LABORLAW

GOLDENNOTES2011
UNIVERSITYOFSANTOTOMAS
FACULTYOFCIVILLAW
MANILA


AcademicYear20112012
CIVILLAWSTUDENTCOUNCIL


LesterJohnA.Lomeda President
WilfredoT.Bonilla,Jr. VicePresident
RaissaS.Saipudin Secretary
BernadetteFaustineC.Balao Treasurer
MarcMikhaeleJ.Santos Auditor
VictorLorenzoL.Villanuea PublicRelationsOfficer

TEAM:BAROPS2011

DianeCamillaR.Borja Chairperson
CarloArtemusV.Diaz ViceChairperson
MaryGraceL.Javier Secretary
RonnRobbyD.Rosales LogisticsCommitteeHead
MarkArthurM.Catabona Asst.LogisticsCommitteeHead
AngeliP.Albaa FinanceCommitteeHead
VicenteO.PlatonIII HotelAccommodationsHead
KimverlyA.Ong Asst.HotelAccommodationsHead

The UST GOLDEN NOTES is a student-edited work of the University

of Santo Tomas, Faculty of Civil Law. It is updated annually.
Communications regarding the NOTES should be addressed to the
Academics Committee of the Team: Bar-Ops.

ADDRESS: Team Bar-Ops

Academics Committee
Faculty of Civil Law
University of Santo Tomas
Espaa, Manila 1008
TEL. NO.: (02) 731-4027
(02) 4061611 loc. 8578




2011ACADEMICSCOMMITTEE

LesterJayAlanE.FloresII Chairperson
KarenJoyG.Sabugo ViceChairforAcademics
JohnHenryC.Mendoza ViceChairforAcademics
JeanelleC.Lee ViceChairforAdministrationandFinance
TheenaC.Martinez ViceChairforLayoutandDesign
EarlLouieM.Masacayan ViceChairforLayoutandDesign

LABORLAWCOMMITTEE

AngeloS.Diokno LaborLawCommitteeHead
KarenJoyG.Sabugo Asst.LaborLawCommitteeHead
GenesisR.Fulgencio Asst.LaborLawCommitteeHead
RandolphIanClet Member
PalmaClarissaV.Carillo Member
MichaelAaronP.Gacutan Member
LorraineG.Taguiam Member





ADVISER

Atty.JoevenD.Dellosa



FACULTYOFCIVILLAW
UNIVERSITYOFSANTOTOMAS
AcademicYear20112012

ADMINISTRATIVEOFFICIALS


Atty.NILOT.DIVINA
Dean

Rev.Fr.ISIDROC.ABAO,O.P.
Regent

Atty.MARIANJOANNEK.COPUA
FacultySecretary

Atty.ELGINMICHAELC.PEREZ
LegalCounsel
USTChiefJusticeRobertoConcepcionLegalAidClinic


JudgePHILIPA.AGUINALDO
SWDBCoordinator


ANNACHRISTINAS.AQUI,MA,RGC
GuidanceCounselor


Ourdeepestappreciationtoour
Mentors&Inspiration

DeanAntonioH.Abad,Jr.
Atty.SamsonS.Alcantara
Atty.ArnoldE.Cacho
Atty.JoevenD.Dellosa
Atty.CesarE.SantamariaJr.

For activating our magnets of curiosity, knowledge and
wisdom and helping us understand the intricate
sphere of Labor Law.


AcademicsCommittee2011

 TABLE OF CONTENTS

SYLLABUS FOR 2011 BAR EXAMINATIONS

LABOR LAW

November 6, 2011
(First Sunday, Morning)

A. FUNDAMENTALPRINCIPLESANDPOLICIES 1
1. CONSTITUTIONALPROVISIONS 1
a. Art.II,Secs.9,10,11,13,14,18,20 2
b. Art.III,Secs.1,4,8 2
c. Art.XIII,Secs.1,2,3,14 2
2. NEWCIVILCODEANDOTHERLAWS 3
3. LABORCODE 4
a. Article3 4
b. Article211 5
c. Article212 5
d. Article255 7

B. RECRUITMENTANDPLACEMENT 9
1. RECRUITMENTOFLOCALANDMIGRANTWORKERS 9
a. RecruitmentandPlacement;defined 9
b. IllegalRecruitment,Art.38(Local),Sec.6,MigrantWorkersAct,RA8042 10
a) Licensevs.Authority 10
b) Essential Elements of Illegal recruitment; Simple Illegal
recruitment; Illegal recruitment in a large scale; Illegal
recruitmentaseconomicsabotage;IllegalRecruitmentvs.Estafa 11
c) Liabilities 13
d) PreterminationofContractofMigrantWorkers 13
c. DirectHiring 14
2. REGULATIONANDENFORCEMENT 14
a. RemittanceofForeignExchangeEarnings 14
b. ProhibitedActivities 15
c. RegulatoryandVisitorialPowersoftheLaborSecretary 15
d. PenaltiesforIllegalRecruitment 16
3. OTHERRELATEDTOPICS 17

C. LABORSTANDARDS 23
1. HOURSOFWORK 23
a. Coverage/Exclusions 23
b. NormalHoursofWork 24
a) Exceptions:HealthPersonnel;CompressedWorkWeek 25
c. WorkInterruptionduetoBrownouts 26
d. MealBreak 26
e. Idletime,waitingtime,commutingtime,traveltime,whetherpartofhours
ofworkornot 27
f. OvertimeWork 27
a) Undertimenotoffsetbyovertime 29
b) Waiverofovertimepay 29
g. NightWork 29
h. CBAprovisionvisavisovertimework 30
2. WAGES 30
a. NoworkNoPayprinciple 31
b. Coverage/Exclusions 31
c. Facilitiesvs.Supplements 31
d. Wagesvs.Salaries 32
 TABLE OF CONTENTS

e. WageDistortion 32
f. CBAvisavisWageOrdersCBACredibility 33
g. Nondimunitionofbenefits 33
h. Workerspreferenceincaseofbankruptcy 33
i. LaborCodeprovisionsforwageprotection 34
j. Allowabledeductionswithoutemployeesconsent 35
k. Attorneysfeesandunionservicefeeinlaborcases 35
l. Criteria/FactorsforWageSetting 36
3. RESTDAY 37
a. Righttoweeklyrestday;Preferenceoftheemployee;Whenworkonrest
dayauthorized 37
4. HOLIDAYS 39
a. RighttoHolidayPay 39
a) IncaseofAbsences 41
b) Incaseoftemporarycessationofwork 41
c) Ofteachers,pieceworkers,seafarers,seasonalworkers 41
5. LEAVES 42
a. ServiceIncentiveLeavePay 42
b. MaternityLeave 44
c. PaternityLeave 44
d. ParentalLeave 45
e. Leavesforvictimsofviolenceagainstwomen 45
6. SERVICECHARGES 45
a. CoverageandExclusion 45
b. Distribution 46
c. Integration 46
th
7. 13 MONTHPAYANDOTHERBONUSES 46
a. Coverage,Exclusion/ExemptionsfromCoverage 46
b. Natureof13thmonthpay 46
c. Commissionsvisavis13thmonthpay 48
th
d. CBAvisavis13 monthpay 48
8. WOMENWORKERS 48
a. Discrimination(Art.135,LC);ProhibitedActs(Art.137,LC) 48
b. Stipulationagainstmarriage(Art.136,LC) 49
c. ClassificationofCertainWomenWorkers(Art.138,LC) 50
d. AntiSexualHarassmentAct(RA7877) 50
9. MINORWORKERS 53
a. Regulation of working hours of a child; Employment of the child in public
entertainment;Prohibitionofemployingminorsincertainundertakingsand
incertainadvertisements 53
10. EMPLOYMENTOFHOUSEHELPERS 56
a. Definition 56
b. Benefitsaccordedhousehelpers 56
c. Termination 57
d. Reliefsforunjusttermination 57
11. EMPLOYMENTOFHOMEWORKERS 57
a. Definition 57
b. Rightsandbenefitsaccordedhomeworkers 58
c. Conditionsfordeductionfromhomeworkersearnings 58
12. APPRENTICESANDLEARNERS 58
a. Apprentices 58
b. Learners 61
c. Distinctionsbetweenlearnershipandapprenticeship 61
13. HANDICAPPEDWORKERS 62
a. Definitionofhandicappedworkers 62
b. RightsofDisabledworkers 62
c. Prohibitionsondiscriminationagainstdisabledpersons 62
d. Incentivesforemployers 62
 TABLE OF CONTENTS

D. TERMINATIONOFEMPLOYMENT 64
1. EMPLOYEREMPLOYEERELATIONSHIP 64
a. Fourfoldtest 65
b. Twotieredtest 66
c. Probationaryemployment 66
d. Kindsofemployment 69
a) Regularemployment 69
(1) Reasonableconnectionrule 69
b) Projectemployment 71
(1) Indicatorsofprojectemployment 71
c) Seasonalemployment 73
d) Casualemployment 73
e) Fixedtermemployment;Requisitesforvalidity 74
e. JobcontractingandLaboronlycontracting 75
2. TERMINATIONOFEMPLOYMENT 79
a. SubstantiveDueProcess 79
a) JustCauses 79
(1) SeriousMisconduct 79
(2) WillfulDisobedience 80
(3) Negligence 81
(4) Abandonment 81
(5) Fraud;BreachofTrust/LossofConfidence 82
(6) TerminationofEmploymentpursuanttoUnionSecurity
Clause 83
(7) TotalityofInfractionsDoctrine 84
(8) CommissionofaCrime 84
(9) AnalogousCases 84
b) AuthorizedCauses 84
(1) Redundancy 85
(2) Retrenchment 86
(3) Closure 87
(4) Disease 89
b. ProceduralDueProcess 91
a) AgabonDoctrine 93
c. Reliefsforillegaldismissal 93
a) Reinstatementaspect 93
(1) Immediatelyexecutor;actualreinstatementandpayroll
reinstatement 93
b) Separationpayinlieuofreinstatement 94
(1) Strainedrelationrule 95
c) Backwages 96
(1) Componentsoftheamountofbackwages 96
d) ConstructiveDismissal 97
e) PreventiveSuspension 98
f) Quitclaim 98
g) Terminationofemploymentbyemployee 99
3. RetirementPayLaw 99
a. Coverage,Exclusionsfromcoverage,ComponentsofRetirementpay 99
b. Retirement pay under RA 7641 visavis Retirment benefits under SSS and
GSISlaws 102

E. MANAGEMENTPREROGATIVE 103
1. DISCIPLINE 103
2. TRANSFEROFEMPLOYEES 104
3. PRODUCTIVITYSTANDARD 104
4. GRANTOFBONUS 104
 TABLE OF CONTENTS

5. CHANGEOFWORKINGHOURS 105
6. MARITALDISCRIMINATION 105
7. POSTEMPLOYMENTBAN 106
8. LIMITATIONSINITSEXERCISE 106

F. SOCIALLEGISLATION 107
1. SSSLaw(RA8282) 107
a. Coverage 108
b. Exclusionsfromcoverage 109
c. Benefits 110
d. Beneficiaries 114
2. GSIS(RA8291) 115
a. Coverage 116
b. Exclusionsfromcoverage 116
c. Benefits 117
d. Beneficiaries 123
3. LIMITEDPORTABILITYLAW(RA7699) 124
4. EMPLOYEESsCOMPENSATION 124

G. LABORRELATIONSLAW 128
1. RIGHTTOSELFORGANIZATION 128
a. Whomayunionizeforpurposesofcollectivebargaining 128
b. BargainingUnit 128
a) Testtodeterminetheconstituencyofanappropriatebargaining
unit 128
b) VoluntaryRecognition 130
c. CertificationElection 131
d. RunoffElection 136
e. RerunElection 136
f. ConsentElection 136
g. AffiliationandDisaffiliationofthelocalunionfromthemotherunion 138
a) SubstitutionaryDoctrine 142
h. UnionDuesandSpecialAssessments 142
a) UnionDues 142
b) SpecialAssessments 143
i. AgencyFees 144
2. RIGHTTOCOLLECTIVEBARGAINING 144
a. DutytoBargainCollectively 145
b. MandatoryProvisionsoftheCBA 149
a) GrievanceProcedure 150
b) VoluntaryArbitration 150
c) NostrikeNoLockoutclause 151
d) LaborManagementCouncil 151
c. ULPinCollectiveBargaining 151
d. UnfairLaborPractice 152
a) ULPofEmployers 152
b) ULPofLaborOrganizations 157
3. RIGHTTOPEACEFULCONCERTEDACTIVITIES 158
a. FormsofConcertedActivities 161
b. Whomaydeclareastrikeorlockout 161
c. Requisitesforavalidstrike/lockout 162
d. AssumptionofjurisdictionbytheSecretaryofLabororCertificationofthe
LabordisputetotheNLRCforcompulsoryarbitration 166
e. NatureofAssumptionOrderorCertificationOrder 167
f. EffectofdefianceofAssumptionorCertificationorder 168
g. IllegalStrike 168
 TABLE OF CONTENTS

a) LiabilityofOfficersoftheUnionandOrdinaryWorkers 169
b) WaiverofIllegalityofStrike 170
h. Injunctions 170
a) RequisitesforLaborInjunctions 170
b) InnocentBystanderRule 170

H. PROCEDUREANDJURISDICTION 172
1. LABORARBITER 172
a. Jurisdiction 172
b. Effectofselfexecutingorderofreinstatementonbackwages 174
c. RequirementstoperfectappealtoNLRC 174
2. NATIONALLABORRELATIONSCOMMISSION(NLRC) 176
a. Jurisdictions 176
b. EffectofNLRCreversalofLaborArbitersorderofreinstatement 178
c. RequirementstoperfectappealtoCourtofAppeals 179
3. BUREAUOFLABORRELATIONS(BLR)MEDARBITERS 180
a. Jurisdiction 180
4. NATIONALCONCILIATIONANDMEDIATIONBOARD 182
a. Conciliationvs.Mediation 182
b. PreventiveMediation 183
c. Arbitration 184
5. DOLEREGIONALDIRECTORS 184
a. SmallMoneyClaims 184
6. DOLESECRETARY 185
a. VisitorialandEnforcementPowers 185
b. PowertosuspendeffectsofTerminationArt.277(b)oftheLaborCode 186
7. VOLUNTARYARBITRATORS 187
a. SubmissionAgreement 187
b. Rule43,RulesofCourt 188
8. COURTOFAPPEALS 189
9. SUPREMECOURT 190
10. PRESCRIPTIONOFACTIONS 190

I. FLOWCHARTS 192
1. PHILIPPINELABORDISPUTESETTLEMENTSYSTEM(OVERVIEW) 192
a. OverviewBasedonJurisdiction 192
b. OverviewBasedonCausesofAction 193
a) Injunction 194
b) Article217oftheLaborCode 195
c) MoneyclaimsunderRA8042asamended 196
d) UnresolvedGrievances,otherdisputesbypartiesagreements 197
e) NCMBinvolvingNOSandLockouts 198
f) EnforcementofLaborStandardLaws(Art.128oftheLC) 199
g) RecoveryofWages,SimpleMoneyClaimsandBenefits(Art.129
oftheLC) 200
h) InterIntraUnionDisputes 201
i) RepresentationIssues 202
j) CriminalActionforIllegalRecruitment 203

J. INDEX 204

K. BIBLIOGRAPHY 207