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Fundamental Principles and Policies.

1. Serrano vs NLRC. SC distinguished denial of due process by the State and

denial of Due process by the ER. The Due Process Clause of the Constitution is
a limitation on governmental powers. It does not apply to the exercise of private
power, such as the termination of employment under the LC. The notice and
hearing required under the Due Process Clause applies before the power of
organized society are brought to bear upon the individual. This is obviously not
the case of termination of employment under Art282 and 283 of the LC because
EE is not faced with an aspect of the adversary system. The purpose for the
requirement of notice and hearing is not to comply with the Due Process Clause
of the Constitution. The time for notice and hearing is at the trial stage. Then that
is the time we speak of notice and hearing as the essence of procedural due
2. Constitutional Due Process vs Statutory Due Process - Agabon vs NLRC,
Constitutional Due process protects the individual from the government and
assures him of his rights in criminal, civil or administrative proceedings; while
statutory due process found in LC and Implementing Rules protects employees
from being unjustly terminated without just cause after notice and hearing.
3. Right to Counsel under the Constitution only applies to a person under custodial
investigation, hence, matters belonging to the realm of Criminal Cases and not to
Administrative cases under LC. An exemption to the latter is when such suit has
an attached Criminal Case.
4. Article 1700 of NCC The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor contracts must
yield to the common good.
5. Exclusive bargaining representative/agent refers to a legitimate labor union
duly recognized or certified as the sole and exclusive bargaining
representative/agent of all employees in a bargaining unit. Such shall remain
during the existing of CBA, to the exclusion of other labor organization, and no
petition questioning its majority status shall be entertained nor shall certification
election be conducted outside the 60-day freedom period immediately before the
expiry date of the 5-year term of CBA.

Recruitment and Placement

1. License to operate shall be valid for 1 year from the date if issuance unless
sooner cancelled or suspended by the Director for violation of any of the
conditions prescribed in the license or of any applicable provision of the
LC or its Implementing Rules. Further, such license cannot be transferred,
conveyed or assigned to any person or entity, or used in any place other
than that stated in license, unless authorized by the Director.
2. No person shall act as an agent or recruiter of private recruitment and
placement agency without prior authority from the DOLE Regional Office
having jurisdiction over the place where recruitment activities will be
3. Appeals. Any party aggrieved by the decision of the Regional Director may
appeal the same to the DOLE Secretary within 10 working days from receipt of
his copy off the order on the grounds of, grave abuse of discretion and gross
incompetence. The appeal shall be filed in the DOLE regional office which shall
transmit the records to the DOLE Secretary within 5 days from receipt of the
Appeal. The DOLE Secretary shall have 30 days from receipt of the records of
the case to resolve the appeal. The decision of the DOLE Secretary shall be
final and not appealable.
PLACEMENT. In order to operate, the ff requirements must be preset: (1) Filipino
citizens, partnerships or corp at least 75% of authorized capital stock which is
owned and controlled by Filipino Cit; (2) Minimum Capital of 2M in case a single
proprietorship or partnership and min paid-up capital of 2M if corporation.
Provided, those with existing licenses shall, within 4 years from effectivity hereof,
increase their capitalization of paid-up capital to 2M at rate of 250K every year.;
(3) those not otherwise DQ by the law or govt regulation.
5. Provisional License. Shall be valid for a period of 1 yr within which the
applicant should be able to comply with its undertaking to deploy 100 workers to
its new principal. Such license shall be upgraded to full license entitling it to
another 3 years.
6. Validity of License. Shall be valid for 4 years unless sooner cancelled, revoked
or suspended.

Direct Hiring. Refers to the process of directly hiring workers by ERs for overseas
employment as authorized by the SOLE and processed by the POEA including: (1)
those hired by international organizations; (2) those hired by members of the
diplomatic corps; (3) Name hires or workers who are able to secure overseas
employment opportunity with an ER without the assistance or participation of any

Normal Hours of Work. XPN. Reduction of 8-hour working day by the employer
may be valid, provided, that o corresponding reduction is made on the EEs wage or
salary equivalent to an 8-hour work day. Also, Staggered working is a valid scheme
which may be resorted to by the ERs. Workdays may be reduced in situations where
the reduction in the number of regular working days is resorted to by the ER to
prevent serious losses due to causes beyond his control, such as when there is a
substantial slump in demand for his goods and services or when there is lack of raw
Flexible work schedule. It is defined as the right granted to a solo parent EE to vary
his/her arrival and departure time without affecting the core work hours as defined by
the ER.
Compressed Workweek. One where the normal workweek is reduced to less than 6
days but the total number of work-hours of 48 hours per week shall remain. Normal
workday is increased to more than 8 hours but not to exceed 12 hours, without
corresponding premium.