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COURSE OUTLINE

LABOR LAW 2: LABOR RELATIONS
Prof. Augusto L. Villanueva
Labor Arbiter
AY-2014-2015 (2nd Semester)
Course Description
Labor Law II covers Labor Relations which regulates the relationship between the employees
and employer. In the Labor Code of the Philippines, it includes Book V (Articles 211 to 277) and
Book VI (Articles 278 to 287). The remaining Book VII (Transitory and Final Provisions) of the
Labor Code is likewise made part of this course.
Integrated in the course is the study of establishing an organized union and conducting mock
collective bargaining negotiations in order to immerse the students on the practical application of
the provisions of the Labor Code on labor relations.
Course Learning Objectives
At the end of this course, students will be able to:


Critically understand the provisions of the otherwise dynamic nature of the Labor
Code and related laws;
Equip them to prepare for the Bar Exams; and
Intelligently apply their knowledge of labor and employment law in the practice of
profession.

Course Text/Literature
1. 1987 Constitution of the Philippines
2. Labor Code of the Philippines, PD 442, as amended, and the Omnibus Rules
Implementing the Labor Code
3. Supreme Court Decisions (SCRA)
4. Special Laws related to labor relations
5. Policy Instructions, Department Orders (DOs), Executive Orders (EOs)
Suggested Textbooks
Labor Code of the Philippines
The 2011 NLRC Rules of Procedure
Azucena, Labor Code with Annotations, Volume II
Joselito Guianan Chan, The Labor Code of the Philippines Annotated, Volume II, Labor
Relations and Termination of Employment, 2009 Ed.
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Rule I. Strike (o). Article XVI 4. 257. Strike Breaker (r). Article XII General Provisions: Section 9. Labor Organization (g). Distinctions between Labor Relations and Labor Standards 3. Constitutional Basis of Labor Relations • • • • • • Social Justice and Human Rights: Section 3. Article II Bill of Rights: Sections 4. 11. 8. Book V. Agencies Implementing Labor Relations Law • • • • • NLRC: Article 213 Labor Arbiter: Article 217 Regional Office/Bureau of Labor Relations: Article 226 National Conciliation and Mediation Board: Executive Order 126. Internal Union Dispute (q). Certification Election – Articles 255. Collective Bargaining Unit. Voluntary Arbitrator (n). Rules to Implement the Labor Code. Series of 2003 (17 February 2003) Grievance Machinery and Voluntary Arbitration: Article 260 PART II Jurisdiction of Implementing Agencies Statutory Terms: Article 212 – Employer (e). Section 1(e).PART I Introduction to Labor Relations 1. Labor Dispute (l). 256. and Collective Bargaining Agreement 2 . Bargaining Representative ((j). and 258. Employee (f). Legitimate Labor Organization (h). Unfair Labor Practice (k). Article III The Civil Service Commission: Section 2 (3). and 16. Definition of Labor Relations 2. Article IX(B) National Economy and Patrimony: Sections 1 and 12. Strike Area (s). (5) and (6). Lockout (p). as amended by DO 40-03. Article XII Declaration of Principles and State Policies: Section 18. Company Union (i). Managerial Employee (m).

and Provincial Extension Units. Article 217 • • • • • • Original and Exclusive Jurisdiction of Labor Arbiter Original Jurisdictions of the Commission Exclusive Appellate Jurisdiction of the Commission Powers of the Commission. Article 233 3 . Article 230 13. Article 228 11. Article 220 3. Appearances and Fees. Article 215 Salaries. Article 222 5. Privileged Communication. Appeal. Article 224 7. Article 223 • • Grounds for Appeal Requisites for Perfection of Appeal 6. Article 214 Appointment and Qualifications. Article 229 12. National Labor Relations Commission. and Other Emoluments.A. Jurisdiction of the Labor Arbiters and the Commission. Article 226 9. Article 213 • • • Headquarters. Appointment of Bureau Personnel. Execution of Decisions. Article 227 10. The Bureau of Labor Relations 8. Indorsement of Cases to Labor Arbiters. Registry of Union and File of Collective Bargaining. or Awards. The National Labor Relations Commission 1. Benefits. Technical Rules Not Binding and Prior Resort to Amicable Settlement. Article 216 2. Branches. Bureau of Labor Relations. Compromise Agreements. Article 231 14. Article 218 Ocular Inspection. Article 219 Compulsory Arbitration. Article 225 B. Issuance of Subpoenas. Contempt Powers of the Secretary of Labor. Orders. Article 221 4.

Cost of Voluntary Arbitration and Voluntary Arbitrator’s Fee. National Conciliation and Mediation Board (NCMB) 19. Rules to Implement the Labor Code. Executive Order 126. Article 262 17. Grievance Machinery and Voluntary Arbitration. Article 261 16.C. Series of 2003 (17 February 2003) 4 . Article 262-B D. Article 260 15. Book V. as amended by DO 40-03. Section 1(e). Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators. Jurisdiction over Other Labor Disputes. Article 262-A 18. Procedure. Grievance Machinery and Voluntary Arbitration 14. Rule I.

GR 164652. (b). 5 . 21 January 1991 • Sonza v ABS-CBN Broadcasting Corp. 7 September 2001 • Singer Sewing Machine Company v Drilon. Sections 5(a). Rule I. 8 June 2007 • ABS-CBN Broadcasting Corporation v Marquez. 24 January 2000 • ABS-CBN Broadcasting Corp. GR 91307. 26 September 2006 • Brent School. Regular.PART III Kinds of Employment/Employee Classification 1. GR 100518. GR 1380051. GR 48494. Regular Employment. GR 114858-59. 5 February 1990 • Columbus Philippines Bus Corp. GR 155207. GR 164156. Articles 280 and 281 A. 13 August 2008 A. Book IV. Articles 280 and 75(d). and 6. v Zamora. Book VI) A. Inc. on such activity in which he is employed and his employment shall continue while such activity exists. 8 June 2007 • Orozco v The Fifth Division of the Honorable Court of Appeals. whether continuous or broken.. v Oberio. • Hacienda Fatima v National Federation of Sugarcane Workers Food and General Trade. Article 281 and Section 5. an employment is considered regular when an employee has rendered at least one (1) year.1 By nature of work. GR 168424. 396 SCRA 518 • Association of Trade Unions (AU) v Abella. Inc.2 By period of service. Rule I. v Nazareno. an employment is deemed regular when an employee is engaged to perform activities. 12 June 2005 • Consolidated Broadcasting System. 10 June 2004 as against Dumpit Murillo v CA. Casual Employment and Probationary Employment. Omnibus Rules. which are usually necessary or desirable to the business or trade of an employer EVEN if there is a written or oral agreement to the contrary. v NLRC. GR 167638.

GR 150660. Extension of Probationary Period relaxed by the Supreme Court • Mariwasa Manufacturing. GR 148738.. Labor Union. v Chrysler Phils. GR 121071. 31 July 1984 6 . Nature of Probationary Employment • Philippine Federation of Credit Cooperatives. v NLRC. Inc. v Leogardo. Repetitive Probationary Period • Villanueva v NLRC. Inc.3 By probationary employment. Exception to Probationary Period exceeding Six-Month Period • Buiser v Hon. Stipulation in Employment Contract fixing the period of Probationary Period • Innodata Phils. Statutory Definition of Probationary Employment. GR 63316. Corp. 473 SCRA 189 • Abesco Construction and Development Corp. 26 January 1989 f. 10 September 1998 g. v Ramirez. Computation of the Six-Month Probationary Period • Cals Poultry Supply Corp. 487 SCRA 9 A. GR 127448. 11 December 1998 c. 30 July 2002 d. 29 June 2004 e. v Roco.• Audion Electric Co. GR 74246. 308 SCRA 340 • Universal Robina Corporation v Catapang. a. an employee who is allowed to work after a probationary period (not to exceed six (6) months) shall be considered regular. 12 October 2006 h. Inc. v NLRC. Leogardo. Inc. Article 281 b. Application of Article 13 of the Civil Code in the Computation of Six-Month Probationary Period • Mitsubishi Motors Phil. v Quejada Lopez. GR 162839.

Section 4 (Probationary Period). No. The Magna Carta for Public School Teachers – Civil Service Eligibility. GR 58028. GR 82325. 26 September 1989 6. Article 280 not applicable 5. DO 10. 7 . Requirements for regularization of Private School Teachers • Chiang Kai Shek School v CA. Probationary Period of Apprentices Section 6(a). II. GR 114337. Probationary Period for Different Workers: 1. Articles 78 & 81 4. 18 April 1989 • Espiritu Santo Parochial School v NLRC. Brillantes. Series of 1997 • Nito Enterprises v NLRC. Probationary Period of Learners Not to exceed three (3) months. Implementing Rules as amended by Article 5. Article 75 3. Probationary Period of Teachers 1992 Manual of Regulations for Private Schools (Section 92). 29 September 1995 – effect of apprenticeship agreement not registered with DOLE 2. Rule I. Jose S. RA 4670 7. Book VI.i. Probationary Period of Handicapped Learners Impaired by age or physical and mental deficiency or injury. Probationary Period of Part-Time Employees Completion of the six(6)-month period for such number of hours or days – Acting DOLE Sec.

v NLRC. DO 19. GR 102973. 225 SCRA 582 f. v Ibañez (2008). Employees should be notified of their status as project employees only. 20 April 2006 d. 1st paragraph. Series of 1993. v Ramirez. Article 280. • Abesco Construction and Development Corp. Exception to Article 280. GR 114290. GR 167045. Inc. Indicators of Project Employment.A Nature of Project Employment – an employment has been fixed for a specific project or undertaking. GR 48494. nature of project employment b. a day certain. v Zamora. 9 September 1996 e. Series of 1993 • Cocomangas Hotel Beach Resort v Visca. • Caramol v NLRC. Section5(a). the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. DO 19. which was further amended by Article IV. Section 2. Implementing Rules and Regulations. as amended by Rule IV. duress or improper pressure. • Raycor Aircontrol Systems. 29 August 2008 c. a fixed-period employment. Inc.2. a. Consent must be knowingly and voluntarily and without force. 5 February 1990 8 . Project Employment. requisites • Brent School. GR 141168. Rule I. Definition and Nature of Project Employment • Hanjin Heavy Industries & Construction Co. The employment contract is only signed by the president and the manager but not the employee concerned. amending PO 20 (Guidelines Governing the Workers in the Construction Industry) 2.2. Book VI.

g.. Project not within the regular trade or business of the employer • Villa v NLRC. GR 178505. Absence of a provision in the contract of employment of specific project or undertaking • Price v Innodata Phils. v NLRC. 6 October 2004 i. 14 January 1998 9 ./Innodata Corp. Policy Instruction 20 a.. 30 September 2008 h. GR 125837. Classification of Work Pool 1. Work Pool in industry other than in construction business c. Project that is within the regular trade or business of the employer • Magcalas v NLRC. 13 March 1997 2. GR 120969. 22 January 1998 2. Elements before a project employee attains the status of a regular employee • Maraguinot. GR 116781. Project Employees 3. Application of Work Pool in the business of data encoding • Imbuido v NLRC. No notice that employees were appraised of the nature of employment. Non-project Employees 2. 5 September 1997 b. the specific projects or any phase thereof • Chua v CA. Jr. Regular Project Employees • Tomas Lao Construction v NLRC. GR 100333.B Work Pool Employment.C Two (2) Types of Project Employment 1. 31 March 2000 2. GR 114734. GR 117043.

Worker hired on a phase project can be dismissed on completion of such phase project and not coterminous with the completion of the whole project. Definition of Specific Project or Undertaking • Tucor Industries. Project-to-Project basis of employment • Sandoval Shipyard.d. GR 116572.g. GR 156146. GR 82973. Repeated rehiring of project-to-project employment (e.M. GR 113166. Engaged in contracting electrical services depending on the availability of projects or works • Cartagenas v Romago Electric Co. GRs L-65689 and 66119.. The absence of a definite duration for the projects leads to no other conclusion but that the employment is regular. 14 July 2008 h. Rehiring of the employees on a project-to-project basis does not ipso facto make their employment regular. 20 May 1991 e. Inc. v NLRC. GR 96608. v NLRC. Inc. 44 times) • Samson v NLRC. Consunji. v Chantengco. 8 September 2004 10 . GR 156748. Lack of evidence to prove that the employment is project. The length of service of project employees is not the controlling factor. 1 February 1996 k. Inc. GR 151227. GR 169353. Inc. termination of phase of a project. • Cioco v C. • Saberola v Suarez. 18 December 2000 l. 21 June 2007 g. Construction Corp. 31 May 1985 i. Inc. E. • PNOC-Energy Development Corp.. 13 April 2007 f. 15 September 1989 j. • D. v NLRC. • Olongapo Maintenance Services. v NLRC.

. 28 January 2003 • Abasolo v NLRC. Casual Employment. 29 November 2000 4. Co. v NLRC. • Kimberly Clark (Phils. GR 116781 3. DO 10. Repeated rehiring of casual employees makes them regular employees. GR 159343. Series of 1997 a. GR 118475. Rule I. 28 September 2007 n. Book VI. 15 August 2002 11 . GR 79869. Article 280. • Tan v Lagrama. Seasonal Employment. Section 5. GR 151228. Requisites in order that seasonal employment may be regular employment • Hacienda Fatima v National Federation of Sugarcane Workers-Food and General Trade. Casual employee needs no appointment paper to be a regular employee after one (1) year of service. Section 5(b). Employees were rehired on interval basis. Rule I. as amended by Article IV. Seasonal workers do not become regular employees even after one (1) year of service. 23 November 2007 b.) v Secretary of Labor. 5 September 1991 b. Seasonal workers become regular employees after one (1) year of service. • Mercado v NLRC. Book VI. GR 73806. 21 March 1990 c. • Tacloban Sagkahan Rice and Corn Mills. GR 156668.m. Article 280. • Caseres v Universal Robina Sugar Milling Corp. Repeated Extension of Employment Contracts Make the Employment Regular • Tomas Lao Construction v NLRC. Implementing Rules a.

14 October 2005 e. GR 141717. Inc. Employees’ employment contract on a five (5)-month period • Pure Foods Corp. Successive renewals of fixed period employment contract become regular. Fixed-Term Employment • Brent School. • AMA Computer College Parañaque v Austria.. Inc. 25 November 2007 • Pantranco North Express.5. Employees allowed to work for more than one (1) year become regular. v Zamora and Alegre. 10 October 2008 g. Inc. 5 February 1990 a. 31 March 1993 b. 15 February 2007 d. GR 48494. • Philips Semiconductors v Fadriquela. Fixed-term employment for less than six (6) months same with probationary employment • Caparoso v NLRC. 14 April 2004 12 . Duties (need not) are usually necessary or desirable in the employer’s usual business or trade. GR 122653. GR 167627. 16 December 1994 c. 19 June 1997 • Agusan del Norte Electric Coop. 12 December 1997 • Universal Robina Corp. GR 164078. v Cagampang and Garzon. v NLRC. 4 April 2003 f. GR 109224. Employees allowed to work after the fixed period of employment become regular. GR 155505. GR 164736. Requisites for a valid fixed-term contract of employment • PNOC v NLRC. v Catapang. • Megascope General Services v NLRC. GR 108405. GR 106654. v NLRC. • Viernes v NLRC. GR 97747.