others
payments to third persons with employees
consent

6. deduction of absences
W/OUT EMPLOYEES CONSENT:
1. Workers insurance acquired by the employer
2. Union Dues, where the right to check-off has
been recognized by the employer
3. Cases where the employer is authorized by
law or regulations issued by the Secretary of
Labor
4. debts of the employee to the employer which
have become due and demandable
ART 114. DEPOSITS FOR LOSS OR
DAMAGE
-

Deposits for Loss or Damage to tools,


materials and equipment supplied by the
employer shall not be made, EXCEPT
when the trade, occupation or businesses of
the employer recognizes, or considers the
practice of making deductions or requiring
deposits necessary or desirable.

REQUISITES FOR DEDUCTION FOR LOSS


OR DAMAGE :

1. employee clearly shown responsible


2. opportunity to show cause to show why
deduction should not be made

3. deduction is fair and reasonable and shall


not exceed the actual loss or damage

4. does not exceed 20% of the employees


wages in a week.
CHAPTER V
WAGE STUDIES, WAGE AGREEMENTS AND
WAGE DETERMINATION
ART 122. CREATION OF THE REGIONAL
TRIPARTITE WAGES AND PRODUCTIVITY
BOARDS

WHO MAY SET MINIMUM WAGE:

1. Regional Tripartite Wages and Productivity


Board
2. Congress
MINIMUM WAGE - The lowest wage rate fixed
by law that an employer can pay his
employees.
ART. 123 WAGE ORDER
WAGE ORDER an order issued by the
Regional Board whenever the conditions in the
region so warrant after investigating and
studying all pertinent facts and based on the
standards and criteria prescribed by the LC, the
Regional Board proceeds to determine whether
to issue the same or not.
EFFECTIVITY of a wage Order it shall take
effect after 15 days from the its complete
publication in at least one newspaper of general
circulation in the region.
FREQUENCY of a wage order - Wage Order
issued by the Board may not be disturbed for a
period of 12 months from its effectivity and no
petition for wage increase shall be entertained
during said period.
EXCEPTION: When
Congress itself issues a law increasing wages.
ART 124. STANDARDS/CRITERIA FOR
MINIMUM WAGE FIXING
FACTORS FOR DETERMINING REGIONAL
MINIMUM WAGE RATES
(DACNNIPFEE)
1. Demand for living wages;
2. Wage Adjustment vis-a vis the consumer
price index;
3. Cost of living and changes or increases
therein;
4. Needs of workers and their families;
5. Need to induce industries to invest in the
countryside;
6. Improvements in standards of living;
7. Prevailing wage levels;
8. Fair Return of the capital invested and
capacity to pay of employers;

9. Effects on Employment Generation and


Family Income;
10. Equitable Distribution of Income & Wealth
along the imperatives of economic and
social development
WAGE DISTORTION - situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
quantitative differences in wage or salary rates
between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure
based on skills, length of service or other logical
bases of differentiation.
CORRECTING WAGE DISTORTION
Unionized Establishment
1. Negotiate to correct the distortion.
2. Any dispute arising therefrom should be
resolved through grievance procedure under
their CBA.
3. If the dispute remains unresolved, through
voluntary arbitration.
Establishments without Unions
1. The employers and workers shall endeavor
to correct the distortion.
2. Any dispute arising therefrom shall be
settled through the NCMB and
3. If it remains unresolved after 10 days of
conciliation, it shall be referred to the NLRC.
-

Wage distortion is non- strikeable.

Is the employer legally obliged to try &


correct a wage distortion?
It appears so. Article 124 of the Code
provides that the employer and the union shall
negotiate to correct the distortions. If there is
no union, the employer and the workers shall
endeavor to correct such distortions.
Must the previous pay gaps be restored?
While that is the aim, it need not
necessarily be restored to the last peso. An

appreciable differential, a significant pay gap


should suffice as correction of the distortion.

industrial safety engineers made in the


course of inspection
-

Issue Writs of Execution (ART. 128)


for the enforcement of orders
except in cases where the employer
contests the findings of the said labor
officers and raises issues supported by
documentary proofs which were not
considered in the course of inspection.

Order Work Stoppage/Suspension of


Operations
when non-compliance with the law or
implementing rules and regulations
poses grave & imminent danger to the
health and safety of the workers in the
workplace.
Conduct Hearings within 24 hours
to determine whether an order for
stoppage
of
work/suspension
of
operations shall be lifted or not.
employer shall pay the employees
concerned their salaries in case the
violation is attributable to his fault
Require employers to keep and maintain
Employment Records
- as may be necessary in aid of his
visitorial and enforcement powers

CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
ART. 128. VISITORIAL AND ENFORCEMENT
POWER
ART. 129. RECOVERY OF WAGES, SIMPLE
MONEY CLAIMS AND OTHER BENEFITS
-

Under Art. 129, the Regional Director is


empowered through summary proceeding
and after due notice, to hear and decide
cases involving recovery of wages and other
monetary claims and benefits, including
legal interests.

REQUISITES :
1. The claim is presented by an employee or
person employed in domestic or household
service or househelper;
2. The claim arises from employer-employee
relations;
3. The claimant does not seek reinstatement;
and
4.
The aggregate money claim of each
employee or househelper does not exceed
P5, 000.00

ART 128

ART 129

Access to employers records and


premises
the day/night whenever work is being
undertaken therein
includes the right to copy therefrom,
to question any employee & investigate
any fact, condition or matter which may
be necessary to determine violations or
which may aid in the enforcement of the
Code and of any labor law, wage order,
or rules and regulations

1. Visitorial and
enforcement
power of the
Secretary of
Labor /his duly
authorized
representatives
exercised through
routine
inspections of
establishments

1. Power of the
Regional Director or
any duly authorized
hearing officers to
hear and decide
matters involving
the recovery of
wages, upon
complaint of any
interested party

Issue Compliance Orders (ART. 128)


based on the findings of labor
employment and enforcement officers or

2. requires the
existence of E-E
Relationship

2. E-E relationship not


necessary since it
should not include a

claim for
reinstatement
3. No limit as to
amount of claim

3. Aggregate claim of
each complainant
does not exceed
P5,000

4. Appeal is with
Sec.of Labor ;
period of appeal
is 10 calendar
days

4. Appeal with NLRC;


period of appeal is
5 calendar days

5. Person exercising
the power is the
Sec. Of Labor or
any of his duly
authorized
representatives
who may or may
not be a regional
director

5. The power is
vested upon a
regional director or
any duly authorized
hearing officer of
the DOLE.

3.
4.
5.

TITLE III
WORKING CONDITIONS FOR SPECIAL
GROUP OF EMPLOYEES
CHAPTER I
EMPLOYMENT OF WOMEN
ART 130. NIGHTWORK PROHIBITION
-

2.

No woman , regardless of age, shall be


employed or permitted or suffered to work,
with or without compensation in any :

1. Industrial undertaking between 10PM-6AM


2. Commercial/Non-Industrial
undertaking
between 12 MN-6AM
3. Agricultural undertaking at nighttime unless,
she is given a period of rest of not less than
9 consecutive hours
ART 131. EXCEPTIONS
1. Actual/Impending Emergencies
caused by serious accident, flood,

6.
7.

typhoon, epidemic or other disasters or


calamity, to prevent loss of life or
property, or in cases of force majeure or
imminent danger to public safety
Urgent work to be performed on
machineries, equipment or installation, to
avoid serious loss
Work is necessary to prevent serious loss of
perishable goods
Where she holds a responsible position of
managerial/technical nature/engaged to
provide health and welfare service
Nature of the work requires the manual skill
and dexterity of women workers & cannot be
performed with equal efficiency by male
workers
Where women workers are immediate family
members of the family operating the
establishment or undertaking
Analogous cases

ART 132. FACILITIES FOR WOMEN


The Secretary of Labor may require employers
to:
1. Provide seats proper for women and permit
them to use the seats when they are free
from work or during office hours provided
the quality of the work will not be
compromised;
2. To establish separate toilet rooms and
lavatories for men and women and provide
at least a dressing room for women;
3. To establish a nursery in the establishment;
4. To determine appropriate minimum age and
other standards for retirement or termination
in special occupations such as those of flight
attendants and the like
ART. 133 MATERNITY LEAVE BENEFITS
MATERNITY LEAVE UNDER THE SSS LAW
A female member, who need not be
legally married, who has paid for at least three
(3) monthly contributions in the 12-month
period immediately preceding the semester of

her childbirth or miscarriage shall be paid a daily


maternity benefit equivalent to 100% of her
average daily salary credit for 60 days or 78
days, in case of caesarian delivery.

RA 8187 (PATERNITY LEAVE)


-

REQUISITES :
1. Employee notified her employer of her
pregnancy of the probable date of her
childbirth
2. Full payment be advanced by the employer
within 30 days from the filing of the maternity
leave application
3. That payment of daily maternity benefits
shall be a bar to the recovery of sickness
benefits
4. That the maternity benefits shall be paid
only for the first four (4) deliveries or
miscarriages
5. That the SSS shall immediately reimburse
the employer of 100% of the amount of
maternity benefits advanced to the
employee by the employer
6. That if an employee member should give
birth or suffer a miscarriage without the
required contributions having been remitted
for her by her employer to the SSS, or
without the latter having been previously
notified by the employer of the time of the
pregnancy, the employer shall pay to the
SSS damages equivalent to the benefits
which said employee member would
otherwise have been entitled to.
-

ART 133 (b) subsists, i.e., the maternity


leave shall be extended without pay on
account of illness medically certified to arise
out of the pregnancy, delivery, abortion, or
miscarriage, which renders the woman unfit
for work , unless she has earned unused
leave credits from which such extended
leave may be charged.

LIMIT OF THE BENEFIT: Applies only for the


first four deliveries irrespective of who is the
father of the children, and may not be availed of
in addition to sickness benefit under the Social
Security program.

This law grants paternity leave of seven day


with full pay to all married male employees
in the private and public sectors.

It is available only for the first four


deliveries of the legitimate spouse with
whom the husband is cohabiting.
-

DELIVERY includes childbirth, miscarriage, or


abortion.
Purpose: to enable the husband to lend support
to his wife during the period of recovery and/or
in the nursing of the newly born child.
CONDITIONS :
1. he is an employee at he time of the delivery
of his child;
2. he is cohabiting with his spouse at the time
she gives birth or suffers a miscarriage;
3. he has applied for paternity leave ; and
4. his wife has given birth or suffered a
miscarriage
-

Paternity leave, if not availed of, is not


convertible to cash.

WIFE - refers to the lawful wife which means the


woman who is legally married to the male
employee concerned.
-

Where the male employee is already


enjoying the paternity leave by reason of
any law, decree, executive orders or any
contract, agreement or policy between
employer and employee and the existing
paternity benefit is greater, the greater
benefit shall prevail; if lesser, the existing
benefit shall be adjusted to the extent of
the difference.

ART 135. DISCRIMINATION PROHIBITED

It shall be unlawful for any employer to


discriminate against any woman employee
with respect to terms and conditions of
employment solely on account of her sex.

Acts of Discrimination:

ART 138. CLASSIFICATION OF CERTAIN


WOMEN WORKERS
-

a. Payment of a lesser compensation for work


of equal value.

b. Favoring a male employee over a female


employee solely on the account of their
sexes.
Sexual Harassment in a Work-Related or
Employment Environment :
1.

2.
3.

ART

the sexual favor is made as a


condition in the hiring or in the
employment,
re-employment
or
continued
employment
of
said
individual or in granting said individual
favorable
compensation,
terms,
conditions, promotions, or privileges;
or the refusal to grant the sexual favor
results in limiting, segregating or
classifying the employee which in
anyway would discriminate, deprive or
diminish employment opportunities or
otherwise adversely affect said
employee
the above acts would impair the
employees rights or privileges under
existing labor laws or
The above acts would result in an
intimidating, hostile, or offensive
environment (Sec. 3[a], RA No. 7877)
136.

STIPULATION
MARRIAGE

AGAINST

- it shall be unlawful for an employer to require


as a condition for employment or continuation of
employment that a woman employee shall not
get married, or to stipulate expressly or tacitly
that upon getting married a woman employee
shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely
by reason of her marriage.

Any woman who is permitted to work or


suffered to work, with or without
compensation, in any night club, cocktail
lounge, massage clinic, bar or similar
establishment, under the effective control or
supervision of the employer for a substantial
period of time as determined by the
Secretary of Labor, shall be considered as
an employee of such establishment for
purposes of labor and social legislation.
CHAPTER II
EMPLOYMENT OF MINORS

ART 139. MINIMUM EMPLOYABLE AGE


-

Any person between ages 15 and 18 may


be employed in any non hazardous work.

Exception and condition


employment of a child below 15:

on

the

1. When the child works directly under the sole


responsibility of his/her parents or legal guardian
who employs members of his/her family only
under the following conditions:
a. employment does not endanger the
childs life, safety, health and morals
b. employment does not impair the childs
normal development
c. the parent/legal guardian provides the
child with the primary and/or secondary
education prescribed by DECS
2. Where the childs employment or participation
in public entertainment or information through
cinema, theater, radio, or television is essential,
provided that:
a.

employment
does
not
involve
advertisements
or
commercials
promoting
alcoholic
beverages,
intoxicating drinks, tobacco and its byproducts or exhibiting violence;

b.
c.

There is a written contract approved


by the DOLE; and
The conditions prescribed for the
employment of minors {above stated}
are met.

NONHAZARDOUS WORK OR UNDERTAKING


one where the employee is not exposed to any
risk which constitutes an imminent danger to his
safety and health.
HAZARDOUS WORKPLACES:
1. Where the nature of the work exposes the
workers to dangerous environmental
elements, contaminants or work conditions;
2. Where the workers are engaged in
construction work, logging, fire-fighting,
mining, quarrying, blasting, stevedoring,
dock
work,
deep-sea
fishing,
and
mechanized farming;
3. Where the workers are engaged in the
manufacture or handling of explosives and
other pyrotechnic products;
4. Where the workers use or are exposed to
heavy or power-driven machinery or
equipment; and
5. Where the workers use or are exposed to
power-driven tools,
CHAPTER III
EMPLOYMENT OF HOUSEHELPERS
RIGHTS OF HOUSEHELPERS:
1. minimum cash wage
2. non-assignment to non- household work
3. opportunity for education: if under 18 (cause
of education part of compensation)
4. board/ lodging, medical attendance
5. just and humane treatment
6. indemnity for unjust termination of services
7. just causes for termination
8. right not to be required to work more than 10
hours a day
9. for days vacation each month
10. to regular wages if employed in industrial or
commercial or agricultural undertaking

11. funeral expenses must be paid by employer


if the househelper has no relatives with
sufficient means in the place where the head
of the family lives.
12. at least elementary education
13. employment certification
CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
INDUSTRIAL HOMEWORK - a system of
production under which work for an employer or
contractor is carried out by a homeworker at his
home.
INDUSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
BOOK FOUR
HEALTH, SAFETY AND SOCIAL WELFARE
BENEFITS
TITLE I
MEDICAL, DENTAL AND OCCUPATIONAL
SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
ART 156. FIRST-AID TREATMENT
FIRST-AID TREATMENT adequate,
immediate, and necessary medical and dental
attention or remedy given in case of injury or
illness suffered by a worker during employment,
irrespective of whether or not such injury or
illness is work-connected, before
a more
extensive medical and/or dental treatment can
be secured.
FIRST AIDER any person trained and duly
certified as qualified to administer first aid by the
Phil. National Red Cross or by any other
organization accredited by the former.
TITLE II
EMPLOYEES COMPENSATION AND STATE
INSURANCE FUND

WORKMENS COMPENSATON- A general


and comprehensive term applied to those laws
providing for compensation for loss resulting
from the injury, disablement or death of a
workman through industrial accident, casualty or
disease.

INJURY - Any harmful change in the human


organism from any accident arising out of and in
the course of employment.

COMPENSATION - Money relief afforded


according to the scale established under the
statute as differentiated from compensatory
damages recoverable in an action at law for

1. the employee must have been injured at the


place where the work requires him to be
2. the employee must have been performing
his official functions
3. if the injury is sustained elsewhere, the
employee must have been executing an
order for the employer
4. the injury was not due to the employees
intoxication, willful intention to injure or kill
himself or another, notorious negligence or
otherwise prohibited under this Title.

breach of contract or for tort.

WORKMENS
COMPENSATION
ACT

EMPLOYEES
COMPENSATION
LAW

1. There is a
presumption of
compensability

1. no presumption of
compensability

2. there is a
presumption of
aggravation

2. no presumption of
aggravation

3. there is a need for


the employer to
controvert the
claim within 14
days otherwise
he is deemed to
have waived the
right

3. no need for the


employer to
controvert

4. payment of
compensation
made by the
employer

4. payment of
compensation
made by SSS/GSIS
through the State
Insurance Fund

ART 164. DEFINITION OF TERMS.

GROUNDS FOR AN
COMPENSABLE

INJURY TO

BE

SICKNESS - Any illness definitely accepted as


an occupational disease listed by the
Commission or any illness caused by
employment subject to proof that the risk of
contracting the same is increased by working
conditions.

Conditions for an occupational disease and


the resulting disability or death to be
compensable :
1. The employees work must involve the risk
described therein
2. The disease was contracted as a result of
the employees exposure to the described
risks;
3. The disease was contracted within a period
of exposure and under such other factors
necessary to contract it;
4. There was no notorious negligence on the
part of the employee
DEATH or sickness

Loss of life resulting from injury

DISABILITY -Loss or impairment of a physical


or mental function resulting from injury or
sickness.

6. SPECIAL ENGAGEMENT RULE covers

DIRECT PREMISES RULE as a general


rule, the accident should have occurred at the
place of work to be compensable

7. POSITIONAL

field trips, outings, intramurals and picnics


when initiated or sanctioned by the employer
AND
LOCAL
RISKS
DOCTRINE If an employee by reason of
his duties is exposed to a special or peculiar
danger from the elements, that is, one
greater than that to which other persons in
the community are exposed and an
unexpected injury occurs, the injury is
compensable

EXCEPTIONS TO THE DIRECT


PREMISES RULE
1.

2.

INGRESS- EGRESS/ PROXIMITY RULEwhen the employer is about to leave or


about to enter the premises of the employer
by way of the customary or exclusive means
of ingress or egress.
GOING TO OR COMING FROM WORKwhen the injury occurred when the
employee is proceeding to or from his work
on the premises of the employer
must be a continuing act and has not
diverted therefrom by any other activity
and he has not departed from his usual
route to or from his workplace and if the
employee is on a special errand, it must
have been official and in connection with
his work.

8. FORCE MAJEURE OR AN ACT OF GODwhen one in the course of his employment is


reasonably required to be at a particular
place at a particular time and there meets an
accident although one which any other
person then and there present would have
met irrespective of his employment.
CHAPTER II
COVERAGE AND LIABILITY
ART 168. COMPULSORY COVERAGE
-

ECL applies to all employers, public or


private, and to all employees, public or
private
including
casual,
emergency,
temporary, or substitute employees.

Every employee is covered who is not over


60 years over 60 years of age or over 60
years of age if he had been paying
contributions prior to the age of 60

3. EXTRA-PREMISES RULE (or the shuttle


bus rule) where the company provides the
means of transportation in going to or
coming from the place of work is liable to the
injury sustained by the employees while on
board said means of transportation.

4. SPECIAL

ERRAND RULE injury


sustained outside the company premises is
compensable if his being out is covered by
an office order or a locator slip or a pass for
official business.

5. DUAL PURPOSE DOCTRINE allows


compensation where a special trip would
have to be made for the employer if the
employee had not combined the service for
the employer with his own going or coming
trip.

ART 170. EFFECTIVE DATE OF COVERAGE


-

The employer is covered compulsorily from


first day of operation and the employee from
the first day of employment

ART 172. LIMITATIONS OF LIABILITY


-

NO COMPENSATION can be obtained if the


injury, death or disability is a result of the
employees:

1.

Intoxication;

Willful intention to injure or kill himself or


another;
Notorious negligence; or
Unless otherwise provided by the LC

TEMPORARY TOTAL - if as a result of the


injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period not exceeding 120 days

NOTORIOUS NEGLIGENCE deliberate act


of the employee to disregard his own personal
safety.

PERMANENT TOTAL - if as a result of the


injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period exceeding 120 days

2.
3.
4.

Is death through suicide compensable ?


As a rule NO. However as held in NAESS
vs. NLRC, the supreme court ruled that a self
inflicted death could be compensable if :
1. by agreement of the parties
2. The suicide/death is caused by a work
related or compensable illness or
disease.
ART 173. EXTENT OF LIABILITY
-

Simultaneous recovery under the Labor


Code and the Civil Code cannot be made.
The action is selective and the employee
may either choose to file the claim under
either. But once the election is made, the
claimant cannot opt for the other remedy.
Simultaneous recovery under the LC and
the SSS can be made as per an advisory
opinion dated May 23, 1989 of Sec. Drilon
since PD 1921 has lifted the ban on
simultaneous recovery.

STATE INSURANCE FUND: all covered


employers are required to remit to a common
fund a monthly contribution equivalent to one
percent of the monthly salary credit of every
covered employee. The employee pays no
contribution to the fund. Any agreement to the
contrary is prohibited.
CHAPTER VI
DISABILITY BENEFITS
DISABILITY CATEGORIES:

PERMANENT PARTIAL - if as a result of the


injury or sickness, the employee suffers a
permanent partial loss of the use of any part of
his body.
DEATH BENEFITS
- The System shall pay to the primary
beneficiaries upon the death of the covered
employee an amount equal to his monthly
income benefit, plus ten percent thereof for
each dependent child, but not exceeding
five, beginning with the youngest and
without substitution. The income benefit
shall be guaranteed for five years.
DEPENDENTS:
1. the legitimate, legitimated, legally adopted or
acknowledged natural child who is
unmarried, not gainfully employed and not
over 21 years of age or over 21 years of
age provided that he is incapable of selfsupport due to a physical or mental defect
which is congenital or acquired during
minority
2. legitimate spouse living with the employee
3. the parents of said employee wholly
dependent upon him for regular support
BENEFITS
1. for life to the primary beneficiaries,
guaranteed for five years
2. for not more than 60 months to the
secondary beneficiaries in case there are no
primary beneficiaries
3. in no case shall the total benefit be less that
P 15, 000.00

THE BENEFICIARIES ARE:

activities including the right to strike in


accordance with law, and to participate in
policy and decision making processes
affecting their rights and benefits as may be
provided by law.

PRIMARY BENEFICIARIES
a. Dependent spouse until he remarries
b. dependent children ( legitimate, legitimated,
natural born or legally adopted)
SECONDARY BENEFICIARIES
a. Illegitimate
children
and
legitimate
descendants
b. parents, grandparents, grandchildren
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
ART 211. DECLARATION OF POLICY
LABOR RELATIONS LAW - Concerned with
the stabilization of relations of employer
and
employees and seeks to forestall and adjust
grievances through - the encouragement of
collective bargaining and the settlement of
labor
disputes
through
conciliation,
mediation and arbitration.
-

Absent an employer-employee relation,


there is no labor relations to speak of.

PARTIES TO LABOR RELATIONS CASES:


1. The employees organization,
2. management, and
3. the public
-

The public is always to be considered in


disputes between labor and capital, and it
ahas been held that the rights of the
general public are paramount.
Labor relations policy under the LC is
embodied in Section 3 Article XIII of the
1987 Constitution which guarantees to all
workers their right among others to selforganization, collective bargaining and
negotiations, peaceful land concerted

ART. 212. DEFINITIONS


LABOR DISPUTE INCLUDES:
1. any controversy or matter concerning terms
or conditions of employment or
2. the association or representation of persons
in negotiating, fixing, maintaining, charging
or arranging the terms and conditions of
employment, regardless of whether the
disputants stand in the proximate relation of
employer and employee.
EMPLOYEE- shall not be limited to the
employees of a particular employer.
-

it shall include any individual whose


work has ceased: as a result of or in
connection with any
current labor
dispute; or because of unfair labor
practice

- If he has not obtained any other:


1. Substantially equivalent and
2. Permanent employment
MANAGERIAL EMPLOYEE - is one who is
vested with powers or prerogatives to lay down
and execute management policies and /or to
hire, transfer, suspend, lay-off, recall, discharge,
assign or discipline employees.
SUPERVISORY EMPLOYEES are those
who, in the interest of the employer, effectively
recommend such managerial actions if the
exercise of such authority is not merely routinary
or clerical in nature but requires the use of
independent judgment.
WORKERS ASSOCIATION - any association
of workers organized for the mutual aid and

protection of its members or for any legitimate


purpose other than collective bargaining.
INDEPENDENT UNION - any labor
organization operating at the enterprise level
whose legal personality is derived through an
independent action for registration prescribed
under Art. 234. It may be affiliated with a
federation, national or industry union, in which
case it may also be referred to as an affiliate.
NATIONAL UNION/FEDERATION - any labor
organization with at least 10 locals/chapters or
affiliates each of which must be a dully certified
or recognized collective bargaining agent.
LEGITIMATE WORKERS ASSOCIATION
any workers association as defined herein
which is duly registered with the Department of
Labor.
LABOR ORGANIZATIONS - Any union or
association of employees which exists in
whole or in part for the purpose of collective
bargaining or of dealing with employees
concerning terms and conditions of
employment.
PURPOSES OF LABOR
ORGANIZATIONS:

d) contract administration or personnel policy


disputes
(noncompliance
with
CBA
provisions)
e) employment tenure disputes
f) ( non regularization of employees)
PARTIES TO A DISPUTE:
1. Primary Parties employer, employees,
union
2. Secondary Parties voluntary
arbitrator,
agencies of DOLE (BLR, NLRC, VAC, Sec.
Of Labor, Office of the President)
CONSULTATION ON POLICIES OF
MANAGEMENT AND OF THE EMPLOYER
- What is needed is only consultation or
participation.
The employees need not
agree.
1. the last say is still with the management
2. it is still the management prerogative that
prevails
- If there is no labor union, then
consultation should be made with the labor
management council.
- If the employees were not given the right to
participate, then they could file with the NLRC
a grievance.

1. for collective bargaining; and


2. for mutual aid and protection.
TYPES OF LABOR DISPUTES
1. Labor Standards Disputes :
a) compensation (underpayment of minimum
wage)
b) benefits ( nonpayment of holiday pay,
overtime pay)
c) working conditions ( unrectified working
hazards)
2. Labor Relations Disputes
a) organizational right dispute/unfair labor
practice (coercion, restraint or interference
in unionization efforts)
b) representation disputes
c) bargaining disputes ( refusal to bargain )

TITLE II
NATIONAL LABOR RELATIONS
COMMISSION
CHAPTER I
CREATION AND COMPOSITION
ART. 213. NATIONAL LABOR RELATIONS
COMMISSION
TRIPARTISM
- Five (5) divisions of NLRC.

- Three (3) sectors are represented in the


composition of the NLRC.
- each division (3 commissioners) will
have representative from the
following :
1. Choice of the Sec. Of Labor coming
from the public sector
2. labor
3. employer and management sector
QUALIFICATIONS OF THE CHAIRMAN AND
THE COMMISSIONER
1. must be a member of the Philippine Bar;
2. must have been engaged in the practice of
law in the Philippines for at least 15 years;
3. must have experience or exposure in
handling labor management relations for at
least 15 years; and
4. preferably a resident of the region where he
is to hold office.
- The Chairman and Commissioners of the
NLRC are not subject to confirmation by the
Commission on Appointments

1. Cases certified to it for compulsory


arbitration by the Secretary of Labor under
Art. 263;
2. Injunction cases under Art. 218 and 264;
and
3. Contempt cases.

CASES WERE THE NLRC HAS APPELLATE


JURISDICTION:
1. Cases decided by labor arbiters under
Art 217b and Sec 10 RA 8012(Migrant
Workers Act)
2. Cases decided by the Regional Offices
of DOLE in the exercise of its
adjudicatory function under Art 129 of
the Labor Code
THE NLRC ONLY SITS EN BANC FOR
PURPOSES OF:
1. promulgating rules and regulation
governing the hearing and disposition of
cases before any of its divisions and
regional branches, and

THE QUALIFICATIONS OF EXECUTIVE


LABOR ARBITERS
1. must be members of the Philippine Bar;
2. must have been engaged in the practice of
law in the Philippines for at least 7 years;
3. must have experience or exposure in
handling labor management relations for at
least 3 years.

2. formulating
policies
affecting
administration and operations.
-

The Commission may only sit en banc for


the determination of policies and NOT for
purposes of adjudication.

Petitions for certiorari against decisions


of the NLRC should henceforth be
initially filed with the Court of Appeals in
strict observance of the doctrine on the
hierarchy of courts as the appropriate forum
for the relief desired. The SC noted that the
CA is procedurally equipped to resolve
unclear or ambiguous factual finding, aside
from the increased number of its component
divisions. (St. Martin Funeral Homes vs.
NLRC G.R. No. 130866)

Findings of facts of a labor tribunal are


accorded the utmost respect by the courts

TERM OF OFFICE OF THE CHAIRMAN,


COMMISIONERS, AND LABOR ARBITERS:
-

its

until they reach the age of 65 unless


removed for causes as provided by law or
become incapacitated
to discharge the
function of his office.

CASES WERE THE NLRC HAVE


EXCLUSIVE AND ORIGINAL JURISDICTION:

and are well-nigh conclusive if supported by


substantial evidence.
-

Labor cases are not subject to Barangay


Conciliation since ordinary rules on
procedure are merely suppletory in
character vis-a- vis labor disputes which are
primarily governed by labor laws.

The failure of the petitioner to file a motion


for reconsideration of the decision of NLRC
before filing a petition for certiorari has in
certain instances been held not to be a fatal
omission.
CHAPTER II
POWERS AND DUTIES

ART 217. JURISDICTION OF LABOR


ARBITERS AND THE COMMISSION.
a. Except as otherwise provided under this
Code the Labor Arbiters shall have original
and exclusive jurisdiction to hear and
decide, within 30 calendar days after the
submission of the case by the parties for
decision without extension, even in the
absence of stenographic notes, the following
cases involving all workers, whether
agricultural or non-agricultural:
1, Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for
reinstatement, those cases that
workers may file involving wages,
rates of pay, hours of work and
other terms and conditions of
employment;
4. Claims
for
actual,
moral,
exemplary and other forms of
damages arising from employeremployee relations;
5. Cases arising from any violation
of Art 264 of this Code, including
questions involving the legality of
strikes and lockouts; and
6. Except claims for Employees
Compensation, Social Security,

Medicare and maternity benefits,


all other claims arising from
employer-employee
relations,
including those of persons in
domestic or household service,
involving an amount exceeding
P5,000.00 regardless of whether
accompanies with a claim for
reinstatement.
7.Monetary claims of overseas
contract workers under the
Migrant Workers Act of 1995.
b. The Commission shall have exclusive
appellate jurisdiction over all cases
decided by Labor Arbiters.
c. Cases arising from the interpretation or
implementation of CBA and those arising
from the interpretation or enforcement of
company personnel policies shall be
disposed of by the Labor Arbiter by referring
the same to the grievance machinery and
voluntary arbitration.
-

The labor arbiter has jurisdiction over the


claims of employees against GOCCs if the
latter does not have an original charter and
has
been
incorporated
under
the
Corporation Code.

The labor arbiter and the NLRC have no


jurisdiction over claims filed by employees
against international agencies such as IRRI,
WHO etc.

ART 218. POWERS OF THE COMMISSION


POWERS OF THE NLRC:
a. Rule-making power
b. Power to issue compulsory
processes
c. Power to investigate matters
and hear disputes within its
jurisdiction
d. Contempt power
e. Power to issue injunctions and
Restraining Orders

REQUISITES BEFORE RESTRAINING


ORDER/ INJUNCTION MAY ISSUE:
1. filing of a verified petition
2. a hearing after due and personal notice has
been served in such manner as the
Commission shall direct, to all known
persons against whom the relief is sought
and also to the Chief Executive or other
public officials of the province or city within
which the unlawful acts have been
threatened or committed charged with the
duty to protect the complainants property
3. reception at the hearing of the testimony of
witnesses with opportunity for crossexamination, in support of the allegations of
the complaint made under oath as well as
testimony in opposition thereto
4. a finding of fact of the Commission to the
effect that :
a) prohibited or unlawful acts have been
threatened and will be committed and
will be continued unless restrained, but
no injunction or temporary restraining
order shall be issued on account of any
threat, prohibited, or unlawful act, except
against the persons, association or
organization making the threat or
committing the prohibited or unlawful
act or actually authorizing or ratifying the
same after actual knowledge thereof.
b) That substantial and irreparable injury to
the complainants property will follow
c) That as to each item of relief to be
granted, greater injury will be inflicted
upon complainant by the denial of the
relief than will be inflicted upon the
defendants by the granting of the relief
d) That complainants has no adequate
remedy at law
e) That public officers charged with the
duty to protect complainants property
are unable or unwilling to furnish
adequate protection.
5. Posting of a bond
REQUISITES BEFORE TRO MAY BE
ISSUED EX PARTE:

1. The complainant shall allege that, unless a


TRO shall be issued without notice, a
substantial and irreparable injury to
complaints property will be unavoidable;
2. There is testimony under oath, sufficient, is
sustained, to justify the Commission in
issuing a temporary injunction upon hearing
after notice ;
3. The complainant shall first file an
undertaking with adequate security in an
amount to be fixed by the Commission
sufficient to recompense those enjoined for
any loss, expenses or damage caused by
the improvident or erroneous issuance of
such order or injunction, including all
reasonable
costs,
together
with
a
reasonable attorneys fee, and expense of
defense against
the granting of any
injunctive relief sought in the same
proceeding and subsequently denied by the
Commission; and
4. The TRO shall be effective no longer than
20 days and shall become void at the
expiration of said 20 days counted from the
date of the posting of the bond.
-

In the absence of service of summons or a


valid waiver thereof, the hearings and
judgment rendered by the labor arbiter are
null and void.

The
procedural
and
substantial
requirements of Art 218 (e) must be strictly
complied with before an injunction may
issue in a labor dispute.

THE FF. CAN ISSUE INJUNCTIONS/ TRO IN


LABOR DISPUTES
1.
2.
3.
4.
5.
6.

President (ART. 263, g)


Secretary of Labor (ART. 263, g)
Labor Arbiters (ART. 217)
NLRC
Regional Directors
Med- Arbiters

Art 219. OCULAR INSPECTION

The Chairman, any Commissioner, labor Arbiter


or their duly authorized representatives may, at
anytime during working hours:
a. Conduct an ocular inspection on
any establishment, building,
ship,
place
or
premises,
including any work, material,
implement,
machinery,
appliance or any object therein;
and
b. Ask any employee. Laborer, or
any person as the case may be
for any information or date
concerning any matter or
question relative to the object of
the investigation
ART. 221. TECHNICAL RULES NOT
BINDING AND PRIOR RESORT TO
AMICABLE SETTLEMENT
-

An amicable settlement of a labor dispute


should be approved by the labor arbiter
before whom the case is pending after
being satisfied that it was voluntarily entered
by the parties and after having explained to
them the terms and consequences thereof.

PURPOSE: for the employees protection for the


labor arbiter before whom the case is pending
would be in a better position than just any labor
arbiter to personally determine the voluntariness
of the agreement and certify its validity.
RES JUDICATA applies only to judicial or quasijudicial proceedings and not to the exercise of
administrative powers.
ART 222. APPEARANCES AND FEES

APPEARANCE
OF
NON-LAWYERS
BEFORE THE COMMISSION:
GENERAL RULE:
ONLY
lawyers
can
appear before the NLRC, or any Labor Arbiter,
EXCEPTIONS : Non-Lawyers can appear ONLY
in the following instances:

1. if they represent themselves; or


2. if they represent their organization
or members thereof; or
3. if he is a duly-accredited member of
the legal aid office duly recognized
by the DOJ of IBP in cases referred
thereto by the latter.
ATTORNEYS FEES: The maximum amount to
be given a lawyer is 10% of the monetary
benefits awarded to the employees excluding
the award for moral and exemplary damages
shall not be included.
-

Moral and exemplary damages and other


benefits that employee receives when he is
working are excluded.

This article prohibits the payment of


attorneys fees only where the same is
effected through forced contributions from
the workers form their own funds as
distinguished from the union funds.
CHAPTER III
APPEAL

ART. 223. APPEAL


GROUNDS FOR APPEAL:
1. If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter or
Compulsory Arbitrator;
2. If the decision, order or award was secured
through fraud or coercion, including graft
and corruption;
3. If made purely on questions of law;
4. If serious errors in the findings of facts are
raised which would cause grave or
irreparable damage or injury to the
appellant.
PERIODS WITHIN WHICH TO APPEAL:

A. DECISIONS OF THE REGIONAL


DIRECTOR:
- within 5 calendar days from receipt of the
order.
B. DECISIONS OF THE LABOR ARBITER:
- within 10 calendar days from the receipt of
the decision.
-

The appeal must be under oath and must


state specifically the grounds relied upon
and the supporting arguments.

Where the 10th day falls on a Saturday,


Sunday or legal holiday, the appeal may be
filed on the next business day.

IS THE PERIOD OF APPEAL EXTENDIBLE?


NO. The period of appeal to cases
decided by the regional Director and the Labor
Arbiter is NEVER extendible. It is the policy of
the state to settle expeditiously labor disputes.
REQUISITES BEFORE APPEAL TO THE
NLRC IS DEEMED PERFECTED:
1. File a verified memo of appeal within the
required period of appeal;
2. In case of monetary award, the employer
should file a bond corresponding to the
monetary award excluding awards for moral,
exemplary damages and attorneys fees.
3. Appeal fee of P110;
4. Furnish the other party with a copy of the
memo of appeal (proof of service).
-

Where the employer failed to post a bond to


perfect its appeal, the remedy of the
employee is not a petition for mandamus by
a motion to dismiss appeal.

The intention of the lawmakers is to make


the bond an indispensable requisite for the
perfection of an appeal by the employer.

Tardiness of an appeal form the decision of


the labor arbiter may be considered as a
mere procedural lapse.

EXECUTION PENDING APPEAL:


- the decision of the labor arbiter ordering the
reinstatement of a dismissed or separated
employee shall immediately executory
insofar as the reinstatement aspect is
concerned and the posting of an appeal
bond by the employer shall not stay such
execution. There is no need for the arbiter to
issue a writ of execution on the
reinstatement order as it is self-executory
(Pioneer Texturizing Case).
OPTIONS OF THE EMPLOYER TO IN
COMPLYING
WITH AN ORDER OF
REINSTATEMENT WHICH IS IMMEDIATELY
EXECUTORY:
1. He can admit the dismissed employee back
to work under the same terms and
conditions prevailing prior to his dismissal or
separation or to a substantially equivalent
position if the former position is already filled
up.
2. He can reinstate the employee merely in the
payroll.
-

Failing to exercise any option may be


compelled under pain of contempt and the
employer may be made to pay instead the
salary of the employee.

A petition for relief from the decision of the


labor arbiter must strictly comply with 2
reglementary periods:
1. The petition must be filed within 60 days
from knowledge of the judgment; and
2. Within a fixed period of 6 months from entry
of such judgment.
- petitions filed beyond said period
will no longer be entertained.
APPEAL FROM THE DECISION OF THE
NLRC:
- appeal by certiorari should be filed
with the Court of Appeals(St. Martin
Funerals Home)

ART 224. EXECUTION OF DECISIONS,


ORDER, OR AWARDS
-

The decision of the Secretary of Labor, the


Commission, the Bureau or Regional
Director the Labor Arbiter, the Med-Arbiter or
the Voluntary Arbitrator shall be final and
executory after 10 calendar days from
receipt thereof by the parties.

The foregoing may upon its own initiative or


on motion of any interested party, issue a
writ of execution on a judgment within 5
years from the date it becomes final and
executory.

The immediate execution of judgment


should be undertaken only when the
monetary award had been carefully and
accurately determined by the NLRC and
only after the
employer is given the
opportunity to be heard and to raise
objections to the computation.

INTRA- UNION DISPUTES - includes all


disputes or grievances arising from any
violation of or disagreement over any
provision of the constitution and by-laws
of a union.
-

INTER- UNION DISPUTES - refers to


questions involving or arising out of a
representation disputes between or
among the different unions.
-

ART. 226 BUREAU OF LABOR RELATIONS


EXCLUSIVE AND ORIGINAL JURISDICTION
OF THE BLR:
1. inter- union conflicts
2. intra- union conflicts
3. all disputes, grievances or problems arising
from or affecting labor- management
relations in all workplaces whether
agricultural or non- agricultural.
CASES WHERE
JURISDICTION:
-

THE

BLR

HAS

NO

Those arising from the implementation or


interpretation of collective bargaining
agreements which shall be subject of
grievance procedure and/or voluntary
arbitration.

It also includes all other conflicts which


legitimate labor, organizations may have
against each other based on any violation of
their rights as labor organizations.

DETERMINATION
OF
EMPLOYEE RELATIONSHIP:
-

TITLE III
BUREAU OF LABOR RELATIONS

It also includes any violation of the rights


and conditions of union membership
provided for in the Labor Code.

EMPLOYER-

since the BLR has the original and exclusive


jurisdiction to decide inter alia, all disputes,
grievances or problems arising from or
affecting labor-management relations in all
workplaces. Necessarily, in the exercise of
this jurisdiction over labor-management
relations, the Med-Arbiter has the authority,
original and exclusive, to determine the
existence
of
an
employer-employee
relationship (MY San Biscuits, Inc. v
Laguesma G.R. No. 9511, 22 April 1991).

SPECIAL REQUIREMENT AS TO THE


FILING OF CASES:
A. INVOLVING ENTIRE MEMBERSHIP
1. The complaint must be signed by at
least 30% of the entire membership
of the union.
2. It must also show exhaustion of
administrative remedies.
B. INVOLVING A MEMBER ONLY:
In such case only the affected
member may file the complaint.

RE : Imposition of fees by the union does it


affect the entire membership?
YES.
Such being the case, the
complaint should be signed by at least 30% of
the membership of the union.
ADMINISTRATIVE FUNCTIONS OF THE
BLR:
1. The regulation of registration of the labor
unions;
2. The keeping of a registry of labor unions;
and
3. The maintenance of a file of CBAs.
NATIONAL CONCILIATION AND MEDIATION
BOARD:
- has absorbed the conciliation, mediation and
voluntary arbitration functions of the BLR
(E.O. 126)

ART 231. REGISTRY OF UNIONS AND FILE


OF COLLECTIVE AGREEMENT
-

The CBA is more than a contract, it is highly


impressed with public interest for it is an
essential instrument to promote industrial
peace.

An unregistered CBA
certification election.

1. The quitclaim must be voluntarily arrived at


by the parties;
2. It must be with the assistance of the Bureau
of Labor Standards, Bureau of Labor
Relations of any representative of the
DOLE; and
3. The consideration must be reasonable.
-

if the compromise agreement was entered


into without the assistance of DOLE, it is
valid and binding between the parties but
the parties can still go to the NLRC and
repudiate the agreement.
if the compromise agreement was entered
into with the assistance of DOLE, it shall
be final and binding between the parties,
EXCEPT:
a. in case of non compliance with
the compromise agreement; or
b. if there is prima facie evidence
that the settlement was obtained

does

not

bar

ART 233. PRIVILEGE


COMMUNICATIONS
-

Information and statements made at


conciliation proceedings shall be treated as
privileged communication and shall not be
used as evidence in the Commission.

Conciliators and similar officials shall not


testify in any court or body regarding any
matters taken up at conciliation proceedings
conducted by them.

ART. 227. COMPROMISE AGREEMENTS


REQUIREMENTS OF A VALID QUITCLAIM:

through
fraud,
misrepresentation, or coercion
in such cases, the NLRC of the courts can
assume jurisdiction.

TITLE IV
LABOR ORGANIZATIONS
CHAPTER I
REGISTRATION AND CANCELLATION
ART. 234. REQUIREMENT OF
REGISTRATION
LABOR ORGANIZATION- A labor
organization is any union or association of
employees which exists in whole or in part
for the purpose :
- of collective bargaining or
- of dealing with employers concerning the
terms and conditions of employment.
PURPOSE OF FORMATION OF LABOR
UNIONS: for securing a fair and just wages and
good working conditions for the laborers; and for

the protection of labor against the unjust


exactions of capital
REQUIREMENTS BEFORE A LABOR
ORGANIZATION CAN BE REGISTERED WITH
THE BUREAU OF LABOR RELATIONS:
1. Written
application
verified
by
the
Secretary/Treasurer, attested to by the
President;
2. Names of members comprising at least 20%
of the employees in the bargaining unit
where it seeks to operate;
3. Non-existence of CBA, otherwise, if one
exist, state in the application that it is filed
within the freedom period.
It shall be
accompanied by the following attachments :
a. Registration fee in the amount of
P50.00;
b. Names of the officers and their
addresses;
c. Minutes of the organizational meetings;
d. List of workers who participated in the
organizational meetings;
e. Names of all the members and the
number of employees in the bargaining
unit;
f. Annual Financial Report ( if the
applicant has been in the existence for
at least one year);
g. Four (4) copies of the constitution and
by-laws;
h. Minutes of the resolution of the
constitution and by-laws and the list of
members who participated in the
bargaining unit concerned; and
i. If there is an existing collective
bargaining agreement duly submitted to
the DOLE, a sworn statement that the
application for registration is filed during
the last 60 days of the agreement.
MANDAMUS is the proper remedy for the
unjustified refusal of the Bureau in approving the
application and the corresponding issuance of a
certificate of registration, it being a ministerial
duty.

REASON
FOR
REQUIREMENT
OF
REGISTRATION it is a condition sine qua non
for the acquisition of legal personality by labor
organizations, associations or unions, and the
possession or the rights and privileges granted
by law to legitimate labor organizations
FEDERATION is an association of national
unions.
REQUIREMENTS BEFORE A FEDERATION
CAN BE ISSUED A CERTIFICATE OF
REGISTRATION:
Aside from the application, which must be
accompanied with the requirements for
registration of a labor registration, the
application should also be accompanied by the
following:
1. Proof of affiliation of at least 10
locals or chapters, each of which
must be :
a. a duly recognized collective
bargaining agent in the
establishment of
b. supporting the registration
of such applicant federation
or national union;
2. The names and addresses of the
companies where the locals or
chapters operate and the list of all
the members in each company
involved.

Can a local union


federation? If so, how?

affiliate

with

YES. The procedure of affiliation would


depend on whether the union is individually
registered or not.
If the union is independently registered, the
affiliation is by signing a contract of affiliation
with the labor union and the registration of such
contract with the BLR.
On the other hand, if the union Is not
independently registered, affiliation is done by
the application of the union with the federation

so it may be issued a charter certificate, to be


submitted with the BLR, including the following:
1. Copies of its constitution and by-laws
2. Statement of the set of officers and
books of accounts, all of which must be
certified by the Secretary/Treasurer and
attested to by the President.

Can a union of supervisory employees


affiliate with a national federation of labor
organizations of rank and file employees ?
YES, provided that:
a. The federation is not actively
involved in union affairs in the
company and
b. The rank and file employees are not
directly under the control of the
supervisors
EFFECTS WHEN A LOCAL UNION
DISAFFILIATE:
IT DEPENDS.
If the labor union is
independently registered, the disaffiliation of
the union would not affect its being a legitimate
labor organization and therefor would continue
to have the rights and privileges of a legitimate
labor organization as well as the legal
personality as such.
On the other hand, if the labor union is
not
independently
registered,
upon
disaffiliation, it would cease to be a legitimate
labor organization and would therefore no longer
have the legal personality and the rights and
privileges granted by law to legitimate
organization.

EFFECT OF DISAFFILIATION
EXISTING CBAs:

WITH

IT DEPENDS.
If the labor union is
independently registered, existing CBAs would
continue to be valid as the labor organization
can continue administering the CBAs.

However, if the labor union is not


independently registered, existing CBAs would
no longer be valid as there would no longer be
any labor organization given by law the right to
administer the CBAs.
ENTITLEMENT TO UNION DUES IN CASE
OF DISAFFILIATION:
-

If the labor union is independently


registered, then the labor organization is
entitled to the union dues and not the
federation from which the labor organization
disaffiliated.

On the other hand, if the labor union is not


independently registered, then union dues
may no longer be collected as there would
no longer any labor union who is allowed to
collect such union dues from the employees.

A union can affiliate anytime but disaffiliation


can be done only during the freedom period.
If not within the freedom period, can be done
only with the consent of the majority of the
workers.
Provided it is independently
registered otherwise it loses its personality.
The exception will only apply if it is not
prohibited by the constitution and by-laws of
the federation of national union.

ART 236. DENIAL OF REGISTRATION;


APPEAL
Decisions of the BLR denying the registration
of a labor organization is appealable to the
Secretary of Labor within 10 calendar days from
receipt, on grounds of:
a. grave abuse of discretion; and
b. gross incompetence

ART
238.
CANCELLATION
REGISTRATION; APPEAL

OF

The certificate of registration of any legitimate


labor organization shall be cancelled by the BLR
if it has reason to believe, after due hearing,

that the said labor organization no longer meets


one or more of the requirements herein
prescribed.
-

Appeal may be filed within 15 days from


receipt of the decision to the Secretary of
Labor.

ART 239. GROUNDS FOR CANCELLATION


OF UNION REGISTRATION.
GROUNDS FOR CANCELLATION OF UNION
REGISTRATION:
1. Misrepresentation, False statement or Fraud
in connection with:
- the adoption or ratification of the
constitution
and
by-laws
or
amendments thereto,
- the minutes of ratification, and
- the list of members who took part in
the ratification.
2. Failure to submit the document mentioned in
the preceding paragraph
- within 30 days from adoption or
ratification of the constitution and
by-laws or amendments thereto.
3. Misrepresentation, false statement or fraud
in connection with the:
- election of officers,
- minutes of the election of officer and
the list of voters, or failure to submit
these documents together with
- the
list
of
the
newly
elected/appointed officers and their
postal addresses
- within 30 days from election
4. Failure to submit the annual financial report
to the Bureau
- within 30 days after the closing of
every
fiscal
year
and
misrepresentation, false entries and
fraud
- in the preparation of the financial
report itself;
5. Acting as a labor contractor or engaging in
the cabo system, or otherwise engaging in
any activity prohibited by law;

6. Entering
into
collective
bargaining
agreements which provide terms and
conditions of employment below minimum
standard established by law;
7. Asking for or accepting attorneys fees or
negotiation fees from the employers;
8. Other than for mandatory activities under
this Code, checking off special assessment
or any other fees without duly signed
individual written authorization of the
members;
9. Failure to submit a list of individual members
of the Bureau once a year or whenever
required by the Bureau; and
10. Failure to comply with the requirements
under Articles 237 and 238.
REMEDY IN CASE THE BUREAU SHOULD
CANCEL THE REGISTRATION OF THE
UNION:
- to appeal to the Secretary of Labor within 10
calendar days on the grounds of:
1. grave abuse of discretion or
2. gross incompetence on the part of
the Bureau
-

Should the office of the Secretary affirm the


decision of the Bureau, the final remedy is
a petition for certiorari to the SC under
Rule 65, Rules of Court.

CHAPTER II
RIGHTS AND CONDITIONS OF MEMBERSHIP
IN A LABOR ORGANIZATION
ART. 241. RIGHTS AND CONDITIONS OF
MEMBERSHIP IN A LABOR
ORGANIZATION
REQUIREMENTS IN MAKING SPECIAL
ASSESSMENT
Art. 241(n).

No special assessment or other

extraordinary fees may be levied upon the


members of a labor organization:

UNLESS authorized by a written resolution


of a majority of all the members at a general
membership meetings duly called for the
purpose.
The secretary of the organization shall
record the minutes of the meeting including:
- the list of all members present,
- the votes cast,
- the purpose of the assessment or fees,
The record
President.

shall

be

attested

by the

Therefore, the REQUIREMENTS when it


comes to special assessment are as follows:
1. there must be a written resolution
2. the resolution must have been approved by
a majority of all the members
3. the approval must be at a general
membership meeting duly called for the
purpose
-

REQUIREMENTS OF THE LAW WITH


REGARDS TO CHECK-OFFS

comes to fees for mandatory activities under


the Labor Code.
CHECK-OFF is a method of deducting from an
employees pay at prescribed period, the
amounts due to the union for fees, fines or
assessment.
In Special Assessment, there must be a written
resolution authorized by a majority of the
members at a general meeting called for the
purpose.
-

PERSONS WHO ARE PROHIBITED FROM


BECOMING MEMBERS OF A LABOR
ORGANIZATION UNDER THE LABOR CODE:
1. Those who have been convicted of a crime
involving moral turpitude. (Art. 241(f));
2. Subversives or those engaged in subversive
Activities.
-

In general, a union is free to select its own


members, and no person has an absolute
right to membership in a trade union.

The implementing rules require that the


remedies be exhausted within the union
before a complaint for any violation of the
unions constitution and by-laws may be
filed.

Art. 241(o). Other than for MANDATORY


ACTIVITIES under the Code.
-

NO special assessment, attorneys fees,


registration fees or any other extraordinary
fees may be checked off from any amount
due an employee.
WITHOUT an individual written authorization
duly signed by the employee.
The authorization should specifically state
the:
a. amount
b. purpose and
c. beneficiary of the deduction.
EXCEPTION to the Requirement
Individual Written Authorization:

of

The law does not require individual written


authorizations from the employees when it

Check-off there must be individual written


authorization of the members.

REQUIREMENTS BEFORE A CHECK-OFF


MAY BE DONE:
-

Individual written authorizations of the


employees are required before a check-off
may be validly done.
EXCEPTIONS :
1. For mandatory activities provided under
the Code; and
2. When non-members of the union avail
of the benefits of the CBA.

said
non-members
may
be
assessed union dues equivalent to
that paid by members
only by a Board Resolution
approved by majority of the
members in a general meeting
called for the purpose

NATURE AND PURPOSE OF CHECK-OFF


- to facilitate the collection of dues necessary
for the unions life and sustenance.
GENERAL GROUPINGS OF THE RIGHTS
OF THE UNION MEMBERS:
(Under Art. 241)
1. Political right is the right of the members to
vote and be voted for, subject to lawful
provisions
on
qualifications
and
disqualifications.
2. Deliberative and Decision-Making Right is
the members right to participate in
deliberations on major policy questions and
decide them by secret ballot.
3. Rights Over Money Matters is the right of
the members:
a. against excessive fees
b. against unauthorized collection of
contributions
or
unauthorized
disbursements
c. to require adequate records of
income and expenses
d.
e.
f.
g.

to access financial records


to vote on officers compensation
to vote on special assessment
to be deducted a special assessment
only with the members written
authorization.
4. Right to Information is the members right
to be informed about:
a. the organizations constitution and
by- laws
b. the collective bargaining agreement
c. about labor laws
CHAPTER III

RIGHTS OF LEGITIMATE LABOR


ORGANIZATIONS
ART. 242. RIGHTS OF LEGITIMATE LABOR
ORGANIZATIONS
RIGHTS OF
ORGANIZATION:

LEGITIMATE

LABOR

1.
2.
3.
4.
5.

Undertake activities for benefit of members


Sue and be sued
Exclusive representative of all employees
Represent union members
Furnished by employers of audited financial
statements
6. Own properties
7. Exempted from taxes
EFFECT OF CANCELLATION OF
REGISTRATION IN THE COURSE OF
PROCEEDINGS;
-

Where a labor union is a party in a


proceeding and later it loses its registration
permit in the course or during the pendency
of the case, such union may continue still as
a party without need of substitution of
parties,
subject
however
to
the
understanding that whatever decision may
be rendered therein will only be binding
upon those members of the union who have
not signified their desire to withdraw from
the case before its trial and decision on the
merits.
TITLE V
COVERAGE

ART. 243. COVERAGE AND EMPLOYEES


RIGHT TO SELF
ORGANIZATION

GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS

GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS

WITH A CHARTER

WITHOUT
CHARTER

1. Employees cannot
stage strikes since
they are governed
by the Civil
Service Law. They
are enjoined by
Civil Service
Memorandum
Circular No. 6,
under pain of
administrative
sanctions, from
staging strikes,
demonstrations,
mass leaves, walkouts and other
concerted
activities.

1.The GOCC is
created under
Corporation Code,
then employees are
covered by the
Labor Code.
Therefore the
employees have the
same rights as
those as employees
of private
corporations, one of
which is the right to
stage strikes.

2.Corporations with
original
charters
cannot bargain with
the
government
concerning
the
terms
and
conditions of their
employment.
However, they can
negotiate with the
government
on
those terms and
conditions
of
employment which
are not fixed by law.
Thus, they have a
limited bargaining
rights.

2. The GOCC is
created
under
Corporation
Code,
being governed by
the Labor Code, they
can bargain with the
government
concerning the terms
and conditions of
their employment.
Thus, they have an
unlimited bargaining
rights.

contrary to law.

THE FOLLOWING ARE CONSIDERED


NEGOTIABLE IN GOCC WITH ORIGINAL
CHARTER:
1.
2.
3.
4.
5.
6.

schedule of vacation and other leaves


work assignment of pregnant women
personnel growth and development
communication system lateral and vertical
provision for protection and safely
provision for facilities for handicapped
personnel
7. provision for first-aid medical services for
married women
8. annual medical/physical examination
9. recreational, social, athletic and cultural
activities and facilities (Rules implementing
WO 180)
THE FOLLOWING ARE CONSIDERED NOT
NEGOTIABLE :
1. Those which require appropriation of
funds, such as :
a. increase in salary emoluments and
other allowance not presently
provided for by law
b. facilities requiring capital outlays
c. car plan
d. provident fund
e. special hospitalization, medical and
dental services
f. rice/sugar/other subsidies
g. travel expenses
h. increase in retirement benefits
2. Those that involve the exercise
management prerogatives, such as :

3. Can only form,


join or assist
labor
organization for
purposes
not

3. Can form, join or


Assisi
labor
organization for
purposes of CBA,
etc.

appointments
promotion
assignments/details
reclassification/upgrading of position
revision of compensation structure

of

penalties imposed as a result of


disciplinary actions
selections of personnel to attain
seminar, trainings. Study grants
distribution of work load
external communication linkages

Government employees and employees of


government-owned
and
controlled
corporations with original charters may
bargain, however, such bargaining power
is limited.
RATIONALE : GOCCs INCORPORATED
UNDER THE CORP. CODE ALLOWED TO
ORGANIZE:
-

1. they are not involved in public service


2. terms of employment are not fixed by law
3. they are governed by the provisions of the
Labor Code not by the Civil Service Law
EMPLOYEES COVERED BY THE RIGHT TO
SELF- ORGANIZATION:
1.
2.
3.
-

Commercial
Industrial
Agricultural enterprises, including:
charitable
religious
education or
medical institution

EMPLOYEES WITH LIMITED RIGHT TO


SELF- ORGANIZATION:
1.
2.
3.
4.
5.

Self- employed
Without definite employers
Ambulant
Intermittent and Itinerant
Rural worker

they have the right to self-organization but


only for their mutual aid and protection.

EMPLOYEES WHO ARE NOT GRANTED


THE RIGHT TO SELF-ORGANIZATION:

1. Members of the Armed Forces of the


Philippines,
including
police
officers,
policemen, firemen and jail guards;
2. High-level employees
- whose
functions
are
normally
considered
as
policy-making
or
managerial
- whose duties are of a highly confidential
or highly technical in nature ( EO 180,
sections 3-4)
3. Government employees occupying high
positions
4. Employees of international organizations
with immunities
5. Confidential employees
6. Cooperative members who are also
employees
-

Foreigners validly working in the


Philippines can form labor organizations,
provided, the same right to form, join or
assist in the formation of labor unions is also
given to Filipinos in their country of origin.
This
embodies
the
principle
of
reciprocity.

Extent of the Right to Self-Organization


a. To form, join and assist labor organizations
for the purpose of collective bargaining
through representatives of their own choosing
and
b. To engage in lawful concerted activitiesfor the
same purpose
for their mutual aid and protection
ART 245. INELIGIBILITY OF MANAGERIAL
EMPLOYEES
TO
JOIN ANY
LABOR
ORGANIZATION; RIGHT OF SUPERVISORY
EMPLOYEES.
Reason for ineligibility in the collective
bargaining process, managerial employees are
supposed to be on the side of the employer, to
act as its representatives, and to see to it that its
interests are well protected. The employer is not
assured of such protection if these employees
themselves are union members.

ART. 246.
THE

RIGHT

TO

SELF-ORGANIZATION

The prescriptive period for the criminal case


is suspended once the administrative case
has been filed and would only continue
running once the administrative case has
attained finality.

HOWEVER: Final judgment in


administrative proceedings shall not
binding in the criminal case nor shall
considered as an evidence of guilt
merely as a proof of compliance of
requirements prescribed by the Code.

SHALL NOT BE ABRIDGED MEANS:


It shall be unlawful for any person to:
restrain,
coerce,
discriminate against, or
unduly interfere
with employees and workers in their
exercise of the right to self-organization.
(Art. 246)
Any act intended to weaken or defeat the
right is regarded by law as an offense, which is
technically called unfair labor practice.

the
be
be
but
the

Prerequisite for filing criminal case:


final judgment in the administrative proceeding
finding that ULP has been committed
CHAPTER II
UNFAIR LABOR PRACTICES
OF EMPLOYERS

TITLE VI
UNFAIR LABOR PRACTICES
CHAPTER I
CONCEPT
ART. 247 UNFAIR LABOR PRACTICES
NATURE OF UNFAIR LABOR PRACTICES:
1. violate the constitutional right of workers and
employees to self-organization,
2. are inimical to the legitimate interests of both
labor and management, including their right
to bargain collectively and otherwise deal
with each
other in an atmosphere of
freedom and mutual respect,
3. disrupt industrial peace and
4. hinder the promotion of healthy and stable
labor-management relations.
PRESCRIPTIVE PERIOD FOR FILING
CRIMINAL AND CIVIL CASES FOR ULP:
-

The prescriptive period of filing ULP cases


whether it be civil or criminal is one year
from the accrual of the ULP act.

ART 248. ULP THAT MAY BE COMMITTED


BY AN EMPLOYER
1. To interfere with, restrain or coerce employees
- in the exercise of their right to selforganization;
2. To require as a condition for employment
that a person or an employee
- shall not join a labor organization or
- shall withdraw from one to which he
belongs;
3. To contract out services or functions being
performed by union members
- when such will interfere with, restrain or
coerce employees in the exercise of
their right to self-organization;
4. To initiate, dominate, assist or otherwise
interfere
- with the formation or administration of
any labor organization,
- including the giving of financial or other
support to it or its organizers or officers;
5. To discriminate in regard to wages, hours of
work, and other terms and conditions of
employment
- in order to encourage or discourage
membership in any labor organization .

2.

TEST OF DISCRIMINATION:
a.

whenever benefits or privileges given to one


is not given to the other under similar or
identical conditions
b. when directed to encourage or discourage
union membership
6. To dismiss, discharge or otherwise prejudice
or discriminate against an employee
- for having given or being about to give
testimony under this Code;
7. To violate the duty to bargain collectively as
prescribed by this Code;
8. To pay negotiation or attorneys fees to the
union or its officers or agents
- as part of the settlement of any issue in
collective bargaining or any other
disputes; or
9. To violate a collective bargaining agreement.
NOTE: violation must be gross and with
respect to the economic provision of the
CBA
YELLOW DOG CONTRACT:
A
promise exacted from workers as a
condition employment that they are not to
belong to, or attempt to foster, a union
during their period of employment.
-

It is contrary to public policy for it is


tantamount to involuntary servitude.
It is entered into without consideration for
employees waive their right to selforganization
- Employees are coerced to sign
contracts disadvantageous to their
family.

Does Art. 248 (c ) mean that an employer


cannot contract out work?
NO. Contracting out services is not ULP
per se. It is only ULP when the following
conditions exist:
1. the service contracted- out are
being performed by union members;
and

such contracting-out interferes with,


restrains, or coerce employees in
the exercise of their right to selforganization.

HOWEVER, when the contracting-out is


being done to minimize expenses, then it is
a valid exercise of management prerogative.

THREE COMPONENTS OF ART. 248 (e ):


(DISCRIMINATION)
1. It prohibits discrimination in terms and
conditions of employment in order to
encourage or discourage membership in
the union;
2. It gives validity to union security
agreements;
3. It allows an agency shop arrangement
whereby agency fees may be collected
from non-union members.
SECURITY ARRANGEMENTS are stipulations
in the CBA requiring membership in the
contracting union as a condition for employment
or retention of employment in the company.
PRINCIPLES OF
ARRANGEMENTS:

UNION

SECURITY

1. Protection. To shield union


members from whimsical and
abusive
exercise
of
management prerogatives.
2. Benefits.
An
additional
membership
will
insure
additional source of income
to the union in the form of
union dues and special
assessment.
3. Self-preservation.
It
strengthens
the
union
through selective acceptance
of new members on the basis
of commitment and loyalty.
DIFFERENT KINDS OF UNION SECURITY
ARRANGEMENTS:

1. CLOSED- SHOP AGREEMENT - the


employer undertakes not to employ any
individual who is not a member of the
contracting union and the said individual
once employer must, for the duration of the
agreement, remain a member of the union in
good standing as a condition for continued
employment.
2.

UNION SHOP AGREEMENT -stipulation


whereby any person can be employed by
the employer but once employed such
employee must, within a specific period,
become a member of the contracting union
and remain as such in good standing for
continued employment for the duration of
the CBA.

3. MAINTENANCE
OF
MEMBERSHIP
CLAUSE - the agreement DOES NOT
require non-members to join the contracting
union BUT provides that those who are
members thereof at the time of the
execution of the CBA and those may
thereafter on their own volition become
members must for the duration of the
agreement maintain their membership in
good standing as a condition for continued
employment in the company for the duration
of the CBA.
4. PREFERENTIAL SHOP AGREEMENT The employer agrees to give preference to
the members of the bargaining union in
hiring or filing vacancies and retention in
case of lay-off. But the employer has the
right to hire in open market if union
members are not available. Usually,
descendants (children) are also given
preference in employment.
5.

AGENCY SHOP AGREEMENT - An


agreement whereby employees must either
join the union or pay to the union as
exclusive bargaining agent a sum equal to
that paid by the members.
-

This is directed against FREE


RIDER employees who benefit from

union activities without contributing to


union support to prevent a situation of
non-union
members
enriching
themselves at the expense of union
members.

THE REQUIREMENTS FOR A VALID UNION


OR CLOSE SHOP AGREEMENT
(SO THAT THE EMPLOYER CAN TERMINATE
THE EMPLOYEE FOR VIOLATION OF SAID
AGREEMENT):
1. It must be expressed in a clear and
unequivocal way so as not to leave room for
interpretation because it is a limitation to the
exercise of the right to self-organization.
- Any doubt must be resolved against closeshop.
2. It can only have prospective application and
cannot be applied retroactively.
3. Can only be exercised by giving the
employee his right to due process.
- The employer has the right to satisfy
itself that there are sufficient bases for
the request of the union.
- The termination of the employee is not
automatic upon the request of the union.
4. Cannot be applied to employees who are
already employees of the rival union nor to
the employees based on their religious
beliefs.
CHAPTER III
UNFAIR LABOR PRACTICES OF LABOR
ORGANIZATIONS
ART. 249. UNFAIR LABOR PRACTICES OF
LABOR ORGANIZATIONS
a. To restrain or coerce employees in the
exercise of their right to self-organization.
However, a labor organization shall have the
right to prescribe its own rules with respect
to the
acquisition or retention of
membership;

b. To cause or attempt to cause an employer to


discriminate against an employee, including
discrimination
c. To violate the duly or refuse to bargain
collectively with the employer provides that it
is the representative of the employees;
d. To cause or attempt to cause an employer to
pay or deliver or agree to pay or deliver any
money or other things of value, in the nature
of an exaction, for services which are not
performed or not to be performed, including
the demand for a fee for union negotiations;
e. To ask for a accept negotiation or attorneys
fees from employers as part of the
settlement of any issue in collective
bargaining or any other dispute; or
f. To violate a collective bargaining agreement.
NOTE: Violation must be gross with respect to
economic provisions of the CBA.
PERSONS CIVILLY LIABLE FOR ULP:
1. Officers and agents of employer
2. Labor organization, officers and agents
PERSONS CRIMINALLY LIABLE FOR ULP:
1. Agents and officers who participated or
authorized or ratified the act.
2. Agents, representatives, members of the
government board, including ordinary
members
FEATHERBEDDING - refers to the practice of
the union or its agents in causing or attempting
to cause an employer to pay or deliver or agree
to pay or deliver money or other things of value,
in the nature of exaction, for services which are
not performed or not to be performed, as when a
union demands that the employer maintain
personnel in excess of the latters requirements
TITLE VII
COLLECTIVE BARGAINING AND
ADMINISTRATION OF AGREEMENTS
ART 250. PROCEDURE IN COLLECTIVE
BARGAINING

COLLECTIVE BARGAINING negotiation by


an organization or group of workmen, in
behalf of its members, with the employer,
concerning wages, hours of work and other
terms and conditions of employment and
the settlement of disputes by negotiation
between
an
employer,
and
the
representative of his employees.
PROCEDURE IN COLLECTIVE
BARGAINING:
1. Written notice with statement of proposals
2. Reply by the other party
3. In case of differences, either party may
request for a conference
4. If not settled NCMB may intervene and
encourage the parties to submit the dispute
to a voluntary arbitrator
5. If not resolved, the parties may go to where
they want and resort to any other lawful
means.
COLLECTIVE BARGAINING AGREEMENT(CBA)
negotiated contract between a legitimate
labor organization and the employer
concerning :
- wages,
- hours of work and
- all other terms and
- conditions of employment in a
bargaining
unit,
including
mandatory provisions for grievances
and arbitration machineries.
MANDATORY PROVISIONS OF THE CBA:
1.
2.
3.
4.
5.
6.
7.

wages
hours of work
grievance machinery
voluntary arbitration
family planning
rates of pay
mutual observance clause

In addition, the Bureau requires that the CBA


should include a clear statement of the terms of
the CBA.
ART 253. DUTY TO BARGAIN
COLLECTIVELY WHEN THERE EXISTS A
COLLECTIVE BARGAINING AGREEMENT
BARGAINING UNIT- a group of employees of
a given employer, comprised of all or less
that all the entire body of the employees,
consistent with equity to the employer, indicate to be best suited to serve the
reciprocal rights and duties of the parties
under the collective bargaining provision of
the law.
FOUR FACTORS IN DETERMINING THE
APPROPRIATE BARGAINING AGREEMENT:
1. The Express Will or Desire
Employees (Globe Doctrine);
2. The Substantial and Mutuality
Factor;
3. Prior Collective Bargaining History;
4. Employment Status, such as
- temporary
- seasonal, and
- probationary employee

of

the

Interest

THINGS TO CONSIDER IN DETERMINING


THE COMMUNITY OF INTEREST DOCTRINE:
1. similarity in the scale and manner of
determining earnings
2. similarity in employment benefits, hours of
work and other terms and conditions of
employment
3. similarity in the kinds of work performed
4. similarity in the qualifications, skills and
training of the employees
5. frequency of contract or interchange among
the employees
6. common supervision and determination of
labor-relations policy
7. history of previous collective bargaining
8. desires of the affected employees
9. extent of union organization

AUTOMATIC RENEWAL CLAUSE - this is


under the present Article which establishes an
automatic renewal clause the CBA is effective
and enforceable even after the expiration of the
period fixed by the parties as long as no new
agreement is reached by them.
MODES OF CHOOSING THE EXCLUSIVE
BARGAINING UNIT:
1. SELECTION
- certification election
2. DESIGNATION
a) voluntary recognition
b) direct certification
CERTIFICATION ELECTION - process of
determining by secret ballot the sole and
exclusive bargaining agent of the employees in
an appropriate bargaining unit, for purposes of
collective bargaining.
DIRECT CERTIFICATION - process whereby
the Med-Arbiter directly certifies a labor
organization of an appropriate bargaining unit of
a company after a showing that such petition is
supported by at least a majority of the
employees in the bargaining unit. It is no
longer allowed. (EO 111)
VOLUNTARILY RECOGNITION
- process whereby the employer recognizes a
labor organization as the exclusive
bargaining representative of the employees
in the appropriate bargaining unit after a
showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.

CERTIFICATION
ELECTION

CONSENT
ELECTION

1. aimed at
determining the
sole and
exclusive
bargaining agent
of all the
employees in an
appropriate
bargaining unit
for the purpose
of collective
bargaining;

1. an agreed one,
its purpose
being merely to
determine the
issue of majority
representation of
all the workers in
the appropriate
collective
bargaining unit

2. separate and
distinct from a
consent election

2. from the very


nature of
consent election,
it is a separate
and distinct
process and has
nothing to do
with the import
and effect of a
certification
election

EFFECT OF VOLUNTARILY RECOGNITION


BY THE EMPLOYER:
-

By voluntarily recognition of the employer,


the labor organization recognized by the
employer as the exclusive bargaining agent
may collectively bargain with the employer.

WHEN IS THE CONDUCT OF A


CERTIFICATION ELECTION MANDATORY ON
THE PART OF THE BLR?
1. In an unorganized company
a. upon the filing of a verified petition by a
legitimate labor organization; or
b. upon the filing of a petition by the
employer when such employer is
requested by the employees to bargain
collectively.
2. In an organized company upon the filing of
a verified petition by a legitimate labor
organization questioning the majority status
of the incumbent bargaining agent within the

60-day freedom period before the expiration


of a CBA.
- The petition must be supported by
the written consent of at least 25%
of all the employees in the
appropriate bargaining unit.
NOTE: In case the establishment is organized,
the employer cannot file a petition for
certification election; only a legitimate labor
organization can file such petition.
WHEN MAY A LABOR ORGANIZATION FILE
A PETITION FOR CERTIFICATION ELECTION:
1. Where
the
establishment
is
not
organized, it can file a petition for
certification election at any time, subject
however to the ONE-ELECTION-PER-YEAR
RULE.
2. In an organized establishment
a. when there is a CBA, the labor
organization can file a petition for
certification election within the 60-day
freedom
period
(CONTRACT-BAR
RULE )
b. when there is no CBA, then the labor
organization can file a petition for
certification election at any time, subject
to the Deadlock bar Rule.
DEADLOCK BAR RULE, a petition for
certification election can only can only be
entertained if there is no pending bargaining
deadlock submitted to conciliation or arbitration
or had become the subject of a valid notice of
strike or lockout.
REQUISITES BEFORE A LABOR UNION
CAN BE DECLARED A WINNER:
1. Majority of the eligible voters cast their
votes.
2. Obtained majority of the valid votes cast.
(DOUBLE MAJORITY)
HOW TO DETERMINE THE TWO MAJORITY
RULE :

1. In determining valid votes, eliminate spoiled


ballots but include challenged votes
2. In determining the eligible votes cast,
include spoiled ballots

select representatives can be justified


only where stability is deemed
paramount.
3. Certain types of contracts which do not
foster industrial
stability such as
contracts where the identity of the
representative is in doubt or those that
are prematurely renewed

RUN-OFF ELECTIONS
This happens when:
a. The election provides for at least 3
choices(no union is always a
choice)
b. The election results in none of the
choices received the majority
votes(50%+1) of the valid votes cast

Run-off shall be conducted:


a. Between the labor union receiving
the two highest number of votes
b. Provided that the total number of
votes for all the contending unions is
at least 50% of the total votes cast

REQUIREMENTS IN ORDER TO INVOKE


CONTRACT-BAR RULE:
1. Agreement is in writing, signed by all
contracting parties.
2. It must contain the terms and conditions of
employment.
3. Covered employees in an appropriate
bargaining unit.
4. It is for a reasonable period or duration.
5. It must be ratified.
6. It must be registered with the Bureau.
7. The violation of the contract bar rule or the
existence of a duly registered CBA must be
specifically impleaded as a defense.

RULES WHICH WILL PREVENT THE


HOLDING OF A CERTIFICATION ELECTION:

EXCEPTIONS TO THE CONTRACT-BAR


RULE:

1. Contract-Bar Rule
2. One-Year Bar Rule
3. Deadlock Bar Rule

1. CBA is not registered.


2. CBA deregistered.
3. CBA was hastily concluded way ahead of
the freedom period
4. CBA is incomplete in itself
5. CBA does not foster industrial peace
because of schism
6. CBA was concluded in violation of an order
enjoining the parties from entering into a
CBA until the issue of representation is
resolved.

THE CONTRACT-BAR RULE provides that


while a valid and registered CBA is subsisting,
the BLR is not allowed to hold an election
contesting the majority status of the incumbent
union.
EXCEPTIONS TO THE RULE:
1. Where it is shown that because of a
schism in the union the contract can no
longer serve to promote industrial
stability, and the holding of the election
is in the interest of the employees right
in the selection of their bargaining
representatives.
2. Basic to the contract bar rule is the
proposition that the denial of the right to

EFFECT OF AN INVALID AND


UNREGISTERED CBA:
-

Then there is no bar and therefore a


certification election may be held.

NOTE: Registration of CBA only puts into effect


the contract-rule bar rule but the CBA itself is
valid and binding even if unregistered.

SUBSTITUTIONARY DOCTRINE-- It
means that where there occurs a shift in the
employees union allegiance after the execution
of a collective bargaining contract with the
employer, the employees can change their
agent the labor union, but the collective
bargaining contract which is still subsisting,
continues to bind the employees up to its
expiration date. They, may, however, bargain
for the shortening of said expiration date.
DEADLOCK arises when there is an
impasse which presupposes reasonable effort at
good faith bargaining which, despite noble
intentions, did not conclude in agreement
between the parties.
JURISDICTIONAL PRECONDITIONS OF
COLLECTIVE BARGAINING: (Kiok Loy Case)
1. Possession
of
status
of
majority
representation
2. Proof of majority representation
3. Clear and unequivocal demand to bargain
collectively
DUTY TO BARGAIN COLLECTIVELYThe performance of a mutual obligation to meet
and convene
- promptly and expeditiously and in good faith,
for the purpose of negotiating an agreement with
the respect to
- wages,
- hours of work and
- all other terms and conditions of
employment, including
- proposals
for
adjusting
any
grievances or questions arising
under such agreement and
- executing a contract incorporating
such agreements if requested by
either party.
-

When there is a collective bargaining


agreement, the DUTY TO BARGAIN
COLECTIVELY shall mean that neither party

shall terminate or modify such agreement


during its lifetime.
- However, either party can serve a
written notice to terminate or modify
the agreement at least 60 days prior
to its expiration period.
Does the Duty to Bargain Collectively carry
with it the duty to agree to a proposal or to
make a concession?
NO. The duty to bargain collectively does
not compel any party
- to agree to a proposal or
- to make a concession
EXAMPLES OF BAD FAITH BARGAINING:
1. Surface Bargaining occurs when
employer constantly changes its positions
over the agreement.
2. Boulwarism occurs
a. when the employer directly bargains
with the employee disregarding the
union.
b. Employer submits its proposals and
adopts a take it or leave it stand. This is
not negotiation because the take it or
leave it stand implies threat.
3. Side Bar Technique
DUTIES OF THE PARTIES DURING THE 60DAY PERIOD:
1. to keep the status quo and
2. to continue in full force and effect and the
terms and conditions of the existing
agreement during the 60-day period and/or
until a new agreement is reached by the
parties. (Art. 253)
ART 253 A. TERMS OF A COLLECTIVE
BARGAINING AGREEMENT
DURATION OF THE CBA:
1. With respect to the representation aspect
the same lasts for 5 years.

2. With respect to other provisions, the same


shall last for a maximum period of 3 years
after execution.
RULE ON RETROACTIVE
AGREEMENT PROVISIONS:
-

EFFECTS

OF

Any agreement on such other provisions of


the CBA if made within 6 months after the
date of expiry, there is AUTOMATIC
RETROACTION to the day immediately
following such date of expiry.
If not within 6 months, the parties may
agree to the DATE OF RETROACTION.
This rule applies only if there is an
EXISTING AGREEMENT. IF THERE IS NO
EXISTING AGREEMENT, there is no
retroactive effect because the date agreed
upon shall be the start of the period of
agreement.

TAKE NOTE: Article 253-A on retroaction does


not apply if the provisions were imposed by the
Secretary of Labor by virtue of arbitration. It
applies only if the agreement was voluntarily
made by the parties.

SUCCESSOR-IN-INTEREST DOCTRINE
occurs when an employer is succeeded by
another employer, the successor-in-interest who
is a buyer in good faith has no liability to
employees in continuing employment and
collectively bargain because they are contracts
in personam, as well as for cases of unfair labor
practice.
EXCEPTIONS TO THE SUCCESSOR-ININTEREST DOCTRINE:
1. If the transfer is done in bad faith;
2. If it was done to circumvent the obligation of
the seller;
3. If the successor expressly assumes the
obligations of the seller
BARGAINING IMPASSE exists when good
faith bargaining on the part of the parties filed to

resolve the issue and there are no definite plans


for further efforts to break the deadlock
ART 254. NO INJUNCTION RULE
No temporary or permanent injunction pr
restraining order in any case involving or
growing out of labor disputes shall be issued
by any court or other entity, except as otherwise
provided in Articles 218 and 264 of this Code.
ART 255. EXCLUSIVE BARGAINING
REPRESENTATION
AND
WORKERS
PARTICIPATION IN POLICY AND DECISIONMAKING
IN DETERMINING THE APPROPRIATE
BARGAINING UNIT THE FF. MUST BE
CONSIDERED:
1.
2.
3.
4.

Will of employees
Affinity and unity of employees interest
Prior collective bargaining history
Employment status, such as temporary,
seasonal and probationary employees.

ONE-UNION, ONE-COMPANY POLICY- the


proliferation of unions in an employer unit is
discouraged as a matter of policy unless there
are compelling reasons which would deny a
certain class of employees the right to selforganization for purposes of collective
bargaining.
EXCEPTIONS: supervisory employees who are
allowed to form their own unions apart from the
rank-and-file employees
LABOR MANAGEMENT COUNCILS deal with
the employer on matters affecting employees
rights, benefits and welfare. They may be
formed even if there is already a union in the
company.
TITLE VII- A
(as incorporated by RA 6715)
GRIEVANCE MACHINERY AND VOLUNTARY
ARBITRATION

ART 260. GRIEVANCE MACHINERY AND


VOLUNTARY ARBITRATION

GROUNDS FOR JUDICIAL REVIEW OF


DECISIONS OF VOLUNTARY
ARBITRATORS:

GRIEVANCE MACHINERY - Mechanism for


the adjustment of controversies or
disputes
arising
from
the
interpretation or implementation of
the CBA and the interpretation or
enforcement of personnel policies

1.
2.
3.
4.
5.

GRIEVANCE ARISES: when a dispute or


controversy arises over the implementation or
interpretation of a CBA or from the
implementation or enforcement of company
personnel policies, and either the union or the
employer invokes the grievance machinery
provision for the adjustment or resolution of such
dispute or controversy.

TITLE VIII
STRIKES AND LOCKOUTS AND FOREIGN
INVOLVEMENT IN TRADE UNION ACTIVITIES

both parties must resort to grievance


machinery

ART 261. JURISDICTION OF VOLUNTARY


ARBITRATORS OR PANEL OF VOLUNTARY
ARBITRATORS
JURISDICTION OF VOLUNTARY
ARBITRATORS:
1.

EXCLUSIVE ORIGINAL JURISDICTION


CONFERRED BY LAW
a) interpretation or implementation of the
CBA
b) interpretation or enforcement of
company personnel polices
It is the labor arbiter and not the grievance
machinery which has jurisdiction over
dismissal pursuant to the union security
clause.

2. JURISDICTION BY AGREEMENT OF THE


PARTIES
- voluntary arbitrators shall also hear and
decide all other disputes including ULP and
bargaining deadlocks.

Lack of jurisdiction
Grave abuse of discretion
Violation of due process
Denial of substantial justice
Erroneous interpretation of the law

CHAPTER I
STRIKES AND LOCKOUTS
ART. 263. STRIKES, PICKETING AND
LOCKOUTS
STRIKE - Any temporary stoppage of work by
the concerted action of employees as a result of
an industrial or labor dispute.
IMPORTANCE
-

it is the most effective weapon of labor in


protecting the rights of employees to
improve the stems and conditions of their
employment.

STRIKE-BREAKER- any person who


obstructs, impedes or interferes by force,
violence, coercion, threats or intimidation with
any peaceful picketing by employees during any
labor controversy affecting wages, hour or
conditions of work or in the exercise of the right
to self organization or collective bargaining
STRIKE AREA the establishment,
warehouse, depots, plants or offices, including
the sites or premises used as runaway shops of
the employer struck against, as well as the
immediate vicinity actually used by picketing
strikers in moving to an fro before all points of
entrance to and exit front said establishment

LOCKOUT - means the temporary refusal of


an employer to furnish work as a result of an
industrial or labor dispute.
GROUNDS FOR THE DECLARATION OF
STRIKE

PICKETING - is the marching to and fro the


employers premises, usually accompanied by
the display of placards and other signs making
knowing the facts involved in a labor dispute.
This is an exercise of ones freedom of speech.

1. deadlock in collective bargaining; and/or


2. unfair labor practices

WHO
CAN
DECLARE
(Bargaining Deadlock) STRIKE:

ECONOMIC

1. Collective bargaining agent


WHO CAN DECLARE POLITICAL (ULP)
STRIKE:
1. collective bargaining agent
2. Legitimate labor organization in behalf of
members
SIT-DOWN STRIKE - is characterized by a
temporary work stoppage of workers who
thereupon seize or occupy property of the
employer or refuse to vacate the premises of the
employer.
Is a sit-down strike legal?
NO. It borders to a criminal act because
the employees trespass on the premises of the
employer.
WILDCAT STRIKE- is a work stoppage that
violates the labor contract and is not authorized
by the union.
Is a wildcat strike valid?
NO. It is not valid because it fails to
comply with certain requirements of the law, to
wit, notice of strike, vote, and report on strike
vote.
Is a welga ng bayan legal?
NO. A welga ng bayan is illegal
because it is a political strike and therefore there
is no bargaining deadlock nor any ULP. It is a
political rally.

ECONOMIC
STRIKE

ULP STRIKE

1. Voluntary strike
because the
employee will
declare strike to
compel
management to
grant its
demands.

1. Involuntary :
labor
organization is
forced to go on
strike because
the ULP
committed
against them by
the employer. It
is an act of selfdefense since
the employees
are being
pushed to the
wall and their
only remedy is to
strike.

COOLING OFF PERIOD - that period of time


given the NCMB to mediate and conciliate the
parties.
-

It is that span of time allotted by law for the


parties to settle their disputes in a peaceful
manner, before staging a strike or lockout.

NUMBER OF DAYS IN THE COOLING OFF


PERIOD:
1. If the ground for the intended strike or
lockout is DEADLOCK IN COLLECTIVE
BARGAINING, the cooling-off period is 30
days from the filing of the notice of strike.
2. If the ground for the intended strikes is
UNFAIR LABOR PRACTICE, the cooling-off
period is 15 days from the filing of the notice
of strike. Therefore:

HOWEVER, in case of dismissal from


employment of union officers duly in
accordance with the union constitution and
by-laws, which may constitute union busting
where the existence of the union is
threatened, the 15-day cooling-off period
shall NOT apply AND the union may take
action immediately.
the cooling off periods and seven-day
strike ban is mandatory otherwise the
purposes for which they have been imposed
would not be achieved

EXCEPTION
PERIOD:
-

TO

THE

COOLING-OFF

In case of dismissal from employment of


union officers duly elected in accordance
with the union constitution and by-laws,
which may constitute union busting where
the existence of the union is threatened, he
15-day cooling-off period shall NOT apply
AND the union may take action
immediately but they must still observe the
mandatory 7 day period before they can
stage a valid strike.

STRIKE VOTE - is a requirement wherein the


decision to declare a strike must be:
1. approved by a majority of the total union
membership in the bargaining unit
concerned,
2. obtained by secret ballot
3. in meetings or referenda called for the
purpose.
PURPOSE OF A STRIKE VOTE - is to ensure
that the intended strike is a majority decision.
When should the strike vote be submitted?
The report on the strike vote must be
submitted to the DOLE at least 7 days before
the intended strike subject to the cooling-off
period.
TESTS FOR THE LEGALITY OF A STRIKE:

1. Whether or not is has a lawful PURPOSE.


2. Whether or not is complies with the
PROCEDURAL REQUIREMENTS OF THE
LAW, to wit
- notice of strike
- 30/15-day cooling-off period
- strike vote
- 7-day strike ban
3.
Whether or not it is executed through
LAWFUL MEANS.
-

NOTE: The 3 tests must concur.

EFFECT OF GOOD FAITH OF STRIKERS


ON LEGALITY OF STRIKE:
- A strike may be considered legal where the
union believed that the company committed
ULP and the circumstances warranted such
belief in good faith, although subsequently
such allegations of ULP are found out as not
true.
WHEN CAN THE SEC. OF LABOR ASSUME
JURISDICTION OVER A STRIKE?
1. there exists a labor dispute causing or likely
to cause a strike or lockout in a industry
indispensable to the national interest,
2. the Secretary of Labor and Employment
may assume jurisdiction and EITHER:
-

decide it or
certify the same to the Commission for
COMPULSORY ARBITRATION.

INDISPENSABLE INDUSTRY is based solely


upon the discretion of the Secretary of Labor
EFFECTS OF THE ASSUMPTION
JURISDICTION OF THE SECRETARY

OF

1. automatically enjoining the intended or


impending strike or lockout as specified in
the assumption or certification order.
2. if one has already taken place at the time of
assumption or certification, all striking or

locked out employees shall immediately


return to work and
3. the employer shall immediately resume
operations and readmit all workers under
the same terms and conditions prevailing
before the strike or lockout.
4. A motion for reconsideration does not
suspend the effects as the assumption order
is immediately executory.
TOTALITY DOCTRINE:
the culpability of an employers remarks
were to be evaluated not only on the basis of
their implicit
implications, but were to be
appraised against the background of and in
conjunction with collateral circumstances.
-

Under this doctrine expressions of


opinion by an employer which, though
innocent in themselves, frequently were held
to be culpable because
- of the circumstances under which they
were uttered,
- -the history of the particular employers
labor relations of anti-union bias or
- -because of their connection with an
established collateral plan of coercion or
interference. (Rothenberg)

ISSUES THAT THE SECRETARY OF LABOR


CAN RESOLVE WHEN HE ASSUMES
JURISDICTION OVER A LABOR DISPUTE:
1. Only issues submitted to the Secretary may
be resolved by him. (PAL vs. Sec. of
Labor, 23 January 1991)
2. Issues submitted to the Secretary for
resolution and such issues involved in the
labor dispute itself.
(St. Scholasticas
College vs. Torres, 29 June 1992)
3. Secretary of Labor may subsume pending
labor cases before Labor Arbiters which are
involved
in
the
dispute.
(Intl
Pharmaceuticals vs. Sec of Labor, 09
January 1992).
4. Power of Sec. of Labor is plenary and
discretionary. (St. Lukes Medical Center

vs. Torres, 29 June 1993; reiterated in PAL


vs. Confesor, 10 March 1994).
TESTS TO DETERMINE VALIDITY OF
STRIKES.
1. PURPOSE TEST - The strike must be due
to either
- -bargaining deadlock and/or
- -unfair labor practice.
2. MEANS EMPLOYED TEST- -A strike may
be legal at its inception but eventually be
declared illegal if the strike is accompanied
by violence which violence is widespread,
pervasive and adopted as a matter of policy
and not merely violence which is sporadic
which normally occur in a strike area.
3. IN ACCORDANCE WITH PROCEDURAL &
SUBSTANTIVE REQUIREMENTS OF LAW
In Case the strike is declared legal, are
the strikers entitled to strike duration pay?
IT DEPENDS.
1. If it is an Economic Strike
NO, the strikers are NOT entitled to strike
duration pay since the employer should get the
equivalent days work for what the pays his
employees.
2. If it is a ULP Strike
Would depend on the authority deciding
(discretionary).
GENERAL RULE:
- Strikers are not entitled to their wages
during the period of a strike, even if the
strike is legal.
EXCEPTIONS:
1.

Where the strikers voluntarily and


unconditionally offered to return to work,
but the employer refused to accept the
offer.
- -They are entitled to backwages from
the date the offer was made

-e.g. of Unconditioned offer: we will


return tomorrow and NOT willing to
return provided

2.
Where there is return-to-work and the
employees are discriminated against.
- -They are entitled to backwages
from the date of discrimination.
RULES IN STRIKES IN HOSPITALS
1. It shall be the duty of striking employees or
locking-out employer to provide and maintain an
effective skeletal workforce of medical and other
health personnel for the duration of the strike or
lock-out.
2. Secretary of Labor may immediately assume
jurisdiction within 24 hours from knowledge of
the occurrence of such strike or lock-out or
certify it to the Commission for compulsory
arbitration
GOCCs organized under the Corporation Code
with no original charter of its
own can declare a strike.
ART 264. PROHIBITED ACTIVITIES
1. NO labor organization or employer shall
declare a strike or lockout
- without first having bargained
collectively in accordance with Title
VII of this Book or
- without first having filed the notice
required in the preceding Article or
without the necessary strike or
lockout vote first having been
obtained and reported to the
Department.
NO strike or lockout shall be declared:
a. AFTER assumption of jurisdiction by
the President or the Secretary or
b. AFTER certification or submission of
the dispute to compulsory or
voluntary arbitration or
-DURING the pendency of cases
involving the same grounds for the strike or
lockout.
-

b) NO person all obstruct, impede or interfere


with OII by force, violence, coercion, threats or
intimidation FVCTI
- any
peaceful
picketing
by
employees
- during any labor controversy or
in the exercise of the right of selforganization or collective bargaining
or shall aid or abet such obstruction
or interference.
c) NO employer shall use or employ any
STRIKE-BREAKER
- nor shall any person be employed as a
strike-breaker.
d) NO public official or employee, including
officers and personnel of the New Armed Forces
of the Philippines of the Integrated National
Police, or armed persons,
- shall bring in, introduce or
escort
in any manner,
- any individual who seeks to replace
strikes in entering or leaving the
premises of a strike area, or work in
place of the strikers.
- The police force shall keep out of
the picket lines unless actual
violence or other criminal acts occur
therein:
Provided, That nothing herein shall be
interpreted to prevent any public officers from
taking any measure necessary to:
- maintain peace and order,
- protect life and property, and/or
- enforce the law and legal order.
e) NO person engaged in picketing shall
- commit any act of violence, coercion
or intimidation or
- obstruct the free ingress to or
egress
from
the
employers
premises for lawful purposes, or
- obstruct public thoroughfares.

RULES
WORKERS:

ON

REINSTATEMENT

OF

GENERAL RULE
Striking
employees are entitled to reinstatement,
regardless of whether or not the strike was the
consequences of the employers ULP
REASON:
because while out of
strike, the strikers are not considered to have
abandoned their employment, but rather have
only ceased from their labor.
- -The declaration of a strike is NOT a
renunciation of employment relation.
EXCEPTIONS: The following strikers are
NOT entitled to reinstatement:
1. union officers who knowingly
participates in an illegal strike;
and
2. any striker/union member who
knowingly participate in the
commission of illegal acts during
the strike.

applies only to economic strike

ART 266. ARREST AND DETENTION


General rule is that a police officer cannot
arrest or detain a union member for union
activities without previous consultations with the
Secretary of Labor except on grounds of:
a. national security
b. public peace
c. commission of a crime
BOOK SIX
POST EMPLOYMENT
TITLE I
TERMINATION
OF
EMPLOYMENT
ART 279. SECURITY OF TENURE
SECURITY OF TENURE is the constitutional
right granted the employee, that the employer
shall not terminate the services of an employee
except for just cause or when authorized by law.

ART 265. IMPROVED OFFER BALLOTING


IMPROVED
OFFER
BALLOTING:
a
referendum conducted by the NCMB on or
before the 30th day of the strike, for the purpose
of determining whether or not the improved offer
of the union is acceptable to the union members.
- applies only to economic strikes (bargaining
deadlock)
PURPOSE: to ascertain the real sentiment
of the silent majority of the union members
on strike.
REDUCED OFFER BALLOTTING
-

a referendum conducted by the NCMB,


for the purpose of determining whether or
not the reduced offer of the union is
acceptable to the board of directors, trustees
or partners.

An employee that has been dismissed illegally is


entitled to:
a. Reinstatement
b. Backwages

ART 280. REGULAR


EMPLOYMENT

AND

CASUAL

REGULAR EMPLOYMENT- One wherein an


employee is engaged to perform activities which
are usually necessary or desirable in the usual
business or trade of the employer.
TEMPORARY EMPLOYMENT-One wherein
an employee is engaged to work on a specific
project or undertaking which is usually
necessary or desirable in the usual business or

trade of the employer, the completion of which


has been determined at the time of the
agreement of the employee.

SEASONAL EMPLOYMENT-One wherein


an employee is engaged to work during a
particular season on an activity that is
usually necessary or desirable in the usual
business or trade of the employer.

PROBATIONARY
PERIOD
OF
EMPLOYMENT - the period needed to
determine the fitness for the job, i .e., the
time needed to learn the job.
It is period during which the employer
may determine if the employee is qualified for
possible inclusion in the regular force.
NOTE:The standard which the probationary
employee is to meet must be made known by
the employer to the employee at the time of the
engagement.
Probationary employees may be terminated for
the same causes as a regular employee, except
that there is an additional ground failure to
meet the standard.
Is it necessary that probationary employment
be for a period of 6 months?
No. Provided that the following
requisites concur:
1. it is done before the lapse of 6
months;
2.employee must be advised of such extension;
3. employee must agree.
EFFECT IF PROBATIONARY EMPLOYEE IS
ALLOWED TO WORK BEYOND 6 MONTHS:
If the probationary employee is allowed
to work beyond the period of 6 months or the
agreed probationary period, said employee
become a regular employee by operation of law.
Under the Labor Code, an employee
who is allowed to work after a probationary
period shall be considered a regular employee.
(Art. 281.)
ART. 282. TERMINATION BY EMPOYER

JUST CAUSES:
1. Serious misconduct or willful disobedience
by the employee of the lawful orders of his
employer or representative in connection
with his work;
2. Gross and habitual neglect by the employee
of his duties;
3. Fraud or willful breach by the employee of
the trust reposed in him by his employer or
duly organized representative;
4. Commission of a crime or offense by the
employee against the person of his
employer or any immediate member of his
family or his duly authorized representative;
and
5. Other causes analogous to the following:
ART. 283- 284
AUTHORIZED CAUSES OF TERMINATION
BY THE EMPLOYER:
1. The installation of labor-saving devices
(automation)
2. Redundancy (superfluity in the performance
of a particular work)
3. Redundancy to prevent losses (there is
excess of employees and employer wants to
prevent financial losses)
4. The closing or cessation of operation of the
establishment or undertaking UNLESS the
closing is for the purpose of circumventing
the provisions of the Labor Code.
5. Illness
a. If illness is incurable within 6 months
and is
b. deleterious to his health or his coemployees.
c. certification from public heath officer
that illness is incurable within 6
months.

STANDARDS
UNDER
EMPLOYER MAY RETRENCH:

WHICH

AN

1. Losses expected should be imminent


substantial.

and

2.It must be reasonably necessary and likely to


effectively prevent the expected losses
3. Alleged losses if already incurred, and the
expected imminent losses sought to be
forestalled, must be proved by sufficient and
convincing evidence.
ART. 285. TERMINATION BY EMPLOYEE
TERMINATION BY THE EMPLOYEE
An employee may terminate WITHOUT
JUST
CAUSE
the
employee-employer
relationship by serving a WRITTEN NOTICE on
the employer at least one month in advance. .
The employer upon whom no such
notice was served may hold the employee liable
for damages.
An employee may put an end to
establish WITHOUT SERVING ANY NOTICE on
the employer for any of the following just
causes:
1. Serious insult by the employer or his
representative on the hour and person of the
employee;
2. Inhuman
and
unbearable
treatment
accorded the employee by the employer or
his representative;
3. Commission of a crime or offense by the
employer or his representative against the
person of the employee or any of the
immediate members of his family; and
4. Other causes analogous to any of the
foregoing.
SEPARATION PAY
In case of termination due to
a) THE INSTALLATION OF LABOR-SAVING
DEVICES OF
b) REDUNDANCY,
- the worker affected thereby shall be entitled
to a separation pay equivalent to at least
one (1) month pay or to at least one (1)
month pay for every year of service,
whichever is higher.

c) RETRENCHMENT TO PREVENT LOSSES


and CLOSURES OR CESSATION OF
OPERATIONS (NOT due to serious
business losses or financial reverses)
- The separation pay shall be equivalent to
one (1) month pay or at least month pay
for every year of service, whichever is
higher.
d) In the case of ILLNESS
- separation pay equivalent to at least one
month salary or to month salary for every
year of service, whichever is greater, a
fraction of at least 6 months shall be
considered one (1) whole year.
NOTE: If CLOSURE is due to severe financial
losses, it is still debatable whether or not
separation pay should be given.
- I f you are able to prove that such portion of
capital (10%) investment has been impaired,
the employer should be exempt for the
payment of separation pay.
GUIDELINES TO DETERMINE THE
VALIDITY OF TERMINATION:
1. Gravity of the offence
2. Position occupied by the employee
3. Degree of damage to the employer
4. Previous infractions of the same offense
5. Length of service
ART 287. RETIREMENT
RETIREMENT AGE -The age of retirement is
that specified in the CBA or in the employment
contract. If it is not specified,
1.
60-65 -retirement is optional
but the employee must have
served at least 5 years ;
2.

65-compulsory retirement age


(no need for 5 years of
service)

BENEFITS- A retiree is entitled to a


retirement pay equivalent at least month
salary for every year of service, a fraction of at
least six (6) months being considered as one
whole year.

Unless the parties provide for broader


inclusions, the term one half (1/2) month salary
shall mean:
15 days plus 1/12 of the 13 th month
pay and
the cash equivalent of NOT more
than 5 days of service incentive
leaves.
(22.5 days per year of service)
NOTE: Exempted from the payment
of
retirement pay are retail, service and agricultural
establishments or operations employing NOT
more than ten (10) employees or workers.

1. ACTUAL OR PHYSICAL REINSTATEMENT


-the employee shall be admitted back to
work;
2.

PAYROLL REINSTATEMENT
- the employee is merely reinstated in
the payroll.
PERIOD COVERED BY THE PAYMENT OF
BACKWAGES: Backwages shall cover the
period from the date of dismissal of the
employee up to the date of actual
reinstatement.

BOOK SEVEN
TRANSITORY AND FINAL PROVISIONS

SECURITY OF TENURE: An employer


CANNOT terminate the services of an employee
EXCEPT for a just cause or when authorized by
law.

TITLE II
PRESCRIPTION OF OFFENSES AND CLAIMS

REQUIREMENTS OF DUE PROCESS


BEFORE AN EMPLOYEE CAN BE REMOVED:

ART. 291. MONEY CLAIMS

1. written notice to apprise the employee of the


particular acts or omission for which his
dismissal is sought and is hereby
considered as the proper charge;
2. ample opportunity to be employee to be
heard and if the employee so decides, with
the assistance of counsel; and
3. written notice informing the employee of the
employers decision to dismiss him.

PERIODS OF PRESCRIPTION
A. MONEY CLAIMS-The prescriptive period is
3 years from the accrual of the cause of
action.
B. ULP -The prescriptive period of filing a case
for ULP is 1 year from the accrual of the
cause of action.
ILLEGAL DISMISSAL
The prescriptive period of filing a case
for illegal dismissal is 4 years from the accrual of
the cause of action. (Art. 1146)
NOTE: The period of prescription mentioned
under Article 281, now Article 292, of the Labor
Code, refers to and is limited to money claims,
all other cases of injury to rights of a
workingman being governed by the Civil Code.
Hence, reinstatement prescribes in 4 years.
POST- EMPLOYMENT
FORMS OF REINSTATEMENT:

Under
the
so-called
WENPHIL
DOCTRINE if just or authorized cause exist but
the affected employees right to due process has
been violated, the dismissal is valid but the
employee is entitled to damages by way of
indemnification for the violation of the right.
On Jan. 27, 2000, the SC in the case of
SERRANO vs. ISETANN et. al. Disregarded
this WENPHIL DOCTRINE and ruled that if the
employees right to due process is violated, his
dismissal becomes illegal regardless of the
existence of a just and authorized cause.
REINSTATEMENT
- Restoration of the
employee to state from which one has been
removed or separated without loss of seniority
rights and other privileges.

WHAT HAPPENS IF THERE IS AN ORDER


OF REINSTATEMENT BUT THE POSITION IS
NO LONGER AVAILABLE? If the position
previously occupied by the employee is no
longer available at the time of reinstatement, he
should be given a substantially equivalent
position.
If THERE IS NO SUBSTANTIALLY
EQUIVALENT POSITION: If no substantially
equivalent position is available, reinstatement
should not be ordered because that would in
effect compel the employer to do the impossible.
In such a situation, the employee should merely
be given separation pay of the one month salary
for every year of service (1:1).
CIRCUMSTANCES WHEN COMPANY MAY
NOT REINSTATE DESPITE ORDER OF
REINSTATEMENT
1. Transfer of business ownership;There
is no law requiring a purchasing corporation to
absorb the employees of the selling corporation.
A fortiori, reinstatement of unjustly dismissed
employees CANNOT be enforced against the
new owner UNLESS there is an express
agreement on the assumption of liabilities by
the purchasing corporation.
2. When reinstatement is rendered impossible
due to the abolition of the position;
3. When the business has closed down;
4. Physical incapacity of employee
5. Doctrine of Strained Relations-When the
employer can no longer trust the employee
and vice-versa, reinstatement could not
effectively serve as a remedy. Applies only
to positions which require trust and
confidence; or
Under the circumstances where the
employment relationship has become so
strained to preclude a harmonious working
relationship, and that all hopes at reconciliation
are nil after reinstatement, it would be more
beneficial to accord the employee backwages
and separation pay.

BACKWAGES-Relief given to an employee to


compensate him for lost earnings during the
period of his dismissal.
How computed: Under existing law,
backwages is computed from the time of the
illegal dismissal up to time of actual
reinstatement.

WHAT
ARE
INCLUDED
IN
COMPUTATION OF BACKWAGES

THE

1. transportation and emergency allowances


2. vacation or service incentive leave and sick
leave
3. 13th month pay.
However, facilities such as uniforms, shoes,
helmets and ponchos should NOT be included
in the computation of backwages.
REASON: said items are given free, to
be used only during official tour of duty not for
private or personal use.
CIRCUMSTANCES THAT PREVENT AWARD
OF BACKWAGES:
1.
2.
3.
4.
5.
6.

death of the employee


physical and mental incapacity
business reverses
closure of business
reinstatement of dismissed employee
confinement in jail
SPECIAL LAWS
SOCIAL SECURITY SYSTEM

COVERAGE:
Compulsory upon all employees not
over 60 years of age and their employers
In case of domestic helpers, their
monthly income shall not be less than one
thousand pesos
Any benefit already earned by the
employees under private benefit plans existing
at the time of the approval of the Act shall not be
discontinued, reduced or otherwise impaired and
shall continue to remain under the employers

management unless there is an existing


agreement to the contrary
Filipinos recruited by foreign based
employers for employment abroad may be
covered by the SSS on a voluntary basis
Compulsory upon such self- employed
persons as may be determined by the
Commission including but not limited to the
following:
1. all self employed professionals
2. partners and single proprietors
3. actors and actresses directors
4. professional
athletes,
coaches,
trainers
5. individual farmers and fishermen
EFFECTIVE DATE OF COVERAGE:
Shall take effect on the first day
of the operation with respect to the
employer and that of the employee on
the day of his employment
DEPENDENTS:
1. the legal spouse entitled by law to
receive support from the member
2. the legitimate, legitimated or legally
adopted and illegitimate child who is
unmarried, not gainfully employed
and has not reached 21 years of
age or if 21 years of age, he is
congenitally incapacitated or while
still a minor has been permanently
incapacitated and incapable of selfsupport, physically and mentally and
3. the parent who is receiving regular
support from the member
EMPLOYER

Government and any of its political


subdivisions,
branches
or
instrumentalities, including corporations
owned or controlled by the Government
Self- employed person shall be both the
employer and employee at the same
time.
EMPLOYEE
Any person who performs
services for an employer in which either
or both mental and physical efforts are
used and who receives compensation
for such services, where there is an
employer- employee relationship.
BENEFICIARIES
The dependent spouse until he or she
remarries, the dependent legitimate,
legitimated or legally adopted and
illegitimate children who shall be the
primary beneficiaries of the member,
PROVIDED
that
the
dependent
illegitimate children shall be entitled to
50% of the share of the legitimate,
legitimated or legally adopted children
In the absence
of the
legitimated, legally adopted or legitimate
children, illegitimate children shall be
entitled to 100% of the benefits.
In their absence, the dependent
parents who shall be the secondary
beneficiaries.
In the absence of all of the
foregoing, any person designated by the
covered employee as secondary
beneficiary
MEDICARE

Any person natural or juridical,


domestic or foreign, who carries on in
the Philippines, any trade business,

COVERAGE:

industry undertaking or activity of any


kind and uses the services of another
person who is under his orders as
regards the employment except the

All SSS members are covered under the


Medicare program. Total permanent disability,
unemployed
partial
permanent
disability,
retirement pensioners and survivors of

deceased members of the SSS and their


dependents are also entitled to medical care
benefits without need of additional contributions
PERIOD OF ENTITLEMENT
The member or pensioner is entitled to a
maximum of 45 days confinement in a hospital
in a given calendar year. His dependents are
given another set of 45 days to be shared
among themselves. Unused benefits cannot be
carried over to the succeeding year.
GOVERNMENT SERVICE INSURANCE
SYSTEM
COMPULSORY MEMBERSHIP
Compulsory for all employees receiving
compensation who have not reached the
compulsory retirement age, irrespective of
employment status, except members of the
Armed Forces and the PNP, subject to the
condition that they must settle first their financial
obligations with the GSIS and contractuals who
have no employer and employee relationship
with the agencies they serve.
Except for the members of the Judiciary
and constitutional commissions who shall have
life insurance only, all members of the GSIS
shall have life insurance, retirement and all other
social security protection such as disability,
survivorship, separation and unemployment
benefits.
COMPUTATION OF SERVICE
The computation of service for the
purpose of determining the amount of benefits
payable shall be from the date of the original
appointment/ election including
periods of
service at different times under the authority of
the Republic of the Philippines and those that
may be prescribed by the GSIS in coordination
with the Civil Service Commission.
All service credited for retirement,
resignation
or
separation
for
which

corresponding benefits have been awarded shall


be excluded in the computation of service in
case of reinstatement in the service of an
employer and subsequent retirement or
separation which is compensable.
UNEMPLOYMENT OR INVOLUNTARY
SEPARATION BENEFITS
Monthly cash payments equivalent to
50% of the average monthly compensation shall
be paid to a permanent employee who is
involuntarily separated from the service due to
the abolition of his office or position usually
resulting from reorganization.
RETIREMENT BENEFITS: CONDITIONS
FOR ENTITLEMENT
1. Member has rendered at least 15
years of service
2. He is at least 60 years of age at the
time of retirement
3. He is not receiving a monthly
pension benefit from permanent
total disability
PERMANENT DISABILITY BENEFITS
Monthly income benefit for life equal to
the basic monthly pension effective from the
date of the disability. Provided:
1. He is in the service at the time of the
disability
2. If separated from service, he has
paid
at
least
36
monthly
contributions within the 5 year
period immediately preceding the
disability or has paid a total of at
least 180 monthly contributions prior
to the disability
Unless the member has reached the
minimum retirement age, disability benefits shall
be SUSPENDED when:
1. he is reemployed

2. he recovers from his


disability as determined by
the GSIS, whose decision
shall be final and binding
3. he fails to present himself
for medical examination
when required by the GSIS
TEMPORARY DISABILITY BENEFITS
75% of the current daily compensation
for each day or fraction thereof of temporary
disability benefit not exceeding 120 days in one
calendar year after exhausting all sick leave
credits and collective bargaining agreement sick
leave benefits. PROVIDED:
1. he is in service at the time of his
disability
2. if separated, he has rendered at
least 3 years of service and has
paid at least 6 monthly contributions
in the 12- month period immediately
preceding the disability
HOWEVER:
A
member
cannot
enjoy
temporary total disability benefit and sick leave
pay simultaneously.
In no case shall it be less than
70 pesos a day.
SURVIVORSHIP BENEFITS:
Upon the death of a member, the
primary beneficiaries shall be entitled to:
survivorship pension, PROVIDED:
a. member was in service at the time of his
death
b. if separated from service, has rendered
at least 3 years of service and paid 36
monthly contributions with the 5- year
period immediately preceding his death
or has paid a total of at least 180
monthly contributions.
LIFE INSURANCE BENEFITS

All employees except members of the


AFP and the PNP shall be compulsorily covered
with life insurance.
PRESCRIPTION OF CLAIMS
Claims for benefits under the Act except
for life and retirement shall prescribe after 4
years from the date of the contingency.
JURISDICTION
GSIS shall have the exclusive and
original jurisdiction to settle any dispute arising
under the Act and any other laws administered
by the GSIS.
RA 8042: "MIGRANT WORKERS AND
OVERSEAS FILIPINOS ACT 0F 1995"
Approved on 07 June 1995 and took
effect on 15 July 1995. As indicated in its title,
the law institutes the policies of overseas
employment and establishes a higher standard
of protection and promotion of the welfare of
migrant workers, their families, and of overseas
Filipinos in distress.
GUARANTEE OF PROTECTION FOR
OVERSEAS WORKERS
The State shall deploy overseas Filipino
workers only in countries where the rights of
Filipino migrant workers are protected. The
government recognizes any of the following as a
guarantee for the protection of the receiving
country of the rights of overseas Filipino
workers:
1. It has existing labor and social laws
protecting the rights of migrant
workers;
2. It is a signatory to multilateral
conventions,
declarations
or
resolutions relating to the protection
of migrant workers;
3. It has concluded a bilateral
agreement or arrangement with the

government protecting the rights of


overseas Filipino workers; and,
4. It is taking positive, concrete
measures to protect the rights of
migrant workers.
JURISDICTION
- NLRC
RA 8042 has transferred to the NLRC
the jurisdiction over employer-employee cases
1. Money Claims.-, the Labor Arbiters
of the National Labor Relations Commission
(NLRC) shall have the original and exclusive
jurisdiction to hear and decide, the claims arising
out of an employer-employee relationship or by
virtue of any law or contract involving Filipino
workers for overseas deployment including
claims for actual, moral, exemplary and other
forms of damages.
LIABILITIES
The liability of the principal/employer
and the recruitment/placement agency for any
and all claims under this section shall be joint
and several. The performance bond to be filed
by the recruitment/placement agency, as
provided by law, shall be answerable for all
money claims, or damages that may be awarded
to the workers. If the recruitment/placement
agency is a juridical being, the corporate officers
and directors and partners as the case may be,
shall themselves be jointly and solidarily liable
with the corporation or partnership for the
aforesaid claims and damages.

1. all cases which are administrative in


character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entities; and,
2. disciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting
partners and Filipino migrant workers.
Three Month's Pay Under RA 8042
The date the employment termination
occured is material. On or after 15 July 1995,
the law to apply is RA 8042.
Under Section 10 of RA 8042, a worker
dismissed from overseas employment without
just, valid or authorized cause as defined by law
or contract, is entitled to the full reimbursement
of his placement fee with interest at twelve
percent (12%) per annum, plus his salary for the
unexpired portion of his employment contract or
for three (3) months for every year of the
unexpired term, whichever is LESS.
VENUE
A criminal action arising from illegal
recruitment shall be filed with the RTC of the
province or city where the offense was
committed or where the offended party actually
resides at the time of the commission of the
offense. The court where the criminal action is
first filed shall acquire jurisdiction to the
exclusion of other courts.
PRESCRIPTIVE PERIODS

Such liabilities shall continue during the entire


period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in a
foreign country of the said contract.
POEA

Illegal recruitment cases under this Act


shall prescribe in five (5) years; provided,
however, That illegal recruitment cases involving
economic sabotage as defined herein shall
prescribe in twenty (20) years. (Sec. 12, R.A.
8042)

The POEA retains original and exclusive


jurisdiction to hear and decide:

PROHIBITED ACTS IN THE RECRUITMENT


AND PLACEMENT OF WORKERS UNDER

THE LABOR CODE ARE RETAINED UNDER


THE MIGRANT WORKERS ACT WITH THE
ADDITION OF THE FOLLOWING:
1. Failure to deploy employee without valid
reason
2. Failure to reimburse expenses incurred in
connection with his documentation and
processing in cases that deployment did not
take place

organization
employees.

1.
2.
3.
4.

file

THE

government
RIGHT

TO

REGISTRATION

DFA
DOLE
POEA
OWWA

Government
employees
organization shall register with the Civil
Service AND the Department of Labor
and Employment .

GUIDELINES ON THE RIGHT TO ORGANIZE


OF GOVERNMENT EMPLOYEES (E. O. 180)
COVERAGE
-Applies to all employees of all
branches, subdivisions, instrumentalities and
agencies of the government, including
government- owned or controlled corporations
WITH original charters
All government employees can form,
join or assist employees organizations of their
own choosing for the furtherance and protection
of their interest.
They can also form in
conjunction with appropriate
government
authorities, labor- management committees,
works councils and other forms of workers
participation schemes to achieve the same
objectives.
High- level employees whose functions
are normally considered as policy- making or
managerial or whose duties are of a highly
confidential nature shall not be eligible to join the

OF

and

1. Government employees shall not be


discriminated against in respect of
their employment by reason of their
membership
in
employees
organization or participation in the
normal activities of the organization.
2. Government authorities shall not
interfere in the establishment,
functioning or administration of
government
employees
organization through acts designed
to place such organization under the
control of the government authority

Repatriation fund
Loan Guaranty fund
Legal Assistance fund
Congressional Migrant Workers Scholarship
fund

GOVERNMENT AGENCIES MOBILIZED:

rank

PROTECTION
ORGANIZE

DIFFERENT FUNDS CREATED UNDER THE


LAW:
1.
2.
3.
4.

of

13TH MONTH PAY LAW


(P.D. 851)
WHO ARE EXCLUDED FROM
COVERAGE:
1.
2.
3.
4.

government employees
employees already receiving 13th month pay
household helpers
employees paid purely on commission basis

WHAT CAN BE CONSIDERED AS 13TH


MONTH PAY:
1. Christmas bonus
2. Midyear bonuses
3. Cash bonuses

X. SOCIAL WELFARE LEGISLATION


COMPARATIVE CHART
SSS (RA 1161))

STATEMENT
OF POLICIES

EMPLOYER

GSIS (RA 8291

ECC (PD 626)

To establish, develop, promote and


perfect a sound and viable tax exempt
social security system suitable to the
needs of the people which shall provide
employees and their beneficiaries
protection against the hazards of
disability, sickness, old age, death and
other contingencies resulting in loss of
income or financial burden.
Employers in private sector

All government agencies


and instrumentalities ,
including GOCCs

All employers (private or public

1. Employees not over 60 years of age


and their employers.
2. 2. Domestic helpers whose
monthly income is not less than
P1,000.00.
3. Self-employed persons as
determined by the Commission : a)
self-employed professionals; b)
partners and single proprietors; c)
actors and actresses, directors, etc;
d) professional athletes, coaches,
trainers, etc. and e) individual
farmers and fishermen.

1. Compulsory for all


employees receiving
compensation who have
not reached compulsory
retirement age
irrespective of
employment status.

COVERAGE
COMPULSOR
Y

VOLUNTARY

1. Spouses who devote full time to


managing of household and family
affairs, UNLESS they are also
engaged in other vocation or
employment which is subject to
MANDATORY coverage.
2. 2. Filipinos recruited by foreignbased employers for employment
abroad.
3. Employees separated from
employment by paying TOTAL
contribution (meaning : both

*Including barangay and


sanggunian officials

Any person compulsorily c


GSIS or SSS
Any person employed as c
emergency, temporary, sub
contractual

employer and employees share)


BYARRANGEME
NT

EXEMPTED
EMPLOYMEN
T

BENEFITS

Any foreign government, international


organization or their wholly owned
instrumentality MAT enter into
agreement for the inclusion of their
employees EXCEPT those covered by
their own respective civil service
retirement systems.
1. purely CASUAL and not for purpose
or occupation of the employer.
2. Performed in an alien vessel by an
employee if he is employed when
such vessel is outside of the
Philippines.
3. By the government of the
Philippines or instrumentality or
agent thereof.
4. Foreign government of international
organization.

1.
2.
3.
4.
5.
6.
7.
8.

1. AFP
2. PNP
3. Contractuals who have
no employer and
employee relationship
* Members of the judiciary
and the Constitutional
Commissions life
insurance only

Monthly pension
Dependents pension
Retirement
Death Benefits
Permanent Disability benefits
Funeral
Sickness
Maternity

1.
2.
3.
4.
5.
6.

Life Insurance
Retirement
Disability
Survivorship
Separation
Unemployment

* Life insurance for the members o


judiciary and constitutional commis

BENEFICIARIES
PRIMARY

1. Dependent spouse until remarriage


2. Dependent legitimate, legitimated or legally
adopted and illegitimate children

1. Legal, dependent spouse until


2. Dependent children defines a
legitimate, legitimated, legally a
child, including the illegitimate
is unmarried, not gainfully emp
over the age of majority, or is o
age of majority but is incapacit
incapable of self-support.

SECONDARY

1. In the absence of primary beneficiaries, dependent

1. Dependent parents

parents

2. Legitimate descendants subjec


restrictions on dependent child
legitimate descendants

CONTRIBUTIONS

1. Employers contributions
2. Employees contribution
3. Government contribution

1. Employers contribution
2. Employees contribution

MODE
OF COLLECTION

1. For those with employees Employee


contribution shall be deducted by the employees
based on an approved schedule. Employer shall
remit BOTH EMPLOYEE AND EMPLOYER
contribution to the system.
2. For self-employed Self-employed shall pay
BOTH EMPLOYER AND EMPLOYEE
contributions to the system.
3. For government contribution remitted to the SSS
within the first 10 days of each calendar month
following the month got which they are applicable.

1. The employer shall deduct each


from the salary or compensation of
employee the contribution paymen
Employer shall remit to the system
days the Employer-Employee contr

* Contributions under this Act in case where an


employer refuses or neglects to pay the same shall be
collected by the SS in the same manner as taxes are
made collectable under the National Internal Revenue
Code.

PENALTIES

ENTITLED TO
RETIREMENT BENEFITS

1. False statement or misrepresentation as to any


compensation as to any compensation paid or
received or whoever makes or causes to be made
any false statement of a material fact in any claim
for any benefit payable under this Act Art. 172 of
the RPC (falsification be private individuals and
falsified documents)
2. Obtaining or receiving any money or check
without being entitled thereto with intent to
defraud any covered employee, employer or SSS
fine of P5,000.00 to P20,000.00 and
imprisonment of 6 years and 1 day to 12 years or
both.
3. Buys, sells, offers for sale, uses, transfers, takes
or gives in exchange, or pledges or give in pledge,
except as authorized in this Act fine of
P5,000.00 to P20,000.00 or imprisonment of 6
years and 1 day to 12 years or both.
4. Makes, alters, forges or counterfeits any stamps,
coupon, ticket or other device prescribed by the
Commission, or uses, sells, lends or in his
possession any such altered, forged, or
counterfeited materials, or makes, uses or sells or
has in his possession any materials used in the
manufacture of such stamp, coupon, ticket or
book fine of P5,000.00 to P20,000.00 or
imprisonment of 6 years and 1 day to 12 years or
both.
5. Fails or refuses to comply with the provisions
promulgated by the Commission fine of
P5,000.00 ot P20,000.00 or imprisonment of 6
years and 1 day to 12 years or both.
6. Misappropriation of funds penalties under Article
217 of the RPC.
7. Failure to remit the said deductions to the SSS
within 30 days from date they become due
Article 315 of the RPC (Estafa).
Member has reached age of 60 or 65.

1. Participating directly or indirect


commission of fraud, collusion,
falsification or misrepresentatio
transaction of the GSIS Articl
the RPC (Falsification by priva
individuals and use of falsified
documents)
2. Receiving money or check invo
provision of this act, without be
with intent to defraud fine of P
to P20,000.0 or imprisonment o
and 1 day to 12 years or both.
3. Refusing to comply with the pro
this Act fine of P5,000.00 to P
or imprisonment of 6 years and
12 years or both.
4. Failure to include in the annual
corresponding employer contr
finance officers, treasurers, cas
6 months and 1 day to 6 yea
imprisonment and a fine of P3,
P6,000.00 and absolute perpet
disqualification from holding of
5. Misappropriation or taking of fu
property of the GSIS for purpos
than authorized in this Act Ar
RPC (Malversation of public fu
properties).
6. For head of officers who fails o
payment or remittance of GSIS
within 30 days from the time its
demandable imprisonment o
5 years and fine of P10,000.00
P20,000.00 and aboslute perpe
disqualification.

OPTIONAL. Member meets the ff


1. has worked for at least 15 year
2. Is at least 60 years of age at tim
retirement, and
3. Is not receiving monthly pensio
from permanent total disability

COMPULSORY. Member is 65 yea


least 15 years of service (if service
than 15 years, he may be allowed t

in accordance with Civil Service Ru


Regulations.)
DISABILITIES DEEMED
PERMANENT TOTAL

DISABILITIES DEEMED
PERMANENT PARTIAL

1.
2.
3.
4.

Complete loss of sight in both eyes.


Loss of two limbs at or above the ankle or wrist.
Permanent complete paralysis of two limbs.
Brain injury resulting in incurable imbecility or
insanity.
5. Other cases determined by SSS.

Complete and permanent loss of use of a digit,


limb, ear (or both ears), hearing in one or both ears, or
sight in one eye.

SYSTEM EXCUSED FROM


LIABILITY

Complete and permanent loss o


limb, ear (or both ears), hearing in
both ears, or sight in one eye.

For permanent disability in the ff. c


1. grave misconduct
2. notorious negligence
3. willful intent to kill self or anoth
4. habitual intoxication

AMOUNT OF FUNERAL
BENEFITS

P12,000.00

WHO PAYS
REMITTANCES?

Employer and Employee

COVERAGE

Occurrence of contingency whether or not workconnected.

NOTICE REQUIREMENT

EFFECT OF ERRONEOUS

1. Complete loss of sight in both e


2. Loss of two limbs at or above t
wrist.
3. Permanent complete paralysis
limbs.
4. Brain injury resulting in incurab
imbecility or insanity
5. Other cases determined by GS

P12,000.00 (to be raised to P18,00


year 2002)
Employer And Employee

Occurrence of contingency whe


work-connected.

Employee to notify employer within 5 days from


injury or illness(unless no longer necessary under
the exceptions)
Employer to notify SSS within 5 days from notice.

Legal And eligible claimant may sti

PAYMENT
DISPUTE SETTLEMENT

benefits, without prejudice to right o


sue improper claimant.
1.
2.
3.
4.

File claim with SSS.


Appeal to Social Security Commission.
Appeal to CA.
Appeal to SC

1. File claim with GSIS.


2. Appeal to GSIS Board.
3. Appeal to CA.
4. Appeal to SC.

* Appeals shall be governed by Ru


45 of the 1997 Rules of Civil Proce
EXCLUSIVENESS OF
BENEFITS

May Apply for same benefits in EC, if in private


sector.
May not receive benefits for same contingency
under GSIS offers more (he may then receive
deficiency)

PRESCRIPTIVE PERIODS

10 years from the time the right of action accrues.

Whenever other laws provide s


benefits for the same contingen
members who qualifies has op
choose. If benefits chosen are
under GSIS, he may get the di
However, with respect to workillness and injuries, he may als
in full under ECC, applying the
Sugar Central vs CA case.

4 years from date of contingenc


life and retirement benefits

XI. CHART ON JURISDICTION


Bureau Of Labor Relations
1. Inter-union dispute

Grievance Machinery
1. Interpretation or
implementation of the CBA

2. Intra-union dispute
3. Labor Management Relations
except
interpretation
or
implementation of the CBA

2. Interpretation or enforcement
of company personnel
policies

Voluntary Arbitration
1. Unresolved Grievances
2. Agreement on other labor
dispute(Bargaining deadlock,
ULP)

Labo
(UT
1. ULP

2. Terminati

3. Reinstate
involving

4. Claims of
from E-E

5. Cases inv
acts in str

6. Claims ar
relationsh
domestic
amount e

7. Migrant W