2010 PRE-BAR NOTES IN LABOR LAW

(This is a compilation of my pre-bar review notes and lectures for 2010 Bar Examination. Feel free to use it as an
additional reading for Labor Law review. But as the law on sales says, CAVEAT EMPTOR. God bless and Good Luck.
Through GOD's mercy and grace we will achieve what we aspire for.)

GENERAL PRNCIPLES AND CONCEPTS

Constitutional Justification of Labor law

Labor law is a regulatory law enacted by the legislature pursuant to the police power to promote general
welfare of the public
LABOR STANDARDS - minimum terms and conditions supplied by the labor standards.
o Ex. Contract without rate of salary- minimum rate.
Contract complete without specifying the salary because the labor standards provides for it.
WELFARE LEGISLATION/SOCIAL LEGISLATION - laws providing benefits to a worker who is unable to work for
the meantime.
o Ex. SSS, Philhealth
LABOR RELATIONS - laws minimizes disputes to promote industrial peace.
Labor laws are remedial in nature. It is a substantive law providing or improving the rights of the workers
thus it must be liberally applied or interpreted whereby the spirit must be given preference over the letter
.
Labor law is applicable even to an existing employment contract . It can have an retroactive effect pursuant
to the police power.
o Ex. Contract was entered into prior to the enactment of Maternity law - the employer is bound to
give such benefit to the worker though not included in the contract.
Labor laws regulate the relationship between the employer and employee.

CHARACTERISTICS OF EMPLOYER-EMPLOYEE RELATIONSHIP

Contractual relationship -by agreement of the parties; need not be in writing.
Personal service for pay
In personam
Sale of Business - em & em relationship terminated. The new owner has no obligation to the
workers because he has no relationship in personam.
Sale of shares of stock - em & em relationship subsist because there was no change in the
administration of the business.
Master-servant relationship- subject to the control regarding the means and method of accomplishing the
work.
Control test - means and method.
Actual control is not required but merely the existence of power of control and the circumstances
that the employer could have been exercise the power of control .
Burden of proof lies to the employee thus must be liberally construed.
Ex. Art. 138 employment status of GRO - required to be in the premise for substantial period -
under control.
Insurance Agents-Instructions in selling insurance; merely cautioned; guidelines to insure
mutually desired end result would be achieved - not under control.
Boundary System- no em & em.
Economic reality test- the employee is dependent to the income he receive from the employer. If merely a
part-time job not economically dependent.
Ex.
 Independent contractor and principal - work in accordance with his own system. ( newspaper
columnist once a week)
Partners in joint ventures
NOTE: Four-fold test in employer-employee relationship
1. Selection and engagement of employee
2. Payment of wage
3. Power of dismissal
4. Power of control
Consequence of Employer-Employee relationship
Acquire rights and obligations - employment is a property right of the employee thus due process of law is
required.
Specific rights of the worker (2nd par. Art.3)
The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure,
and just and humane conditions of work.
Rights guarded by the Constitution. (sec.3 Art. 13)
Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized,
and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate
in policy and decision-making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to
its just share in the fruits of production and the right of enterprises to reasonable returns to
investments, and to expansion and growth.
Obligations of the worker
Render personal service
Outmost loyalty and dedication
Impliedly ground to dismissal
Rights of the employers
Management prerogatives-subject to restrictions of policies, statutes; not unduly prejudice another;
limitation on the contract
Hiring
Transfer
Promotion
Discipline/dismissal
Ex. Hire only women- violate of full employment
Bonafide occupational Qualification- employer's policy maybe determine on the basis.
Limitations on prerogative to hire
Cannot discriminate HIV positive
Solo parent act
Magna carta for disabled
NOTE: Additional rights of employer (sec.3 Art. 13 4th par.)
reasonable returns to investment
expansion and growth
Constitutional provisions in labor (sec.3 Art. 13)
Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its
just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
Social Justice - afford full protection to labor
Art. 4 LC - construction in favor of labor
Compassionate justice - no hard and fast rule. Peculiar to a particular case.
Compassion for labor. Lady Justice will remove her blindfold .
NOTE: if dismissal is too harsh a penalty.
Application:
Employee who is validly dismissed cannot require the employer to pay separation pay except under
compassionate justice.
Ex. Length of service
Lack of derogatory records
Dishonesty ,misconduct, moral depravity
Waiver executed by the employee does not preclude from recovering the difference.
Promote full employment; equality of employment opportunities for all
Provisions in the LC regarding full employment
Arts. 13-39 recruitment and placement of workers-
Regulating its activities
Regulating the employment of non-resident alien - prohibition from employment of non-
resident alien
Manpower development program
Employment of home workers
Homeworker vs. househelper
An industrial homeworker is a worker who is engaged in industrial homework, a system of
production under which work for an employer or contractor is carried out by a homeworker
at his/her home. The materials may or may not be furnished by the employer or contractor.
Househelper or domestic servant shall refer to any person, whether male or female, who
renders services in and about the employers home and which services are usually necessary
or desirable for the maintenance and enjoyment thereof, and ministers exclusively to the
personal comfort and enjoyment of the employers family.
Employment category other than regular
Equality of employment opportunities
No discrimination on sex, race, creed
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.
The following are acts of discrimination:
a. Payment of a lesser compensation, including wage, salary or other form of remuneration
and fringe benefits, to a female employees as against a male employee, for work of
equal value; and
b. Favoring a male employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.
 Criminal liability for the willful commission of any unlawful act as provided in this Article or
any violation of the rules and regulations issued pursuant to Section 2 hereof shall be
penalized as provided in Articles 288 and 289 of this Code: Provided, That the institution of
any criminal action under this provision shall not bar the aggrieved employee from filing an
entirely separate and distinct action for money claims, which may include claims for damages
and other affirmative reliefs. The actions hereby authorized shall proceed independently of
each other. (As amended by Republic Act No. 6725, May 12, 1989)
Art. 136. Stipulation against marriage. It shall be unlawful for an employer to require as a
condition of 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.
Art. 137. Prohibited acts.
a. It shall be unlawful for any employer:
1. To deny any woman employee the benefits provided for in this Chapter or to discharge any
woman employed by him for the purpose of preventing her from enjoying any of the benefits
provided under this Code.
2. To discharge such woman on account of her pregnancy, or while on leave or in confinement
due to her pregnancy;
3. To discharge or refuse the admission of such woman upon returning to her work for fear that
she may again be pregnant.
Guarantee rights of worker- enumerated in the constitution
To be as strong as the employer pursuant to social justice principle.
Shared responsibility/ co-determination
Partners in the undertaking not merely an item/subject or equipment
Ex. Amendment of code of discipline - consult the labor when adopting a policy.
Preferential use of voluntary modes in settling disputes
Conciliation- provided for by constitutuion; voluntary mode
Mediation- 3rd party present
Voluntary arbitration- 3rd party present
Compulsory arbitration
Compulsory arbitration/ajudication by sec. of labor (art. 263 par. G)
Duties to regulate the relations between workers and employers, recognizing the right of labor to its just
share in the fruits of production
The right of enterprises to reasonable returns to investments, and to expansion and growth.
Art. 6. Applicability. All rights and benefits granted to workers under this Code shall, except as may
otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural. (As
amended by Presidential Decree No. 570-A, November 1, 1974)
When undergone processing no longer considered agricultural employee.
Difference lies to the minimum wage rate. But rights and benefits are the same.
Classification of employees
Managerial, Supervisory, Rank and file (art. 212 m)
Managerial employee is one who is vested with the 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.
All employees not falling within any of the above definitions are considered rank-and-file
employees for purposes of this Book.
 Time worker, Worker by Result, Task worker
Time worker are those who, spent time in work regardless of the accomplishment
Worker by result are those, are those paid based on the accomplishment/result.
Task worker not allowed to claim holiday pay
Time workers are covered by Labor standards while task worker are not.
Regular, Casual, Project, Seasonal, Fixed term, Probitionary
Regular employment where, notwithstanding any written or oral agreement between the
employer and the employee to the contrary:
a. the employee has been engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer.
b. the employee has rendered at least one year of service, whether such service is
continuous or broken, with respect to the activity in which he is employed and his
employment shall continue while such activity exists.
c. the employee is allowed to work after a probationary period.
Project employment where the employment has been fixed for a specific project or
undertaking the completion or termination of which has been determined at the time
of the engagement of the employee.
Seasonal employment where the work or service to be performed by the employee is
seasonal in nature and the employment is for the duration of the season.
Casual employment which is not in the nature of a regular, project or seasonal
employment as these kinds of employment are defined under Article 280 of the Labor
Code. There is casual employment where an employee is engaged to perform a job,
work or service which is merely incidental to the business of the employer, and such
job, work or service is for a definite period made known to the employee at the time of
engagement; provided, that any employee who has rendered at least one year of
service, whether such service is continuous or not, shall be considered a regular
employee with respect to the activity in which he is employed and his employment
shall continue while such activity exists.
Probationary employment where the employee is on trial by an employer during which
the employer determines the qualification of the employee for regular employment.
Fixed-period employment contracts are not limited to those by nature, seasonal or for
specific projects with pre-determined dates of completion provided under the Labor
Code. They also include contracts to which the parties by free choice, have assigned a
specific date of termination.
Can casual employee be a regular employee?
No. employment ceases when the activity ceased to exist except
That any employee who has rendered at least one year of service, whether such service
is continuous or broken, shall be considered a regular employee with respect to the
activity in which he is employed and his employment shall continue while such activity
exists.
Project employee- specific, separate,identifable undertaking.
Employment contract for specific project
Requirements
Not to be assigned to other project
Written report to DOLE
Seasonal employee - regularly hired every season considered as regular seasonal
employee.
Fixed- term employee- period agreed upon by parties without undue influence from the
employer.
Probitionary employee
 Cannot dismiss employee at any time except when failure to comply to the standard
requirement of the company.
Employee asked for extension of probitionary period -not regularized though
beyond 6 months if does not meet the standards of the company.
Merely an extension for the benefit of the employee.
Unilateral on the part of the employer- yes. Regularized.
Probitionary period is not a training employment.

Recruitment and Placement (Art.13 b)

"Recruitment and placement" refers to 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.
3 parties:
Workers
Recruiter
Principal/employer
For profit or not
Local or oversea
If not for profit, require to have license? Yes. For profit or not
2 or more person recruited
Principles in Recruitment and Placement:
Foreigner cannot own more than 25% of the recruitment and placement company
Maybe undertaken for profit
Can agency collect rate on placed worker? Only fees allowed by the Secretary of Labor (Art. 32)
The law does not allow direct hiring of filipino worker (Art.18)
To protect the filipino worker from exploitation of foreign employer
To protect foreign employer in hiring unqualified worker
Ensure that the filipino worker will comply with the requirement of mandatory remittance
Must be provided in the contract:
Airfare from Philippines to foreign destination and back
Board and lodging
Grounds to discipline a worker:
Demand more than provided in the contract is not a ground to discipline
Breach of employment contract before expiration of contract
Jurisdiction: Labor Arbiter
Illegal dismissal prior to expiration of contract
Salary of unexpired portion with the placement fee paid
Activities of recruitment without license is regulated by DOLE (art. 34)
ART. 38-39. Illegal Recuitment
Syndicate or Large-scale
Employment of Non-Resident alien
General rule: Non- Resident Alien are not allowed to work in the Philippines.
Exception: No filipino is competent or willing to do the job.
Exception to the exception: he must train a filipino to do the job.
If the job is reserve only to filipino cannot give the job to a non-resident filipino.
Manpower Development Training
Apprenticeship - actual training on the job as determine by the Secretary of Labor
Skilled worker
 Learnership - actually training on the job for 3 months
Semi-skilled worker
Not allowed to train for apprenticeship/learnership when there are over supply of workers for particular
job. Reason why Secretary of Labor determines the trainable jobs.
Apprenticeship for graduation not entitle for pay.
Apprenticeship require training for more than 3 months and not required to hire as regular employee after
the program.
Learnership require training for less than 3 months and required to hire after the program.
Handicapped - paid less than minimum wage
Disability must have an effect in efficiency with respect to the job.
Qualified disabled worker - if his handicap does not affect the efficiency of his work.
Less than minimum wage:
Learner
Apprentice
Handicap
Art. 74 v. Art. 79
Art. 74. When learners may be hired. Learners may be employed when no experienced workers are available,
the employment of learners is necessary to prevent curtailment of employment opportunities, and the
employment does not create unfair competition in terms of labor costs or impair or lower working standards.
Art. 79. When employable. Handicapped workers may be employed when their employment is necessary to
prevent curtailment of employment opportunities and when it does not create unfair competition in labor
costs or impair or lower working standards.
LABOR STANDARDS
Providing minimum terms of agreement
Art. 82. Coverage. The provisions of this Title shall apply to employees in all establishments and undertakings
whether for profit or not, but not to government employees, managerial employees, field personnel, members
of the family of the employer who are dependent on him for support, domestic helpers, persons in the
personal service of another, and workers who are paid by results as determined by the Secretary of Labor in
appropriate regulations.
As used herein, "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 officers or
members of the managerial staff.
"Field personnel" shall refer to non-agricultural 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.
Exception:
Government employees
Managerial employees
Officers and members of managerial staff
Field personnel
Members of family defending upon him for support
Domestic helper
Private home
Maintenance and comfort of particular home
Paid by result
Art. 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight (8) hours a
day.
Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours for eight
(8) hours a day, for five (5) days a week, exclusive of time for meals, except where the exigencies of the
service require that such personnel work for six (6) days or forty-eight (48) hours, in which case, they shall be
entitled to an additional compensation of at least thirty percent (30%) of their regular wage for work on the
sixth day. For purposes of this Article, "health personnel" shall include resident physicians, nurses,
nutritionists, dietitians, pharmacists, social workers, laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other hospital or clinic personnel.
Shall not exceed 8 hours
'no work, no pay'
Limits the normal working hours
Work week of health personnel
With bed capacity of 100 beds in city/municipality with population of 1 million - 40 hours a week
and not more than 8 hours/day
50 bed capacity in the province - applicable
100 bed capacity - applicable
Overtime - 30%
Art. 84. Hours worked. Hours worked shall include (a) all time during which an employee is required to be on
duty or to be at a prescribed workplace; and (b) all time during which an employee is suffered or permitted to
work.
Rest periods of short duration during working hours shall be counted as hours worked.
All the time the employee is required to be on duty or to be at a prescribe workplace
All the time the employee is required to suffered or permitted to work
Travel time not part of compensable working time unless agreed upon and integral part of the job
Break of short duration is compensable working time.
Art. 85. Meal periods. Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty
of every employer to give his employees not less than sixty (60) minutes time-off for their regular meals.
Break-time of short duration is not required by law
Meal period is not compensable
Art. 86. Night shift differential. Every employee shall be paid a night shift differential of not less than ten
percent (10%) of his regular wage for each hour of work performed between ten oclock in the evening and
six oclock in the morning.
Night-differential - work from 10 pm- 6 am
Additional 10%
Supervisor entitled? No.
Retail establish not employing more than 5 employees- not required to give night differential
Art. 87. Overtime work. Work may be performed beyond eight (8) hours a day provided that the employee is
paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-
five percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an
additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least
thirty percent (30%) thereof.
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 required in this Chapter.
Art. 89. Emergency overtime work. Any employee may be required by the employer to perform overtime
work in any of the following cases:
a. When the country is at war or when any other national or local emergency has been declared by the
National Assembly or the Chief Executive;
b. When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due
to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon,
earthquake, epidemic, or other disaster or calamity;
c. When there is urgent work to be performed on machines, installations, or equipment, in order to avoid
serious loss or damage to the employer or some other cause of similar nature;
 d. When the work is necessary to prevent loss or damage to perishable goods; and
e. 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.
Any employee required to render overtime work under this Article shall be paid the additional compensation
required in this Chapter.
Art. 90. Computation of additional compensation. For purposes of computing overtime and other additional
remuneration as required by this Chapter, the "regular wage" of an employee shall include the cash wage
only, without deduction on account of facilities provided by the employer.
Work in excess of normal working hours within the period of 24 hours
25% additional pay
Overtime work is voluntary
Compulsory under Art. 89
Art. 91. Right to weekly rest day.
a. It shall be the duty of every employer, whether operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four (24) consecutive hours after every six (6)
consecutive normal work days.
b. The employer shall determine and schedule the weekly rest day of his employees subject to collective
bargaining agreement and to such rules and regulations as the Secretary of Labor and Employment may
provide. However, the employer shall respect the preference of employees as to their weekly rest day
when such preference is based on religious grounds.
Art. 92. When employer may require work on a rest day. The employer may require his employees to work
on any day:
a. 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 and property, or imminent danger to public
safety;
b. In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious
loss which the employer would otherwise suffer;
c. In the event of abnormal pressure of work due to special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
d. To prevent loss or damage to perishable goods;
e. Where the nature of the work requires continuous operations and the stoppage of work may result in
irreparable injury or loss to the employer; and
f. Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor
and Employment.
After normal work week
Work on the rest day should be voluntary
Except work on the rest day (Art. 92)
Employer has right to determine rest day except based on religious grounds
30% first hour
Over-time: additional %
Art. 94. Right to holiday pay.
a. Every worker shall be paid his regular daily wage during regular holidays, except in retail and service
establishments regularly employing less than ten (10) workers;
b. The employer may require an employee to work on any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate; and
c. As used in this Article, "holiday" includes: New Years Day, Maundy Thursday, Good Friday, the ninth of
April, the first of May, the twelfth of June, the fourth of July, the thirtieth of November, the twenty-fifth
and thirtieth of December and the day designated by law for holding a general election.
Special holiday is proclaimed by the President and provided for by law
Special holiday is paid with additional 30%
 Regular holiday is paid whether or not worked on the said day
If both regular holiday falls on the same day:
If not report for work - same pay
If report - 200%
If worked and his rest day - 230%
Retail establishment - with less than 10 employees not required to give regular holiday pay
Art. 95. Right to service incentive leave.
a. Every employee who has rendered at least one year of service shall be entitled to a yearly service
incentive leave of five days with pay.
b. This provision shall not apply to those who are already enjoying the benefit herein provided, those
enjoying vacation leave with pay of at least five days and those employed in establishments regularly
employing less than ten employees or in establishments exempted from granting this benefit by the
Secretary of Labor and Employment after considering the viability or financial condition of such
establishment.
c. The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any
court or administrative action.
Five days service incentive leave
The leave is commutative
Accumulative? Not expressly provided for. Yes, it can accumulate
Less than 10 employees not required to give service incentive leave
15 days leave - in the contract or usual practice of the company
If employer already gives more than 5 days leave benefits? Not required to give service incentive leave
If less than 5 days leave benefits? Must give the remaining leave.
Art. 96. Service charges. All service charges collected by hotels, restaurants and similar establishments shall
be distributed at the rate of eighty-five percent (85%) for all covered employees and fifteen percent (15%) for
management. The share of the employees shall be equally distributed among them. In case the service
charge is abolished, the share of the covered employees shall be considered integrated in their wages.
85% - to the employees
15% - to owners
What happens to the service charge receive by employees when the owner abrogated the service charge?
The owner shall shoulder the charge received. Shall become part of the salary of the employees.
ART. 97 (f)
a. "Wage" paid to any employee shall mean 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 of 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, as determined by the Secretary of Labor and
Employment, of board, lodging, or other facilities customarily furnished by the employer to the
employee. "Fair and reasonable value" shall not include any profit to the employer, or to any person
affiliated with the employer.
Payment to independent contractor?
Not a wage because no employer-employee relationship
Is bonus a wage?
no. not consideration for services rendered or to be rendered
Salient features :
Employer prohibited from interfering to the employees on how to use his wage
Minimum wage provided
FACILITIES
 Facilities shall include 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.
Value of facilities - the fair and reasonable value of board, lodging and other facilities customarily furnished
by an employer to his employees both in agricultural and non-agricultural enterprises.
Value shall be deducted from salary (fair and reasonable)
Elements:
Essential needs of the worker
Enjoyed and accepted by worker
Fair and reasonable valuation
Customarily provided by employer
Address to the needs of the workers
Given to promote business?
Not facilities. But supplements
Same items maybe considered as facilities or supplements depending on the purpose or intention of the
employer.
Facilities - if address to the needs of the worker
Supplements - if to promote business
ART. 97 (b)
"Employer" includes any person acting directly or indirectly in the interest of an employer in relation to
an employee and shall include the government and all its branches, subdivisions and instrumentalities,
all government-owned or controlled corporations and institutions, as well as non-profit private
institutions, or organizations.
President, manager can be held liable
ART. 106-109
Art. 106. Contractor or subcontractor. Whenever an employer enters into a contract with another
person for the performance of the formers work, the employees of the contractor and of the latters
subcontractor, if any, shall be paid in accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails to pay the wages of his employees in accordance
with this Code, the employer shall be jointly and severally liable with his contractor or subcontractor to
such employees to the extent of the work performed under the contract, in the same manner and extent
that he is liable to employees directly employed by him.
The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the
contracting-out of labor to protect the rights of workers established under this Code. In so prohibiting or
restricting, he may make appropriate distinctions between labor-only contracting and job contracting as
well as differentiations within these types of contracting and determine who among the parties involved
shall be considered the employer for purposes of this Code, to prevent any violation or circumvention of
any provision of this Code.
There is "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 person are performing activities which are directly
related to the principal business of such employer. In such cases, the person or intermediary shall be
considered merely as an agent of the employer who shall be responsible to the workers in the same
manner and extent as if the latter were directly employed by him.
Art. 107. Indirect employer. The provisions of the immediately preceding article shall likewise apply to
any person, partnership, association or corporation which, not being an employer, contracts with an
independent contractor for the performance of any work, task, job or project.
Art. 108. Posting of bond. An employer or indirect employer may require the contractor or
subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond
 will answer for the wages due the employees should the contractor or subcontractor, as the case may
be, fail to pay the same.
Art. 109. Solidary liability. The provisions of existing laws to the contrary notwithstanding, every
employer or indirect employer shall be held responsible with his contractor or subcontractor for any
violation of any provision of this Code. For purposes of determining the extent of their civil liability
under this Chapter, they shall be considered as direct employers.
Control test
Of the four elements of the employer-employee relationship, the control test is the most important.
Compared to an employee, an independent contractor is one who carries on a distinct and
independent business and undertakes to perform the job, work, or service on its own account and
under its own responsibility according to its own manner and method, 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. Hence, while an independent contractor enjoys independence and freedom from the
control and supervision of his principal, an employee is subject to the employers power to control the
means and methods by which the employees work is to be performed and accomplished.
Unpaid wages v. back wages
Back wages refers t illegally dismissed worker and he did not render services.
Unpaid wages refers to the employee who rendered services.
Job contracting- legitimate undertaking
Labor -only contracting - prohibited ; recruiter of manpower
Requirement of payment of wage:
In accordance with wage order
Constitutional right to live - right to a living wage
Law requires minimum rate
Art. 275. Tripartism and tripartite conferences.
a. Tripartism in labor relations is hereby declared a State policy. Towards this end, workers and employers
shall, as far as practicable, be represented in decision and policy-making bodies of the government.
b. The Secretary of Labor and Employment or his duly authorized representatives may, from time to time,
call a national, regional, or industrial tripartite conference of representatives of government, workers
and employers for the consideration and adoption of voluntary codes of principles designed to promote
industrial peace based on social justice or to align labor movement relations with established priorities
in economic and social development. In calling such conference, the Secretary of Labor and Employment
may consult with accredited representatives of workers and employers. (As amended by Section 32,
Republic Act No. 6715, March 21, 1989)
Tripartite - composed of 3 sectors:
Labor
Management
Public
Cannot complain on the decision because all the sectors are represented
The national wage rate is under the legislature
Wage board has no authority to order across the board increase
Conducts public hearing
Wage distortion
a wage distortion shall mean a 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.
EX: Employee receiving 500 due to length of service while the minimum rate is 400 and the
supervisor receives 500. wage was increase to 500 for rank and file.
 Employee receiving 500 - will not benefit from the increase because he is already receiving 500.
Supervisor - apply for wage distortion.
Increase in the hiring rate does not warrant for wage distortion
Modes of correcting wage distortion - CBA
Employees paid by result affected by wage distortion?
Yes. Comply with the minimum rate requirements.
Art. 101. Payment by results.
a. The Secretary of Labor and Employment shall regulate the payment of wages by results, including
pakyao, piecework, and other non-time work, in order to ensure the payment of fair and reasonable
wage rates, preferably through time and motion studies or in consultation with representatives of
workers and employers organizations.
Time and motion studies - determination of minimum rate
Art. 223 v. Art. 224
Art. 223. Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the
Commission by any or both parties within ten (10) calendar days from receipt of such decisions, awards, or
orders.
Art. 224. The Secretary of Labor and Employment or any Regional Director, the Commission or any Labor
Arbiter, or Med-Arbiter or Voluntary Arbitrator may, motu proprio or on motion of any interested party, issue
a writ of execution on a judgment within five (5) years from the date it becomes final and executory, requiring
a sheriff or a duly deputized officer to execute or enforce final decisions, orders or awards of the Secretary of
Labor and Employment or regional director, the Commission, the Labor Arbiter or med-arbiter, or voluntary
arbitrators. In any case, it shall be the duty of the responsible officer to separately furnish immediately the
counsels of record and the parties with copies of said decisions, orders or awards. Failure to comply with the
duty prescribed herein shall subject such responsible officer to appropriate administrative sanctions.
Art. 223
Can claim from the orders of labor arbiter when there is an issuance or reinstatement
Immediately self-executory
Art. 224
Can execute the judgment of NLRC by filing a writ of execution
Not self-executory from the entry of judgment order before the reversal of the order
Jurisdiction of BLR
o Intra-union disputes
o Inter-union disputes
o Registration of CBA
Unfair labor practice
o Civil aspect
o Criminal aspect
Elements of ULP
o Employer-employee relationship
o Acts committed defined as ULP under labor code
Bargaining unit
o Certification election - filed in cases of unorganized organization
Filed at any time
o Organized organization
Can file certification election during freedom period
CBA lifetime of 5 years
Exception to contract bar rule
o Freedom period
o CBA nit registered in BLR
o CBA provision is less than the law provides
 o CBA does not contain mandatory provision
o When CBA entered by incumbent union and employer before freedom period
o When CBA cant contain industrial peace ion the establishment

NOTES:

EMPLOYER - EMPLOYEE RELATIONSHIP

Power of control flowed from the exercise of the responsibilities under the management contract with
another which includes providing for personnel consultancy and technical management, administration
and operation of the telephone system, control test had no application.
Existence of employer-employee relationship
Selection and engagement of his service
Payment of salary
Power of dismissal
Power of control over the means and method of accomplishing his work
Program employee
Those whose skills, talent or service are engaged by the station for a particular or specific program
or undertaking and who are not required to observe normal working hours such that on some
days they work for less than 8 hours and on other days beyond the normal work hours observed
by station employees and are allowed to enter into employment contracts with other persons,
stations, advertising agencies or sponsoring companies.
Written contract specifying the nature of the work to be performed, rates of pay and the programs
in which they will work
TV newscaster
Yes, employee of the network. Her duties enumerated in talent contract indicate that the network
had control over her work.
Fixed term contract of newscaster. Regular employee?
Yes. Her work was necessary or desirable in the usual business or trade of the employer.
The fixed term employment imposed top preclude from acquisition of tenurial security.
Drama talents
Yes, regular employee. Necessary and indispensible to the usual business or trade of the radio
station.
Wages were paid by the company
Subject to the control, dismissal and imposition of disciplinary measures.
Concessionaire Agreement
Not an employee. No element of control merely stated guidelines that would help her obtain the
result they wanted to achieve.
No agreement specifying the method by which she should achieve these results
Not determine the means and methods by which she should ensure the satisfaction of the
customer.
Id ID, voucher, payslip sufficient evidence of employer-employee relationship? No.

KINDS OF EMPLOYMENT
Work pool - do not become employees by reason of that fact alone.
Workers can either be project employees or regular employees
Hired and re-hired over a period of 18 years by a construction company. It was held that they were
regular employees.
Repeated re-hiring which continued for 20 years is sufficient evidence of the necessity and indispensability
of their services to the business and trade of the employer.
Exception: seaman (contractual employees)
 Is employment for fixed period a regular employees considering their duties consisted of activities
necessary or desirable in the usual business of the company?
No. the contract provided for an expiration date, and the worker knew from the beginning that the
employment offered to them was not permanent but only for a fixed period. They are free to
accept or refuse the offer.
Employees are were regular, not project, employment contract is too vague or imprecise to be considered
as the "specific undertaking" contemplated by law.
Contract is extended a number of time but to do the same kind of work such as drilling,
maintenance and repair.
Not a regular employee if his employment was not permanent or continuous but co-terminus with the
projects to which he was assigned. His work depended on availablity of projects
Worked on various dates within the period of 36 months and 225 days actual service subject to availability
of work depending on the absences of regular workers. Regular employee?
Not a regular employee if his work is akin to that of a seasonal, project or term employee albeit on
a daily basis neither he was not able to render 1 year of service.
What does the term "at least 1 year of service" mean?
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 working
days in the establishment as a matter of practice or policy, or that provided in the employment
contract, is less than 12 months, in which case said period shall be considered one year.
If the employee has been performing the job for at least one year, even if the performance is not
continuous or merely intermittent, the law deems the repeated and continuing need for its
performance as sufficient evidence of the necessity, if not indispensability, of that activity to the
business of the employer.
May be considered as regular employee by reason of the provision of CBA?
Yes. The CBA provided that the company agrees to convert to regular status all workers who served
for an accumulated term of not less than 6 months from original date of hiring.
The position of a Dean is normally an employment for a fixed period. Under the Manual of Regulations in
Private schools, the probationary period of a dean is 3 years, the provision of school regarding
probationary employment of officers must yield to the decree of manual, which has a character of law.
Regular employee by nature v. Regular employee by years of service
Regular employee by nature of work are employees who perform a particular activity which is
necessary or desirable in the usual business or trade of the employer regardless of their length of
service. Their usual employment is for an indefinite period.
Regular employee by length of service are those who have been performing the job, not usually
necessary or desirable in the usual business or trade of the employer, for at least a year. Their
regular employment is only as long as the activity in which they are engaged actually exists.
Probationary employee enjoys a temporary employment status, not permanent status.
Terminated either:

For just cause

when the employee fails to qualify as a regular employee in accordance with the
reasonable standards made known by the employer at the start of his employment.

MANAGEMENT PREROGATIVE
Bonafide Occupational Qualification Exception - basis for the validity of an employer's policy banning
spouses from working in the same company
Unless the employer can prove that the reasonable demand of the business require a distinction
based on marital status and there is no better available or acceptable policy which would better
 accomplish the business purpose, an employer may not discriminate against an employee based
on the identity of the employee's spouse.
No clear showing that the marriage of an employee to a co-employee is detrimental to the
employer's business, as policy requirement the resignation of one of them is unreasonable.
Mere fear that employee married to each other will be less efficient is not a valid justification.
Employers prerogative to change the assignment of or transfer an employee
It is the employer's prerogative, based on its assessment and perception of its employee's
qualifications, aptitude and competence, to move the employee around in the various areas of its
business operations in order to ascertain where he will function with utmost efficiency and
maximum productivity or benefit to the company.

OFW
Sea farers are not regular employees
They are not entitled for full back wages and separation pay in lieu of reinstatement
Sea farers are contractual employees whose rights and obligation is governed primarily by POEA rules and
regulations of Governing Overseas Employment, Migrant workers and Overseas Filipino Act.
Money claims in cases of Illegal dismissal
Full reimbursement of his placement fee with interest at 12% per annum
Salaries for unexpired portion of his employment contract or for 3 months for every year of
unexpired term, whichever is less.
Not a separation pay but a form of indemnity for the worker
In order that the ship owner made liable for disability benefits, the worker must present concrete proof
the he acquired or contracted the injury or illness during the term of contract.
The death of the seaman during the term of employment makes the employer liable to the heirs for death
benefits. However, if the seaman died after the termination of contract of employment, his
beneficiaries are not entitled to the death benefits.
Alteration in the contract unilaterally made by master of the vessel, increasing the salary of the former, is
valid and binding though not approved BY POEA as this redounded to the seaman's benefit.
During the period of contract, the seaman undergo by-pass operation resulting to his inability to work for
more than 120 days, it was ruled that he is entitled to permanent total disability benefits.
The OFW repatriated for he did not know his job as electrician. Accorded due process?
No. the two-notice requirement of procedural due process in the dismissal of workers was not
satisfied.
Does Labor Arbiter have jurisdiction for an OFW who was not deployed after signing the contract of
employment?
Yes. Under migrant Workers Act, the Labor Arbiter and NLRC have original and exclusive jurisdiction
over claims arising by virtue of any law or contract involving Filipino workers for overseas
employment including claims for damages
Claim of damages to workers who are not deployed
Yes. The POEA rules cannot prevent a seafarer from claiming damages from employer which has
failed to deploy him. The claim falls under the jurisdiction of NLRC and not the POEA.
Ailment contracted even prior to his employment, does not detract from the compensability of the
disease. Its enough that the employment had contributed even in small measure to the development of
the disease.
The concept of permanent total disability under the Labor Code applies to the standard employment of
sea farers.
The company designated physician must certify that the OFW has suffered permanent disability. Though
not conclusive, the claimant may impugn the same by presenting a contrary opinion of his appointed
physician.
LABOR-ONLY CONTRACTING
Employer incurs no liability when the employee's conduct, act or omission is beyond the range of the
employer.
The principal maybe required to pay the wages of the employees notwithstanding that it already paid the
same to the agency pursuant to their service contract. He is jointly and severally liable with his
contractor. But under the CC, it has the right to recover the same from the contractor.

FIELD PERSONNEL
Prescription period for claiming his overtime compensation and service incentive leave is 3 year preceding
the filing of complaint for overtime pay and 3 year from the time of dismissal for the service incentive
leave.
Not a field personnel when he was required to be at specific places at specific times. His time and
performance is constantly supervised by the company.

VISITORIAL POWER
Elements to divest the Regional Director or his representative of jurisdiction:
The employer contest the findings of the labor relations officers and raises issues thereon.
In order to resolve such issues, there is a need to examine evidentiary matters.
Such matters is not verifiable in the normal course of inspection.

LABOR UNION
A shop steward is appointed by the union in a shop, department or plant and serves as representative of
the union, charged with negotiating and adjustment of grievances of employees with the supervisor of
the employer.
His duties includes initial negotiations for settlement of grievances. He is to help other members when
they have concerns with the employer or other work-related issues.
The jurisdiction of shop steward and the supervisor includes determination of the issues arising from
the interpretation or even implementation of a provision on CBA.
As a general rule a union worker cannot be held answerable for the illegal strike stage by the union except
when the striking worker knowingly participates in the commission of illegal acts during a Strike. Shall
be penalized with dismissal.
A trade union center is any group of registered national unions or federations organized for the mutual aid
and protection of its members, for assisting such members in collective bargaining or for participating
in the formulation of social and economic policies, standards and program and is duly registered with
the DOLE. It is a legitimate labor organization but cannot charter a chapter or local.

STRIKES & LOCKOUTS; BACKWAGES

The tenor indicates an almost instantaneous or automatic compliance for a striker to return to work once
an AJO has been duly served.
Exception to No back wage rule:
When employee were illegally locked thus compel them to stage a strike
Employer guilty of grossest form of ULP
Employer committed discrimination in rehiring of strikers
When the worker stage a voluntary ULP strike and offered to return to work unconditionally but
employer refuse to reinstate them
Powers granted to Secretary of Labor
Aim to protect public good
Automatic enjoining of an impending strike and lockout or its lifting if one has already taken place
The power is plenary and discretionary in nature to enable him to effectively and efficiently dispose
of the dispute
 Defiance to return to work order of the Secretary is valid ground for dismissal
The strike stage in violation of agreement providing for arbitration are illegal, since these
agreement must be strictly adhered to and respected if their ends are to be achieved.
Once the jurisdiction was acquired, should not interfere by the application of coersive process of
strike.
Union officer maybe declared to have lost his employment status if he knowingly participates in illegal
strike; union members maybe similarly faulted if he knowingly participates in the commission of illegal
acts
No separation pay granted to workers dismissed due to participation in illegal strike

UNFAIR LABOR PRACTICE

The closure of business has held to be unfair labor practice as the same was in bad faith and for the
purpose of circumventing the union's right to collective bargaining and right to security of tenure.

CONSTRUCTIVE DISMISSAL;RESIGNATION
No constructive dismissal has occurred when the assistant vice-president of a savings bank availed himself
of the early retirement program and was duly paid his retirement benefits, these being no showing that
his separation from employment was due to involuntary resignation caused by discrimination.
Temporary transfer was not held to be a constructive dismissal considering that the same was not
prompted by ill-will.

DISMISSALS:CAUSES
Willful disobedience
Conduct must have been willful, that is characterized by a wrongful and perverse attitude
Order violated must have reasonable, lawful, made known to the employee and must pertain to the
duties which he had been engaged to discharge.
A company has the right to dismiss its employees for measure of self-protection. Settled is the rule that an
employer cannot be compelled to retain an employee who is guilty of acts inimical tot eh interest of
the employer.
Employees requiring a high degree of responsibility maybe dismissed for loss of trust and confidence

DUE PROCESS IN DISMISSAL CASES

Basis requirement for dismissal:
First written notice, which must contain specific causes or grounds for termination with a detailed
narration of the facts and circumstances that will serve as a basis for the charge against the
employee, and the employee is given 5 calendar days to submit written explanation from receipt
of the article
Hearing or conference with the employee, with the assistance of representative or counsel, will be
given opportunity to explain and clarify defenses.
Written notice of termination stating grounds established to justify the severance of employment.

ILLEGAL DISMISSAL RELIEF

A dismissed employee is entitled to moral damages when the dismissal is attended by bad faith or fraud or
constitute an act oppressive to labor or is done in a manner contrary to good morals, good customs or
public policy
Exemplary damages maybe awarded if the dismissal is effected in a wanton, oppressive or malevolent
manner
The order of NLRC for reinstatement is not self-executory. A writ of execution of a final and executory
judgment of the NLRC is required for the enforcement of the decision. It is only the Labor Arbiter order
for reinstatement that is immediately executory and self-executory.
RETIREMENT
Compulsory retirement age is 65 years old. Employer is free to impose retirement age less than 65 years
old but the employee must consent thereto.
Commission were not part of salary structure but were profit-sharing payment which had no clear, direct
or necessary relations tot eh amount of work he actually performed. Not included in the computation
of retirement benefits.

JURUSDICTION AND PROCEDURE

The prescriptive period for filing a claim for unpaid commission is not interrupted by a filing of a civil case
before RTC which was dismissed for lack of jurisdiction.
Petition for certiorari under Rule 65 without first moving for reconsideration of assailed NLRC resolution
warrant the outright dismissal of the case
Reasonable causes connection rule - recognizes the jurisdiction of labor arbiters over claims for damages
in connection with termination of employment. The allegations in her complaint unmistakably relate to
the manner of her alleged illegal dismissal. There is no splitting of cause of action.
Where such relief can be granted under the LC, the case should fall within the jurisdiction of the Labor
arbiter, even though a claim for damage might be asserted as an incident to such claim.
General rule: all petitioners and plaintiffs in a case should sign the certificate of non-forum shopping.
Exceptions:
Whey they authorized a co-petitioner to continue to prosecute the case up to CA & SC
Where verification of the petition for certiorari was signed only by union president who was not
authorized to sign on behalf of other petitioner. Sufficient considering he is in the position to
verify the truthfulness and correctness of allegation of the petitioners.
Signature of union president was sufficient compliance since petition had a common interest in the
subject of the petition.
Rules on review of factual issues in certiorari proceedings in labor cases
Factual issues are beyond the scope of certiorari as they do not involve any jurisdictional issue
Factual findings of NLRC in affirming those of the LA, when devoid of any unfairness or
arbitrariness, are accorded respect if not finality by the CA.
When the employer corporation is under rehabilitation proceedings, all actions against it are
automatically stayed or suspended, including those of a suit or the payment of claims during the
execution stage after the case has become final and executory
Cash and surety bond
Not only mandatory but jurisdictional requirement. Non-compliance therewith is fatal and has the
effect of rendering the award final and executory.
Purpose:
To insure during the period of appeal, against any occurrence that would defeat or diminish
recovery under the judgment if subsequently affirmed
Validates and justifies an interpretation that would limit the amount of bond to the aggregate of
the sum awarded
Afford protection to labor in order to forcefully and meaningfully underscore labor as a primary
social and economic force.
Reduction of bond substantial compliance because of willingness to post the bond as well as the
clear merits which appeared in the appeal from labor arbiter's decision.
Appeal on decision invoking monetary award in labor cases maybe perfected only upon posting of
cash and surety bond.

LIABILITY OF CORPORATE OFFICERS

Corporate officers/ agents are not personally liable for money claims of discharged employees absent any
showing that they acted with evident malice and bad faith in terminating their employment.
PROJECT EMPLOYEE
Regular employee if continuously rehired in task vital, necessary and indispensable to usual trade and
business of the company. Not made to sign project employment contract and did not submit project
termination report to DOLE except on the last project

UNION SECURITY CLAUSE

Needs to determine and prove by employer:
Union security clause is applicable
Union is requesting for enforcement of union security provision in CBA
Evidence to support the union's decision to expel the employee from the union
Just cause for terminating an employee based on CBA's union security provision

RELIEF IN ILLEGAL DISMISSAL

Quasi-judicial agencies have neither business nor power to modify or amend the final and executory
decision of appellate court. Under the principle of immutability of judgment, any alteration or
amendments which substantially affects the final and executory judgment is void for lack of
jurisdiction.

CONTROL TEST/ECONOMIC REALITY TEST

Columnist of newspaper writes a weekly column among other jobs she have. Is she a regular employee of
the newspaper?
Control test - control as to time, space and discipline are dictated by the very nature of the
newspaper business.
The editors did not dictate how she wrote her article; she was free to write in the manner and
style she is accustomed with. The newspaper power to approve or reject publication of any
article cannot be the control contemplated in the control test as it is logical that one who
commissions another to do a piece of work should have the right to accept or reject the product.
Economic test - economic dependence of the worker to his employer.
Her main occupation is a human rights advocate and she writes to other publication as well.
Therefore, not economically dependent.

BONAFIDE OCCUPATIONAL QUALIFICATION

Is the dismissal of an overweight cabin crew legal?
The weight requirement is not discriminatory. It is a bonafide occupational qualification, necessary
to the normal operation of the business or enterprise. Important factor to consider in case of
emergency
His obesity becomes an analogous case under the grounds for termination
Can avail separation pay based on social justice and equity since he was not dismissed for any
serious misconduct or any based on moral character.

NIGHT-TIME COMOPENSATION
Founded on public policy.
Hygienic, medical, moral, cultural and socio-biological reasons are in accord that night work has many
inconveniences and when there is no alternative but to perform it, it is but just that the laborers should
earn greater salary then ordinary work so as to compensate the laborer to some extent for the said
inconveniences.

FIXED-TERM EMPLOYMENT
Exception than general rule
Valid only under certain circumstance
 Neither for seasonal nor for specific project to which a fixed term is essential and natural appurtenance
Overseas employment contract
Dean, assistant dean, college secretary, principal and other administrative officers in the
educational institutions
Certain company officials maybe elected for what would amount to fixed period
Periods was also imposed to preclude the acquisition of tenurial security by the employee, then it should
be struck down as being contrary to law, morals, good customs, public order and public policy.

VOLUNTARINESS OF QUITCLAIM
There is no nexus between intelligence or even the position which the employee held in the company,
when it concerns the pressure which the employer may exert upon the free will of the employee who is
asked to sign a release and quitclaim

ILLEGAL CLOSURE
The corporation shut down its operation allegedly due to financial losses and paid its workers separation
benefits and barely one month after the shutdown, the corporation resumed operation. Tainted with
bad faith.

LOSS OF TRUST AND CONFIDENCE

Dismissal due to loss of trust and confidence is justified whose task requires adherence to truth, showing
tendency to by-pass authority and disrespect of her superior.

COMPRESSED WORKWEEK;WAIVER OF OVERTIME COMPENSATION

Waiver of overtime pay for the compresses workweek schedule is valid since it is supported buy adequate
consideration. The employees will get benefits such as savings on fares, meal, snack expenses and
longer weekends. Only employees permitted or required to work beyond compressed work schedule
shall be entit
led for overtime pay.