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UST Golden Notes 2011 - Labor Standards PDF
UST Golden Notes 2011 - Labor Standards PDF
1
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
2
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
FUNDAMENTAL PRINCIPLES AND POLICIES
4. Assure the rights of workers to self safety and decent living for the
organization, security of tenure, just and laborer.
humaneconditionsofwork,participatein d. Art. 1703 No contract which
policy and decisionmaking processes practically amounts to involuntary
affectingtheirrightandbenefits servitude, under any guise
5. Regulate the relations between workers whatsoever,shallbevalid.
andemployers
2. RevisedPenalCode
Q: What are the basic rights of workers Art. 289 Formation, maintenance and
guaranteedbytheConstitution(Sec.3,Art.XIII)? prohibition of combination of capital or
labor through violence or threats. Any
A: person who, for the purpose of
1. Securityoftenure organizing, maintaining or preventing
2. Receivealivingwage coalitions or capital or labor, strike of
3. Humaneworkingconditions laborers or lockout of employees, shall
4. Shareinthefruitsofproduction employ violence or threats in such a
5. Organizethemselves degreeastocompelorforcethelaborers
6. Conduct collective bargaining or or employers in the free and legal
negotiationwithmanagement exercise of their industry or work, if the
7. Engage in peaceful concerted activities act shall not constitute a more serious
includingstrike offenseinaccordancewiththeprovisions
8. Participate in policy and decision making oftheRPC.
processes
3. SpecialLaws
Q:Whatistheprincipleofnonoppression? a. GSISLaw
th
b. 13 MonthPayLaw
A: The principle mandates capital and labor not to c. RetirementPayLaw
act oppressively against each other or impair the d. SSSLaw
interest and convenience of the public. The e. PaternityLeaveAct
protectiontolaborclauseintheConstitutionisnot f. AntiChildLaborAct
designed to oppress or destroy capital. (Capili v. g. AntiSexualHarassmentAct
NLRC,G.R.No.117378,Mar.26,1997) h. Magna Carta for Public Health
Workers
2.NEWCIVILCODEANDOTHERLAWS i. SoloParentsWelfareActof2000
j. National Health Insurance Act as
Q:Whatareotherrelatedlawstolabor? amendedbyR.A.9241
k. Migrant Workers and Overseas
A: Filipinos Act of 1995 as amended by
1. CivilCode RA10022
a. Art. 1700 The relations between l. PERAActof2008
capital and labor are not merely m. Home Development Mutual Fund
contractual. They are so impressed Lawof2009
with public interest that labor n. TheMagnaCartaofWomen
contractsmust yieldtothecommon o. ComprehensiveAgrarianReformLaw
good. Therefore, such contracts are asamendedbyR.A.9700
subject to the special laws on labor
unions, collective bargaining, strikes 3.LABORCODE
and lockouts, closed shop, wages,
working conditions, hours of labor Q:Whatistheaimoflaborlaws?
andsimilarsubjects.
b. Art.1701 Neithercapitalnorlabor A: The justification of labor laws is social justice.
shall act oppressively against the Social justice is neither communism, nor
other, or impair the interest or despotism, nor atomism, nor anarchy, but the
convenienceofthepublic. humanizationoflawsandtheequalizationofsocial
c. Art.1702Incaseofdoubt,alllabor and economic force by the State so that justice in
legislation and all labor contracts its rational and objectively secular conception may
shall be construed in favor of the at least be approximated. Social justice means the
promotion of the welfare of all the people, the
3
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
4
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
FUNDAMENTAL PRINCIPLES AND POLICIES
5
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
6
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
FUNDAMENTAL PRINCIPLES AND POLICIES
7
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
8
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
9
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
10
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
11
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
licensees or non Added to the following in the believed that her application for the renewal of
holdersofauthority. listofprohibitedacts: her license would be approved. She adduced in
1. Failure to actually deploy evidence the Affidavits of Desistance which the
withoutvalidreason; four private complainants had executed after the
2. Failure to reimburse prosecution rested its case. In the said affidavits,
expenses incurred by the they acknowledge receipt of the refund by
workerinconnectionwith MaryroseofthetotalamountofP120,000.00and
his/her documentation
indicated that they were no longer interested to
and processing for
pursuethecaseagainsther.Resolvethecasewith
purposesofdeployment;
reasons.
3. To allow a nonFilipino
citizen to head or
manage a licensed A: Illegal recruitment is defined by law as any
recruitment/ manning recruitment activities undertaken by nonlicenses
agency. or nonholders of authority. (People v. Senoron,
G.R.No.119160,Jan.30,1997)Anditislargescale
Q:Howdoesoneproveillegalrecruitment? illegal recruitment when the offense is committed
against 3 or more persons, individually or as a
A: It must be shown that the accused gave the group. (Art. 38[b], LC) In view of the above,
distinctimpressionthathehadthepowerorability Maryroseisguiltyoflargescaleillegalrecruitment.
tosendcomplainantsabroadforworksuchthatthe HerdefenseofGFandtheAffidavitofDesistanceas
latter were convinced to part with their money in well as the refund given will not save her because
ordertobedeployed. R.A. No. 8042 is a special law, and illegal
recruitmentis malumprohibitum.(Peoplev.Saulo,
Q: May a licensee or holder of authority be held G.R. No. 125903, Nov. 15, 2000). (2005 Bar
liableforillegalrecruitment? Question)
A: Yes, any person (whether nonlicensee, non Q:SometimeinthemonthofMarch1997,inthe
holderofauthority,licenseeorholderofauthority) CityofLasPias,Bugobymeansoffalsepretenses
who commits any of the prohibited acts, shall be and fraudulent representation convinced Dado to
liableforIllegalrecruitment.(R.A.8042) givetheamountofP120,000.00forprocessingof
his papers so that he can be deployed to Japan.
Q: When is illegal recruitment considered as Dado later on found out that Bugo had
economicsabotage? misappropriated, misapplied and converted the
moneytoherownpersonaluseandbenefit.Can
A:Whenitiscommitted: Dado file the cases of illegal recruitment and
estafasimultaneously?
1. Byasyndicatecarriedoutby3ormore
persons conspiring/confederating with A:Yes,illegalrecruitmentandestafacasesmaybe
oneanotheror filed simultaneously or separately. The filing of
2. In large scale committed against 3 or charges for illegal recruitment does not bar the
more persons individually or as a group. filing of estafa, and vice versa. Bugos acquittal in
(Sec.6,10022) theillegalrecruitmentcasedoesnotprovethatshe
isnotguiltyofestafa.Illegalrecruitmentandestafa
Q:Whileherapplicationforrenewalofherlicense are entirely different offenses and neither one
torecruitworkersforoverseasemploymentwas necessarilyincludesorisnecessarilyincludedinthe
still pending Maryrose Ganda recruited Alma and other. A person who is convicted of illegal
her 3 sisters, Ana, Joan, and Mavic, for recruitmentmay,inaddition,beconvictedofestafa
employment as housemates in Saudi Arabia. underArticle315,par.2(a)oftheRPC.Inthesame
Maryroserepresentedtothesistersthatshehada manner, a person acquitted of illegal recruitment
license to recruit workers for overseas maybeheldliableforestafa.Doublejeopardywill
employment and demanded and received not set in because illegal recruitment is malum
P30,000.00 from each of them for her services. prohibitum,inwhichthereisnonecessitytoprove
However, her application for the renewal of her criminal intent, whereas estafa is malum in se, in
license was denied, and consequently failed to theprosecutionofwhich,proofofcriminalintentis
employ the 4 sisters in Saudi Arabia. The sisters necessary.(Syv.People,G.R.No.183879,April14,
charged Maryrose with large scale illegal 2010)
recruitment. Testifying in her defense, she
declaredthatsheactedingoodfaithbecauseshe Q:DistinguishIllegalRecruitmentfromEstafa
12
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
agentatthetimeofthetransactionoracquiredby
A: him before its completion, is deemed to be the
ILLEGALRECRUITMENT ESTAFA knowledge of the principal, at least so far as the
Maluminse, transaction is concerned, even though in fact the
thus: knowledgeisnotcommunicatedtotheprincipalat
Malumprohibitum,thus:
1. criminal intent is all.(Leonorv.FilipinasCompania,48OG243)
1. Criminal intent is NOT
necessary
necessary
2. crime which Q: Sunace International Management Services
2. itisacrimewhichinvolves
involves moral (Sunace),deployedtoTaiwanMontehermozoasa
moralturpitude
turpitude domestic helper under a 12month contract
effective Feb. 1, 1997. The deployment was with
Accused defrauded the assistance of a Taiwanese broker, Edmund
another by abuse of Wang, President of Jet Crown International Co.,
It is not required that it be
confidence, or by
shown that the recruiter Ltd.Afterher 12monthcontractexpiredonFeb.
meansofdeceit
wrongfully represented 1,1998,Montehermozocontinuedworkingforher
himself as a licensed Taiwanese employer for two more years, after
NOTE: It is essential
recruiter which she returned to the Philippines on Feb. 4,
that the false
statement or 2000. Shortly after her return she file before the
NOTE: It is enough that the fraudulent NLRC against Sunace, one Perez, the Taiwanese
victims were deceived as they representation broker,andtheemployerforeignprincipalalleging
relied on the constitutes the very
misrepresentationandscheme thatshewasjailedforthreemonthsandthatshe
cause or the only was underpaid. Should Sunace be held liable for
that caused them to entrust motive which induces
their money in exchange of the underpayment for the additional two years
thecomplainanttopart
whattheylaterdiscoveredwas withthethingofvalue that she worked for her Taiwanese employer
a vain hope of obtaining underthetheoryofimputedknowledge?
employmentabroad
A: No, the theory of imputed knowledge ascribes
Illegalrecruitmentandestafacasesmaybefiled the knowledge of the agent, Sunace, to the
simultaneouslyorseparately.Thefilingofchargesfor principal Taiwanese employer, not the other way
illegalrecruitmentdoesnotbarthefilingofestafa,and around. The knowledge of the principalforeign
viceversa. employer cannot, therefore, be imputed to its
Doublejeopardywillnotset agentSunace.
(c)Liabilities TherebeingnosubstantialproofthatSunaceknew
of and consented to be bound under the 2year
Q:Whatistheliabilityoftheprivateemployment employment contract extension, it cannot be said
agency and the principal or foreignbased to be privy thereto. As such, it and its owner
employer? cannot be held solidarily liable for and of
Montehermozos claims arising from the 2year
A: They are jointly and severally liable for any employment extension. (Sunace v. NLRC, G.R. No.
violation of the recruitment agreement and the 161757,Jan.25,2006)
contractsofemployment.
(d)Preteminationofcontractofmigrantworker
Note: This joint and solidary liability imposed by law
againstrecruitmentagenciesandforeignErsismeant Q: Serrano, a seafarer, was hired by Gallant
to assure the aggrieved worker of immediate and Maritime and Marlow Navigation Co. for 12
sufficient payment of what is due him. If the months as Chief Officer. On the date of his
recruitment/placementagencyisajuridicalbeing,the departure, he was constrained to accept a
corporate officers and directors and partners as the downgradedemploymentcontractfortheposition
casemaybe,shallthemselvesbejointlyandsolidarily of Second Officer, upon the assurance that he
liable with the corporation or partnership for the wouldbemadeChiefOfficerafteramonth.Itwas
claims and damages. (Becmen Service Exporter and notdone;hence,herefusedtostayonasSecond
Promotion v. Cuaresma, G.R. Nos. 18297879, April 7,
Officer and was repatriated to the Phils. He had
2009)
served only 2 months & 7 days of his contract,
leaving an unexpired portion of 9 months & 23
Q:Whatisthetheoryofimputedknowledge?
days.
A: A rule in insurance law that any information
Serrano filed with the LA a Complaint against
materialtothetransaction,eitherpossessedbythe
Gallant Maritime and Marlow for constructive
13
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
14
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
15
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
provisions orboth
1. Inspect books of accounts and records of
any person or entity engaged in Nonlicensee/non 48yrsimprisonment;or
holderofauthority Fine:P20KP100K
recruitment and placement, require it to
violatesprovisions orboth
submit reports regularly on prescribed
Corporation, Penaltyimposedupon
forms and act in violations of any
partnership, officer/sresponsiblefor
provisions of the LC on recruitment and association,orentity violation
placement.(Art.37) PenaltiesprescribedunderRA
2. Have access to employers records and 10022,
premises to determine violations of any Alien +
provisions of the LC on recruitment and Deportationwithoutfurther
placement.(Art.128) proceedings
3. Conduct industrial safety inspections of Automaticrevocationof
establishments.(Art.165) licenseorauthorityandall
4. Inquire into the financial activities of permitsandprivilegesofthe
Ineverycase
legitimate labor organizations (LLO) and recruitmentormanning
examinetheirbooksofaccountsuponthe agency,lendinginstitutions,
filing of the complaint under oath and trainingschoolormedical
dulysupportedbythewrittenconsentof clinic
at least 20% of the total membership of
theLOconcerned. Q: What are the remedies under the Migrant
WorkersActandhowmaytheybeenforced?
Q:CanSLEissuesearchwarrantsorwarrantsof
arrest? A:
CRIMINALACTIONS
A: No. Only a judge may issue search and arrest
RTC
warrants. Art 38 (c) of the Labor Code is
unconstitutional inasmuch as it gives the SLE the Provinceorcity:
powertoissuesearchorarrestwarrants.Thelabor 1. Wheretheoffensewascommittedor
authoritiesmustgothroughthejudicialprocess. 2. Wheretheoffendedpartyactuallyresidesatthe
sametimeofthecommissionoftheoffense
d.PenaltiesforIllegalRecruitment MONEYCLAIMS
NLRC
Q:Whatistheconsequenceofconvictionofillegal Original and exclusive jurisdiction to hear and decide
recruitment(IR)? claimsarisingoutofanErEerelationshiporbyvirtue
of any law or contract involving Filipino workers for
A: overseas deployment including claims for actual,
PENALTIES(underR.A.10022) moral,exemplaryandotherformsofdamages.
Theliabilityoftheprincipal/Erandtherecruitment/
Offender/Offense Penalty
placement agency for any and all claims shall be
IRaseconomic jointandseveral.
sabotage Lifeimprisonment+ The performance bond to de filed by the
fineofP2MP5M recruitment/placementagencyshallbeanswerable
Provided: for all money claims or damages that may be
1. Ifpersonillegally awardedtotheworkers.
recruitedisbelow If the recruitment/placement agency is a juridical
18yearsofageor being, the corporate officers and directors and
2. Illegal Maximumpenaltyshall partners as the case may be, shall themselves be
recruitmentis beimposed jointly and solidarily liable with the corporation or
committedbya partnershipfortheclaimsanddamages.
nonlicensee/non
holder ADMINISTRATIVEACTIONS
Anypersonfound 12yrsand1day20yrs POEA
guiltyofillegal imprisonment;or
recruitment Fine:P1MP2M
Anypersonfound 6yrsand1day12yrs
guiltyofthe imprisonment;or
prohibitedacts FineofP500KP1M
Licensee/holderof 25yrsimprisonment;or
authorityviolates Fine:P10KP50K;
16
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
Originalandexclusivejurisdictiontohearanddecide: DoOTandleavepayformpartofthesalarybasis
1. All cases which are administrative in character, inthecomputationofthemonetaryaward?
involving or arising out of violations of rules and
regulations relating to licensing and registration of A: No. The word salaries in Sec. 10(5) does not
recruitment and employment agencies or entities include overtime and leave pay. For seafarers,
and DOLE Department Order No. 33, series 1996,
2. Disciplinaryaction(DA)casesandotherspecialcases provides a Standard Employment Contract of
whichareadministrativeincharacter,involvingErs,
Seafarers,inwhichsalaryisunderstoodasthebasic
principals,contractingpartnersandFilipinomigrant
wage,exclusiveofOT,leavepayandotherbonuses;
workers.
whereas OT pay is compensation for all work
a.ItmaybefiledwiththePOEAAdjudicationOffice
or the DOLE/POEA regional office of the place performed in excess of the regular 8 hours, and
wherethecomplaintappliedorwasrecruitedat holiday pay is compensation for any work
the option of the complainant. The office with performedondesignatedrestdaysandholidays.
which the complaint was first filed shall take (Serrano v. Gallant Maritime Services & Marlow
cognizanceofthecase. Navigation Co., Inc., G.R. No. 167614, Mar. 24,
b.DAcasesandotherspecialcases,asmentioned 2009)
in the preceding Section, shall be filed with
POEAAdjudicationOffice. 3.OTHERRELATEDTOPICS
PERIODS
PhilippineOverseasEmploymentAdministration
MandatoryPeriodforResolutionofIllegal
RecruitmentCases
Q:WhataretheprincipalfunctionsofthePOEA?
Thepreliminaryinvestigations(PI)ofcasesunderR.A.
10022 shall be terminated within a period of 30
calendardaysfromthedateoftheirfiling. A:
IfthePIisconductedbya IfthePIisconductedby 1. ProtectionoftherightofFilipinoworkers
prosecutionofficeranda ajudgeandaprima to fair and equitable employment
primafaciecaseis faciecaseisfoundto practices
established exist 2. Regulation of private sector participation
Prosecutionofficer in the recruitment and overseas
Informationshallbefiled
within48hoursfromthe placement of workers by setting up a
incourtwithin24hours
dateofreceiptofthe licensingandregistrationsystem
fromtheterminationof
recordsofthecase.(Sec. 3. Deployment of Filipino workers through
theinvestigation
11) govttogovthiring
PrescriptivePeriodforIllegalRecruitmentCases 4. Formulation, implementation, and
monitoring of overseas employment of
SimpleIllegalRecruitment EconomicSabotage Filipinoworkerstakinginto consideration
Within20yrsfromthe their welfare and domestic manpower
Within5yrsfromthetime
timeillegalrecruitment requirements
illegalrecruitmenthas
hashappened.(Sec. 5. Shall inform migrant workers not only of
happened
12,R.A.8042) their rights as workers but also of their
rightsashumanbeings,instructandguide
Q: Is compromise agreement on money claims theworkershowtoasserttheirrightsand
allowed? provide the available mechanism to
redress violation of their rights. (Sec. 14,
A: Yes. Consistent with the policy encouraging R.A.10022)
amicable settlement of labor disputes, Sec. 10 of 6. Implementation, in partnership with
R.A.8042allowsresolutionbycompromiseofcases other lawenforcement agencies, of an
filedwiththeNLRC. intensified program against illegal
recruitment activities. (Sec. 14, R.A.
Q:Whenshallcompromiseagreementsonmoney 10022)
claimsbepaid?
Q:MaythePOEA,atanytimeterminateorimpose
A: Any compromise/amicable settlement or abanonemploymentofmigrantworkers?
voluntary agreement on money claims inclusive of
damages shall be paid within 4 months from the A: Yes,in consultationwiththeDFAbasedonthe
approval of the settlement by the appropriate ff.grounds:
authority.
2. InpursuitoftheNationalInterestor
17
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
18
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
19
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
EmploymentofNonResidentAliens XPNS:
1. Diplomatic services and foreign govt
Q: What is required in the employment of non officials
residentaliens? 2. Officers and staff of intl organizations
andtheirlegitimatespouses
A: Any alien seeking admission to the Phil. for 3. Members of governing board who has
employmentpurposesandanydomesticorforeign votingrightsonly
employer (Er) who desires to engage an alien for 4. Thoseexemptedbyspeciallaws
employmentinthePhilippines: 5. Owners and representatives of foreign
1. Shall obtain an employment permit from principals who interview Filipino
theDOLE applicantsforemploymentabroad
2. The permit may be issued to a non 6. Alienswhosepurposeistoteach,present
residentalienortotheapplicantErafter and/orconductresearchstudies
adeterminationofthenonavailabilityof 7. Resident aliens. (D.O. 7506, May 31,
a person in the Phil. who is competent, 2006)
ableandwillingatthetimeofapplication
to perform the services for which the Q: May the nonresident alien transfer
alienisdesired employment after issuance of the employment
3. For an enterprise registered in preferred permit?
areasofinvestments,saidpermitmaybe
issueduponrecommendationofthegovt A:Aftertheissuanceofanemploymentpermit,the
agency charged with the supervision of alienshallnottransfertoanotherjoborchangehis
saidregisteredenterprise employerwithoutpriorapprovaloftheSecretaryof
Labor.
Q: The DOLE issued an alien employment permit
for Earl Cone, a U.S. citizen, as sports consultant Q: What is required for immigrants and resident
and assistant coach for GMC. Later, the Board of aliens?
SpecialInquiryoftheCommissiononImmigration
andDeportationapprovedConesapplicationfora A:AnAlienEmploymentRegistrationCertificate.
changeofadmissionstatusfromtemporaryvisitor
to prearranged employee. A month later, GMC Q: What is the duration of the employment
requested that it be allowed to employ Cone as permit?
fullfledged coach. The Dole Regional Director
grantedtherequest.TheBasketballAssociationof A:GR:Minimumof1year
the Phils. appealed theissuance of said permit to
theSLEwhocancelledConesemploymentpermit XPN:Unlessrevokedandsubjecttorenewal
because GMC failed to show that there is no
person in the Philippines who is competent and Q:Mayaliensbeemployedinentitiesengagedin
willing to do the services nor that the hiring of nationalizedactivities?
Cone would redound to the national interest. Is
theactofSLEvalid? A:GR:No.
A:Yes.GMCsclaimthathiringofaforeigncoachis XPNs:
anErsprerogativehasnolegalbasis.UnderArt.40 1. Sec. of Justice specifically authorizes the
of the LC, an Er seeking employment of an alien employmentoftechnicalpersonnel
must first obtain an employment permit from the 2. Aliens are elected members ofthe board
DOLE. GMCs right to choose whom to employ is of directors or governing body of
limited by the statutory requirement of an corporationsorassociationsor
employmentpermit.(GMCv.Torres,G.R.No.9366, 3. EnterprisesregisteredundertheOmnibus
April22,1991) Investment Code in case of technical,
supervisory or advisory positions, but for
Art.41.ProhibitionAgainstTransferofEmployment alimitedperiod.
Q: Who are required to obtain an employment
permit?
A:GR:Onlynonresidentaliens;
20
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
21
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
Art.32.FeestobePaidbyWorkers
Q:Whenmayaworkerbechargedanyfee?
A:Onlywhen:
1. Hehasobtainedworkthroughrecruiters
efforts,and
2. The worker has actually commenced
working
Note: A land based agency may charge and collect
from its hired workers a placement fee in an amount
equivalent to 1 month salary, exclusive of
documentationcosts.
A:
1. Placement fee in an amount equivalent
toonemonthssalaryoftheworkerand
2. Documentationcosts.
22
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
C.LABORSTANDARDS Q:WhoaremanagerialEes?
1.HOURSOFWORK A: Those whose primary duty consists of the
management of the establishment in which they
a.Coverage/Exclusions are employed or a department or subdivision
thereof, and other officers or members of the
Q:Whodeterminesworkingconditions? managerialstaff.
A:Generally,theyaredeterminedbytheemployer, Theymustmeetalloftheff.conditions,namely:
as he is usually free to regulate, according to his
discretion,allaspectsofemployment. 1. Primary duty: management of the
establishment in which they are
Q:Whatisthelimitationontheemployerspower employed or of a department or sub
toregulateworkingconditions? divisionthereof;
2. Customarily or regularly direct the work
A: It must be done in good faith and not for the of2ormoreEes
purposeofdefeatingorcircumventingtherightsof 3. HastheauthoritytohireorfireotherEes
the employees. Such are not always absolute and of lower rank; or their suggestions and
must be exercised with due regard to the rights of recommendations as to the hiring and
labor. firing and as to the promotion or any
change of status of other Ees are given
Note: Ones employment, profession, trade or calling particularweight.
is a property right and the wrongful interference 4. Execute under general supervision work
therewithisanactionablewrong. along specialized or technical lines
requiring special training, experience, or
Q:Whendoestheconditiononemploymentunder knowledge
theLaborCodeapply? 5. Executeundergeneralsupervisionspecial
assignmentandtasks;and
A:OnlyifanErEerelationshipexists. 6. Do not devote more than 20% of their
hours worked to activities which are not
Q:Whoaretheemployeesthatarecoveredbythe directly and closely related to
conditionsofemployment? performance of the work described. (Art.
82[2])
A:GR:ItappliestoallEesinallestablishments.
Q:WhyaremanagerialEesnotcovered?
XPN:
1. Govtemployees A: They are employed by reason of their special
2. Managerialemployees training, expertise or knowledge and for positions
3. Fieldpersonnel requiring the exercise of discretion and
4. The employers family members who independent judgment. Value of work cannot be
dependonhimforsupport measuredintermsofhours.
5. Domestic helpers and persons in the
personalserviceofanother,and Q:Whoarefieldpersonnel?
6. Workers who are paid by results as
determinedunderDOLEregulations A:Theyare:
Q:Whoaregovernmentemployees(Ees)? 1. nonagriculturalemployees
2. whoregularlyperformtheirduties
A:TheyareEesofthe: 3. awayfromtheprincipalplaceofbusiness
orbranchofficeoftheemployer;and
1. NationalGovernment 4. whose actual hours of work in the field
2. Anyofitspoliticalsubdivisions cannot be determined with reasonable
3. Including those employed in GOCCs with certainty.
originalcharters.
Q:Whoareworkerspaidbyresults?
Q:WhatlawgovernsgovernmentEes?
A:Theyare:
A:TheCivilServiceLaw,rulesandregulations.
23
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
1. paidbasedontheworkcompleted;and A:
2. notonthetimespentinworking 1. AlltimeduringwhichanEeisrequiredto
3. including those who are paid on piece be:
work, takay, pakiaw, or task basis if a. Onduty,or
theiroutputratesareinaccordancewith b. AttheErspremises,or
thestandardsprescribed. c. Ataprescribedworkplace
Q: Who are domestic helpers and persons in the 2. AlltimeduringwhichanEeissufferedor
personalserviceofanother? permittedtowork.(Sec.3,RuleI,BookIII,
IRR)
A:Thosewho:
Q: What are the principles in determining hours
1. perform services in the employers (Er) worked?
home which are usually necessary or
desirable for the maintenance or A:
enjoymentthereof;or 1. AllhourswhichtheEeisrequiredtogive
2. minister to the personal comfort, to his Er regardless of whether or not
convenienceorsafetyoftheEraswellas such hours are spent in productive labor
themembersofhisErshousehold. orinvolvephysicalormentalexertion.
2. Rest period is excluded from hours
Q: A house personnel was hired by a ranking worked, even if Ee does not leave his
company official to maintain a staff house workplace,itbeingenoughthat:
provided for the official. The personnel is being a. Hestopsworking
paidbythecompanyitself.Isthehousepersonnel b. Mayrestcompletely
adomesticservantofthecompanyofficial? c. May leave his workplace, to go
elsewhere, whether within or
A:No,thepersonnelisnotadomestichelperbuta outside the premises of the
regularemployeeofthecompany. workplace
3. All time spent for work is considered
Q: What are the 3 groups of employees (Ees) hoursworkedif:
undertheLC? a. The work performed was
necessary
A: b. IfitbenefitedtheEr
1. Managerial Ee One who is vested with c. OrtheEecouldnotabandonhis
the powers or prerogatives to lay down work at the end of his normal
andexecutemanagementpoliciesand/or working hours because he had
to hire, transfer, suspend, layoff, recall, noreplacement
discharge,assignordisciplineEes. d. Provided,theworkwaswiththe
2. SupervisoryEethosewhointheinterest knowledge of his Er or
of the Er, effectively recommend such immediatesupervisor
managerialactionsiftheexerciseofsuch 4. ThetimeduringwhichanEeisinactiveby
authority is not merely routinary or reasons of interruptions in his work
clerical in nature but requires the use of beyond his control shall be considered
independentjudgment. workingtime:
3. RankandFileEeallEesnotfallingwithin a. If the imminence of the
anyoftheabovedefinitions.(Art.212[m]) resumption of the work
requires the Ees presence at
b.Normalhoursofwork theplaceofworkor
b. If the interval is too brief to be
Q:WhatarethenormalhoursofworkofanEe? utilized effectively and gainfully
intheEesowninterest.(Sec.4,
A:Itshouldnotexceed8hoursinageneralworking RuleI,BookIII,IRR)
day.
Note: Normal hours of work may be shortened or
compressed.
Q:Whatareconsideredhoursworked?
24
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
25
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
26
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
27
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
28
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
29
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
30
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
31
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
provided and indeed constituted facilities, such A: The Er and the union shall negotiate to correct
facilities could not be deducted without the Er thedistortions.Ifthereisnounion,theErandthe
complying first with certain legal requirements. workersshallendeavortocorrectsuchdistinctions.
(Mabezav.NLRC,G.R.No.118506,April18,1997)
Q:WhatarethebasicprinciplesinWD?
d.Wagesv.Salaries
A:
Q:Distinguishbetweenwageandsalary? 1. The concept of WD assumes an existing
group or classification of Ees which
A: establishes distinctions among such Ees
WAGE SALARY onsomerelevantorlegitimatebasis.This
(Gaavs.CA,G.R.No.44169,Dec.3,1985) classification is reflected in a differing
Compensationformanual Paidtowhitecollared wagerateforeachoftheclassesofEes
labor(skilledorunskilled) workersanddenotes 2. Often results from govt decreed
alsoknownasblue higherdegreeof
increasesinminimumwages.
collaredworkers,paidat employmentora
3. Should a WD exist, there is no legal
statedtimesand superiorgradeofservices
requirement that, in the rectification of
measuredbytheday, andimpliesapositionin
week,monthorseason. office. that distortion by readjustment of the
Considerablepayfora wageratesofthedifferingclassesofEes,
Outgestureofalarger the gap which had previously or
lowerandless
andmoreimportant historically existed be restored in
responsiblecharacterof
service precisely the same amount. In other
employment.
GR:Notsubjectto words, correction of a WD may be done
execution by reestablishing a substantial or
significant gap (as distinguished from the
Subjecttoexecution.
XPN:Debtsincurredfor historicalgap)betweenthewageratesof
food,shelter,clothingand thedifferingclassesofEes.
medicalattendance. 4. The reestablishment of a significant
differenceinwageratesmaybetheresult
e.WageDistortion of resort to grievance procedures or
collectivebargainingnegotiations.(Metro
Q:Whatiswagedistortion(WD)? Transit Org., Inc. v. NLRC, G.R. No.
116008,July11,1995)
A: Asituationwhereanincreaseinwageresultsin
theeliminationorseverecontractionofintentional Q:DistinguishtheprocessforcorrectionofWDof
quantitative differences in wage or salary rates organized establishments and unorganized
between and among the Eegroups in an establishments?
establishment as to effectively obliterate the
distinctionsembodiedinsuchwagestructurebased A:
onskills,length ofserviceorotherlogicalbasesof Organized Unorganized
differentiation. Establishment Establishments
(withunion) (withoutunion)
Q:WhataretheelementsofWD? TheErandtheunion TheErandtheworkers
shallnegotiateto shallendeavortocorrect
A: correctdistortion. thedistortion.
1. An existing hierarchy of positions with Anydisputeshallbe
correspondingsalaryrates. resolvedthrougha Anydisputeshallbe
2. A significant change or increase in the grievanceprocedure settledthroughtheNCMB.
salaryrateofalowerpayclasswithouta undertheCBA.
corresponding increase in the salary rate Ifitremainsunresolved,
Ifitremainsunresolved
ofahigherone; itshallbedealtwith
within10daysitshallbe
throughvoluntary
3. The elimination of the distinction referredtotheNLRC.
arbitration.
betweenthe2groupsorclasses;and
Thedisputewillbe TheNLRCshallconduct
4. The WD exists in the same region of the
resolvedwithin10days continuoushearingsand
country. (Alliance Trade Unions v. NLRC,
fromthetimethe decidethedisputewithin
G.R.No.140689,Feb.17,2004) disputewasreferredto 20daysfromthetimethe
voluntaryarbitration. samewasreferred.
Q:IstheErlegallyobligedtocorrectWD?
32
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
Q: Can the issue of WD be raised in a notice of Moreover, compliance with a collective bargaining
strike? agreement is mandatedby theexpressed policy to
giveprotectiontolabor.Unlessotherwiseprovided
A: No. WD is nonstrikeable. (Ilaw at Buklod ng by law, said policy should be given paramount
Manggagawa v. NLRC, G.R. No. 91980, June 27, consideration.(MeycauayanCollegev.DRILON,G.R.
1991.) WD is neither a deadlock in collective No.81144,My7,1990).
bargainingnorULP.
g.Nondiminutionofbenefits
f.CBAprovisionvisvisWageOrderCBACredibility
Q:Whatistheconceptofnondiminution(ND)of
Q:DistinguishCBAandWageOrder. benefits?
A: A: GR: Benefits being given to employees (Ees)
CBA WAGEORDER cannot be taken back or reduced unilaterally by
Not an ordinary Administrative issuance the employer (Er) because the benefit has
contract. It can be which results from a become part of the employment contract,
entered into only by an statute(RA6727) whetherwrittenorunwritten.
exclusive bargaining
agentorunit. XPN:Tocorrectanerror,otherwise,iftheerroris
If the CBA provides Onlysetstheminimum notcorrectedforareasonabletime,itripensinto
betterbenefitsthenthe a company policy and Ees can demand it as a
employees shall be matterofright.
entitledtothesame.
Q:WhenisNDofbenefitsapplicable?
Q: Can a CBA provision regarding wages prevail
overaWageOrder? A: It is applicable if it is shown that the grant of
benefit:
A:Yes,wheretheCBAprovidesawageorsalaryto
be received by the employees which is more than 1. Is based on an express policy of the law;
theamountsetbytheWageOrder,whetherissued or
prior to or after the conclusion of the CBA, it is 2. Has ripened into practice over a long
incumbent upon the employer to compensate the period of time and the practice is
employees according to the provisions of the CBA consistent and deliberate and is not due
withrespecttowages. to an error in the construction/
application of a doubtful or difficult
questionoflaw.
Q: Meycauayan College Faculty and Personnel
Association as the employees union in
h.Workerspreferenceincaseofbankruptcy
Meycauayan College, admits that its members
were paid all the increases in pay as mandated
Q:Whatisbankruptcy?
law.Itappearshoweverthatin1987,shortlyafter
union President Joy Bugo turned over the
A:BankruptcyisreferredtointhePhilippinesas
presidency,shediscoveredthatArt.IVoftheCBA,
Insolvency. It denotes the state of an entity or
which providesfor higher salary increasewasnot
personthathasliabilitiesgreaterthanitsassets.
implemented.Maytheunionclaimthedifference
between their old salaries and those provided by
Q: What happens if the Er business experiences
saidCBAprovision?
bankruptcyorliquidation?
A: Yes, the terms and conditions of a collective A: His workers shall enjoy first preference as
bargainingcontractconstitutethelawbetweenthe regards their wages and monetary claims, any
parties. Beneficiaries thereof are therefore, by provision of the law to the contrary
right, entitled to the fulfillment of the obligation notwithstanding.
prescribed therein.Consequently, to deny binding
force to the CBA would place a premium on a Q: What are the principles underlying the
refusalbyapartytheretotocomplywiththeterms preference?
oftheagreement.Suchrefusalwouldconstitutean
unfairlaborpractice. A:
33
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
34
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
35
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
A: It is the reasonable compensation paid to a Q: When can attorneys fees and damages be
lawyer by his client for the legal services he has awardedinanillegaldismissalcase?
rendered.
A: For attorneys fees, moral and exemplary
Q:Whatisextraordinaryattorneysfee? damages to be granted, the plaintiff must prove
thatthefactsofhiscasefallwithintheenumerated
A: It is the indemnity for damages ordered by the instances in the Civil Code. Thus, moral damages
courttobepaidbythelosingpartyinlitigationand may only be recovered where the dismissal or
is not to be paid to the lawyer but to the client, suspension of the employee was attended by bad
unless they have agreed that the award shall faith or fraud, or constituted an act oppressive to
pertain to the lawyer as an additional labor,orwasdoneinamannercontrarytomorals,
compensation or as a part thereof. (Traders Royal goodcustomsorpublicpolicy.Inotherwords,the
Bank Ees UnionIndependent v. NLRC, G.R. No. act must be a conscious and intentional design to
120592,Mar.14,1997) doawrongfulactforadishonestpurposeorsome
moralobliquity.Exemplarydamages,ontheother
Note: Art.111 of the LC deals with the extraordinary hand, may only be awarded where the act of
concept of attorneys fees. It may not be used as the dismissal was effected in a wanton, oppressive or
standardinfixingtheamountpayabletothelawyerby malevolent manner. (Chaves v. NLRC,G.R. No.
hisclientforthelegalservicesherendered.(Masmud 166382,June27,2006)
v.NLRC,G.R.No.183385,Feb.13,2009)
Q:Whatisunionservicefee?
Q:Santiago,aprojectworker,wasbeingassigned
by his Er, Bagsak Builders, to Laoag, Ilocos Norte.
A: The appearance of labor federations and local
Santiago refused to comply with the transfer
unions as counsel in labor proceedings has been
claiming that it, in effect, constituted a
givenlegalsanctionunderArt.222oftheLC,which
constructive dismissal because it would take him
allows nonlawyers to represent their organization
away from his family and his usual work
thereof.Thesaidlaborfederationsandlocalunions
assignments in Metro Manila. The Labor Arbiter
haveavalidclaimtoattysfeeswhichiscalledthe
(LA) found that there was no constructive
UnionServiceFee.
dismissal but ordered the payment of separation
pay due to strained relations between Santiago l.Criteria/FactorsforWageSetting
and Bagsak Builders plus attysfees equivalentto
10%ofthevalueofSantiago'sseparationpay. Q:Whatarethestandardsorcriteriaforminimum
wagesetting?
Istheawardofatty'sfeesvalid?Statethereasons
foryouranswer. A: In the determination of such regional minimum
wages, the Regional Board shall, among other
A: No, the award of attys fees is not valid. relevantfactorsconsiderthefollowing:
AccordingtotheLC(Art.111[a]),attysfeesmaybe
assessedincasesofunlawfulwithholdingofwages a)Thedemandforlivingwages
which does not exist in the case. The worker b)Wage adjustment visavis the consumer
refusedtocomplywithalawfultransferorder,and priceindex
hence,arefusaltowork.Giventhisfact,therecan c) The cost of living and changes or
benobasisforthepaymentofatty'sfees. increasestherein
d) Theneedsofworkersandtheirfamilies
Could the LA have validly awarded moral and e) Theneedtoinduceindustriestoinvestin
exemplary damages to Santiago instead of atty's thecountryside
fees?Why? f) Improvementsinstandardsofliving
g) Theprevailingwagelevels
A: No, moral and exemplary damages can be
h) Fair return of the capital invested and
awardedonlyiftheworkerwasillegallyterminated
capacitytopayofemployers
in an arbitrary or capricious manner. (Nueva Ecija
i) Effects on employment generation and
Electric Cooperative Inc., Ees Assn., vs. NLRC, G.R.
familyincome
No. 116066, Jan. 24, 2000; Cruz vs. NLRC, G.R. No.
j) The equitable distribution of income and
116384, Feb. 7, 2000; Phil. Aeolus etc., vs. NLRC,
wealthalongtheimperativesofeconomic
G.R. No. 124617, April 28, 2000). (2001 Bar
andsocialdevelopment
Question)
Q:Whatissalaryceilingmethod?
36
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
37
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
38
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
39
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
Q:DistinguishRHfromSD. Q:MayanErrequireanEetoworkonRH?
A: A: Yes. But Ee shall be compensated twice his
REGULARHOLIDAY SPECIALHOLIDAY regularrate.
IfUnworked
Regularpay Q:WhataretheratesofcompensationforRHon
(subject to certain EesregularworkdayandRHonEesrestday?
NoPay
conditions for daily paid
Ees) A:
Ifworked FORMULASTOCOMPUTEWAGESON
+ 30% premium pay of REGULARHOLIDAYS(RH)
2xregularpay(200%)
100%regularwage (M.C.No.10,Seriesof2004)
Othermatters RHonEesregular
RHonEesrestday
Setbylaw Setbyproclamation workday
Limited to those provided Ifunworked
Notexclusive
underArt.94,LC 100%
100%
Q:WhoareentitledtoHP? e.g. 300 Php regular wage
e.g.300Php(RW)
(RW)
A:GR:Allemployees(Ees)areentitled.(Sec.1,Rule Ifworked(1st8hrs)
IV,BookIII,IRR) +30%of200%
200%
XPNS: e.g600(200%ofRW)
1. Govt Ees and any of its political e.g.300(RW) X0.3
subdivisions, including GOCCs (with +300 180
originalcharter) 600=TotalWage(TW)
2. Retail and service establishments 180+600=780(TW)
regularlyemployinglessthan10workers Ifworked(OT)(excessof8hrs)
3. Domestic helpers and persons in the 230%
personalserviceofanother 230% + 30% of hourly
4. Ee engaged on task or contract basis or 200%+30%ofhourlyrate rateonsaiddate
purelycommissionbasis onsaiddate
5. MembersoftheFamilyoftheErwhoare
dependentonhimforsupport Q:What is animportant condition that shouldbe
6. Managerial Ee and other member of the metinordertoavail/receivethesingleHP?
managerialstaff
A:TheEeshouldnothavebeenabsentwithoutpay
7. FieldpersonnelandotherEewhosetime
ontheworkingdayprecedingtheRH.
andperformanceareunsupervisedbythe
Er
40
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
41
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
Q:Whatiftheconditionsarenotmet?
A: There is no longer any law making it the legal
obligation of an employer to grant an Emergency
A:Hemustworkonthe1stRHtobeentitledtoHP
Cost of Living Allowance (ECOLA). Effective 1981,
onthe2ndRH.(Sec.10,RuleIV,BookIII,IRR)
the mandatory living allowances provided for in
earlier Presidential Decrees were integrated into 5.LEAVES
the basic pay of all covered employees. Thus,
whether the ECOLA will be paid or not during the a.ServiceIncentiveLeavePay
semestral break now depends on the provisions of
theapplicablewageorderorcontractwhichmaybe Q:Whatisserviceincentiveleave(SIL)?
a CBA, that many grant said ECOLA. (1997 Bar
Question) A: It is 5 days leave with pay for every employee
who has rendered at least 1 yr of service. It is
Q:WhatistheconceptofdoubleHP? commutabletoitsmoneyequivalentifnotusedor
exhaustedattheendofyear.
A:2RHonsameday.
Q:Whatdoyoumeanbyatleast1yearofservice?
MAUNDY
WED THURSDAY&ARAW RATE
A: Service for not less than 12 months, whether
NGKAGITINGAN
continuous or broken reckoned from the date the
Present unworked 200%
employee started working, including authorized
LOAw/pay unworked 200%
absences and paid regular holidays unless the
300%
LOAw/pay worked working days in the establishment as a matter of
(atleast)
42
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
43
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
44
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
A: No. Jemuel is not entitled to paternity he/she is entrusted with the custody
leavebecausethefactsofthecaseonlyshowthat ofthechildren;
heisonlycohabitingwith Paula.Thelawexpressly e. Nullity or annulment of marriage as
provides that the male must be legally married to decreed by a court or by a church as
the woman with whom he is cohabiting as a long as he/she is entrusted with the
condition for entitlement of paternity leave. Even custodyofthechildren;
assumingthatJemuelislegallymarriedtoPaula,he f. Abandonment of spouse for at least 1
cannotavailalsoofthepaternityleavebecausethe yr;
law limits the deliveries only to four which include 3. Unmarried mother/father who has
childbirth or miscarriage. Based on the facts, it is preferred to keep and rear his or her
alreadythefifthdeliveryofthewoman. child/childreninsteadof:
a.havingotherscareforthemor
d.ParentalLeave b.givethemuptoawelfareinstitution;
4.Anyotherpersonwhosolelyprovides:
Q:Whatisparentalleave? a.parentalcareand
b.supporttoachildorchildren;
A:Leavebenefitsgrantedtoasoloparenttoenable 5. Any family member who assumes the
him/her to perform parental duties and responsibilityofheadoffamilyasaresult
responsibilities where physical presence is ofthe:
required. a.death,
b.abandonment,
In addition to leave privileges under existing laws, c.disappearanceor
parental leave of not more than 7 working days d. prolonged absence of the parents or
every year shall be granted to any solo parent Ee soloparent.
whohasrenderedserviceofatleast1year.(Sec.8)
Note: A change in the status or circumstance of the
Q: What are the conditions for entitlement of parent claiming benefits under this Act, such that
parentalleave? he/sheisnolongerleftalonewiththeresponsibilityof
parenthood,shallterminatehis/hereligibilityforthese
A: benefits.(Sec.3)
1.Heorshemustfallamongthosereferredtoas
soloparent e.Leavesforvictimsofviolenceagainstwomen
2. Must have the actual and physical custody of
thechildorchildren Q:Whatistheleaveforvictimsofviolenceagainst
3. Must have at least rendered service of one women or otherwise known as battered woman
yeartohisorheremployer leave?
4.Heorshemustremainasoloparent
A: A female employee who is a victim of violence
Q: Who are those referred to as solo parent (physical, sexual, or psychological) is entitled to a
entitledtoparentalleave? paid leave of 10 days in addition to other paid
leaves.(R.A.9262,AntiVAWCAct)
A: Any individual who falls under any of the ff.
categories: 6.SERVICECHARGES
1.Awomanwhogivesbirthasaresultofrape a.CoverageandExclusion
and other crimes against chastity even
withoutafinalconvictionoftheoffender, Q:Whatareservicecharges(SC)?
provided, That the mother keeps and
raisesthechild; A: These are charges collected by hotels,
2. Parent left solo or alone with the restaurantsandsimilarestablishmentsandshallbe
responsibilityofparenthooddueto: distributedattherateof:
a.Deathofspouse;
b. Detention or service of sentence of COVEREDEes MANAGEMENT
spouseforacriminalconvictionforat
least1yr; 85% 15%
c. Physical and/or mental incapacity of
spouse 1. To answer for losses and
Equally
d.Legalseparationordefactoseparation breakagesand
distributed
2. Distributed to Ees receiving
fromspouseforatleast1yraslongas
45
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
amongthem more than P2000 a month at Provided, that they have worked for at least 1
the discretion of the month, during a calendar year. (Revised
th
management. Guidelines on the Implementation of the 13
MonthPayLaw)
Q:WhoarecoveredEes?
XPN:
A: GR: All Ees are covered, regardless of their 1. GovernmentEes
position, designation, employment status, 2. Householdhelpers
irrespectiveofthemethodbywhichtheirwagesare 3. Eespaidpurelyoncommissionbasis
paid. 4. Eesalreadyreceiving13thmonthpay
Note: Applies only to hotels, restaurants and similar Q: What would be your advice to your client, a
establishmentcollectingservicecharges. manufacturing company, who asks for your legal
opinion on whether or not the 13th Month Pay
XPN:ManagerialEes.(Sec.2,RuleVI,BookIII,IRR) LawcoversacasualEewhoispaidadailywage?
b.Distribution A: I will advise the manufacturing company to pay
thecasualEe13thMonthPayifsuchcasualEehas
Q:Whenistheshareofemployeedistributedand workedforatleast1monthduringacalendaryear.
paidtothem? The law on the 13th Month Pay provides that Ees
areentitledtothebenefitofsaidlawregardlessof
A: Not less than once every 2 weeks or twice a theirdesignationoremploymentstatus.
monthatintervalsnotexceeding16days.
The SC ruled in Jackson BuildingCondominium
c.Integration Corp. v. NLRC, G.R. No. 112546, March 13, 1996,
interpretingP.D.851,asfollows:Eesareentitledto
Q: What happens if the Service Charge is the 13th month pay benefits regardless of their
abolished? designation and irrespective of the method by
whichtheirwagesarepaid.(1998BarQuestion)
A:TheshareofthecoveredEesshallbeconsidered
integrated in their wages on the basis of the Note:AnEr,maygivetohisEesoftherequired13th
average monthly share of eachEes for thepast 12 Monthpaybeforetheopeningoftheregularschoolyr.
monthsimmediatelyprecedingtheabolition. andtheotherhalfonorbeforetheDec.24.
Note:Servicechargesformpartoftheawardinillegal Q:Is13thMonthPaylegallydemandable?
dismissalcases.
A: Yes. It is a statutory obligation, granted to
7.13thMONTHPAYANDOTHERBONUSES covered Ees, hence, demandable as a matter of
right.(Sec1,P.D.851)
a.Coverage,Exclusion/exemptionsfromcoverage
b.Natureof13thMonthPay
Q:Whatis13thmonthpayoritsequivalent?
Q: In what form is the 13th month pay paid or
A: Additional income based on wage required by given?
P.D. 851 Requiring all Employers to pay their
Employeesa13thmonthpaywhichisequivalentto A:Itisgivenintheformof:
1/12 of the total basic salary earned by an
employee(Ee)withinacalendaryear. 1. ChristmasBonus
2. MidyearBonus
Q:WhoarecoveredbyP.D.851? 3. ProfitSharingScheme
4. Other Cash bonuses amounting to not
A:GR: All rankandfile Ees regardless of the lessthan1/12ofitsbasicsalary
amount of basic salary that they receive in a
month,iftheiremployers(Er)arenototherwise Note:Itmustalwaysbeintheformofalegaltender.
exemptedfrompayingthe13thmonthpay.Such
th
Ees are entitled to the 13 month pay Q:Whatarenotpropersubstitutesfor13thMonth
regardless of said designation of employment pay?
status,andirrespectiveofthemethodbywhich
theirwagesarepaid. A:
1. Freerice
46
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
2. Electricity last2years,subjecttotheprovision
3. Cashandstockdividends ofSec.7ofP.D.851;
4. COLA(Sec.3)
2. The Government and any of its political
Q: Concepcion Textile Co. included the OT pay, subdivisions, including GOCCs, except
nightshift differential pay, and the like in the those corporations operating essentially
computation of its Ees 13thmonth pay. as private subsidiaries of the
Subsequently, with the promulgation of the Government;
decision of the SC in the case of SMC vs. Inciong 3. ErsalreadypayingtheirEes13monthpay
(103SCRA139)holdingthattheseothermonetary or more in a calendar year of its
claimsshouldnotbeincludedinthecomputation equivalentatthetimeofthisissuance:
of the 13th month pay, Concepcion Textile Co.
sought to recover under the principle of solutio 4. Itsequivalentshallinclude:
indebiti the overpayment of the Ees 13thmonth a. Christmasbonus
pay, by debiting against future 13thmonth b. Midyearbonus
payments whatever excess amounts it had c. Profitsharing payments
previouslymade. and
d. Other cash bonuses
(1)IstheCompany'sactiontenable? amountingtonotlessthan
1/12th of the basic salary
(2) With respect to the payment of the 13th but
month pay after the SMC ruling, what
arrangement, if any, must the Company make in 5. Itshallnotinclude:
order to exclude from the 13thmonth pay all a. cashandstockdividends,
earnings and remunerations other than the basic b. COLA
pay? c. all other allowances
regularly enjoyed by the
A: The Company's action is not tenable. The Ee, as well as non
principle of solutio indebiti which is a civil law monetarybenefits.
conceptisnotapplicableinlaborlaw.(DavaoFruits
Corp. vs. NLRC, et al., G.R. No. 85073 August 24, 6. Ers of household helpers and persons in
1993). After the 1981 SMC ruling, the High Court thepersonalserviceofanotherinrelation
decided the case of Philippine Duplicators Inc. vs. tosuchworkers;and
NLRC, GR 110068, Nov. 11, 1993. Accordingly,
management may undertake to exclude sick leave, 7. Ers of those who are paid on purely
vacation leave, maternity leave, premium pay for commission, boundary, or taskbasis, and
regular holiday, night differential pay and cost of those who are paid a fixed amount for
living allowance. Sales commissions, however, performingaspecificwork,irrespectiveof
should be included based on the settled rule as the time consumed in the performance
earlier enunciated in Songco vs. NLRC, G.R. No. L thereof, except where the workers are
50999,March23,1990.(1994BarQuestion) paidonpieceratebasisinwhichcasethe
employer shall be covered by this
Q: Are all Ers required to pay 13th Month Pay issuance insofar as such workers are
underP.D.851? concerned.(Sec3,P.D.851)
A:
Q:WhataretheoptionsofcoveredErs?
GR:Yes.ItappliestoallErs,
A:
XPN: 1. Pay onehalf of the 13thmonth pay
1. DistressedErs: required before the opening of the
a. Currentlyincurringsubstantiallosses regularschoolyearandtheotherhalfon
or or before the 24th day of December of
b. In the case of nonprofit institutions everyyear.
and organizations, where their 2. In any establishment where a union has
income, whether from donations, been recognized or certified as the
contributions, grants and other collective bargaining agent of the Ee, the
earnings from any source, has periodicity or frequency of payment of
consistently declined by more than the13thmonthpaymaybethesubjectof
40% of their normal income for the agreement.
47
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
48
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
b.StipulationAgainstMarriage(Art.136,LC)
49
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
A:TheremustbeafindingofanyBFOQtojustifyan Q:WhoarecoveredunderthisTitle?
Ers no spouse rule. There must be a compelling
business necessity for which no alternative exist A: Any women who is permitted or suffered to
otherthanthediscriminatingpractice. work:
50
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
51
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
hostileorunfriendlytotheapplicant'schancesfora
2. Create a committee on decorum and job if she turns down the invitation. [Sec. 3(a)(3),
investigation of cases on sexual R.A. No. 7877, AntiSexual Harassment Act]. (2000
harassment. BarQuestion)
3. The Er or head of office, education or
training institution shall disseminate or Q: In the course of an interview, another female
post a copy of this R.A. 7877 for the applicant inquired from the same Personnel
informationofallconcerned Manager if she had the physical attributes
required for the position she applied for. The
Q: What is the liability of the Er, head of office, Personnel Manager replied: "You will be more
educationalortraininginstitution? attractive if you will wear micromini dresses
without the undergarments that ladies normally
A: Ee shall be solidarily liable for damages arising wear." Did the Personnel Manager, by the above
from the acts of sexual harassment committed in reply, commit an act of sexual harassment?
the employment, education or training Reason.
environmentprovided:
A:Yes.Theremarkswouldresultinanoffensiveor
1. The Er or head of office, educational or hostile environment for the Ee. Moreover, the
training institution is informed of such remarks did not give due regard to the applicants
actsbytheoffendedparty;and feelingsanditisachauvinisticdisdainofherhonor,
2. No immediate action is taken thereon. justifying the finding of sexual harassment
(Sec.5) (Villaramav.NLRC,G.R.No.106341,Sep.2,1994)
52
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
A:GR: A:TheErshallfirstsecureaworkpermitfromthe
1. No person under 18 years of age will be DOLE which shall ensure observance of the
allowedtobeemployedinanundertaking requirements.(Sec.12,R.A.7160)
which is hazardous or deleterious in
nature. Q:Whatistheruleregardingtheissuanceofwork
2. No Er shall discriminate against any certificates/ permits for children at least 15 but
personinrespecttotermsandconditions below18yearsofage?
ofemploymentonaccountofhisage.
A:TheissuanceofaDOLECertificatetoyouthaged
XPN: 15tobelow18yearsofageisnotrequiredbylaw.
A. Below15yrs.Old No employer shall deny opportunity to any such
1. The child works directly under the youthapplyingforemploymentmerelyonthebasis
sole responsibility of his parents, or oflackofworkpermitorcertificateofeligibilityfor
guardians who employ members of employment. Any young person aged 15 to below
his family, subject to the following 18 years of age may present copy of this DOLE
conditions: advisorytoanyemployer,jobprovider,government
a. Employmentdoesnotendanger authority, or his/her representative when seeking
the childs safety, health and employmentoranytimeduringemployment.(DOLE
morals DepartmentAdvisoryNo.0108)
b. Employment does not impair
thechildsnormaldevt Q:Whatisanonhazardouswork?
c. Erparent or legal guardian
provides the child with the A: It is any work or activity in which the Ee is not
primary and/or secondary exposedtoanyriskwhichconstitutesanimminent
education prescribed by the dangertohissafetyandhealth.
Dept.ofEducation
2. The childs employment or Q:Whatarehazardousworkplaces?
participationinpublicentertainment
or information through cinema, A:
theater, radio or television is 1. Nature of work exposes the workers to
essentialprovided: dangerous environmental elements,
a. Employment contract is contaminantsorworkconditions
concludedbythechildsparents 2. Workers are engaged in construction work,
orlegalguardian, logging, firefighting, mining, quarrying,
b. With the express agreement of blasting, stevedoring, dock work, deepsea
thechildconcerned,ifpossible, fishing,andmechanizedfarming
and 3.Workersareengagedinthemanufactureor
c. The approval of DOLE, the handling of explosives and other pyrotechnic
following must be complied products
with: 4. Workers use or are exposed to heavy or
i. The employment does not powerdriventools
involve advertisement or
commercials promoting Q: You were asked by a paint manufacturing
alcoholic beverages, companyregardingthepossibleemploymentasa
intoxicating drinks, tobacco mixer of a person, aged 17, who shall be directly
and its byproducts or under the care of the section supervisor. What
exhibitingviolence advicewouldyougive?Explainbriefly.
ii. there is a written contract
approvedbyDOLE A: I will advise the paint manufacturing company
thatitcannothireapersonwhoisaged17.Art139
53
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
54
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
A: Yes, he should be prohibited from working as a - Not allowed to work between 8:00
dealer in casino, because Art. 140 of the LC pm6:00am
prohibits the employment of persons below 18
years of age in an undertaking which is hazardous 2. At least 15 years of age but below 18
ordeleteriousinnatureidentifiedintheguidelines years of age will not exceed 8 hours a
issuedbytheSLE.Workingasadealerinacasinois dayor40hoursaweek
classifiedashazardousunderD.O.No.04Seriesof - Notallowedtoworkbetween10:00
1999 as it exposes children to physical, pm6:00am
psychologicalorsexualabuses.(2006BarQuestion)
Q:Whataretheworstformsoflabor?
b.ActAgainstChildLabor(RA9231)andChildAbuse
Law(RA7610) A:
1. All forms of slavery (AntiTrafficking of
Q:Whatischildlabor? Persons Act of 2003) or practices similar
to slavery such as sale and trafficking of
A: Any work or economic activity performed by a children, debt bondage and serfdom and
child that subjects him or her to any form of forced or compulsory labor, including
exploitation or is harmful to his or her health and recruitment of children for use in armed
safety or physical, mental or psychosocial conflict;
development. 2. The use, procuring, offering or exposing
of a child pornography or for
Q:Whoisaworkingchild? pornographicperformances;
3. The use, procuring, offering or exposing
A:Anychildengagedasfollows: of a child for illegal or illicit activities,
includingtheproductionandtraffickingof
1. Whenthechildisbelow18yearsofagein dangerous drugs and volatile substances
a work or economic activity that is not prohibitedunderexistinglaws;
childlabor;or 4. Employingchildmodelsinallcommercials
2. Whenthechildisbelow15yearsofage: or advertisements promoting alcoholic
a. In work where he/she is directly beverages, intoxicating drinks, tobacco
under the responsibility of his/her anditsbyproductsandviolence;and
parents or legal guardianand where 5. Work which, by its nature or
only members of the childs family circumstancesinwhichitiscarriedout,is
areemployed;or hazardous or likely to be harmful to the
b. In public entertainment or health,safetyormoralsofchildren.
information
Q: Who can file a complaint for unlawful acts
Q:WhenmaytheStateinterveneinbehalfofthe committedagainstchildren?
child?
A:
A: 1. Offendedparty
1. The parent, guardian, teacher or person 2. Parentsorguardians
havingcareorcustodyofthechildfailsor 3. Ascendants or collateral relatives within
rd
is unable to protect the child against the3 degreeofconsanguinity
abuse,exploitationanddiscrimination;or 4. Officer,socialworkerorrepresentativeof
2. When such acts are committed against alicensedchildcaringinstitution
the child by the said parent, guardian, 5. OfficerorsocialworkerofDSWD
teacher or person having care and 6. Barangay chairman of the place where
custodyoverthechild the violation occurred, where the child is
residingoremployed
Q:Whatisthelimitationonthehoursofworkofa 7. Atleast3concerned,responsiblecitizens
workingchild? wheretheviolationoccurred
A:Ifthechildis: Q: Which courts have jurisdiction over offenses
punishableunderR.A.9231?
1. Below15yearsofagenotmorethan20
hoursaweekandnotmorethan4hours A:TheFamilyCourtsshallhaveoriginaljurisdiction
aday over all cases involving offenses punishable under
thisAct
55
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
5. Nonassignment to a work in a
commercial, industrial or agricultural
10.EMPLOYMENTOFHOUSEHELPERS enterprise at a wage or salary rate lower
thanthatprovidedforagriculturalornon
a.Definition agriculturalworkers.(Art.145)
Q:Whatisdomesticorhouseholdservice? 6. Ees under 18 years of age shall be given
A: opportunity for at least elementary
1. ServicesintheErshome education.Thecostofeducationshallbe
2. Usuallynecessaryordesirable part of the HHs compensation, unless
3. For the maintenance and employment otherwisestipulated.(Art146)
thereof 7. Should be treated in a just and humane
4. Includes ministering to the personal manner.(Art.147)
comfortandconvenienceofthemembers 8. Not to be treated with physical violence
oftheErshousehold (Art.147)
5. Includingservicesoffamilydrivers. 9. Suitable and sanitary living headquarters
as well as adequate food and medical
Q:Whoisahousehelper? attendance.(Art.148)
10. Terminationofemploymentshouldbe
A: A househelper is synonymous to domestic a. upon expiration of term of
servant employment,or
b. basedonjustcause(Art.149)
1.Anyperson,maleorfemale; 11. Indemnity for unjust termination of
2.WhorendersservicesinandabouttheErs service
homeand; 12. Employmentcertificationastonatureand
3. ServicesareusuallynecessaryorDesirable duration of service and efficiency and
for the maintenance and enjoyment conductofhousehelper.
thereof,and
4. Ministers exclusively to the personal Q:Whatistheminimumwageforhousehelpers?
comfortandenjoymentofErsfamily
A:
Note:Thechildrenandrelativesofahousehelperwho 1.MetoManilaP800/month
live under the Ers roof and who share the 2. Other Chartered Cities or First Class
accommodationsprovidedforthehousehelperbythe MunicipalitiesP650/month
Ershallnotbedeemedashousehelpersiftheyarenot
3.InotherMunicipalitiesP550/month
otherwise engaged as such and are not required to
perform any substantial household work. (Sec 3, Rule
Note: The minimum cash wage rates shall be paid to
XII,BookIII,IRR)
the househelpers in addition to lodging, food and
medicalattendance.
Thedefinitionofahousehelpercannotbeinterpreted
to include househelp or laundry women working in
Q:IsthereanOTPayforhousehelpers?
staffhouses of a company. (APEX Mining CO., Inc., v.
NLRC,G.R.No.94951,April22,1991)
A: No. The LC is silent on the grant of OT pay, HP,
b.Benefitsaccordedhousehelpers Premium Pay and SIL to those engaged in the
domesticorhouseholdservice.MoreoverArt.82of
Q:Whataretherightsofhousehelpers? LC expressly excludes domestic helpers from its
coverage. (Ultra Villa Food Haus v. Geniston, G.R.
A: No.120473,June23,1999)
1. Originalcontractofdomesticserviceshall
notlastformorethan2yearsbutitmay Q: Erlinda worked as a cook, preparing the lunch
berenewedbytheparties.(Art.142) and merienda of the Ees of Remington Industrial
2. Entitled to minimum wage in addition to Sales Corp. She worked at the premises of the
lodging, food, and medical attendance. company. When Erlinda filed an illegal dismissal
(Art.144) case,Mr.Tan,themanagingdirectorofRemington
3. Employmentcontractshouldbereviewed Corp.claimedthatErlindawasadomestichelper,
every 3 years with the end view of andnotaregularEeofRemingtonCorp.Mr.Tan
improving the terms and conditions of argued that it is only when the househelper or
employment.(Art.143) domestic servant is assigned to certain aspects of
4. SSS benefits for those who are receiving the business of the Er that such househelper or
atleastP1,000permonth.(Art.143)
56
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
57
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
XPN:Unlesstheff.conditionsaremet: Q:Whatisanapprenticeableoccupation?
1. TheHWisclearlyshowntoberesponsible
forthelossordamage A: That which requires more than 3 months of
2. TheEeisgivenreasonableopportunityto practicaltrainingwiththeoreticalinstruction
showcausewhydeductionsshouldnotbe
made; Q:Whatisonthejobtraining(OJT)?
3. Theamountofsuchdeductionisfairand
A: It is practical work experience through actual
reasonable and shall not exceed the
participation in productive activities given to or
actuallossordamages;and
acquiredbyanapprentice.
58
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
Q:Whatarehighlytechnicalindustries? Q:Whatistheemploymentstatusofapprentices?
A: Those which are engaged in the application of A: They are contractual workers whose length of
advancedtechnology. service depends on the term provided for in the
apprenticeship agreement. Thus, the employer is
Q:Whatarerelatedtheoreticalinstructions? not obliged to employ the apprentice after the
completionofhistraining.
A: Technical information based on apprenticeship
standardsapprovedbytheBureau. Q:Whatistheperiodofapprenticeship?
Note:PriorapprovalbyTESDA(formerlyDOLE)ofthe A:Mustnotexceed6months:
proposed apprenticeship program is a condition sine
quanon.Otherwise,apprenticebecomesaregularEe. 1. 2months/400hours:Tradesoroccupations
(Nitto Enterprises v. NLRC, G.R. No. 114337, Sep. 29, whichnormally require 1 yearormorefor
1995). proficiency
2. 1 month/200 hours: Occupations and jobs
Q:Whatarethequalificationsofanapprentice? whichrequiremorethan3monthsbutless
than1yearforproficiency.(Sec.19,RuleVI,
A: BookII,IRR)
1. Atleast15yearsofage
Note:Thosebelow18yearsofageshallnot Q: What is the status of an apprentice hired after
workinhazardousoccupations suchterm?
2. Physicallyfitfortheoccupation
3. Possessvocationalaptitudeandcapacity A:HeisdeemedaregularEe.Hecannotbehiredasa
4. Possess: probationary Ee since the apprenticeship is deemed
a. Theabilitytocomprehend,and theprobationaryperiod.
b. Followoralandwritteninstructions
5. The company must have an Q:Whatisthewagerateofanapprentice?
apprenticeshipprogramdulyapprovedby
theDOLE. A: Start at not less than 75% of the statutory
minimum wage for the 1st 6 months (except OJT);
Note: Trade and industry associations may thereafter, shall be paid in full minimum wage,
recommend to the SLE appropriate educational includingthefullCOLA.
requirementsfordifferentoccupations.
Note: GR: Apprenticeship programs shall be primarily
Q:Whenisanoccupationdeemedhazardous? voluntary
A: XPN:Compulsoryapprenticeship:
1. Nature of work exposes worker to 1. National security or economic
dangerous environmental elemental developmentsodemand,thePresident
contaminantsorworkconditions mayrequirecompulsorytraining
2. Workers are engaged in construction 2. Services of foreign technicians are
work, logging, firefighting, mining, utilized by private companies in
quarrying,blasting,stevedoring,deepsea apprenticeabletrades.
fishing,andmechanizedfarming
3. Workersareengagedinthemanufacture Q: What are the rules regarding apprenticeship
or handling of explosives and other agreements?
pyrotechnicproducts
4. Workers use, or are exposed to heavy or A: Apprenticeship agreements, including the wage
powerdrivenmachineryorequipment. ratesofapprentices,shall:
Q:Whomayemployapprentices? 1. ConformtotherulesissuedbySLE.
2. The period of apprenticeship shall not
A: exceed6months.
1. Only employers in highly technical 3. Apprenticeship agreements providing for
industriesand wage rates below the legal minimum
2. Only in apprenticeable occupations wage, which in no case shall start below
approvedbySLE 75%oftheapplicablemin.wage,maybe
entered into only in accordance with
59
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
apprenticeship programs duly approved A: Gomburza College is not liable for the acts of
bytheSLE. Padilla because there is no ErEe relationship
4. The DOLE shall develop standard model between them. As provided in the Rules and
programsofapprenticeship.(Sec.18,Rule RegulationsImplementingtheLC"thereisnoErEe
VI,BookII,IRR) relationship between students on one hand, and
schools, colleges, or universities on the other,
Q:Whosignstheapprenticeshipagreement? wherestudentsworkwiththelatterinexchangefor
the privilege to study free of charge, provided the
A: Every apprenticeship agreement shall be signed students aregiven real opportunity, including such
by: facilities as may be reasonable and necessary to
finish their chosen courses under such
1. Theemployerorhisagent,or arrangement."(1997BarQuestion)
2. An authorized representative of any of
therecognizedorganizations,associations Q: Who may terminate an apprenticeship
orgroups,and agreement?
3. Theapprentice.
A:
Q:Whowillsigniftheapprenticeisaminor? 1. Eitherpartymayterminateanagreement
aftertheprobationaryperiodbutonlyfor
A:Anapprenticeshipagreementwithaminorshall avalidcause.
besignedinhisbehalfby: 2. It may be initiated by either party upon
filing a complaint or upon DOLEs own
1. His parent or guardian, or if the latter is initiative.
notavailable,
2. An authorized representative of the Q:Whomayappealthedecisionoftheauthorized
DOLE. agencyoftheDOLE?
60
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
61
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
Q:Whoarehandicappedworkers(HW)? b.Rightsofdisabledworkers
Q:Whencanhandicappedworkersbeemployed? d.Incentivesforemployers
62
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
Q:Distinguishhandicappedfromdisabled?
A:
Disabled
Handicapped
(DifferentlyAbled)
Referstoallsufferingfrom
restrictionofdifferentabilities
Earningcapacityis asaresultofmental,physical
impairedbyage,or orsensoryimpairmentto
physicalormental performanactivityinthe
deficiencyorinjury. mannerorwithinrange
considerednormalfora
humanbeing.
Coversallactivitiesor
Coversonlyworkers.
endeavors.
Basis:rangeofactivitywhich
Basis:loss/impairment
isnormalforahuman
ofearningcapacity.
being.
Lossduetoinjuryor Restrictionduetoimpairment
physicalormental ofmental/physical/sensory
defectorage. defect.
Ifhired,entitledto75%
ofminimumwage.
Ifqualified,entitledtoall
termsandconditionsas
Subjecttodefinite
qualifiedablebodiedperson.
periodsof
employment.
Employableonlywhen Norestrictionson
necessarytoprevent employment.
curtailmentof
employment Mustgetequalopportunity
opportunity. andnounfaircompetition.
63
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
64
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
the Lastimoso family. The 3 corporations were 4. Power of control. (The Labor Code with
engaged in the same line of business, under one Comments and Cases 2007, Azucena, Vol
management, and used the same equipment I,p.158)
including manpower services. Lacson and his co
Ees filed a complaint with the Labor Arbiter Q:Whatiscontroltest?
againstLBM,RLRealtyandLastimosoConstruction
to hold them jointly and severally liable for A:Thepersonforwhomtheservicesareperformed
backwages and separation pay. Lastimoso reserves a right to control not only the end to be
Construction, Inc. RL Realty & Development achievedbutalsothemeanstobeusedinreaching
Corporation interposed a Motion to Dismiss suchend.
contending that they are juridical entitles with
distinct and separate personalities from LBM Note:However,incertaincasesthecontroltestisnot
Construction Corporation and therefore, they sufficienttogiveacompletepictureoftherelationship
cannot be held jointly and severally liable for the betweentheparties,owingtothecomplexityofsucha
money claims of workers who are not their Ees. relationshipwhereseveralpositionshavebeenheldby
Rule on the motion to dismiss. Should it be theworker.Thebetterapproachistoadoptthetwo
tieredtest.(Franciscovs.NLRC,G.R.No.170087,Aug.
grantedordenied?Why?
31,2006)
A: It is very clear that even if LBM Construction
Q: Genesis entered into a Careers Agent
company, Lastimoso Construction Company, Inc.
Agreement with EmoLife Insurance Company, a
and RL Realty & Devt Corp. all belong to the
domestic corporation engaged in insurance
Lastimosofamilyandareengagedinthesameline
business. In the Agreement, it provides that the
of business under one management and used the
agent is an independent contractor and nothing
same equipment including manpower services,
therein shall be construed or interpreted as
these corporations were separate juridical entities.
creating an employer employee relationship. It
Thus, only the LBM Construction Corp. is the Er of
furtherprovidesthattheagentmustcomplywith
Teofilo Lacson. The other corporation do not have
three requirements: (1) compliance with the
any ErEe relations with Lacson. The case in
regulationsandrequirementsofthecompany;(2)
question does not include any fact that would
maintenance of a level of knowledge of the
justify piercing the veil of corporate fiction of the
company's products that is satisfactory to the
othercorporationsinordertoprotecttherightsof
company;and(3)compliancewithaquotaofnew
workers. In a case (Concept Builders, Inc. v. NLRC,
businesses.However, EmoLifeinsurance company
G.R.No.108734,May29,1996)theSCruledthatit
terminated Genesis services. Genesis filed an
isafundamentalprincipleofcorporationlawthata
illegaldismissalcomplaintallegingthereinthatan
corporation is an entity separate and distinct from
employeremployeerelationshipexistsandthathe
its stockholders and from other corporations to
was illegally dismissed. Is he an employee of the
which it may be connected. But this separate and
insurancecompany?
distinct personality of a corporation is merely a
fiction created by law for convenience and to A:GenesisisnotanemployeeofEmoLifeInsurance
promote justice. So, when the notion of separate Company. Generally, the determinative element is
juridical personality is used to defeat public the control exercised over the one rendereing the
convenience,justifywrong,protectfraudordefend service.TheconceptofcontrolinLaborCodehas
crime, or is used as a device to defeat the labor to be compared and distinguished with control
laws, this separate personality of the corporation that must necessarily exist in a principalagent
maybe disregarded or the veil of corporate fiction relationship. The employer controls the employee
pierced.(1999BarQuestion) bothintheresultsandinthemeansandmannerof
achieving this result. The principal in an agency
a.Fourfoldtest relationship, e.g. insurance agent, on the other
hand, also has the prerogative to exercise control
Q:WhatfactorsdeterminetheexistenceofanEr over the agent in undertaking the assigned task
Eerelationship? based on the parameters outlined in the pertinent
laws. In the present case, the Agreement fully
A:Thefourfoldtest: servesasgrantofauthoritytoGenesisasEmoLifes
insurance agent. This agreement is supplemented
1. Selection and engagement of the
bythecompanysagencypracticesandusages,duly
employee;
accepted by the agent in carrying out the agency.
2. Paymentofwages;
Foremost among these are the directives that the
3. Powerofdismissal;and
principal may impose on the agent to achieve the
65
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
66
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
67
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
68
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
a complaint for illegal dismissal against their Er. Regular employment does not mean permanent
AsaLA,howwillyouresolvethecase? employment.AprobationaryEebecomesaregularEe
after 6 months. A regular Ee may only be terminated
A: AsaLAIwillresolvethecaseinfavorofthe 8 forjust/authorizedcauses.
probationary Ees due to theff::
The practice of entering into employment contracts
1. Probationary Ees also enjoy security of which would prevent the workers from becoming
tenure. (Biboso v. Victoria Milling, G.R. regular should be struck down as contrary to public
No. L44360,Mar.31,1977) policy and morals. (Universal Robina Corp. v.
2. InallcasesinvolvingEesonprobationary Catapang,G.R.No.164736,Oct.14,2005)
status, the Er shall make known to the
Eeatthetimeheishired,the standards (a)Reasonableconnectionrule
by which he will qualify for the
positionsappliedfor. Q: What is the test to determine regular
3. The filing of the complaint for illegal employment?
dismissal effectively negates the Ers
A:
theory of abandonment. (Rizada v.
1. The primary standard of determining
NLRC,G.R. No.96982,Sep.21,1999)
regular employment is the reasonable
4. The order togo homeandnottoreturn
connection between the particular
to work constitutes dismissal from
activity performed by the employee (Ee)
employment.
to the usual trade or business of the
5. The8probationaryEeswereterminated
employer.Thetestiswhethertheformer
without just cause and without due
is usually necessary or desirable in the
process
usualbusinessortradeoftheEr.(DeLeon
v.NLRC,G.R.No.70705,Aug.21,1989)
In view of the foregoing, I will order
reinstatement to their former positions without
Note:Theconnectioncanbedeterminedby
loss of seniority rights with full backwages, plus
considering the nature of the work
damagesandattysfees.(2006BarQuestion) performedanditsrelationtotheschemeof
the particular business or trade in its
d.Kindsofemployment entirety. (Highway Copra Traders v. NLRC,
G.R.No.108889,July30,1998)
(1)Regularemployment
Q:Whatisregularemployment? 2. Also,theperformanceofajobforatleast
A: a year is sufficient evidence of the jobs
1. An employment shall be deemed to be necessity if not indispensability to the
regularwheretheEehasbeenengagedto business. This is the rule even if its
perform activities which are usually performance is not continuous and
necessary or desirable in the usual merely intermittent. The employment is
businessortradeoftheEr,theprovisions considered regular, but only with respect
of written agreements to the contrary to such activity and while such activity
notwithstanding and regardless of the exists. (Universal Robina Corp. v.
oralagreementsoftheparties.(Sec.5[a], Catapang, G.R. No. 164736, Oct. 14,
RuleI,BookVI,IRR) 2005).
2. Any Ee who has rendered at least one Note: The status of regular employment attaches to
year of service, whether such service is thecasualEeonthedayimmediatelyaftertheendof
continuousorbroken,shallbeconsidered hisfirstyearofservice.Thelawdoesnotprovidethe
aregularEewithrespecttotheactivityin qualificationthattheEemustfirstbeissuedaregular
which he is employed and his appointmentormustfirstbeformallydeclaredassuch
employment shall continue while such before he can acquire a regular status. (Aurora Land
activity exists. (Sec. 5 [b], Rule I, Book VI, ProjectsCorp.v.NLRC,G.R.No.114733,Jan.2,1997)
IRR)
Q:Isthemodeofcompensationdeterminativeof
Note:Regularizationisnotamanagementprerogative; regularemployment?
rather,itisthenatureofemploymentthatdetermines
it.Itisamandateofthelaw.(PALv.Pascua,G.R.No. A:No,whiletheEesmodeofcompensationwason
143258,Aug.15,2003) a per piece basis the status and nature of their
employment was that of regular Ees. (Labor
69
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
70
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
71
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
e. Theterminationofhisemploymentinthe projects.Thesefactsarethebasisinconsideringthem
particularproject/undertakingisreported as regular Ees of the company. (Maraguinot v. NLRC,
to the Department of Labor and G.R.No.120969,Jan.22,1998)
Employment Regional Office having
jurisdiction over the workplace within 30 Members of a work pool from which a construction
days following the date of his separation companydrawsitsprojectEes,ifconsideredEesofthe
constructioncompanywhileintheworkpool,arenon
from work, using the prescribed form on
projectEesorEesforanindefiniteperiod.Iftheyare
employees
employedinaparticularproject,thecompletionofthe
termination/dismissal/suspensions
projectoranyphasethereofwillnotmeanseverance
of ErEe relationship. Unless the workers in the work
f. An undertaking in the employment poolarefreetoleaveanytimeandoffertheirservices
contract by the employer to pay to other Ers. (L.T. Datu & Co., Inc. v. NLRC, G.R. No.
completion bonus to the project 113162,Feb.9,1996)
employee as practiced by most
constructioncompanies Q:Whatisthedaycertainrule?
Q:Whataretherequisitesindeterminingwhether A:Itstatesthataprojectemploymentthatendson
anemployee(Ee)isaprojectEe? a certain date does not end on an exact date but
uponthecompletionoftheproject.
A:
1. TheprojectEewasassignedtocarryouta Q:AreprojectEesentitledtoseparationpay?
specificprojectorundertaking,and
2. The duration and scope of which were A: GR: Project Ees are not entitled to separation
specifiedatthetimetheEewasengaged pay if they are terminated as a result of the
for that project. (Imbuido v. NLRC, G.R. completionproject.
No.114734,Mar.31,2000)
3. The Ee must have been dismissed every XPN: If the projects they are working on have
aftercompletionofhisprojectorphase notyetbeencompletedwhentheirservicesare
4. Report to the DOLE of Ees dismissal on terminated; project Ees also enjoy security of
account of completion of contract (Policy tenure during the limited time of their
Inst.No.20;D.O.19[1997]) employment. (De Ocampo v. NLRC, G.R. No.
81077,June6,1990)
Q:Whatisaproject?
Q: Roger Puente was hired by Filsystems, Inc.,
A: A "project" has reference to a particular job or initiallyasaninstallerandeventuallypromotedto
undertaking that may or may not be within the mobile crane operator, and was stationed at the
regular or usual business of the Er. In either case, companys premises. Puente claimed in his
the project must be distinct, separate and complaint for illegal dismissal, that his work was
identifiable from the main business of the Er, and continuousandwithoutinterruptionfor10years,
its duration must be determined or determinable and that he was dismissed from his employment
(PALv.NLRC,G.R.No.125792,Nov.9,1998). without any cause. Filsystems on its part averred
that Puente was a project Ee in the companys
Q: Can a project employee(Ee) or a member of a variousprojects, and that after thecompletion of
workpoolacquirethestatusofaregularEe? eachproject,hisemploymentwasterminated,and
suchwasreportedtotheDOLE.IsRogerPuentea
A:Yes,whenthefollowingconcur: regularEe?
1. There is a continuous rehiring of project A: No, Puente is a project Ee. The contracts of
Eesevenaftercessationofaproject;and employment of Puente attest to the fact that he
2. The tasks performed by the alleged washiredforspecificprojects.Hisemploymentwas
project Ee are vital, necessary and coterminouswiththecompletionoftheprojectsfor
indispensable to the usual business or whichhehadbeenhired.Thosecontractsexpressly
tradeoftheemployer(Er). providedthathistenureofemploymentdepended
on the duration of any phase of the project or on
Note: The length of time during which the Ee was the completion of the construction projects.
continuously rehired is not controlling, but merely Furthermore, the company regularly submitted to
serves as a badge of regular employment. Enero and the labor dept reports of the termination of
Maraguinot have been employed for a period of not services of project workers. Such compliance with
lessthan2yearsandhavebeeninvolvedinatleast18
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LABORLAWTEAM:
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TERMINATION OF EMPLOYMENT
the reportorial reqt confirms that Puente was a duration of the season does not detract from
projectEe. considering them in regular employment. Seasonal
workers who are called to work from time to time
ThemererehiringofPuenteonaprojecttoproject and are temporarily laid off during offseason are
basisdidnotconferuponhimregularemployment not separated from service in that period, but
status.Thepracticewasdictatedbythepractical merelyconsideredonleaveuntilreemployed.
consideration that experienced construction
workersaremorepreferred.Itdidnotchangehis IftheEehasbeenperformingthejobforatleasta
status as a project Ee. (Filipinas PreFabricated year,eveniftheperformanceisnotcontinuousand
Building Systems (FILSYSTEMS), Inc. v. Puente, G.R. merely intermittent, the law deems repeated and
No.153832,Mar.18,2005) continuing need for its performance as sufficient
evidence of the necessity if not indispensability of
(3)Seasonalemployment that activity to the business. Hence, the
employment is considered regular, but only with
Q:Whatisseasonalemployment? respect to such activity and while such activity
exists. (Benares v. Pancho, G.R. No. 151827, April
A: Employment where the job, work or service to 29,2005)
be performed is seasonal in nature and the
employment is for the duration of the season. Q: Carlito Codilan and Maximo Docena had been
(Sec.5[a],RuleI,BookVI,IRR) working for the rice mill for 25 years, while
Eugenio Go, Teofilo Trangria and Reynaldo Tulin
An employment arrangement where an employee have been working for 22, 15, and 6 years
(Ee) is engaged to work during a particular season respectively. The operations of the rice mill
onanactivitythatisusuallynecessaryordesirable continue to operate and do business throughout
intheusualbusinessortradeoftheemployer(Er). the year even if there are only two or three
harvest seasons within the year. This seasonal
Note:ForseasonalEes,theiremploymentlegallyends harvesting is the reason why the company
upon completion of the project or the season. The considers the workers as seasonal Ees. Is the
termination of their employment cannot and should
companycorrectinconsideringtheEesasseasonal
not constitute an illegal dismissal. (Mercado v. NLRC,
Ees?
G.R.No.79869,Sept.5,1991)
One year duration on the job is pertinent in deciding A:No,thefactisthatbigricemillssuchastheone
whetheracasualEehasbecomeregularornot,butit ownedbythecompanycontinuetooperateanddo
isnotpertinenttoaseasonalorprojectEe.Passageof businessthroughouttheyearevenifthereareonly
time does not make a seasonal worker regular or twoorthreeharvestseasonswithintheyear.Itisa
permanent.(Mercadov.NLRC,G.R.No.78969,Sep.5, common practice among farmers and rice dealers
1991) tostoretheirpalayandtohavethesamemilledas
the need arises. Thus, the milling operations are
During offseason, the relationship of ErEe is not not seasonal. Finally, considering the number of
severed;theseasonalEeismerelyconsideredonLOA years that they have worked, the lowest being 6
without pay. Seasonal workers who are repeatedly years,theworkershavelongattainedthestatusof
engaged from season to season performing the same regular Ees as defined under Art. 280. (Tacloban
tasks are deemed to have acquired regular SagkahanRiceMillv.NLRC,G.R.No.73806,Mar.21,
employment.(HaciendaFatimav.NationalFederation 1990)
of Sugarcane WorkersFood and General Trade, G.R.
No.149440,Jan.28,2003)
(4)Casualemployment
Q:AreseasonalEesentitledtoseparationpay? Q:Whatiscasualemployment?
A: When the business establishment is sold which A:
effectively terminates the employment of the 1. It is an employment where the Ee is engaged in
seasonal Ees, the latter would be entitled to an activity which is not usually necessary or
separationpay. desirable in the usual business or trade of the Er,
provided: such employment is not project nor
Q:Canseasonalemployees(Ees)beconsideredas seasonal(Art.281).
regularEes?
Note:Butdespitethedistinctionbetweenregular
A: Yes. The fact that seasonal Ees do not work and casual employment, every Ee shall be
continuously for one whole year but only for the entitled to the same rights and privileges, and
73
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
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LABORLAWTEAM:
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
75
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
76
LABORLAWTEAM:
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TERMINATION OF EMPLOYMENT
A: They shall be entitled to all the rights and A: The principal shall be solidarily liable with the
privilegesduetoaregularEeasprovidedintheLC, contractor in the event of any violation of any
asamendedtoincludetheff: provision of the LC, including the failure to pay
wages. This will not prevent the principal from
1. Safeandhealthfulworkingconditions claimingreimbursementfromthecontractor.
2. ServiceIncentiveLeave,restdays,OTpay,
holiday pay, 13th month pay and Q: What does substantial capital or investment
separationpay mean?
3. Socialsecurityandwelfarebenefits;
4. Selforganization, CBA and peaceful A: It refers to the capital stocks and subscribed
concertedactions capitalization in case of corporations, tools,
5. Securityoftenure(Sec.8,DO1802) equipments, implement, machineries and work
premises, actually and directly used by the
Q: What are the effects of termination of CEe to contractor or subcontractor in the performance or
separationpayandotherbenefits? completion of the job, work or service contracted
out.(D.O.1802)
A:
1. If prior to the expiration of the Note:Thelawdoesnotrequirebothsubstantialcapital
employment contract between the and investment in the form of tools, equipments,
principal and the contractor or machineries, etc. This is clear from the use of
conjunctionor.Ifthecontentionwastorequirethe
subcontractor The right of CEe to
contractor to prove that he has both capital and
separation pay or other related benefits
requisite investment, then the conjunction and
shall be governed by the applicable laws
should have been used. (Virginia Neri v. NLRC, G.R.
and jurisprudence on termination of No.97008,July21,1993)
employment
Q:Whatdoestherighttocontrolmean?
2. If the termination results from the
expiration of the contract between the A: It refers to the right reserved to the person for
principal and the contractor or whom the services of the contractual workers are
subcontractor The Ee shall not be performed, to determine not only the end to be
entitled to separation pay. However, this achieved, but also the manner and means to be
isw/oprejudicetocompletionbonusesor usedinreachingthatend.(D.O.1802)
other emoluments including retirement
pay as may be provided by law or in the Q:SMCandSunflowerCooperativeenteredintoa
contract between the principal and the 1yr Contract of Services, to be renewed on a
contractor. month to month basis until terminated by either
party. Pursuant to the contract, Sunflower
Q:Whenistheprincipaldeemedtheemployerof engagedprivaterespondentstorenderservicesat
thecontractualemployee? SMCs Bacolod Shrimp Processing Plant. The
contract was deemed renewed by the parties
A:Where: everymonthafteritsexpirationonJan.1,94and
respondentscontinuedtoperformtheirtasksuntil
1. Thereislaboronlycontracting Sep.11,95.InJuly95,privaterespondentsfileda
2. The contracting arrangement falls within complaintbeforetheNLRC,prayingtobedeclared
theprohibitedacts asregularEesofSMC,withclaimsforrecoveryof
all benefits and privileges enjoyed by SMC rank
Q:MaytheErorindirectErrequirethecontractor and file Ees. Respondents subsequently filed an
or subcontractor to furnish a bond equal to the AmendedComplainttoincludeillegaldismissalas
cost of labor under contract to answer for the additionalcauseofactionfollowingSMCsclosure
wages due to Ees in case the contractor or of its Bacolod Shrimp Processing Plant on which
subcontractorfailstopaythesame? resulted in the termination of their services. SMC
filed a Motion for Leave to File Attached Third
rd
A: Yes. The Er or indirect Er may require the PartyComplainttoimpleadSunfloweras3 Party
contractor or subcontractor to furnish a bond that Defendant. Are private respondents Ees of the
willanswerforthewagesduetotheEes. independent cooperative contractor (Sunflower)
oroftheSMC?
Q:Whatistheliabilityoftheprincipal?
77
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
A:ThecontentionofSMCholdsnobasis.Usingthe
substantial capital doctrine and the right of A:ItgivesrisetoconfusionastowhoistherealEr
control test, the Court found that the Sunflower of the workers and who is liable to their claims. It
had no substantial capital in the form of tools, alsodeprivesworkersoftheopportunitytobecome
equipment, machineries, work premises and other regularEes.
materials to qualify itself as an independent
contractor. The lot, building, machineries and all Q: How do we determine if one is engaged in
otherworkingtoolsutilizedbyprivaterespondents labor/jobonlycontracting?
in carrying out their tasks were owned and
provided by SMC. In addition, the shrimp A:Thetesttodeterminewhetheroneisajob/labor
processing company was found to have control of onlycontractingistolookintotheelementsofajob
the manner and method on how the work was contractor. If all the elements of a job contractor
done.Thus,thecomplainantsweredeemedEesnot arepresent,thenheisajobcontractor.Absentone
of the cooperative but of the shrimp processing of the elements for a job contractor, then the
company. Sincerespondents who were engaged in personisalaboronlycontractor.
shrimp processing performed tasks usually
necessary or desirable in the aquaculture business Note: It is the opinion of Dean Antonio H. Abad, Jr.
ofSMC,theyshouldbedeemedregularEesofthe thatthedecisivedeterminantinjobcontractingshould
not be the fact that the contracted workers are
latter and as such are entitled to all the benefits
performingactivitieswhicharedirectlyrelatedtothe
and rights appurtenant to regular employment.
mainbusinessof theprincipal,but that the principal
(SMC vs. Prospero Aballa, et al., G.R. No. 149011, has no right to control the conduct of the employees
June28,2005,J.CarpioMorales) astothemeansemployedtoachieveanend;notthe
character of the activities as being usually necessary
Q: What are the conditions before permitting job ordesirableintheusualbusinessoftheemployer.
contracting?
It cannot be gainsaid that the activities of the
A: contractedworkersarealwaysnecessaryordesirable;
1. The labor contractor must be duly even that they are directly related to the main
licensed by the appropriate Regional businessoftheprincipal.Theprimordialconsideration
OfficeoftheDOLE should be the control test. Hence, if the
2. There should be a written contract arrangement passes the control test, it is job
between the labor contractor and his contracting.Ifitfails,itislaboronlycontracting.
clientEr that will assure the Ees at least
the minimum labor standards and Q:Distinguishbetweenjobcontractingandlabor
benefitsprovidedbyexistinglaws. onlycontracting
Note:TheEesofthecontractororsubcontractorshall A:
be paid in accordance with the provisions of the LC. LABORONLY
JOBCONTRACTING
(Art.106) CONTRACTING
Liabilityislimited(shallbe
Q:Whatislaboronlycontracting? solidarily liable with Er
Liability extends to all
only when the Er fails to
those provided under
A:Itreferstoanarrangementwherethefollowing comply with reqts as to
theLaborStandardslaw
conditionsconcur: unpaid wages and other
laborstandardsviolations)
1. The person supplying workers to an Er Permissible, subject only
ProhibitedbyLaw
does not have substantial capital or tocertainconditions
investment in the form of tools, The contractor has
Has no substantial
equipment, machineries, work, premises, substantial capital or
capitalorinvestment
investment
amongothers,or
2. Evenifsuchpersonhassubstantialassets,
thesamearenotactuallyordirectlyused Q: SMPC entered into a contract with Arnold for
bytheEescontractedout; the milling of lumber as well as the hauling of
3. Theworkersrecruitedandplacedbysuch waste woodproducts. The company provided the
personareperformingactivitieswhichare equipment and tools because Arnold had neither
directly related to the principal business tools and equipment nor capital for the job.
ofsuchEr. Arnold, on the other hand, hired his friends,
relatives and neighbors for the job. Their wages
Q:Whyislaboronlycontractingprohibited? were paid by SMPC to Arnold, based on their
78
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TERMINATION OF EMPLOYMENT
productionorthenumberofworkersandthetime A:SubstantiveDueProcessprovidesthegroundfor
used in certain areas of work. All work activities disciplinaryaction,i.e.correctiveorretributive
andscheduleswerefixedbythecompany.
(a)Justcauses
1.IsArnoldajobcontractor?Explainbriefly
Q: What are the just causes for termination (Art.
2.Whoisliablefortheclaimsoftheworkershired 282,LC)?
byArnold?Explainbriefly.
A:
A: 1. Serious misconduct or willful
1. No. In the problem given, Arnold did not disobediencebytheemployee(Ee)ofthe
have sufficient capital or investment for lawful orders of his employer (Er) or
one. For another, Arnold was not free representative in connection with his
from the control and direction of SMPC work
because all work activities and schedules 2. Gross and habitual neglect by the Ee of
were fixed by the company. Therefore, hisduties
Arnold is not a job contractor. He is 3. Fraud or willful breach by the Ee of the
engagedinlaboronlycontracting. trust reposed in him by his Er or duly
2. SMPC is liable for the claims of the organizedrepresentative
workers hired by Arnold. A finding that 4. Commission of a crime or offense by the
Arnold is a labor only contractor is Ee against the person of his Er or any
equivalenttodeclaringthatthereexistan immediate member of his family or his
ErEe relationship between SMPC and dulyauthorizedrepresentative.
workers hired by Arnold. This is so 5. Othercausesanalogoustotheforegoing
because Arnold is considered a mere
agent of SMPC (Lim v. NLRC, G.R. No. Note:Theburdenofprovingthattheterminationwas
124630, Feb. 19, 1999); 2002 Bar foravalidorauthorizedcauseshallrestontheEr.(Art.
Question) 277[b])
Q: What are the grounds for delisting of 1.SeriousMisconduct
contractorsorsubcontractors?
Q:Whatisseriousmisconduct?
A:
1. Nonsubmissionofcontractsbetweenthe A: It is an improper or wrong conduct; the
principal and the contractor or transgressionofsomeestablishedanddefiniterule
subcontractorwhenrequiredtodoso; of action, a forbidden act, a dereliction of duty,
2. Nonsubmissionofannualreport; willfulincharacter,andimplieswrongfulintentand
3. Findings through arbitration that the not mere error in judgment. To be serious within
contractor or subcontractor has engaged the meaning and intendment of the law, the
in laboronly contracting and other misconduct must be of such grave and aggravated
prohibitedactivities; character and not merely trivial or unimportant.
4. Noncompliancewithlaborstandardsand (Villamor Golf Club v. Pehid, G.R. No. 166152, Oct.
workingconditions.(Sec.16,D.O.1802) 4,2005)
Q: What are the effects of finding that there is Q:Whataretheelementsofseriousmisconduct?
laboronlycontracting?
A:
A: A finding that a contractor is a laboronly 1. Itmustbeseriousorofsuchagraveand
contractorisequivalenttodeclaringthatthereisan aggravatedcharacter;
employeremployee relationship between the 2. Must relate to the performance of the
principal and the employees of the laboronly employees(Ee)duties;
contractor. (Assoc. AngloAmerican Tobacco Corp. 3. Eehasbecomeunfittocontinueworking
v.Clave,G.R.No.50915,Aug.30,1990) for the employer. (Philippine Aeolus
Automotive United Corp. v. NLRC, G.R.
2.TERMINATIONOFEMPLOYMENT No.124617,April28,2000)
a.Substantivedueprocess Q:Givesomeexamplesofseriousmisconduct.
Q:WhatisSubstantivedueprocess? A:
79
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
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LABORLAWTEAM:
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
81
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
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LABORLAWTEAM:
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
83
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
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LABORLAWTEAM:
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ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
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UST GOLDEN NOTES 2011
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LABORLAWTEAM:
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
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UST GOLDEN NOTES 2011
(Galaxie Steel Workers Union v. NLRC, G.R. No. damages and claim for employment benefits.
165757,Oct.17,2006) Werethelossesincurredbythecompanyenough
tojustifyclosureofitsoperations?
AreEesentitledtoseparationpay?
A: The determination to cease operations is a
A: No. Galaxie had been experiencing serious prerogative of management that is usually not
financial losses at the time it closed business interfered with by the State as no business can be
operations.Art.283oftheLCgovernsthegrantof required to continue operating at a loss simply to
separationbenefits"incaseofclosuresorcessation maintain the workers in employment. That would
of operation" of business establishments "not due beatakingofpropertywithoutdueprocessoflaw
to serious business losses or financial reverses." whichtheemployerhasarighttoresist.Butwhere
Where, the closure then is dueto serious business itismanifestthattheclosureismotivatednotbya
losses,theLCdoesnotimposeanyobligationupon desiretoavoidfurtherlossesbuttodiscouragethe
the employer to pay separation benefits. (Galaxie workers from organizing themselves into a union
Steel Workers Unin v. NLRC, G.R. No. 165757, Oct. for more effective negotiations with management,
17,2006) the State is bound to intervene. The losses of less
than P2,000 for a corporation capitalized at P3
Q:RankandfileworkersofSIMEXfiledapetition millioncannotbeconsideredseriousenoughtocall
fordirectcertificationandaffiliatedwithUnionof for the closure of the company. (Carmelcraft Corp.
FilipinoWorkers(UFW).Subsequently,36workers v.NLRC,G.R.No.9063435,June6,1990)
of the companys lumpia dept and 16 other
workersfromotherdeptswereeffectivelylocked Q: Is the transferee of the closed corporation
out when their working areas were cleaned out. requiredtoabsorbtheemployees(Ees)oftheold
The workers through UFW filed a complaint for corporation?
unfairlaborpracticesagainstthecompany.SIMEX
then filed a notice of permanent shutdown/total A:
closure of all units of operation in the GR:Thereisnolawrequiringabonafidepurchaser
establishment with the DOLE allegedly due to of assets of an ongoing concern to absorb in its
businessreversesbroughtaboutbytheenormous employ the Ees of the latter except when the
rejectionoftheirproductsforexporttotheUnited transaction between the parties is colored or
States. clothedwithbadfaith(BF).(SundownerDevtCorp.
v.Drilon,G.R.No.82341,Dec.6,1989)
Wastheclosurewarrantedbytheallegedbusiness
reverses? XPNs:
1. Where the transferee was found to be
A: The closure of a business establishment is a merely an alter ego of the different
ground for the termination of the services of any mergingfirms.(FilipinasPortServices,Inc.
employee unless the closing is for the purpose of v.NLRC,G.R.No.97237,Aug.16,1991)
circumventingtheprovisionsofthelaw.But,while 2. Where the transferee voluntarily agrees
business reverses can be a just cause for to do so. (Marina Port Services, Inc. v.
terminating employees, they must be sufficiently Iniego,G.R.No.77853,Jan.22,1990)
proved.Inthiscase,theauditedfinancialstatement
ofSIMEXclearlyindicatesthattheyactuallyderived Q:MarikinaDairyIndustries,Inc.decidedtosellits
earnings.Althoughtherejectionsmayhavereduced assets and close operations on the ground of
theirearningstheywerenotsufferinglosses.There heavylosses.Theunionsallegedthatthefinancial
is no question that an employer may reduce its losses were imaginary and the dissolution was a
workforcetopreventlossesbutitmustbeserious, schememaliciouslydesignedtoevadeitslegaland
actual and real otherwise this ground for social obligations to its employees (Ees). The
termination would be susceptible to abuse by unionswantthebuyersofthecorporationsassets
schemingemployerswhomightbemerelyfeigning restrained to operate unless the members of the
business losses or reverses in their business unions were the ones hired to operate the plant
ventures to ease out employees. (Union of Filipino under the terms and conditions specified in the
Workersv.NLRC,G.R.No.90519,Mar.23,1992) collectivebargainingagreements.
88
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
most that can be donefor reasons of public policy 2. With a certification by competent public
andsocialjusticewastodirectthatbuyersofsuch health authority that the disease is
assetstogivepreferencetothequalifiedseparated incurable within 6 months despite due
Ees in the filling up of vacancies in the facilities of medicationandtreatment.(Solisv.NLRC,
the buyer. (MDII Supervisors & Confidential Ees GRNo.116175,Oct.28,1996)
Assn(FFW)v.residentialAssistantonLegalAffairs,
G.R.Nos.L4542123,Sep.9,1977) Note:Thereqtforamedicalcertificationcannot
be dispensed with; otherwise, it would sanction
Q: What is the difference between closure and theunilateralandarbitrarydeterminationbythe
retrenchment? ErofthegravityorextentoftheEesillnessand
thusdefeatthepublicpolicyontheprotectionof
A: labor.(ManlyExpressvPayong,G.R.No.167462,
CLOSURE RETRENCHMENT Oct.25,2005)
Is the reversal of Is the reduction of
fortune of the Er personnel for the purpose Termination of services for health reasons must
whereby there is a ofcuttingdownoncostsof beeffectedonlyuponcompliancewiththeabove
complete cessation of operations in terms of requisites. The reqt for a medical certificate
business operations to salaries and wages under Art. 284 of the LC cannot be dispensed
preventfurtherfinancial resorted to by an Er with; otherwise, it would sanction the unilateral
drain upon an Er who because of losses in and arbitrary determination by the Er of the
cannotpayanymorehis operation of a business gravity or extent of the Ees illness and thus
Ees since business has occasionedbylackofwork defeat the public policy on the protection of
alreadystopped. andconsiderablereduction labor. (Sy et. al v. CA, G.R. No. 142293, Feb. 27,
inthevolumeofbusiness. 2003)
As in the case of
retrenchment, however, Q: What is the procedure in terminating an
for the closure of a employee(Ee)onthegroundofdisease?
One of the prerogatives
business or a department
of management is the A:
due to serious business
decision to close the
lossestoberegardedasan 1. Theemployer(Er)shallnot terminatehis
entire establishment or
authorized cause for employmentunless:
to close or abolish a
terminatingEes,itmustbe a. There is a certification by a
department or section
proven that the losses competentpublichealthauthority
thereof for economic
incurred are substantial b. Thatthediseaseisofsuchnatureor
reasons, such as to
and actual or reasonably at such a stage that it cannot be
minimize expenses and
imminent; that the same cured within a period of 6 months
reducecapitalization.
increasedthroughaperiod evenwithpropermedicaltreatment.
of time; and that the
condition of the company
2. If the disease or ailment can be cured
is not likely to improve in
within the period, the Er shall not
thenearfuture.
terminate the Ee but shall ask the Ee to
LC provides for the
DoesnotobligatetheEr takealeave.TheErshallreinstatesuchEe
payment of separation
for the payment of to his former position immediately upon
package in case of
separation package if therestorationofhisnormalhealth.(Sec.
retrenchment to prevent
there is closure of 8,RuleI,BookVI,IRR)
losses.
business due to serious
losses. Q:Isanemployeesufferingfromadiseaseentitled
toreinstatement?
Disease A: Yes, provided he presents a certification by a
competent public health authority that he is fit to
Q:Whenisdiseaseagroundfordismissal? return to work. (Cebu Royal Plant v. Deputy
Minister,G.R.No.L58639,Aug.12,1987)
A:WheretheEesuffersfromadisease,and:
1. His continued employment is prohibited Q: Is the requirements of a medical certificate
by law or prejudicial to his health or to mandatory?
the health of his coEes. (Sec.8, Rule I,
BookVI,IRR) A:Yes,itisonlywherethereisapriorcertification
fromacompetentpublicauthoritythatthedisease
89
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
at least month pay for another company is not sufficient to replace the
Retrenchment
everyyearorservice formal and written notice required by law. In the
90
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
91
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
in the implementing rules and opportunity to explain his side and (2) another
regulations. (Perez v. PT&T, G.R. No. written notice indicating that, upon due
152048,Apr.7,2009) consideration of all circumstances, grounds have
been established to justify the Er's decision to
Q:Whohastheburdenofproof? dismisstheEe.
A:
Q:Whatisthedegreeofproof?
1. Gravityoftheoffense
2. PositionoccupiedbytheEe
A: In administrative or quasijudicial proceedings,
3. Degreeofdamagetotheemployer(Er)
substantial evidence is considered sufficient in
4. Previousinfractionsofthesameoffense
determiningthelegalityofanemployersdismissal
5. Lengthofservice(ALUTUCPv.NLRC,G.R.
of an employee. (Pangasinan III Electric
No.120450,Feb.10,1999;PALv.PALEA,
Cooperative,Inc.v.NLRC,G.R.No.89878,Nov.13,
G.R.No.L24626,June28,1974)
1992)
Q: Felizardo was dismissed from Republic Flour
Q:PerezandDoriawereemployedbyPT&T.After
MillsSelectaicecreamCorporationfordishonesty
investigation, Perez and Doria were placed on
and theft of company property for bringing out a
preventivesuspensionfor30daysfortheiralleged
pair of boots, 1 piece aluminum container and 15
involvement in anomalous transactions in the
pieces of hamburger patties. Is the penalty of
shipping section. PT&T dismissed Perez and Doria
dismissal commensurate with the offense
fromserviceforfalsifyingdocuments.Theyfileda
committed?
complaint for illegal suspension and illegal
dismissal.TheLAfoundthatthe30dayextension
A: There is no question that the employer has the
of suspension and the subsequent dismissal were
inherent right to discipline its Ees which includes
bothillegal.TheNLRCreversedtheLAsdecision,it
therighttodismiss.Howeverthisrightissubjectto
ruledthatPerezandDoriaweredismissedforjust
thepolicepoweroftheState.InthiscasetheCourt
cause, that they were accorded due process and
finds that the penalty imposedupon Felizardo was
thattheywereillegallysuspendedforonly15days
not commensurate with the offense committed
(without stating the reason for the reduction of
consideringthevalueofthearticleshepilferedand
the period of petitioners illegal suspension). On
thefactthathehadnopreviousderogatoryrecord
appeal,CAheldthattheyweredismissedwithout
during his 2 years of employment in the company.
due process. Whether petitioners were illegally
Moreover,itshouldalsobetakenintoaccountthat
dismissed?
FelizardowasnotamanagerialorconfidentialEein
whomgreatertrustisreposedbymanagementand
A: Yes. The Er must establish that the dismissal is
from whom greater fidelity to duty is
forcauseinviewofthesecurityoftenurethatEes
correspondinglyexpected.(ALUTUCPv.NLRC,G.R.
enjoy under the Constitution and the LC. PT&T
No.120450,Feb.10,1999)
failedtodischargethisburden.PT&Tsillegalactof
dismissingPerezandDoriawasaggravatedbytheir
(1)AgabonDoctrine
failure to observe due process. To meet the reqts
ofdueprocessinthedismissalofanEe,anErmust Q:Ifthedismissalisforajustorauthorizedcause
furnish the worker with 2 written notices: (1) a buttherequirementofdueprocessofnoticeand
written notice specifying the grounds for hearing were not complied with should the
termination and giving to said Ee a reasonable dismissalbeheldillegal?
92
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
93
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
Rehabilitation Receiver for appropriate action. not include a prayer for reinstatement, unless, of
WhetherGarciamaycollecttheirwagesduringthe coursetheEehaswaivedhisrighttoreinstatement.
period between the LAs order of reinstatement Bylaw,anEewhoisunjustlydismissedisentitledto
pendingappealandtheNLRCdecisionoverturning reinstatement among others. The mere fact that
thatoftheLA? the complaint did not pray for reinstatement will
not prejudice the Ee, because technicalities of law
A: Par. 3 of Art. 223 of the LC provides that the and procedure are frowned upon in labor
decision of the LA reinstating a dismissed or proceedings (Pheschem Industrial Corp. v. Moldez,
separatedEe,insofarasthereinstatementaspectis G.R.No.1161158,May9,2005).
concerned, shall immediately be executory,
pendingappeal. Q: What happens if there is an Order of
Reinstatement but the position is no longer
Even if the order of reinstatement of the LA is available?
reversed on appeal, it is obligatory on the part of
the Er to reinstate and pay the wages of the A: The employee (Ee) should be given a
dismissed Ee during the period of appeal until substantiallyequivalentposition.Ifnosubstantially
reversal by the higher court. On the other hand, if equivalent position is available, reinstatement
theEehasbeenreinstatedduringtheappealperiod shouldnotbeorderedbecausethatwouldineffect
and such reinstatement order is reversed with compeltheemployertodotheimpossible.Insuch
finality, the Ee is not required to reimburse a situation, the Ee should merely be given a
whatever salary he received for he is entitled to separation pay consisting of 1month salary for
such, more so if he actually rendered services every year of service (Grolier Intl Inc. v. ELA, G.R.
duringtheperiod. No.83523,Aug.31,1989)
94
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
3. Whenitwillnotservethebestinterestof asthatprovidedunderArt.283oftheLCincaseof
thepartiesinvolved. retrenchmenttopreventlosses?
4. Company will be prejudiced by
reinstatement. A: No. The separation pay awarded to employees
5. Whenitwillnotserveaprudentpurpose. duetoillegaldismissalisdifferentfromtheamount
6. When there is resultant strained relation ofseparationpayprovidedforinArt.283oftheLC.
(applies to both confidential and Prescinding from the above, Phil. Tobacco is liable
managerialemployees(Ees)only). for illegal dismissal and should be responsible for
7. When the position has been abolished the reinstatement of the Lubat group and the
(applies to both managerial, supervisory payment of their backwages. However, since
andrankandfileEes). reinstatementisnolongerpossibleasPhil.Tobacco
have already closed its Balintawak plant, members
Note:Insuchcases,itwouldbemoreprudenttoorder of the said group should instead be awarded
payment of separation pay instead of reinstatement. normal separation pay (in lieu of reinstatement)
(Quijano v. Mercury Drug Corporation, G.R. No. equivalenttoatleastonemonthpay,oronemonth
126561,July8,1998) payforeveryyearofservice,whicheverishigher.It
must be stressed that the separation pay being
Q: Respondents are licensed drivers of public awarded to the Lubat group is due to illegal
utility jeepneys owned by Moises Capili. When dismissal;hence,itisdifferentfromtheamountof
Capili assumed ownership and operation of the separationpayprovidedforinArticle283incaseof
jeepneys, the drivers were required to sign retrenchmenttopreventlossesorincaseofclosure
individual contracts of lease of the jeepneys. The orcessationoftheErsbusiness,ineitherofwhich
drivers gathered the impression that signing the theseparationpayisequivalenttoatleastone(1)
contract was a condition precedent before they month or onehalf (1/2) month pay for every year
couldcontinuedriving.Thedriversstoppedplying ofservice,whicheverishigher.(Phil.TobaccoFlue
their assigned routes and a week later filed with Curing & Redrying Corp. v. NLRC, G.R. No. 127395,
the Labor Arbiter a complaint for illegal dismissal Dec.10,1998)
praying not for reinstatement but for separation
pay. Are the respondents entitled to separation (a)Strainedrelationrule
pay?
Q:Whatisthedoctrineofstrainedrelations?
A:No.Whendriversvoluntarilychosenottoreturn
to work anymore, they must be considered as A:WhentheErcannolongertrusttheEeandvice
having resigned from their employment. The versa, or there were imputations of bad faith to
common denominator of those instances where each other, reinstatement could not effectively
paymentofseparationpayiswarrantedisthatthe serve as a remedy. This doctrine applies only to
employeewasdismissedbytheemployer.(Capiliv. positionswhichrequiretrustandconfidence(Globe
NLRC,G.R.117378,Mar.26,1997) Mackayv.NLRC,G.R.No.82511,March3,1992).
Q: Two groups of seasonal workers claimed Note: Under the circumstances where the
separation benefits after the closure of Phil. employment relationship has become so strained to
Tobacco processing plant in Balintawak and the preclude a harmonious working relationship and that
transfer of its tobacco operations to Candon, all hopes at reconciliation are naught after
Ilocos Sur. Phil. Tobacco refused to grant reinstatement, it would be more beneficial to accord
separation pay to the workers belonging to the theEebackwagesandseparationpay.
first batch (Lubat group), because they had not
been given work during the preceding year and, Q: What must be proven before the principle of
hence,werenolongerinitsemployatthetimeit strained relations can be applied to a particular
closed its Balintawak plant. Likewise, it claims case?
exemption from awarding separation pay to the
secondbatch(Lurisgroup),becausetheclosureof A:
its plant was due to "serious business losses," as 1. The Ee concerned occupies a position
defined in Art. 283 of the LC. Both labor agencies whereheenjoysthetrustandconfidence
heldthattheLurisandLubatgroupswereentitled ofhisEr;and
to separation pay equivalent to 1/2 month salary 2. That it is likely that if reinstated, an
for every of service, provided that the Ee worked atmosphereofantipathyandantagonism
atleast1monthinagivenyear.Istheseparation may be generated as to adversely affect
pay granted to an illegally dismissed Ee the same the efficiency and productivity of the Ee
concerned. (Globe Mackay Cable & Wire
95
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
Corp. v. NLRC G.R. No. 82511, Mar. 3, A: The payment of backwages is generally granted
1992) on the ground of equity. It is a form of relief that
restorestheincomethatwaslostbyreasonofthe
Q: Does the doctrine of strained relationship unlawfuldismissal;thegrantthereofisintendedto
alwaysbarreinstatementinallcases? restoretheearningsthatwouldhaveaccruedtothe
dismissedEeduringtheperiodofdismissaluntilitis
A:No.Thedoctrineshouldbeappliedonacaseto determinedthattheterminationofemploymentis
casebasis,basedoneachcasespeculiarconditions for a just cause. It is not private compensation or
and not universally. Otherwise, reinstatement can damages but is awarded in furtherance and
never be possible simply because some hostility is effectuationofthepublicobjectiveoftheLC.Noris
invariably engendered between the parties as a it a redress of a private right but rather in the
result of litigation. That is human nature. (Anscor nature of a command to the employer to make
Transportv.NLRC,G.R.No.85894,Sept.28,1990) publicreparationfordismissinganEeeitherdueto
the formers unlawful act or bad faith. (Tomas
Besides, no strained relations should arise from a Claudio Memorial College Inc., v. CA, G.R. No.
valid and legal act of asserting one's right; 152568,Feb.16,2004)
otherwiseanEewhoshallasserthisrightcouldbe
easilyseparatedfromtheservice,bymerelypaying Q: What is theperiod coveredby the payment of
his separation pay on the pretext that his backwages?
relationship with his employer (Er) had already
become strained. (Globe Mackay Cable & Wire A: The backwages shall cover the period from the
Corp.v.NLRC,G.R.No.82511,Mar.3,1992) dateofdismissaloftheemployeeuptothedateof:
Q:Whatarebackwages? A:Theycoverthefollowing:
96
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
97
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
dismissal due to constructive dismissal. Did the This period is intended only for the purpose of
transfer of Quinanola amount to constructive investigating the offense to determine whether he
dismissal? istobedismissedornot.Itisnotapenalty.
A: No. Quinanolas transfer was not unreasonable Note: The Er may continue the period of preventive
since it did not involve a demotion in rank nor a suspensionprovidedthathepaysthesalaryoftheEe.
changeinherplaceofworknoradiminutioninpay,
benefits and privileges. It did not constitute a If more than 1 month, the Ee must actually be
constructivedismissal.Furthermore,anemployees reinstated or reinstated in the payroll. Officers are
securityoftenuredoesnotgivehimavestedright liableonlyifdonewithmalice.
inhispositionaswoulddeprivethecompanyofits
Q:CantorandPepitowerepreventivelysuspended
prerogative to change his assignment or transfer
pending application for their dismissal by Manila
himwherehewillbemostuseful.(PhilippineJapan
Doctors Hospital after being implicated by one
Active Carbon Corp. v. NLRC, G.R. No. 83239, Mar.
Macatubal when they refused to help him when
8,1989)
he was caught stealing xray films from the
Q: Sangil was a utility man/assistant steward of hospital.WasthepreventivesuspensionofCantor
thepassengercruisevesselCrownodysseyundera andPepitoproper?
oneyear contract. Sangil suffered head injuries
A: Where the continued employment of an Ee
after an altercation with a Greek member of the
posesaseriousandimminentthreattothelifeand
crew. He informed the captain that he no longer
propertyoftheemployeroronhiscoEes,theEes
intends to return aboard the vessel for fear that
preventive suspension is proper. In this case, no
further trouble may erupt between him and the
suchthreattothelifeandpropertyoftheErorof
otherGreekcrewmembersoftheship.WasSangil
their coEes is present and they were merely
constructivelydismissed?
implicated by the Macatubal. (Manila Doctors
A:Yes.Thereisconstructivedismissalwheretheact Hospitalv.NLRC,G.R.No64897,Feb.28,1985)
of a seaman in leaving ship was not voluntary but
(6)Quitclaim
was impelled by a legitimate desire for self
preservation or because of fear for his life
Q:Whatisaquitclaim?
Constructive dismissal does not always involve
diminutioninpayorrankbutmaybeinferredfrom A: It is a document executed by an employee in
an act of clear discrimination, insensibility or favor of the employer preventing the former from
disdain by an Er may become unbearable on the filing any further money claim against the latter
partoftheEethatitcouldforecloseanychoiceby arisingfromemployment.
him except to forego his continued employment.
(Sunga Ship Management Phils., Inc. v. NLRC, G.R. Q:Whataretheelementsofavalidquitclaim?
No.119080,April14,1998)
A:
(5)PreventiveSuspension 1.Voluntarily entered into with full
understanding of what the employee is
Q:Whatispreventivesuspension? doing
2. Representsareasonablesettlement
A:Duringthependencyoftheinvestigation,theEr
may place the Ee under preventive suspension
Q:Whatconstitutesreasonablesettlement?
leading to termination when there is an imminent
threatorareasonablepossibilityofathreattothe A: Reasonable settlement requires that the
lives and properties of the Er, his family and consideration for the quitclaim is credible and
representativesaswellastheoffenderscoworkers reasonable.(Periquetv.NLRC,G.R.No.91298,June
bythecontinuedserviceoftheEe. 22,1990)
Q:Whatisthedurationofpreventivesuspension? Q: Is dire necessity a ground to nullify a
quitclaim?
A:Itshouldnotlastformorethan30days.TheEe
shouldbemadetoresumehisworkafter30days.It A: Dire necessity is not an acceptable ground for
can be extended provided the Ees wages are paid annulling the releases, especially since it has not
afterthe30dayperiod. beenshownthattheemployeeshadbeenforcedto
executethem.Ithasnotevenbeenproventhatthe
considerations for the quitclaims were
98
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
99
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
100
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
years of service, whichever comes first. Rivera Q: In 55, Hilaria was hired as a grade school
completed30yearsofserviceandUNILABretired teacher at the Sta. Catalina College.In 70, she
herpursuanttothetermsoftheplan,shereceived applied for and was granted a 1 yr LOA without
the benefits in 88. At Rivera's request, UNILAB pay due to the illness of her mother.After the
allowedhertocontinueworkingforthecompany. expiration in 71 of her LOA, she had not been
She continued working beyond the compulsory heardfrombySta.Catalina.Inthemeantime,she
separation from service that resulted from her was employed as a teacher at the San Pedro
retirement.From1993to1994,Riveraservedasa ParochialSchoolduringSY8081andattheLiceo
personal consultant under contract for UNILABs deSanPedro,duringSY8182.In82,sheapplied
sister companies which assigned Rivera to render anewatSta.Catalinawhichhiredher.OnMar22,
st
service involving UNILAB.In 1992, the company 97, during the 51 Commencement Exercises of
amended its retirement plan, providing, among Sta. Catalina, Hilaria was awarded a Plaque of
others, for an increase in retirement benefits. Appreciation for 30 yrs of service and P12,000 as
Rivera asked that her retirement benefits be gratuity pay. On May 31, 97, Hilaria reached the
increased in accordance with the amended compulsory retirement age of 65. Sta. Catalina
retirementprogram.WhetherRiveraisentitledto pegged her retirement benefits at
theadditionalretirementbenefitsoftheamended P59,038.35.Deducted was theamount of P12,000
retirementplan? representing the gratuity pay which was given to
her.
A: No. Whether these terms included renewed
coverage in the retirement plan is an evidentiary Should the gratuity pay be deducted from the
gap that could have been conclusively shown by retirementbenefits?
evidenceofdeductionsofcontributionstotheplan
after1988.Twoindicators,however,tellusthatno A: No. As for the ruling of theCA affirming that of
suchcoveragetookplace.Thefirstisthattheterms the NLRC that the P12,000 gratuity pay earlier
of the retirement plan, before and after its 1992 awardedtoHilariashouldnotbedeductedfromthe
amendment,continuedtoexcludethosewhohave retirement benefits due her, the same is in order.
rendered 30 years of service or have reached 60 Gratuity pay is separate and distinct from
years of age. Therefore, the plan could not have retirement benefits. It is paid purely out of
coveredher.Thesecondistheabsenceofevidence generosity.
of, or of any demand for, any reimbursement of
whatRiverawouldhavepaidascontributionstothe Q: What is the difference between gratuity pay
plan had her coverage and deductions continued andretirementbenefits?
after 1988. Thus, the Court concludes that her
renewed service did not have the benefit of any A:
retirement plan coverage. (Rivera v. United GRATUITYPAY RETIREMENTBENEFITS
Laboratories,Inc.,G.R.No.155639,April22,2009) Itispaidtothe
beneficiaryforthepast Areintendedtohelpthe
Q:Isaspecialretirementplandifferentfromthose servicesorfavor Eeenjoytheremaining
contemplatedundertheLCasagreeduponbythe renderedpurelyoutof yearsofhislife,releasing
partiesvalid? thegenerosityofthe himfromtheburdenof
giverorgrantor.Itisnot worryingforhisfinancial
A:Yes.Apilotwhoretiresafter20yearsofservice intendedtopayaworker support,andareaformof
or after flying 20,000 hours would still be in the foractualservices rewardforhisloyaltyto
prime of his life and at the peak of his career, renderedorforactual theEr.(Sta.Catalina
performance.Itisa CollegeandSr.Loreta
comparedtoonewhoretiresattheageof60years
moneybenefitorbounty Oranza,vs.NLRCand
old. Based on this peculiar circumstance that PAL
giventotheworker,the HilariaTercera,G.R.No.
pilots are in, the parties provided for a special purposeofwhichisto 144483.November19,
scheme of retirement different from that rewardEeswhohave 2003,J.CarpioMorales)
contemplated in the LC. Conversely, the provisions renderedsatisfactory
of Art. 287 of the LC could not have contemplated servicetothecompany.
thesituationofPAL'spilots.Rather,itwasintended
for those who have no more plans of employment
after retirement, and are thus in need of financial b.RetirementpayunderRA7641visvisretireent
assistanceandrewardfortheyearsthattheyhave benefitsunderSSSandGSISlaws
rendered service. (PAL v. Airline Pilots Assn of the
Phils.,G.R.No.143686,Jan.15,2002) Q:WhatisretirementpayundertheLCinrelation
toretirementbenefitsunderSSSandGSISlaws?
101
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
A:
Revised
Employees
Social Government
Compensation
SecurityLaw Service
Act
InsuranceAct
Compulsory
upon all E e s
n o t o v e r 6 0 Compulsory for
years of age all permanent
andtheirErs. Ees below 60 Compulsory upon
years of age all Ers and their
1.Filipinos upon Ees not over 60
recruited in appointment to years of age;
the Phils. by permanent Provided, that an
foreignbased status, and for Ee who isover 60
Ers for all elective years of age and
employment officials for the paying
abroadmaybe duration oftheir contributions to
coveredbythe tenure. qualify for the
SSS on a retirement or life
voluntary 1. Any person, insurance benefit
basis. whether elected administered by
or appointed, in the System shall
2. theserviceofan be subject to
Compulsory Er is a covered compulsory
upon all self Ee if he receives coverage.
employed compensation
persons forsuchservice.
earning P1,800
or more per
annum.
102
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
MANAGEMENT PREROGATIVE
103
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
(PLDT vs. Teves, G.R. No. 143511, November 10, or a reward, which a person has a right to refuse.
2010) When an Ee refused to accept his promotion, he
wasexercisinghisrightandcannotbepunishedfor
Q: May the Er be compelled to share with its Ees it.Whileitmaybetruethattherighttotransferor
the prerogative of formulating a code of reassign an Ee is an Ers exclusive right and the
discipline? Is a code of discipline unilaterally prerogative of management, such right is not
formulatedbytheErenforceable? absolute. (Dosch vs. NLRC and Northwest Airlines,
G.R.No.51182,July5,1983)
A:TheErhastheobligationtosharewithitsEesits
prerogativeofformulatingacodeofdiscipline.This Q: Who has the burden of proving that the
is in compliance with the States policy stated in transferwasreasonable?
Article 211 of the Labor Code, to ensure the
participation of workers in decision and policy A:TheErmustbeabletoshowthatthetransferis
making processes affecting their rights, duties and notunreasonable,inconvenientorprejudicialtothe
welfare. The exercise of management prerogatives Ee; nor does it involve a demotion in rank or a
has, furthermore, never been considered to be diminution of his salaries, privileges and other
boundless.Thisobligationisnotdispensedwithby benefits.ShouldtheErfailtoovercomethisburden
a provision in the collective bargaining agreement of proof, the Ees transfer shall be tantamount to
recognizing the exclusive right of the Er to make constructive dismissal. (Blue Dairy Corporation v.
andenforcecompanyrulesandregulationstocarry NLRC,314SCRA401[1999])
outthefunctionsofmanagementwithouthavingto
discuss the same with the union and much less 3.PRODUCTIVITYSTANDARD
obtain the latters conformity thereto. A code of
discipline unilaterally formulated and promulgated Q:MayanErimposeproductivitystandardsforits
by the Er would be unenforceable. (Philippine workers?
Airlines, Inc. vs. NLRC et al., G.R. No. August 13,
1993.) A: Yes. An Er is entitled to impose productivity
standards for its workers, and in fact, non
2.TRANSFEROFEMPLOYEES compliance may be visited with a penalty even
more severe than demotion. The practice of a
Q: Discuss briefly the Ers right to transfer and company in laying off workers because they failed
reassignEes. tomaketheworkquotahasbeenrecognizedinthis
jurisdiction. Failure to meet the sales quota
A:Inthepursuitofitslegitimatebusinessinterests, assignedtoeachofthemconstituteajustcauseof
especially during adverse business conditions, their dismissal, regardless of the permanent or
management has the prerogative to transfer or probationarystatusoftheiremployment.Failureto
assign Ees from one office or area of operation to observe prescribed standards of work, or to fulfill
another provided there is no demotion in rank or reasonable work assignments due to inefficiency
diminution of salary, benefits and other privileges may constitute just cause for dismissal. Such
and the action is not motivated by discrimination, inefficiencyisunderstoodtomeanfailuretoattain
bad faith, or effected as a form of punishment or work goals or work quotas, either by failing to
demotion without sufficient cause. This privilege is complete the same within the allotted reasonable
inherent in the right of Ers to control and manage period, or by producing unsatisfactory results. This
theirenterpriseseffectively. management prerogative of requiring standards
may be availed of so long as they are exercised in
Note: The right of Ees to security of tenure does not goodfaithfortheadvancementoftheErsinterest.
givethemvestedrightstotheirpositionstotheextent (Leonardovs.NLRC,G.R.No.125303,June16,2000)
ofdeprivingmanagementofitsprerogativetochange
their assignments or to transfer them. (Endico v. 4.GRANTOFBONUS
Quantum Foods Distribution Center, G.R. No. 161615,
Jan.30,2009) Q:Whatisabonus?
Q: May the Er exercise his right to transfer an Ee A:ItisanamountgrantedandpaidtoanEeforhis
and compel the latter to accept the same if said industry and loyalty which contributed to the
transfer is coupled with or is in the nature of success of the Ers business and made possible the
promotion? realizationofprofits.
A:No.ThereisnolawthatcompelsanEetoaccept Q:Canbonusbedemanded?
promotion,asapromotionisinthenatureofagift
104
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
MANAGEMENT PREROGATIVE
oftimehasbeenpayinghisEeswagesdueforeight
A: hours work although the work shift less than eight
GR: Bonus is not demandable as a matter of hours (e.g. seven) it cannot later on increase the
right. It is a management prerogative given in workinghourswithoutanincreaseinthepayofthe
addition to what is ordinarily received by or employees affected. An Er is not allowed to
strictlyduetorecipient.(ProducersBankofthe withdraw a benefit which he has voluntarily given.
Phil.v.NLRC,G.R.No.100701,March28,2001) AnErisnotallowedtowithdrawabenefitwhichhe
hasvoluntarilygiven.
XPNs:Givenforalongperiodoftime
1. Consistent and deliberate Er continued 6.MARITALDISCRIMINATION
giving benefit without any condition
imposedforitspayment Q: Is a company policy prohibiting marriage
2. Er knew he was not required to give betweencoworkersvalid?
benefit
3. Nature of benefit is not dependent on A: There must be a finding of a bona fide
profit occupational qualification (BFOQ) to justify an Ers
4. Made part of the wage or compensation No Spouse Rule. There must be a compelling
agreed and stated in the employment business necessity for which no alternative exists
contract. other than the discriminating practice. (Star Paper
vs.Simbol,G.R.No.164774,April12,2006)
Q: The projected bonus for the Ees of Suerte Co.
was 50% of their monthly compensation. Q: What are the factors that the Er must prove
Unfortunately, due to the slump in the business, inordertojustifyBFOQ?
the president reduced the bonus to 5% of their
compensation. Can the company unilaterally A:TheErmustprove2factors:
reducetheamountofbonus?Explainbriefly. 1. That the employment qualification is
reasonably related to the essential
A: Yes. The granting of a bonus is a management operationofthejobinvolved;and
prerogative,somethinggiveninadditiontowhatis 2. Thatthereisafactualbasisforbelieving
ordinarily received by or strictly due the recipient. that all or substantially all persons
AnErcannotbeforcedtodistributebonuseswhen meeting the qualification would be
it can no longer afford to pay. To hold otherwise unabletoproperlyperformthedutiesof
wouldbetopenalizetheErforhispastgenerosity. thejob.(StarPaperetal.vs.Simbol,G.R.
(Producers Bank of the Phil. v NLRC, G.R. No. No.164774,April12,2006)
100701,March28,2001).(2002BarQuestion)
Q: Peds was employed by Glaxo as medical
5.CHANGEOFWORKINGHOURS representativewhohasapolicyagainstEeshaving
relationships against competitors Ees. Peds
Q:DiscussbrieflytheErsrighttochangeworking marriedJali,aBranchcoordinatorofAstra,Glaxos
hours. competitor.Pedswastransferredtoanotherarea.
Pedsdid not accept such transfer.Is the policy of
A:Wellsettledistherulethatmanagementretains Glaxovalidandreasonablesoastoconstitutethe
theprerogative,wheneverexigenciesoftheservice actofPedsaswillfuldisobedience?
sorequire,tochangetheworkinghoursofitsEes.
A: The prohibition against personal or marital
Q: May the normal hours fixed in Article 83 be relationships with Ees of competitorscompanies
reducedbytheEr?Explain. upon Glaxos Ees is reasonable under the
circumstances because relationships of that nature
A: The present article provides that the normal might compromise the interest of the company.
hours of work of an Ee shall not exceed eight (8) Glaxo does not impose an absolute prohibition
hoursaday.ThisimpliesthattheEr,intheexercise against relationships between its Ees and those of
of its management prerogatives, may schedule a competitorcompanies.ItsEesarefreetocultivate
work shift consisting of less than eight hours. And relationships with and marry persons of their own
following the principle of a fair days wage for a choosing.Whatthecompanymerelyseekstoavoid
fairdayslabor,theErisnotobligedtopayanEe, is a conflict of interest between the Ee and the
workingfor lessthaneighthoursaday,thewages company that may arise out of such relationships.
due for eight hours. Nonetheless, if by voluntary Furthermore, the prohibition forms part of the
practiceorpolicy,theEeforaconsiderableperiod employment contract and Peds was aware of such
105
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UST GOLDEN NOTES 2011
8.LIMITATIONSINITSEXERCISE
A:No.Itiscircumscribedbylimitationsfoundin:
1. Law,
2. CBA,or
106
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM