Professional Documents
Culture Documents
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
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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:
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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:
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENT AND PLACEMENT
19
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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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
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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
(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
SOCIAL LEGISLATION
F.SOCIALLEGISLATION A:
DISPUTESETTLEMENT
Q:WhatisSocialLegislation? Disputesinvolving:
1. Coverage
A: It consists of statutes, regulations and 2. Benefits
jurisprudence that afford protection to labor, 3. Contributions
especiallytoworkingwomenandminors,andisin 4. Penalties
fullaccordwiththeconstitutionalprovisionsonthe Social 5. Anyothermatterrelated
promotionofsocialjusticetoinsurethewellbeing Security thereto.
Commission
andeconomicsecurityofallthepeople.
(SSC) Note: Disputes within the mandatory
periodof20daysafterthesubmissionof
1.SOCIALSECURITYLAW evidence.(Sec.5a)
(RA8282)
Decision, in the absence of appeal, shall
Q:Whatisthepolicyobjectiveintheenactmentof befinalandexecutory15daysafterdate
(SSS)Law? ofnotification.(Sec.5b)
DecisionsofSSCshallbeappealableto:
A:ItisthepolicyoftheStatetoestablish,develop, 1.CAquestionsoflawandfact(Sec.
CA/SC
promoteandperfectasoundandviabletaxexempt 5c)
SSSsuitabletotheneedsofthepeoplethroughout 2.SCquestionsoflaw.(Sec.5c)
the Phils., which shall promote social justice and SSCmay,motupropriooronmotionof
any interested party, issue a writ of
provide meaningful protection to members and Execution
execution to enforce any of its
their beneficiaries against the hazards of disability, ofdecision
decisions or awards, after it has
sickness, maternity, old age, death, and other
becomefinalandexecutory.(Sec.5d)
contingenciesresultinginlossofincomeorfinancial
burden.(Sec.2)
Q: Can the SSC validly reevaluate the findings of
the RTC, and on its own, declare the latters
TheenactmentofSSSlawisalegitimateexerciseof
decisiontobebereftofanybasis?
thepolicepower.Itaffordsprotectiontolaborand
isinfullaccordwiththeconstitutionalmandateon
A: No. It cannot review, much less reverse,
the promotion of social justice. (Roman Catholic
decisionsrenderedbycourtsoflawasitdidinthe
ArchbishopofManilav.SSS,G.R.No.15045Jan.20,
caseatbarwhenitdeclaredthattheCFIOrderwas
1961)
obtained through fraud and subsequently
disregardedthesame,makingitsownfindingswith
Q:Arethepremiumsconsideredastaxes?
respecttothevalidityofBailonandAlicesmarriage
on the one hand and the invalidity of Bailon and
A:No.ThefundscontributedtotheSystembelong
Teresitasmarriageontheother.Ininterferingwith
to the members who will receive benefits, as a
and passing upon the CFI Order, the SSC virtually
matterofright, wheneverthehazardsprovidedby
acted as an appellate court. The law does not give
the law occur. (CMS Estate, Inc., v. SSS, G.R. No.
theSSCunfettereddiscretiontotriflewithordersof
26298Sep.28,1984)
regular courts in the exercise of its authority to
determine the beneficiaries of the SSS. (SSS vs.
Q:ArebenefitsreceivedunderSSSLawpartofthe
Teresita Jarque Vda. De Bailon, G.R. No. 165545,
estateofamember?
Mar.24,2006,J.CarpioMorales)
A:No.BenefitsreceivableundertheSSSLawarein
Q:Whoisanemployer(Er)?
thenatureofaspecialprivilegeoranarrangement
secured by the law pursuant to the policy of the
A: Any person, natural or juridical, domestic or
Statetoprovidesocialsecuritytotheworkingman.
foreign, who carries into the Phils. any trade,
The benefits are specifically declared not
business, industry, undertaking or activity of any
transferable and exempt from tax, legal processes
kindandusestheservicesofanotherpersonwhois
andliens.(SSSv.Davac,et.al.,G.R.No.21642,July
under his orders as regards the employment,
30,1966)
except the Government and any of its political
subdivisions, branches or instrumentalities,
Q:Howaredisputessettled?
including corporations owned or controlled by the
Government: Provided, That a selfemployed
person shall be both Ee and Er at the same time.
(Sec8[c])
107
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
discontinued, reduced or
Q:Whoisanemployee(Ee)? otherwiseimpaired;
b. Existing private plans shall be
A: Any person who performs services for an Er in integrated with the SSS but if
whicheitherorbothmentalandphysicaleffortsare the Er under such plan is
used and who receives compensation for such contributingmorethanwhatis
services, where there is an ErEe relationship: required by this Act, he shall
Provided,Thataselfemployedpersonshallbeboth pay to the SSS the amount
EeandEratthesametime.(Sec.8[d]) required to him, and he shall
continue with his contributions
Q:Whatisemployment? lesstheamountpaidtoSSS;
c. Any changes, adjustments,
A:GR:AnyserviceperformedbyanEeforhisEr. modifications, eliminations or
improvementsinthebenefitsof
XPNs: theremainingprivateplanafter
1. Employmentpurelycasualandnotforthe the integration shall be subject
purposeofoccupationorbusinessofthe to agreementsbetween the Ers
Er; andtheEesconcerned;and
2. Service performed on or in connection d. The private benefit plan which
with an alien vessel by an Ee if he is theErshallcontinueforhisEes
employedwhensuchvesselisoutsidethe shall remain under the Ers
Phils; managementandcontrolunless
3. Service performed in the employ of the there is an existing agreement
Phil. Government or instrumentality or tothecontrary
agencythereof; c. All selfemployed considered both
4. Service performed in the employ of a anErandEe
foreign government or international d. Professionals;
organization, or their whollyowned e. Partners and single proprietors of
instrumentality: business;
5. Such other services performed by f. Actors and actresses, directors,
temporary and other Ees which may be scriptwriters and news
excludedbyregulationoftheSSC.Eesof correspondents who do not fall
bona fide independent contractors shall within the definition of the term
notbedeemedEesoftheErengagingthe Ee;
servicesofsaidcontractors.(Sec.8[j]) g. Professional athletes, coaches,
trainersandjockeys;AND
Q:Whatisacontingency? h. Individual farmers and fisherman.
(Sec.9)
A: The retirement, death, disability, injury or
sicknessandmaternityofthemember. 2. Voluntary
a. Spouses who devote full time to
a.Coverage managing the household and family
affairs, unless they arealso engaged
Q:WhoarecoveredbySSS? in other vocation or employment
which is subject to mandatory
A: coverage;(Sec.9[b])
1. CompulsoryCoverage b. Filipinos recruited by foreignbased
a. AllEesnot over60yearsofageand Ers for employment abroad may be
theirErs; covered by the SSS on a voluntary
b. Domestic helpers whose income is basis;(Sec.9[c])
notlessthanP1000/monthandnot c. Ee separated from employment to
over60yearsofageandtheirErs; maintainhisrighttofullbenefits
Limitations: d. Selfemployed who realizes no
a. Any benefit earned by the Ees incomeforacertainmonth
under private benefit plans
existing at the time of the 3. ByAgreement
approvaloftheActshallnotbe Any foreign government, international
organization, or their whollyowned
108
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
instrumentality employing workers in the A: No. It is not necessary, for the enjoyment of
Phils., may enter into an agreement with benefitsundertheSSSLawthattheinjuryiswork
the Phil. government for the inclusion of connected.Whatisimportantismembershipinthe
such Ees in the SSS except those already SSS and not the causal connection of the work of
covered by their respective civil service theEetohisinjuryorsickness.
retirementsystems.
Claims based on workconnected injuries or
Q: When is the compulsory coverage deemed occupational diseases are covered by the State
effective? InsuranceFund.
A: b.Exclusionsfromcoverage
1. Employeronthefirstdayofoperation
2. Employeeonthedayofhisemployment Q:Enumeratethekindsofemploymentwhichare
3. Compulsory coverage of selfemployed exceptedfromcompulsorycoverageundertheSSS
uponhisregistrationwiththeSSS Law.
Q:Whatistheeffectofseparationofanemployee A:UnderSection8(j)ofR.A.1161,asamended,the
fromhisemploymentundercompulsorycoverage? following services or employments are excepted
fromcoverage:
A:
1. His Ers obligation to contribute arising 1. Employmentpurelycasualandnotforthe
from that employment shall cease at the purpose of occupation or business of the
endofthemonthofseparation, employer;
2. But said Ee shall be credited with all
contributions paid on his behalf and 2. Service performed on or in connection
entitled to benefits according to the withanalienvesselbyanemployeeifhe
provisionsofR.A.9282. is employed when such vessel is outside
3. He may, however, continue to pay the thePhilippines;
totalcontributionstomaintainhisrightto
fullbenefit.(Sec.11) 3. Service performed in the employ of the
PhilippineGovernmentorinstrumentality
Note: The above provision recognizes the once a oragencythereof;
member,alwaysamemberrule.
4. Service performed in the employ of a
Q:Whatistheeffectofinterruptionofbusinessor foreign government or international
professionalincome? organization, or their whollyowned
instrumentality:
A:Iftheselfemployedmemberrealizesnoincome
inanygivenmonth: Provided, however,That this exemption
notwithstanding,anyforeigngovernment,
1. He shall not be required to pay internationalorganizationortheirwholly
contributionsforthatmonth. owned instrumentality employing
2. Hemay,however,beallowedtocontinue workers in the Philippines or employing
payingcontributionsunderthesamerules Filipinos outside of the Philippines, may
andregulationsapplicabletoaseparated enter into an agreement with the
Eemember: Philippine Government for the inclusion
3. Provided, that no retroactive payment of ofsuchemployeesintheSSSexceptthose
contributionsshallbeallowedotherthan already covered by their respective civil
asprescribedunderSec.22A.(Sec.11A) service retirement systems:Provided,
further,Thatthetermsofsuchagreement
Q: On her way home from work, Asteria shall conform with the provisions of this
Benedicta, a machine operator in a sash factory, Act on coverage and amount of payment
entersamoviehousetorelax.Butsheisstabbed of contributions and benefits:Provided,
by an unknown assailant. Her claim for benefits finally,ThattheprovisionsofthisActshall
under the SSS Law is denied on the ground that besupplementarytoanysuchagreement;
her injury is not workconnected. Is the denial and
legal?Why?
109
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
110
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
111
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
112
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
113
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
anygainfuloccupationfor
A: a continuous period
1. Exclude the semester of contingency exceeding 120 days
(deliveryormiscarriage). regardless of whether he
losestheuseofanyofhis
Note: Semester refers to two consecutive bodyparts.
quarters ending in the quarter of
contingency. Quarter refers to three d.Beneficiaries
consecutive months ending March, June,
SeptemberorDecember. Q:Whoareprimarybeneficiaries?
2. Count12monthsbackwardsstartingfrom A:
the month immediately before the 1. The dependent spouse until he or she
semesterofcontingency. remarries
3. Identify the six highest monthly salary 2. The dependent legitimate, legitimated or
creditswithinthe12monthperiod. legallyadopted,andillegitimatechildren,:
Provided,Thatthedependentillegitimate
Note: Monthly salary credit means the children shall be entitled to 50% of the
compensation base for contributions share of the legitimate, legitimated or
benefitsrelatedtothetotalearningsforthe legallyadoptedchildren.
month.
Q:Whoaresecondarybeneficiaries?
4. Addthesixhighestmonthlysalarycredits
togetthetotalmonthlysalarycredit. A: In the absence of primary beneficiaries, the
dependentparents.
5. Divide the total monthly salary credit by
180 days to get the average daily salary In the absence of all the foregoing, any other
credit. This is equivalent to the daily person designated by the member as his or her
maternityallowance. secondarybeneficiary.(Sec.8[k])
6. Multiplythedailymaternityallowanceby Q:Whoareconsidereddependents?
60(fornormaldeliveryormiscarriage)or
78days(forcaesareansectiondelivery)to A:
getthetotalamountofmaternitybenefit. 1. The legal spouse entitled by law to
receivesupportfromthemember;
Q:Whatisthedifferenceofcompensabilityunder 2. The legitimate, legitimated, or legally
theLaborLawandtheSocialSecurityLaw? adopted,andillegitimatechildwho:
a. Isunmarried,
A: The claims are different as to their nature and b. Notgainfullyemployed,and
purpose. (Ortega vs. Social Security Commission, c. Hasnotreached21yearsofage,orif
G.R.No.176150,June25,2008) over 21 years of age, he is
congenitallyorwhilestillaminorhas
LABORLAW SOCIALSECURITYLAW beenpermanentlyincapacitatedand
Purpose incapable of selfsupport, physically
Governs compensability Benefits are intended to ormentally.
of: provide insurance or
3. The parent who is receiving regular
1. workrelated protection against the
supportfromthemember.
disabilities hazards or risks of
2. whenthereisloss disability, sickness, old
of income due to age or death, inter alia, Q:Whatismeantbydependentforsupport?
workconnected irrespective of whether
or work theyarosefromorinthe A: The entitlement to benefits as a primary
aggravated injury course of the beneficiary requires not only legitimacy but also
orillness. employment. dependence upon the member Ee. (Gil v. SSC CA
Nature GRSP.37150,May8,1996)
A disability is total and Disability may be
permanentifasaresultof permanent total or Ifawifewhoisalreadyseparateddefactofromher
the injury or sickness the permanentpartial. husband cannot be said to be "dependent for
Ee is unable to perform support"uponthehusband,absentanyshowingto
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ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
the contrary. Conversely, if it is proved that the performed by these 50 people is not in connection
husband and wife were still living together at the with the purpose of the business of the factory.
timeofhisdeath,itwouldbesafetopresumethat Hence, the employment of these 50 persons is
she was dependent on the husband for support, purely casual. They are, therefore, excepted from
unless it is shown that she is capable of providing the compulsory coverage of the SSS law. (2000 Bar
forherself.(SSSv.Aguas,G.R.No.165546,Feb.27, Question)
2006)
2.GSIS
Q: Who is entitled to the benefits of an SSS (R.A.8291)
member who was survived not only by his legal
wife,whoisnotdependentuponthemember,but Q: What are the purposes behind the enactment
alsobytwocommonlawwiveswithwhomhehad oftheGSISAct?
illegitimateminorchildren?
A: To provide and administer the following social
A: The illegitimate minor children shall be entitled securitybenefitsforgovernmentemployees(Ee):
to the death benefits as primary beneficiaries
because the legal wife is not dependent upon the 1. Compulsorylifeinsurance
member.TheSSSLawisclearthatforaminorchild 2. Optionallifeinsurance
to qualify as a dependent the only requirements 3. Retirementbenefits
are that he/she must be below 21 yrs. of age, not 4. Disability benefits to workrelated
marriednorgainfullyemployed.(Signeyv.SSS,G.R. contingencies;and
No.173582,Jan.28,2008) 5. Deathbenefits
Q:Whatiscompensation? Q:Who are considered employers (Er) under the
GSISAct?
A: All actual remuneration for employment,
includingthemandatedcostoflivingallowance,as A:
wellasthecashvalueofanyremunerationpaidin 1. NationalGovernment
anymediumotherthancashexceptthatpartofthe 2. Its political subdivisions, branches,
remuneration received during the month in excess agencies,instrumentalities
ofthemaximumsalary. 3. GOCCs, and financial institutions with
originalcharters
Q: The owners of FALCON Factory, a company 4. Constitutional Commissions and the
engaged in the assembling of automotive Judiciary(Sec.2[c])
components, decided to have their building
renovated. (50) persons, composed of Q:CanSSSEesbecoveredbyGSIS?
engineers, architects and other construction
workers, were hired by the company for this A:Yes.
purpose. The work was estimated to be
completed in 3 years. The Ees contended that Q:WhoisanEmployeeormember?
since the work would be completed after more
than1year,theyshouldbesubjecttocompulsory A:Anyperson,receivingcompensationwhileinthe
coverage under the Social Security Law. Do you service of an Er, whether by election or
agreewiththeircontention?Explainyouranswer appointment,irrespectiveofstatusofappointment,
fully. including barangay and sanggunian officials. (Sec.
2[d])
A: No. Under Sec. 8 (j) of R.A. 1161, as amended,
employment of purely casual and not for the Q:Whatiscompensation?
purpose of the occupation or business of the
employer are excepted from compulsory coverage. A: The basic pay or salary received by an Ee,
An employment is purely casual if it is not for the pursuant to his or her election or appointment,
purposeofoccupationorbusinessoftheEr. excluding per diems, bonuses, OT pay, honoraria,
allowances and any other emoluments received in
In the problem given, Falcon Factory is a company addition to the basic pay which are not integrated
engaged in the assembly of automotive intothebasicpayunderexistinglaws.(Sec.2[i])
components. The 50 persons (engineers, architects
and construction workers) were hired by Falcon Q: Baradero is a member of the Sangguniang
Factory to renovate its building. The work to be BayanoftheMunicipalityofLaCastellana,Negros
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VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
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Occ.andispaidonaperdiembasis.Ontheother a.Coverage
hand, Belo a ViceGovernor of Capiz is in a hold
overcapacityandispaidonaperdiembasis.Are Q: What government Ees are subject to coverage
the services rendered by Baradero and Belo on a undertheGSIS?
perdiembasiscreditableincomputingthelength
ofserviceforretirementpurposes? A:
GR: All Ees receiving compensation who have
A: Yes. The traditional meaning of per diem is a not reached the compulsory retirement age,
reimbursement for extra expenses incurred by the irrespectiveofemploymentstatus.
public official in the performance of his duties.
Under this definition the per diem is intended to XPNs:
coverthecostoflodgingandsubsistenceofofficers 1. Uniformedmembersofthe:
and employees when the latter are on a duty a.AFP;and
outside of their permanent station. On the other b.PNP.
hand, a per diem could rightfully be considered a 2. Contractuals who have no Er and Ee
compensation or remuneration attached to an relationshipwiththeagenciestheyserve.
office.
Q: Who are covered by life insurance, retirement
The per diems paid to Baradero and Belo were in andothersocialsecurityprotection?
the nature of compensation or remuneration for
their services as Sangguniang Bayan and Vice A:
Governor, respectively, rather than a GR: All members of the GSIS shall have life
reimbursement for incidental expenses incurred insurance, retirement, and all other social
whileawayfromtheirhomebase. security protections such as disability,
survivorship, separation, and unemployment
If the remuneration received by a public official in benefits.(Sec.3)
theperformanceofhisdutiesdoesnotconstitutea
mere allowance for expenses but appears to be XPNs:Membersof:
hisactualbasepay,thennoamountofcategorizing 1. Thejudiciary;and
the salary as a per diem would take the 2. Constitutional commissions who shall
allowances received from the term service with havelifeinsuranceonly.
compensation for the purpose of computing the
numberofyearsofserviceingovernment.(GSISv. b.Exclusionsfromcoverage
CSC,G.R.Nos.98395and102449,June19,1995)
Q: Who, under the GSIS, are excluded from the
Q:WhatarethesourcesoffundsoftheGSIS? coverage?
A: It comes from the monthly contributions of the A:
coveredEesandErs.(Sec.5) 1. Ees who have separate retirement
schemes (members of the Judiciary,
The contributions of the Ees are deducted and Constitutional Commissions and others
withheld by the Er each month from the monthly similarlysituated)
salaryoftheformerandareremittedbythelatter, 2. Contractual Ees who have no ErEe with
together with its own share, to the System within theagenciestheyserve
the first 10 days of each calendar month following 3. Uniformed members of the AFP, BJMP,
themonthtowhichthecontributionsapply.(Sec.6) whose coverage by the GSIS has ceased
effectiveJune24,1997
Q: What is the penalty in case of delayed 4. Uniformed members of the PNP whose
remittanceornonremittanceofcontributions? coveragebytheGSIShasceasedeffective
February1,1996.(Sec.2.4,RuleII,IRR)
A: The unremitted contributions shall be charged
interests as prescribed by the GSIS Board of Q:Forthepurposeofbenefitentitlement,howare
Trustees but shall not be less than 2% simple themembersclassified?
interest per month from due date to the date of
paymentbytheemployersconcerned. A:
1. Activemembers
a. Still in the service and are paying
integratedpremiums.
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ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
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ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
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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
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
hisdeathwithatleast3yearsofservice; P12,000.00:Provided,Thatthememberis
OR intheserviceatthetimeofhisdeathand
hasatleast3yearsofservice;or
3.Acashpaymentequivalentto100%ofhis 2. Intheabsenceofsecondarybeneficiaries,
average monthly compensation for each the benefits under this par. shall be paid
year of service he paid contributions, but tohislegalheirs.(Sec.21[c])
not less than P12,000.00: Provided, That
the deceased has rendered at least 3 Q:Whatarethebenefitsthatthebeneficiariesare
years of service prior to his death but entitledtouponthedeathofthepensioner?
does not qualify for the benefits under
item(1)or (2)ofthisparagraph.[Sec.21 A:
(a)] 1. Upon the death of an oldage pensioner
or a member receiving the monthly
Q:Aftertheendoftheguaranteed30months,are income benefit for permanent disability,
the beneficiaries still entitled to any survivorship the qualified beneficiaries shall be
benefits? entitled to the survivorship pension
defined in Sec. 20 of this Act, subject to
A: Yes. The survivorship pension shall be paid as theprovisionsofpar.(b)ofSec.21.
follows: 2. When the pensioner dies within the
period covered by the lump sum, the
1. When the dependent spouse is the only survivorship pension shall be paid only
survivor, he/she shall receive the basic aftertheexpirationofthesaidperiod.
survivorshippensionforlifeoruntilheor
sheremarries; Q: Gary Leseng was employed as a public school
teacherattheMarinduqueHigh.OnApril27,1997,
2. When only dependent children are the amemorandumwasissuedbytheschoolprincipal
survivors, they shall be entitled to the designating Gary to prepare the model dam
basic survivorship pension for as long as project, which will be the official entry of the
they are qualified, plus the dependent school in the search for Outstanding Improvised
childrens pension equivalent to 10% of Secondary Science Equipment for Teachers. Gary
the basic monthly pension for every compliedwithhissuperior'sinstructionandtook
dependentchildnotexceeding5,counted hometheprojecttoenablehimtofinishbefore
from the youngest and without the deadline. While working on the model dam
substitution; project, he came to contact with a live wire and
was electrocuted. The death certificate showed
3. When the survivors are the dependent that he died of cardiac arrest due to accidental
spouse and the dependent children, the electrocution.
dependent spouse shall receive the basic
survivorship pension for life or until Bella (Garys commonlaw wife) and Jobo (his
he/she remarries, and the dependent onlyson)filedaclaimfordeathbenefitswiththe
children shall receive the dependent GSISwhichwasdeniedonthegroundthatGarys
childrenspension.(Sec.21[b]) death did not arise out of and in the course of
employment and therefore not compensable
Note:Thedependentchildrenshallbeentitledtothe because the accident occurred in his house and
survivorship pension as long as there are dependent not in the school premises. Is Bella entitled to
children and, thereafter, the surviving spouse shall file a claim for death benefits with the GSIS?
receive the basic survivorship pension for life or until Why?
heorsheremarries.
A: The beneficiaries of a member of the GSIS are
Q: When are secondary beneficiaries entitled to entitled to the benefits arising from the death
survivorshipbenefits? of said member. Death benefits are called
survivorship benefits under the GSIS Law. Not
A: In the absence of primary beneficiaries, the beingabeneficiary,Bellaisnotentitled to receive
secondarybeneficiariesshallbeentitledto: survivorship benefits. She is not a beneficiary
becausesheisacommonlawwifeandnotalegal
1. The cash payment equivalent to 100% of dependentspouse.(1991BarQuestion)
his average monthly compensation for
each year of service he paid Q: Is the cause of death of Gary (cardiac arrest
contributions, but not less than
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ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
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ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
3. Forthosewithoutanylifeinsuranceasof 2. Within15daysfromreceiptofthenotice
the effectivity of this Act, their insurance ofdecisionoraward,theaggrievedparty
shalltakeeffectfollowingsaideffectivity. mayappealthedecisionoftheGSISBoard
of Trustees to the CA. Appeal shall be
Q: When may a member obtain optional life taken by filling a verified petition for
insurancecoverage? review with the CA. (Sec 1 to 5, Rule 43,
RulesofCourt)
A: 3. Whennoappealisperfectedandthereis
1. A member may at any time apply for no order to stay by the Board,by the CA
himself and/or his dependents an orbytheSC,anydecisionorawardofthe
insurance and/or preneed coverage Board shall be enforced and executed in
embracing: thesamemannerasdecisionsoftheRTC.
a. Life Note:Thesocialsecuritybenefitsshallbe
b. Memorialplans exempt from attachment, garnishment,
c. Health execution, levy or other processes issued
d. Education by the courts, quasijudicial bodies or
e. Hospitalization administrative agencies including the
f. Other plans as maybe designed by Commission on Audit, disallowances, and
GSIS from all financial obligations of the
members.
2. Any employer may apply for group
insurancecoverageforitsemployees. Q:Mayamemberenjoythebenefitsprovidedfor
in the Revised GSIS Act simultaneous with similar
Q:WherecanGSISloansbeinvestedin? benefits provided under other laws for the same
contingency?
A:
1. In direct housing loans to members and A:Wheneverotherlawsprovidesimilarbenefitsfor
group housing projects secured by first the same contingencies covered by this Act, the
mortgage giving priority to the low memberwhoqualifiestothebenefitsshallhavethe
incomegroups optiontochoosewhichbenefitswillbepaidtohim.
2. In short and medium term loans to However,ifthebenefitsprovidedbythelawchosen
members such as salary, policy, are less than the benefits provided under this Act,
educational, emergency stock purchase theGSISshallpayonlythedifference.(Sec.55)
plan,andothersimilarloans
d.Beneficiaries
Q: What is the prescriptive period to claim the
benefits? Q:Whoaretheconsideredbeneficiaries?
A: A:
GR:4Yearsfromthedateofcontingency 1. Primarybeneficiaries
a. The legal dependent spouse until
XPN:Lifeinsuranceandretirement(Sec.28) he/sheremarriesand
b. Thedependentchildren.(Sec.2[g])
Q: What is the process for the adjudication of 2. Secondarybeneficiaries
claimsanddisputesregardingtheGSISbenefits? a. Thedependentparentsand
b. Subject to the restrictions on
A:ThequasijudicialfunctionsoftheGSISshallbe dependent children, the legitimate
vestedinitsBoardofTrustees. descendants.(Sec.2[h])
1. The GSIS, in appropriate cases, or any Q:Whoareconsidereddependents?
person whose rights are or may be
prejudiced by the operations or A:
enforcementofR.A.8291andotherlaws 1. Legitimatespousedependentforsupport
administered by the GSIS, may file a uponthememberorpensioner;
petition before the GSIS either personally 2. Legitimate, legitimated, legally adopted
orthroughcounsel. child,includingtheillegitimatechild,
a. whoisunmarried,
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VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
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b. notgainfullyemployed, 4.EMPLOYEESSCOMPENSATION
c. not over the age of majority, or if
over the age of majority, Q: Discuss briefly the Employees Compensation
incapacitated and incapable of self Program(ECP).
support due to a mental or physical
defect acquired prior to age of A: It is the program provided for in Article 166 to
majority;and 208 of the Labor Code whereby a fund known as
3. Parentsdependentuponthememberfor the State Insurance Fund (SIF) is established
support.(Sec.2[f]) through premium payments exacted from Ers and
from which the Ees and their dependents in the
3.LIMITEDPORTABILITYLAW event of workconnected disability or death, may
(RA7699) promptly secure adequate income benefit, and
medicalorrelatedbenefits.
Q:WhatistheLimitedPortabilityRule?
Coverage
A: A covered worker who transfers employment
fromonesectortoanotherorisemployedonboth Q:WhoaresubjecttocoverageundertheECP?
sectors, shall have creditable services or
contributions on both Systems credited to his A:ErsandtheirEesnotoversixty(60)yearsofage
service or contribution record in each of the are subject to compulsory coverage under this
Systems and shall be totalized for purposes ofold program.
age, disability, survivorship, and other benefits in
eitherorbothSystems.(Sec.3) TheErmaybelongtoeitherthe:
All contributions paid by such member personally, 1. Public sector covered by the GSIS, comprising
andthosethatwerepaidbyhisemployerstoboth the National Government, including GOCCs,
Systems shall be considered in the processing of PhilippineTuberculosesSociety,thePhilippine
benefits which he can claim from either or both NationalRedCros,andthePhilippineVeterans
Systems.(Sec.4) Bank;and
2. Private sector covered by the SSS, comprising
Q:Howarethe"portability"provisionsofR.A.No. all Ers other than those defined in the
7699 beneficial or advantageous to SSS and GSIS immediatelyprecedingparagraph.
members in terms of their creditable employment
servicesintheprivatesectororthegovernment,as TheEemaybelongtoeitherthe:
the case may be, for purposes of death, disability
orretirement? 1. Public sector comprising the employed
workers who are covered by the GSIS,
A: Portability provisions of R.A. No. 7699 shall including the members of the AFP, elective
benefit a covered worker whose creditable officials who are receiving regular salary and
services or contributions in both systems credited any person employed as casual emergency,
tohisserviceorcontributionrecordineachofthe temporary,substituteorcontractual;
system and shall be totalized for purposes of old 2. Private sector comprising the employed
age, disability, survivorship and other benefits. workerswhoarecoveredbytheSSS.
(Sec. 3)
Q:Whendoescompulsorycoveragetakeeffect?
The"portability"provisionsofR.A.7699allowthe
transferoffundsfortheaccountandbenefitofthe A:
workerwhotransfersfromonesystemtoanother. 1. Employeronthefirstdayofoperation
This is advantageous to the SSS and GSIS members 2. Employeeonthedayofhisemployment
for purposes of death, disability or retirement
benefits. In the event the employees transfer from Q:WhatisanOccupationalDisease?
theprivatesectortothepublicsector,orviceversa,
their creditable employment services and A: One which results from the nature of the
contributions are carried over and transferred as employment, and by nature is meant conditions
well.(2005BarQuestion) which all Ees of a class are subject and which
produce the disease as a natural incident of a
particular occupation, and attach to that
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
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VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
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1. WheretheEeisproceedingtoorfromhis 2. DisabilityBenefits
workonthepremisesoftheEr; 3. DeathBenefits
2. ProximityRulewheretheEeisaboutto 4. FuneralBenefits
enter or about to leave the premises of
his Er by way of exclusive or customary MedicalBenefit
meansofingressandegress;
3. Eeischarged,whileonhiswaytoorfrom Q: What are the conditions of entitlement to
his place of employment or at his home, MedicalServices?
or during this employment with some
dutyorspecialerrandconnectedwithhis A:ForanEetobeentitledtomedicalservices,the
employment;and followingconditionsmustbesatisfied:
4. Where the Er as an incident of the 1. HehasbeendulyreportedtotheSystem
employment provides the means of (SSSorGSIS);
transportation to and from the place of 2. He sustains a permanent disability as a
employment. resultofaninjuryorsickness;and
3. TheSystemhasbeennotifiedoftheinjury
Q:WhoareentitledtobenefitsundertheECP? orsicknesswhichcausedhisdisability.
A: The covered Ee, his dependents, and in case of DisabilityBenefit
hisdeath,hisbeneficiaries.
Q:Whataredisabilitybenefits?
Q:WhoarethedependentsoftheEe?
A: They are income benefits in case of temporary
A: total disability, permanent total disability and
1. Legitimate, legitimated, legally adopted permanentpartialdisability
or acknowledged natural child who is
unmarried, not gainfully employed, and Q: What are the disabilities that are considered
not over twentyone (21) years of age or totalandpermanent?
over twentyone (21) years of age
provided he is incapacitated and A: The following disabilities shall be deemed total
incapableofselfsupportduetoaphysical andpermanent:
or mental defect which is congenital or 1. Temporary total disability lasting
acquiredduringminority; continuously for more than one hundred
2. LegitimatespouselivingwiththeEe;and twenty days, except as otherwise
3. ParentsofsaidEewhollydependentupon providedforintheRules;
himforregularsupport.(Art.167(i),LC,as 3. Completelossofsightofbotheyes;
amendedbyP.D.1921) 4. Lossoftwolimbsatorabovetheankleor
wrist;
Q:Whoareincludedinthetermbeneficiaries? 5. Permanent complete paralysis of two
limbs;
A: "Beneficiaries" means the dependent spouse 6. Brain injury resulting in incurable
untilheremarriesanddependentchildren,whoare imbecilityorinsanity;and
the primary beneficiaries. In their absence, the 7. SuchcasesasdeterminedbytheMedical
dependent parents and subject to the restrictions Director of the System and approved by
imposed on dependent children, the illegitimate theCommission.(Art.192(c),LC)
children and legitimate descendants who are the
secondary beneficiaries;Provided, that the Q: May a permanent partial disability be
dependent acknowledged natural child shall be converted to permanent total disability after the
consideredasaprimarybeneficiarywhenthereare Eesretirement?Why?
nootherdependentchildrenwhoarequalifiedand
eligibleformonthlyincomebenefit.(Art.167,LC,as A:Yes.Thisisinlinewiththesocialjusticeprovision
amendedbySec.I,P.D.1921) in the Constitution. A persons disability may not
manifestitselffullyatoneprecisemomentintime
Q: What are the benefits which may be enjoyed but rather over a period of time. And disability
undertheSIF? should not be understood more on its medical
significancebutonthelossofearningcapacity.
A:
1. MedicalBenefits
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
Q: May permanent total disability arise although A: In case the employee's injury or death was due
the Ees does not lose the use of any part of his to the failure of the employer to comply with any
body? law, or to install and maintain safety devices, or
takeotherprecautionsforthepreventionofinjury,
A: Yes. Where the Ee is unable, by reason of the saidemployershallpaytotheStateInsuranceFund
injuryorsickness,toperformhiscustomaryjobfor a penalty of twentyfive percent of the lump sum
more than 120 days, permanent total disability equivalent of the income benefit payable by the
arises. (Ijares vs. CA, G.R. No. 105854, August 26, System to the employee. All employers, especially
1999) those who should have been paying a rate of
contribution higher than required of them under
DeathBenefit thisTitle,areenjoinedtoundertakeandstrengthen
measuresfortheoccupationalhealthandsafetyof
Q: What are the conditions for entitlement to theiremployee.(Art.200,LC)
deathbenefits?
Q:Whoarerequiredtomakecontributionstothe
A: The beneficiaries of a deceased Ee shall be SIF?
entitledtoanincomebenefitifallofthefollowing
conditionsaresatisfied: A: Contributions under this Title shall be paid in
theirentiretybytheemployerandanycontractor
1. The Ee has been duly reported to the device for the deduction of any portion thereof
System; from the wages or salaries of the employees shall
2. He died as a result of an injury or benullandvoid.(Art.183(c),LC)
sickness;and
3. The System has been duly notified of his The Republic of the Philippines guarantees the
death, as well as the injury or sickness benefits prescribed under this Title, and accepts
whichcausedhisdeath. general responsibility for the solvency of the State
InsuranceFund.Incaseofanydeficiency,thesame
Q: For how long are the primary beneficiaries shall be covered by supplemental appropriation
entitledtothedeathbenefits? fromthenationalgovernment.(Art.184,LC)
A: Q: When does the right to compensation or
1. Dependent Spouseuntil he or she benefit for loss or impairment of an Ees earning
remarries. capacity due to workrelated illness or injury
2. Dependent Childrenuntil they get arise?
married, or find gainful employment, or
reachtwentyone(21)yearsofage. A: It arises or accrues upon, and not before, the
3. Dependent Child suffering from physical happening of the contingency. Hence, an Ee
or mental defectuntil such defect acquires no vested right to a program of
disappears. compensation benefits simply because it was
operative at the time he became employed. (San
Q: If an Ee suffers disability or dies before he is Miguel Corporation vs. NLRC, G.R. No. 57473,
duly reported for coverage to the System (SSS or August15,1988)
GSIS),whowillbeliableforthebenefits?
Q: Does recovery from the SIF bar a claim for
A: TheEr(Sec.1,RuleX;Sec.1,RuleXI;Sec.1,Rule benefitsundertheSSSLaw?Why?
XII;Sec.1,RuleXIII;ECCRules)
A:No,asexpresslyprovidedforinArticle173ofthe
FuneralBenefit Labor Code, payment of compensation under the
SIFshallnotbartherecoveryofbenefitsunderthe
Q:Whatisthefuneralbenefit? SSS Law, Republic Act No. 1161, as amended.
BenefitsundertheSIFaccruetotheEesconcerned
A: A funeral benefit of P10, 000.00 shall be paid duetohazardsinvolvedandaremadeaburdenon
upon the death of a covered Ee or permanently the employment itself. On the other hand, social
totallydisabledpensioner. security benefits are paid to SSS members by
reasonoftheirmembershipthereinforwhichthey
Q: When is an Er liable to pay a penalty to the contribute their money to a general fund. (Maao
StateInsuranceFund(SIF)? Sugar Central Co., Inc. vs. CA, G.R. No. 83491,
August27,1990)
127
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
128
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
2. AffinityandunityoftheEesinterest,such A:No.Whiletheexistenceofabargaininghistoryis
as substantial similarity of work and afactorthatmaybereckonedwithindetermining
duties, or similarity of compensation and the appropriate bargaining unit, the same is not
working conditions. (Substantial Mutual decisive or conclusive. Other factors must be
InterestRule) considered. The test of grouping is community or
3. Priorcollectivebargaininghistory mutuality of interests. This is so because the basic
4. Similarityofemploymentstatus.(SMCv. testofanassertedbargainingunitsacceptabilityis
Laguesma, G.R. No. 100485, Sep. 21, whetherornotitisfundamentallythecombination
1994) whichwillbestassuretoallEestheexerciseoftheir
CB rights. (Democratic Labor Assn v. Cebu
Q:Whatarethefactorsconsideredindetermining Stevedoring Company, Inc., G.R. No. L10321, Feb.
thesubstantialmutualinterestdoctrine? 28,1958)
A: 1. Similarity in the scale and manner of Q:Whatisoneunion,onecompanypolicy?
determiningearnings
2. Similarity in employment benefits, hours A:GR:ItistheproliferationofunionsinanErunit.
of work, and other terms and conditions Suchisdiscouragedasamatterofpolicyunless
ofemployment therearecompellingreasonswhichwoulddeny
3. Similarityinthekindsofworkperformed a certain class of Ees to the right to self
4. Similarity in the qualifications, skills and organization for purposes of collective
trainingofEes bargaining(CB).
5. Frequency of contract or interchange
amongtheEes XPNs:
6. Geographicalproximity 1. SupervisoryEeswhoareallowedtoform
7. Continuity and integration of production their own unions apart from the rank
processes andfileEesand
8. Common supervision and determination 2. ThepolicyshouldyieldtotherightofEes
oflaborrelationspolicy to form union for purposes not contrary
9. HistoryofCB tolaw,selforganizationandtoenterinto
10. DesiresoftheaffectedEesor CBnegotiations.
11. Extentofunionorganization
Note: Two companies cannot be treated into a single
Q:AregisteredlaborunioninUP,ONAPUP,fileda bargaininguniteveniftheirbusinessesarerelated.
petitionforcertificationelection(PCE)amongthe
Subsidiaries or corporations formed out of former
nonacademicEes.Theuniversitydidnotoppose,
divisions of a mother company following a re
however,anotherlaborunion,theAllUPWorkers
organization may constitute a separate bargaining
Union assents that it represents both academic
unit.
andnonacademicpersonnelandseekstouniteall
workers in 1 union. Do Ees performing academic
Q:UnionfiledaPCEamongtherankandfileEes
functions need to comprise a bargaining unit
of three security agencies including the Veterans
distinctfromthatofthenonacademicEes?
Security.Thelatteropposedallegingthatthethree
security agencies have separate and distinct
A: Yes. The mutuality of interest test should be
corporatepersonalities.MayasinglePCEfiledbya
takenintoconsideration.Therearetwoclassesof
labor union in the three corporations instead of
rankandfileEesintheuniversitythatis,thosewho
filing3separatepetitions?
performacademicfunctionssuchastheprofessors
andinstructors,andthosewhosefunctionarenon
A: Yes. The following are indications that the 3
academic who are the janitors, messengers, clerks
agencies do not exist and operate separately and
etc.Thus,notmuchreflectionisneededtoperceive
distinctly from each other with different corporate
that the mutuality of interest which justifies the
direction and goals: 1) Veterans Security failed to
formation of a single bargaining unit is lacking
rebut the fact that they are managed through the
between the two classes of Ees. (U.P. v. Ferrer
Utilities Management Corp with all their Ees
Calleja,G.R.No.96189,July14,1992)
drawing their salaries and wages from the said
entity; 2) that the agencies have common and
Q:Isthebargaininghistoryadecisivefactorinthe
interlockingincorporatorsandofficers;3)thatthey
determination of appropriateness of bargaining
haveasinglemutualbenefitsystemandfolloweda
unit?
single system of compulsory retirement. 4) they
could easily transfer security guards of one agency
129
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
to another and back again by simply fillingup a through the Labor Relations Division shall, within 10
common proforma slip; 5) they always hold joint daysfromreceiptofthenotice,recordthefactofVRin
yearly ceremonies such as the PGA Annual Awards its roster of legitimate labor unions and notify the
Ceremony;and6)theycontinuetoberepresented laborunionconcerned.
byonecounsel.
Q:Whatarethethree(3)conditionstovoluntary
Hence, the veil of corporate fiction of the 3 recognition(VR)?
agencies should be lifted for the purpose of
allowing the Ees of the 3 agencies to form single A:VRrequires3concurrentconditions:
union.Asasinglebargainingunit,theEesneednot
file 3 separate PCE. (Philippine Scout Veterans 1. VR is possible only in an unorganized
Security and Investigation Agency v. SLE, G.R. No. establishment.
92357,July21,1993)
2. Onlyoneunionmustaskforrecognition.If
(2)VoluntaryRecognition there 2 or more unions asking to be
recognized, the Er cannot recognize any
Q: What are the 3 methods of determining the of them; the rivalry must be resolved
bargainingrepresentative? throughanelection.
A:
1. Voluntaryrecognition
2. Certificationelectionwithorwithoutrun 3. The union voluntarily recognized should
off bethemajorityunionasindicatedbythe
3. Consentelection fact that members of the bargaining unit
did not object to the projected
Q:Whatisvoluntaryrecognition(VR)? recognition. If no objection is raised, the
recognitionwillproceed,theDOLEwillbe
A:Theprocessbywhichalegitimatelaborunionis informed and CBA recognition will
recognized by the employer (Er) as the exclusive commence. If objection is raised, the
bargaining representative or agent in a bargaining recognition is barred and a certification
unit, reported with the Regional Office. (Sec. 1 election or consent election will have to
[bbb],RuleI,BookV,IRR) takeplace.
Q:WhataretherequirementsforVR? Note: In an organized establishment, voluntary
recognitionisnotpossible.ApetitiontoholdaCEhas
A: The notice of VR shall be accompanied by the tobefiledwithinthefreedomperiodwhichmeansthe
originalcopyand2duplicatecopiesofthefollowing last 60 days of the 5th year of the expiring CBA. The
reqts: petition may be filed by any Legitimate Labor
Organization(LLO),butthepetitionmusthavewritten
1. JointstatementunderoathofVR support of at least 25% of the Ees in the bargaining
unit.
2. Certificate of posting of joint statement
for 15 consecutive days in at least 2 Q:WhereandwhentofilethepetitionforVR?
conspicuous places in the establishment
ofthebargainingunit A: Within 30 days from such recognition, Er shall
submit a notice of VR with the Regional Office
3. Certificateofposting which issued the recognized labor unions
certificate of registration or certificate of creation
4. Approximate number of Ees in the ofacharteredlocal.
bargaining unit and the names of those
whosupportedtherecognition Q: What are the effects of recording of fact of
voluntaryrecognition(VR)?
5. Statementthatthelaborunionistheonly
A:
LLOoperatingwithinthebargainingunit.
1. The recognized labor union shall enjoy
Note: Where the notice of voluntary recognition is
therights,privilegesandobligationsofan
sufficient in form, number and substance and where existing bargaining agent of all the
thereisnoregisteredlaborunionoperatingwithinthe employees(Ees)inthebargainingunit.
bargaining unit concerned, the Regional Office, 2. Itshallalsobarthefilingofapetitionfor
certification election by any labor
130
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
131
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
uniononly thatincludeseventhe
Note:Anationalunionorfederationfilingapetitionin
membersofthedefeated
behalf of its local/chapter shall not be required to
unions.
disclose the names of the local/chapters officers and
members, but shall attach to the petition the charter
certificate it issued to its local/chapter. (Sec. 1, Rule Note: Both in CE and union election, the prescribed
VIII,BookV,IRRasamendedbyD.O.40F03) proceduresshouldbefollowed.
Q:Mayanemployeeinterveneinthepetitionfor Q:Cana"nounion"wininacertificationElection
(CE)?
certificationelection(PCE)?
A:Yes.BecausetheobjectiveinaCEistoascertain
A: Yes, for the purpose of protecting his individual
the majority representation of the bargaining
right.(Sec.1,RuleVIII,BookV,IRRasamendedby
representative,iftheEesdesiretoberepresented
D.O.4003)
at all by anyone. Hence, no union is one of the
choicesinaCE.(2006BarQuestion)
Q:WhereisPCEfiled?
AlternativeAnswer:
A: It shall be filed with the Regional Office which
issued the petitioning union's certificate of No.AnounioncannotwininaCE.Thepurposeofa
registration/certificate of creation of chartered CE is to select an excusive bargaining agent and a
local.(ImplementingRules,asamendedbyD.O.40 nounionvotewouldpreciselymeanthatthevoter
03) isnotchoosinganyofthecontendingunions.Ifthe
nounion votes constitute a majority of the valid
Q:WhoshallhearandresolvethePCE? votescast,thisfactwillall themoremeanthatno
union won in CE. A oneyear bar will consequently
A:TheMediatorArbiter. stop the holding of another CE to allow the Er to
enjoyindustrialpeaceforatleastoneyear.
Q:WhentofilePCE?
Q: In what instance may a PCE be filed outside
A: The proper time to file the PCE depends on the freedom period of acurrentCBA?
whethertheCertifiedBargainingUnithasaCBAor
not: A: As a general rule, in an establishment where
there is a CBA in force and effect, a PCE may be
1. IfithasnoCBA,thepetitionmaybefiled filed only during the freedomperiod of such CBA.
anytime outside the 12month bar But to have that effect, the CBA should have been
(certificationyear). filedandregisteredwiththeDOLE.(Art.231,253A
2. IfithasCBA,itcanbefiledonlywithinthe and256,LC).(1997BarQuestion)
th
last60daysofthe5 yearoftheCBA.
Thus,aCBAthathasnotbeenfiledandregistered
Note: Attheexpirationofthefreedomperiod,theEr with the DOLE cannot be a bar to a CE and such
shall continue to recognize the majority status of the electioncanbeheldoutsidethefreedomperiodof
incumbentbargainingagentwherenoPCEisfiled. suchCBA.
132
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
133
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
134
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
A: bargainingwhich,despitenobleintentions,didnot
1. TheCBAisunregistered concludeinanagreementbetweentheparties.
2. TheCBAisinadequateandincomplete
3. The CBA was hastily entered into Q:Whatisdeadlockbarrule?
(Doctrineofprematureextension)
4. Withdrawal of affiliation from the A: Apetitionforcertificationelection(PCE) cannot
contracting union brought about by be entertained if, before the filing of the PCE, a
schismormassdisaffiliation bargaining deadlock to which an incumbent or
5. Contract where the identity of the certified bargaining agent is a party, had been
representative is in doubt. (ALU v. Ferrer submitted to conciliation or arbitration or had
Calleja,G.R.No.85085,Nov.6,1989) becomethesubjectofavalidstrikeorlockout.
6. CBAenteredintobetweentheErandthe
union during the pendency of a petition Q: What are the indications of a genuine
for CE (Vassar Industries Ees Union v. deadlock?
Estrella,G.R.No.L46562,Mar.31,1978)
7. CBA conducted between the Er and the A:
unionisnotbartoacertificationelection 1. Thesubmissionofthedeadlocktoathird
filed by another union and said CBA can partyconciliatororarbitrator;and
berenegotiatedattheoptionofthenew 2. The deadlock is the subject of a valid
bargainingagent.(ATUv.Hon.Noriel,G.R. noticestrikeorlockout.
No.L48367,Jan.16,1979)
8. ACBAregisteredwithfalsifiedsupporting Q:CapitolMedicalCenterEesAssociationAlliance
documents ofFilipinoWorkers(CMCEAAFW)emergedasthe
9. CBA was concluded in violation of an certifiedrepresentativeoftherankandfileEesat
orderenjoiningthepartiesfromentering Capitol Medical Center (CMC). Due to CMCs
into a CBA until the issue of refusaltobargaincollectively,CMCEAAFWfileda
representationisresolved noticeofstrikeandlateronstagedthestrikeafter
10. Petition is filed during the 60day complying with the other legal reqts. The SLE
freedomperiod. assumed jurisdiction over the case and issued an
order certifying the same to the NLRC for
Note:Basictothecontractbarruleistheproposition compulsoryarbitration.Duringalloftheseevents
thatthedelayoftherighttoselectrepresentativescan Capitol Medical Center Alliance of Concerned
bejustifiedonlywherestabilityisdeemedparamount. employees (Ees)Unified Filipino Service Workers
Excepted from the contract bar rule are certaintypes filedapetitionforCEamongtheregularrankand
of contracts which do not foster industrial stability, fileEesofCMC.ThepetitionforCEwasdismissed
such as contracts where the identity of the and the CMC was directed to negotiate with
representativeisindoubt.Anystabilityderivedfrom CMCEAAFW.WasthedismissalofthePCEproper?
such contracts must be subordinated to the Ees
freedom of choice because it does not establish the A: Yes, if the law proscribes the conduct of a CE
type of industrial peace contemplated by law. when there is a bargaining deadlock submitted to
(Firestone Tire & Rubber Company Ees Union v. conciliationorarbitration,withmorereasonshould
Estrella,G.R.No.L4551314,Jan.6,1978) itnotbeconductedif,despiteattemptstobringan
Er to the negotiation table by the certified
Q: Can the BLR certify a union as the exclusive bargaining agent, there was "no reasonable effort
bargaining representative after showing proof of ingoodfaith"ontheErtobargaincollectively.
majority representation thru union membership
cardswithoutconductinganelection? Thecircumstancesinthiscaseshouldbeconsidered
as similar in nature to a "bargaining deadlock"
A:No.The LC (In Arts. 256,257and258)provides whennoCEcouldbeheld.Thisisalsotomakesure
only for a CE as the mode for determining that no floodgates will be opened for the
theexclusivecollectivebargaining representative circumvention of the law by unscrupulous Ers to
if there is a question of representation in an prevent any certified bargaining agent from
appropriatebargainingunit.(1998BarQuestion) negotiatingaCBA.Sec.3,(RuleVIII),BookVofthe
IRRshouldbeinterpretedliberallysoastoincludea
Q:Whendoesdeadlockarise?
circumstancewhereaCBAcouldnotbeconcluded
duetothefailureofonepartytowillinglyperform
A: It arises when there is an impasse, which
its duty to bargain collectively. (Capitol Medical
presupposes reasonable effort at good faith
CenterAllianceofConcernedEesv.Laguesma,G.R.
No.118915,Feb.4,1997)
135
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. Anelectionwhichprovidesfor3ormore A:
choicesresultsinnoneofthecontending 1. Majority of the eligible voters cast their
unions receiving a majority of the valid votes.
votescast,and 2. Majorityofthevalidvotescastisforsuch
2. There are no objections or challenges union.
whichifsustainedcanmateriallyalterthe
results,provided Q:Howtodeterminethedoublemajorityrule?
3. The total number of votes for all the
contending unions is at least 50% of the A:
numberofvotescast.(Sec.1,RuleX,Book 1. Indeterminingtheeligiblevotescast(first
V,IRR) majority)includespoiledballots
4. Not one of the choices obtained the 2. In determining valid votes (second
majority of the valid votes cast (50%+ 1 majority), eliminate spoiled ballots but
secondmajority); includedthechallengedvotes.
5. The two choices which garnered the
highest votes will be voted and the one
which garners the highest number of
136
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
137
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
votes. processedbytheLaborRelationsDivision
attheRO.
In both instances, the no
unionisalsoachoice. 2. Federations, national unions or workers
association operating in more than one
Note: Petition for cancellation of registration is not a regionItisfiledwiththeBLRoftheRO,
bar to a PCE. No prejudicial question shall be butshallbeprocessedbytheBLR.
entertained in a petition for certification election.
(D.O.4003) Q:WhatisthedutyoftheBLRafteraLOhadfiled
the necessary papers and documents for
(7)AffiliationandDisaffiliationoftheLocalUnion
registration?
fromtheMotherUnion
A:ItbecomesmandatoryfortheBLRtocheckifthe
Q:Howisalocalchaptercreated?
reqts under Art. 234 of the LC have been
sedulously complied with. If its application for
A: A duly registered federation or national union
registration is vitiated by falsification and serious
may directly create a local/ chapter by issuing a
irregularities,especiallythoseappearingontheface
chartercertificateindicatingtheestablishmentofa
oftheapplicationandthesupportingdocuments,a
local/chapter.
LO should be denied recognition as a LLO.
(ProgressiveDevtCorp.PizzaHutv.Laguesma,G.R.
1. Thechaptershallacquirelegalpersonality
No.115077,April18,1997)
only for purposes of filing a petition for
certificationelectionfromthedateitwas
Q: Within what period should the BLR act on the
issuedachartercertificate
applicationssubmittedbeforeit?
2. The chapter shall be entitled to all other
rights and privileges of a legitimate labor A: It shall act on all applications for registration
organization (LLO) only upon the within10mdaysfromreceipteitherby:
submissionofthefollowingdocumentsin
additiontoitschartercertificate: 1. Approvingtheapplicationandissuingthe
a. Names of the chapters officers, certificate of registration/acknowledging
their addresses, and the principal thenotice/report;or
officeofthechapter 2. Denyingtheapplication/noticeforfailure
b. Chaptersconstitutionandbylaws of the applicant to comply with the
c. Where the chapters constitution requirementsforregistration/notice(D.O.
and bylaws are the same as that of 4003,RuleIV,Sec.4,seriesof2003)
thefederationorthenationalunion,
this fact shall be indicated Note:Allrequisitedocumentsshallbe:
accordingly 1. Certified under oath by the secretary or
3. The genuineness and due execution of treasurer of the organization, as the case
thesupportingrequirementsshallbe: maybeand
a. Certifiedunderoathbythesecretary 2. AttestedtoitbyitsPresident.
ortreasurerofthelocal/chapter,and
b. Attestedtobyitspresident(Sec.2[e], Q:MaytheBLRreviewtheissuanceofacertificate
Rule III, Book V, IRR, as amended by ofregistration?
D.O.40F03)
A: No. The BLR has the duty to review the
Note: Under the LC and therules, the powergranted application for registration not the issuance of a
to LOs to directly create a chapter or local through certificateofregistration.
chartering is given to a federation or national union
only, not to a trade union center. (SMCEU v. San Q: Why is a lesser requirement imposed for a
Miguel Packaging Products Ees Union, G.R. No. charteredlocal?
171153,Sep.12,2007)
A:Theintentofthelawinimposinglesserreqtsin
Q:Whereistheapplicationforregistrationfiled?
the case of branch or local of a registered
federation or national union is to encourage the
A:
affiliation of a local union in order to increase the
1. Independent labor unions, chartered
local unions bargaining power respecting terms
localsorworkersassociationsItisfiled
and conditions of labor. (Progressive Devt Corp v.
with the Regional Office (RO). where the
SLE,G.R.No.96425,Feb.4,1992)
applicant principally operates. It shall be
138
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
Q:Whataretherequirementsbeforeafederation 3. Thetotalnumberofmemberscomprising
canbeissuedacertificateofregistration? the labor union and the names of
memberswhoapprovedtheaffiliation;
A: The application for registration of federations 4. The certificate of affiliation issued by the
and national unions shall be accompanied by the federation in favor of the independently
followingdocuments: registeredlaborunion;and
5. Written notice to the employer
1. A statement indicating the name of the concerned if the affiliating union is the
applicant labor union, its principal incumbent bargaining agent. (D.O. 4003,
address,thenameofitsofficersandtheir Rule,III,Sec.7,seriesof2003)
respectiveaddresses;
Q:Whatistheeffectofaffiliation?
2. The minutes of the organizational
meeting(s) and the list of Ees who A:Thelaborunionthataffiliateswithafederationis
participatedinthesaidmeeting(s); subjecttothelawsoftheparentbodyunderwhose
authority the local union functions. The
3. The annual financial reports if the constitution, bylaws and rules of the mother
applicantunionhasbeeninexistencefor federation,togetherwiththecharteritissuestothe
1 or more years, unless it has not local union, constitutes an enforceable contract
collectedanyamountfromthemembers, between them and between the members of the
in which case a statement to this effect subordinate union inter se. Thus, pursuant to the
shallbeincludedintheapplication; constitution and bylaws, the federation has the
righttoinvestigateandexpelmembersofthelocal
4. Theapplicantunion'sconstitutionandby union. (Villar v. Inciong, G.R. No. L5028384, April
laws, minutes of its adoption or 20,1983)
ratification, and the list of the members
whoparticipatedinit.Thelistofratifying Q: May a local union disaffiliate from the
members shall be dispensed with where federation?
the constitution and bylaws was ratified
or adopted during the organizational A:
meeting(s). In such a case, the factual GR: A labor union may disaffiliate from the
circumstances of the ratification shall be mother union to form an independent union
recorded in the minutes of the only during the 60day freedom period
organizationalmeeting(s); immediately preceding the expiration of the
CBA.
5. Theresolutionofaffiliation ofatleast10
LLOs, whether independent unions or XPN: Even before the onset of the freedom
charteredlocals,eachofwhichmustbea period,disaffiliationmaystillbecarriedout,but
duly certified or recognized bargaining such disaffiliation must be effected by the
agentintheestablishmentwhereitseeks majority of the union members in the
tooperate;and bargainingunit.
6. The name and addresses of the Note:Thishappenswhenthereisasubstantialshiftin
companies where the affiliates operate allegianceonthepartofthemajorityofthemembers
and the list of all the members in each of the union. In such a case, however, the CBA
company involved. (D.O. 4003, Rule, III, continues to bind the members of the new or
Sec.2B,seriesof2003) disaffiliated and independent union up to determine
the union which shall administer the CBA may be
conducted. (ANGLOKMU v. Samahan ng
Q:Whataretherequirementsforaffiliation?
Manggagawang Nagkakaisa sa Manila Bay Spinning
MillsatJ.P.Coats,G.R.No.118562,July5,1996)
A: The report of affiliation of independently
registered labor unions with a federation or Q:Whatisthelimitationtodisaffiliation?
national union shall be accompanied by the
followingdocuments: A: Disaffiliation should be in accordance with the
1. Resolution of the labor union's board of rulesandproceduresstatedintheconstitutionand
directorsapprovingtheaffiliation; bylaws of the federation. A local union may
2. Minutes of the general membership disaffiliatewithitsmotherfederationprovidedthat
meetingapprovingtheaffiliation; thereisnoenforceableprovisioninthefederations
139
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
140
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
Q: How is appeal taken with regard to denial or a. Failure to comply with any of the
cancellationofregistration? reqtsunderArt.234,237and238of
theLC.
A: b. ViolationofanyprovisionunderArt.
DENIALORCANCELLATIONOFREGISTRATION 239,LC.
ByRegionaloffice ByBLR
Transmitrecordswithin24hours 2. For federations, national or industry
fromreceiptoftheMemoofAppeal unions, trade union centers Only
BLRwilldecideonthe members of the labor organization (LO)
SLEdecidesonthematter
matterwithin20days concerned may file if the grounds are
within20daysfrom
fromreceiptofthe actions involving violations of Art. 241,
receiptofrecords
records subjecttothe30%rule.
AppealtoCAviaRule65
Q:Whatistheeffectofcancellationofregistration
Note: Appeal is by memo of appeal within 10 days
if the cancellation is made in the course of the
fromreceiptofnotice.
proceedings?
Q:Whocancelsthecertificateofregistration?
A: Where a labor union is a party in a proceeding
and later it loses its registration permit in the
A: The certificate of registration of any LLO,
course or during the pendency of the case, such
whethernationalorlocal,maybecancelledbythe
union may continue as party without need of
BLR, after due hearing, only on the grounds
substitution of parties, subject however to the
specifiedinArt.239.(asamendedbyR.A.9481)
understanding that whatever decision may be
Q:Whatistheeffectofapetitionforcancellation renderedwillbebindingonlyuponthosemembers
orofunionregistration? oftheunionwhohavenotsignifiedtheirdesireto
withdrawfromthecasebeforeitstrialanddecision
A: It shall not suspend the proceedings for onthemerits.
certification election (CE) nor shall it prevent the
filingofCE. Note: Rationale: Principle of agency is applied the
Eesaretheprincipals,andtheLOismerelyanagentof
the former, consequently, the cancellation of the
Incaseofcancellation,nothinghereinshallrestrict
unionsregistrationwouldnotdeprivetheconsenting
the right of the union to seek just and equitable
memberEesoftheirrighttocontinuethecaseasthey
remediesintheappropriatecourts.
areconsideredastheprincipals.
Q: Where is a petition for cancellation of
Q:Whatarethegroundsforcancellationofunion
registration or application for voluntary
registration?
dissolutionfiled?
A:
A:
1. Misrepresentation, false statement or
1. For legitimate independent labor unions,
fraudinconnectionwiththe:
local/chapter and workers association
a. Adoption or application of the
It shall be filed with the Regional Office
constitution and bylaws or
which issued its certificate of registration
amendmentsthereto
orcreation.
b. Minutesofratificationand
2. For federations, national or industry and
c. Listofmemberswhotookpartinthe
tradeunioncentersItshallbefiledwith
ratification;
the BLR. (Sec. 1, Rule XIV, Book V, IRR as
d. Electionofofficers
amendedbyD.O.40F03)
e. Minutes of the election of officers
and
Q: Who may file a petition for cancellation of
f. Listofvoters(Art.239asamended)
registration?
A: 2. Voluntary dissolution by the members.
1. For legitimate individual labor union, (asamendedbyR.A.9481)
charteredlocalandworkersassociation
Note:Apronouncementastothelegalityofthestrike
Any partyininterest may file a petition
isnotwithinthemeaningofArt.239oftheLC.
for cancellation of registration if the
groundis:
141
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: What are the prohibited grounds for Rule V, Book V, IRR, as amended by D.O.
cancellationofunionregistration? 40F03)
A:
1. TheinclusionasunionmemberofEeswho Note:Failuretosubmitreportorialrequirementsisno
are outside the bargaining unit shall not longer a ground for cancellation but shall subject the
be a ground to cancel the union erring officers or members to suspension, expulsion
registration. The ineligible Ees are from membership, or any appropriate penalty (Art.
automatically deemd removed from the 242A,asinsertedbyR.A.9481).
list of membership of the union as.(Art.
245AasamendedbyRA9481) Q:Whatisthesuccessorininterestdoctrine?
2. The affiliation of the rankandfile and
A:
supervisory unions operating within the
GR: It is when an Er with an existing CBA is
same establishment to the same
succeeded by another Er, the successorin
federationornationalunionshallnotbea
interest who is the buyer in good faith has no
ground to cancel registration of either
liability to the Ees in continuing employment
union. (Sec. 6, Rule XIV, Book V, as
and the bargaining agreement because these
insertedbyD.O.40F03)
contractsareinpersonam.
assumesanobligation;
A: Registration may be cancelled by the
2. The sale is a device to circumvent the
organizationitselfprovided:
obligation;or
3. Thesaleortransferismadeinbadfaith.
1. At least of its general membership
votes to dissolve the organization, in a
(a)SubstitutionaryDoctrine
meetingdulycalledforthatpurpose;and
Q:Whatisthesubstitutionarydoctrine?
2. An application to cancel registration is
thereaftersubmittedbytheboardofthe A: It is where there occurs a shift in the Ees union
organization,attestedbyitspresident. allegiance after the execution of a collective
bargaining (CB) contract with the Er, the Ees can
Q: What are the reportorial requirements change their agent (labor union) but the CB
required to be submitted by a legitimate labor contract which is still subsisting continues to bind
organization(LLO)? the Ees up to its expiration date. They may
however, bargain for the shortening of said
A: The following documents are required to be expirationdate.
submittedtoBLRbytheLLOconcerned:
Note: The Er cannot revoke the validly executed CB
1. Within 30 days from adoption or contract with their Er by the simple expedient of
ratification of the constitution and by changing their bargaining agent. The new agent must
laws(CBL)oramendmentsthereto: respectthecontract.(BenguetConsolidatedInc.v.BCI
a. CBLoramendmentsthereto EesandWorkersUnionPAFLU,G.R.No.L24711,April
b. Minutesofratification 30,1968)
c. Listofmemberswhotookpartinthe
ratification of the constitution and Itcannotbeinvokedtosupportthecontentionthata
bylaws; newlycertifiedCBagentautomaticallyassumesallthe
2. Within 30 days from date of election or personalundertakingsoftheformeragentliketheno
appointment: strikeclauseintheCBAexecutedbythelatter.
a. Listofelectedandappointedofficers
(8)UnionDuesandSpecialAssessments
and agents entrusted with the
handingofunionfunds
(a)UnionDues
b. Minutesofelectionofofficers
c. Listofvoters
Q:Whatareuniondues?
3. Annual financial report within 30 days
afterthecloseofeveryfiscalyear
A:Theseareregularmonthlycontributionspaidby
4. List of members at least once a year or
the members to the union in exchange for the
wheneverrequiredbytheBureau.(Sec.1,
142
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
benefits given to them by the CBA and to finance Q: What are the requisites for a valid levy of
theactivitiesoftheunioninrepresentingtheunion. specialassessmentorextraordinaryfees?
Q:Whatischeckoff?
A:
A:ItisamethodofdeductingfromanEespayata 1. Authorization by a written resolution of
prescribed period, the amounts due the union for themajorityofallmembersatthegeneral
fees,finesandassessments. membership meeting duly called for that
purpose;
Deductionsforunionservicefeesareauthorizedby 2. Secretarys record of the minutes of the
law and do not require individual checkoff meeting,whichmustincludethe:
authorizations. a. Listofmemberspresent
b. Votescast
Q:Whatisthenatureandpurposeofcheckoff? c. Purposeofthespecialassessments
d. Recipientofsuchassessments;
A:Unionduesarethelifebloodoftheunion.
3. Individualwrittenauthorization tocheck
off duly signed by the Ee concerned to
All unions are authorized to collect reasonable
levysuchassessments.
membership fees, union dues, assessments and
fines and other contributions for labor education
Q: What is the effect of failure to strictly comply
and research, mutual death and hospitalization
therequirementssetbylaw?
benefits, welfare fund, strike fund and credit and
cooperativeundertakings.(Art.277[a])
A: It shall invalidate the questioned special
Q:Whataretherequisitesofavalidcheckoff? assessments. Substantial compliance of the
requirementsisnotenoughinviewofthefactthat
A: the special assessment will diminish the
GR: No special assessments, attys fees, compensationofunionmembers.(Palacolv.Ferrer
negotiationfeesoranyotherextraordinaryfees Calleja,G.R.No.85333,Feb.26,1990)
maybecheckedofffromanyamountduetoan
employee (Ee) without individual written Q:Whohasjurisdictionovercheckoffdisputes?
authorizationdulysignedbytheEe.
A: Being an intraunion dispute, the Regional
Theauthorizationshouldspecificallystatethe: Director of DOLE has jurisdiction over check off
1. Amount disputes.
2. Purpose&
Q:Distinguishcheckofffromspecialassessments.
3. Beneficiaryofthededuction.
A:
XPNs:
Checkoff SpecialAssessment
1. FormandatoryactivitiesundertheLC
Howapproved
2. Foragencyfees
(UnionDues)
3. Whennonmembersoftheunionavailof Byobtainingtheindividual Bywrittenresolution
thebenefitsoftheCBA: writtenauthorizationduly approvedbymajorityof
a. Nonmembers may be assessed signedbytheEewhich allthemembersatthe
unionduesequivalenttothatpaidby mustspecify: meetingcalledforthat
unionmembers; 1. Amount purpose.
b. Only by board resolution approved 2. Purpose
by majority of the members in 3. Beneficiary
general meeting called for the Exceptiontosuchrequirement
purpose.
(b)SpecialAssessments
Q: What are special assessments or extraordinary
fees?
A:Theseareassessmentsforanypurposeorobject
other than those expressly provided by the labor
organizationsconstitutionandbylaws.
143
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:Whatisanagencyfee?
3. It is the obligation to meet and convene
144
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
145
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
146
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
agreement. While the law makes it an obligation of the existing agreement during the 60
for the Er and the Ees to bargain collectively with dayperiodand/oruntilanewagreement
each other, such compulsion does not include the isreachedbytheparties.(Art.253,LC)
commitmenttoprecipitatelyacceptoragreetothe
proposals of the other. All it contemplates is that Q:WhatistheautomaticrenewalclauseofCBAs?
both parties should approach the negotiation with
anopenmindandmakereasonableefforttoreach A:AlthoughaCBAhasexpired,itcontinuestohave
a common ground of agreement. (Union of Filipro legaleffectsasbetweenthepartiesuntilanewCBA
Ees v. Nestle Phils., G.R. Nos. 15893031, Mar. 3, hasbeenenteredinto(Pier & Arrastre Stevedoring
2008) Services, Inc. v. Confessor, G.R. No. 110854,
February 13, 1995). This is so because the law
Q:Whatisadeadlock? makes it a duty of the parties to keep the status
quo and to continue in full effect the terms and
A: It is synonymous with impasse or a standstill conditions of the existing agreement until a new
which presupposes reasonable effort at GF agreementisreachedbytheparties.(Art.253,LC).
bargaining but despite noble intentions does not (2008BarQuestion)
concludeanagreementbetweentheparties.
Q:Whatmaybedoneduringthe60dayfreedom
Q: In case of deadlock in the renegotiationof the period?
CBA, what are the actions that may be taken by
theparties? A:
1. A labor union may disaffiliate from the
A:Thepartiesmay: mother union to form a local or
independentuniononlyduringthe60day
1. Call upon the NCMB to intervene for the freedom period immediately preceding
purpose of conducting conciliation or theexpirationoftheCBA.
preventivemediation; 2. Eitherpartycanserveawrittennoticeto
2. Referthematterforvoluntaryarbitration terminate or modify agreement at least
orcompulsoryarbitration; 60dayspriortoitsexpirationperiod.
3. Declare a strike or lockout upon 3. A petition for certification election may
compliance with the legal reqts (This befiled.
remedyisaremedyoflastresort).
Q:WhentofileCBA?
Q: May economic exigencies justify refusal to
bargain? A:Within30daysfromexecutionofCBA.
A: No. An employer is not guilty of refusal to Q:Whataretherequirementsforregistration?
bargain by adamantly rejecting the unions
economicdemandswhereheisoperatingataloss, A: The application for CBA registration shall be
on a low profit margin, or in a depressed industry, accompaniedbytheoriginaland2duplicatecopies
as long as he continues to negotiate. But financial ofthefollowingreqts:
hardship constitutes no excuse for refusing to
bargaincollectively. 1. CBA
2. A statement that the CBA was posted in
Q: What is the duty to bargain collectively when at least 2 conspicuous places in the
thereisaCBA? establishment concerned for at least 5
daysbeforeitsratification
A: 3. Statement that the CBA was ratified by
1. When there is a CBA the duty to bargain the majority of the Ees in the bargaining
collectively shall also mean that neither unit.
party shall terminate nor modify such
agreementduringitslifetime. Note: The following documents must be certified
2. Eitherpartycanserveawrittennoticeto under oath by the representative of the Er and the
terminate or modify the agreement at labor union. No other document shall be required in
least60dayspriortoitsexpirationdate. theregistrationoftheCBA.
3. Itshallbethedutyofbothpartiestokeep
the status quo and to continue in full Q:Whatisasingleenterprisebargaining?
forceandeffectthetermsandconditions
147
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
voluntarilymadebytheparties.
A:
1. Withrespecttotherepresentationaspect
Q:MaytheeconomicprovisionsofanexistingCBA
(referstotheidentityandmajoritystatus
be extended beyond the 3 year period as
of the union that negotiated the CBA as
prescribed by law in the absence of a new
the exclusive bargaining representative):
agreement?
5years
2. Withrespecttoallotherprovisions(refers A:Yes.Undertheprincipleofholdover,untilanew
to the rest of the CBA, economic as well CBAhasbeenexecutedbyandbetweentheparties,
as noneconomic provisions other than they are duty bound to keep the status quo and
representationalprovisions):3yearsafter mustcontinueinfullforceandeffectthetermsand
theexecutionoftheCBA
conditionsoftheexistingagreement.Thelawdoes
notprovideforanyexceptionorqualificationasto
Q:WhataretheeconomicprovisionsofaCBA? which of the economic provisions of the existing
agreement are to retain force and effect.
A: Therefore, it must be encompassing all the terms
1. Wages and condition in the said agreement. (New Pacific
2. Familyplanning Timberv.NLRC,G.R.No.124224,Mar.17,2000)
3. Effectivityoftheagreement
4. Other terms and conditions of Q: Mindanao Terminal Company and respondent
employment union has an existing CBA which was about to
expire. Thus, negotiations were held regarding
Q: What are the noneconomic provisions of a certain provisions of the CBA which resulted in a
CBA? deadlock. Thus the union filed a notice of strike.
During the conference called by the NCMB the
A: companyandtheunionwereabletoagreeonall
1. Coverageofthebargainingunit of the provisions of the CBA except for one.
2. Unionsecurityclauses However, the last unresolved provision was
3. Management prerogatives and/or subsequently settled but no CBA was signed.
rights/responsibilitiesofemployees Hence,intherecordsoftheMediationArbiter,all
4. Grievance machinery and voluntary issues were settled before the lapse of the 6
arbitration monthperiodaftertheexpirationoftheoldCBA.
5. Nostrikenolockoutprovision DoesthesigningoftheCBAdeterminethedateit
wasenteredintowithinthe6monthperiod?
Q:Whatistheeffectivityandretroactivitydateof
othereconomicprovisionsoftheCBA? A:No.ThesigningoftheCBAdoesnotdetermine
whethertheagreementwasenteredintowithinthe
A: 6 month period from the date of expiration of the
1. If the CBA is the very first for the old CBA. In the present case, there was already a
bargainingunit,thepartieshavetodecide meeting of the minds between the company and
theCBAeffectivitydate. the union prior to the end of the 6 month period
after the expiration of the old CBA. Hence, such
2. Thosemadewithin6monthsafterdateof meeting of the mind is sufficient to conclude that
expiry of the CBA are subject to anagreementhasbeenreachedwithinthe6month
automatic retroaction to the day period as provided under Art. 253A of the LC.
immediatelyfollowingthedateofexpiry.
148
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
149
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:Whatisthebasisforvoluntaryarbitrationand
Eitherpartymayservenoticeupontheotherofits
itsrationale?
decisiontosubmittheissuetovoluntaryarbitration
(VA):
A: The State shall promote the principle of shared
1. If the party upon whom such notice is
responsibilitybetweenworkersandemployersand
served fails/refuses to respond within 7
150
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
151
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:Whendoesboulwarismoccur? 1. Thecircumstancesunderwhichtheywere
uttered
A: It occurs when employer (Er) directly bargains 2. The history of the particular Ers labor
withtheemployee(Ee)disregardingtheunion;the relationsorantiunionbias
aim was to deal with the labor union through Ees 3. Their connection with an established
ratherthanwiththeEesthrutheunion.Ersubmits collateralplanofcoercionorinterference.
itsproposalsandadoptsatakeitorleaveitstand. (The Insular Life AssuranceNATU v. The
Insular Life Co. Ltd, G.R. No.L25291, Jan.
d.UnfairLaborPractice 30,1971)
(1)ULPofEmployers Q: Phil. Marine Officers Guild (PMOG) is a union
representing some of Philsteams officers and
Q: What are the ULP that may be committed by CebuSeamensAssociation(CSA)isanotherunion
Ers? representing some of Philsteams officers. PMOG
sentalettertoPhilsteamrequestingforCBbutthe
A: company asked the former to first prove it
1. Interference represents the majority. Simultaneously,
2. Yellowdogcondition Philsteam interrogated its captains, deck officers
3. Contractingout andengineerswhileCSAlikewisesentitsdemands
4. Companyunionism to Philsteam. The company recognized CSA as
5. Discrimination for or against union representingthemajorityandenteredintoaCBA.
membership Hence PMOG declared a strike. PMOG was
6. Discriminationbecauseoftestimony subjected to vilification and Philsteams pier
7. Violationofdutytobargain superintendent participated in the solicitation of
8. Paidnegotiation membership for CSA. Is the company guilty of
9. GrossviolationofCBA ULP?
(a)Interference A: Yes. Although the company is free to make
interrogationsastoitsEesunion,thesameshould
Q:Whatismeantbyinterference? beforalegitimatepurposeandmustnotinterfere
withtheexerciseofselforganizationotherwiseitis
A:TheactofErtointerferewith,restrainorcoerce considered as ULP. Moreover, Philsteams
Eesintheexerciseoftheirrighttoselforganization. supervisoryEesstatementthatPMOGisamoney
makingunion,whichismadetoappeartobesaid
Q:Whatisthetestofinterference? in behalf of the union and the participation of the
companys pier superintendent in soliciting
A:WhethertheErhasengagedinconductwhich,it membership for the competing union, is ULP for
mayreasonablybesaid,tendstointerferewiththe interfering with the exercise of the right to self
freeexerciseoftheEesrighttoselforganization. organization. (Philsteam and Navigation v.
Philippine Marine Officers Guild, G.R. Nos. L20667
Note:DirectevidencethatanEewasinfactintended andL20669,Oct.29,1965)
orcoercedbythestatementsofthreatsoftheErisnot
necessaryifthereisareasonableinterferencethatthe Q:Whatisalockout?
antiunion conduct of the Er does have an adverse
effect on selforganization and CB. (The Insular Life
A: It means any temporary refusal of an Er to
AssuranceNATUv. The InsularLife Co.Ltd, G.R.No.L
furnish work as a result of an industrial or labor
25291,Jan.30,1971)
dispute.(Art.212[p])
Q:Whatisthetotalityofconductdoctrine?
Q:WhendoeslockoutorclosureamounttoULP?
A:ItstatesthattheculpabilityofErsremarksisto
A: A lockout, actual or threatened, as a means of
be evaluated not only on the basis of their
dissuading the Ees from exercising their rights is
implications, but against the background of and in
clearly an ULP. However, to hold an Er guilty, the
conjunctionwithcollateralcircumstances.
evidence must establish that the purpose was to
interferewiththeEesexerciseoftheirrights.
Under this doctrine, expressions of opinion by an
Er,thoughinnocentinthemselves,frequentlywere
Q: What are other examples of acts of
heldtobeULPbecauseof:
interference?
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A: Q:Whatarethe3usualprovisionsunderayellow
1. Outrightandunconcealedintimidation dogcontract?
2. In order that interrogation would not be
deemedcoercive: A:
a. The Er must communicate to the Ee 1. ArepresentationbytheEethatheisnota
thepurposeofquestioning memberofalaborunion.
b. Assure him that no reprisal would 2. A promise by the Ee not to join a labor
takeplace union.
c. ObtainEeparticipationvoluntarily 3. A promise by the Ee that upon joining a
d. Must be free from Er hostility to laborunion,hewillquithisemployment.
unionorganization
e. Mustnotbecoerciveinnature (c)ContractingOut
3. IntimidatingexpressionsofopinionbyEr
Q:WhatiscontractingoutasaformofULP?
Note: An Er who interfered with the right to self
organization before a union is registered can be held A: It is to contract out services or functions being
guilty of ULP. (Samahan ng mga Manggagawa sa performed by union members when such will
BandolinoLMLC v. NLRC, G.R. No. 125195, July 17, interferewith,restrainorcoerceEesintheexercise
1997) oftheirrightstoselforganization.
It is the prerogative of the company to promote, Q: Does it mean that an Er cannot contract out
transfer or even demote its Ees to other positions work?
when the interests of the company reasonably
demand it. Unless there are circumstances which
A:
directlypointtointerferencebythecompanywiththe
GR:ContractingoutservicesisnotULPperse.
Ees right to selforganization, the transfer of an Ee
shouldbeconsideredaswithintheboundsallowedby
law. (RubberworldPhils.v.NLRC, G.R.No.75704, July XPNs:ItisULPonlywhentheff.exists:
19,1989) 1. The services contracted out are being
performedbyunionmembers;and
(b)YellowDog 2. Such contracting out interferes with,
restrains,orcoerceEesintheexerciseof
Q:Whatisayellowdogcondition? theirrighttoselforganization.
A:Itistorequireasaconditionofemploymentthat Note: When the contracting out is being done for
business reasons such as decline in business,
apersonoranEeshallnotjoinalabororganization
inadequacyofequipmentortoreducecost,thenitisa
orshallwithdrawfromonetowhichhebelongs.
validexerciseofmanagementprerogative.
Q:Whatisayellowdogcontract?
Q: Company "A" contracts out its clerical and
janitorial services. In the negotiations of its
A:Itisapromiseexactedfromworkersascondition
CBA,theunioninsistedthatthecompanymay no
of employment that they are not to belong to or
longer engage in contracting out these types of
attempt to foster a union during their period of
services, which services the union claims to be
employment.
necessaryinthecompany'sbusiness,without
prior consultation. Is the union's stand valid or
Q:Isyellowdogcontractvalid?
not?Forwhatreason(s)?
A:No.Itisnullandvoidbecause:
A: The union's stand is not valid. It is part of
1. It is contrary to public policy for it is
management prerogative to contract out any
tantamounttoinvoluntaryservitude.
work,task,joborprojectexceptthatitisanULP to
2. It is entered into without consideration
contract out services or functions performed
for Ees in waiving their right to self
by union members when such will interfere
organization.
with,restrainorcoerceEesintheexerciseoftheir
3. Ees are coerced to sign contracts
rights to selforganization. (Art.248[c]oftheLC).
disadvantageoustotheirfamily.
(2001BarQuestion)
Note: This is one of the cases of ULP that may be
Q:Whatisarunawayshop?
committedintheabsenceofanErEerelationship.
153
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LABOR RELATIONS LAW
A: The employer is not guilty of ULP if it merely Notwithstanding the fact that the dismissal was at
complies in good faith with the request of the theinstanceofthefederationandthatitundertook
certified union for the dismissal of employees toholdthecompanyfreefromanyliabilityresulting
expelled from the union pursuant to the union fromsuchdismissal,thecompanymaystillbeheld
securityclauseintheCBA.(Sorianov.Atienza,G.R. liable if it was remiss in its duty to accord the
No.L68619,Mar.16,1989) wouldbe dismissed Ees their right to be heard on
thematter.
Q:Aprofitsharingschemewasintroducedbythe
companyforitsmanagersandsupervisorswhoare Q: Mabeza and her coEes were asked by the
notmembersoftheunion,hencedonotenjoythe company to sign an affidavit attesting to the
benefitsoftheCBA.Therespondentunionwanted latters compliance with pertinent labor laws.
toparticipatewiththeschemebutwasdeniedby Mabeza signed the affidavit but refused to swear
the company due to the CBA. Subsequently the toitsveracitybeforetheCityprosecutor.Mabeza
company distributed the profit sharing to the then filed a LOA which was denied by
manager, supervisors and other nonunion management. After sometime, she attempted to
memberEes.Asaresulttheunionfiledanoticeof returntoworkbutthecompanyinformedhernot
strike alleging ULP. Is the nonextension of the toreportforworkandcontinuewithherunofficial
profit sharing scheme to union members leave.DidthecompanycommitULP?
discriminatoryandanULP?
A: Yes. The act of compelling an Ee to sign an
A: No. There can be no discrimination when the instrument indicating the Ers compliance with
Eesarenotsimilarlysituated.Thesituationofunion Laborlawswhichthecompanymighthaveviolated
members is different and distinct from nonunion together with the act of terminating or coercing
members because only union members enjoy the those Ees to cooperate is an act of ULP. This is
benefit under the CBA. The profit sharing scheme analogous with Art. 248 (f) of the LC which
was extended to those who do not enjoy the provides: to dismiss, discharge or otherwise
benefits of the CBA. Hence, there is no prejudice or discriminate against an Ee for having
discriminationandULPisnotcommitted.(Wiseand given or being about to give testimony under this
Co.,Inc.v.NLRC,G.R.No.L87672,Oct.13,1989) Code. For in not giving a positive testimony in
favoroftheEr,Mabezareservednotonlyherright
Q: Is dismissal of an Ee pursuant to a union to dispute the claim but also to work for better
securityclauseaformofULP? terms and condition. (Mabeza v. NLRC, G.R No.
118506,April18,1997)
A: No. Union security clauses in the CBA, if freely
andvoluntarilyenteredinto,arevalidandbinding. (f)ViolationofDutytoBargain
Thus, the dismissal of an Ee by the company
pursuant to a labor unions demand in accordance Q: What is violation of the duty to bargain as a
with a union security agreement does not kindofULP?
constitute ULP. (Malayang Samahan ng mga
Manggagawa sa M. Greenfield v. Ramos, G.R. No. A: This is the act of violating the duty to bargain
113907,Feb.28,2000) collectivelyasprescribedintheLC.
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Q:WhataretheexamplesofULPinbargaining? beingamajorityunion.(1997BarQuestion)
A: Q:Whatissurfacebargaining?
1. Delaying negotiations by discussing
unrelatedmatters A: It is the act of going through the motions of
2. Refusaltoacceptrequesttobargain negotiating without any legal intent to reach an
3. Rejecting a unions offer to prove its agreement. It involves the question of whether or
majorityclaim nottheErsconductdemonstratesanunwillingness
4. Shutdowntoavoidbargaining to bargain in good faith or is merely hard
5. Engaginginsurfacebargaining bargaining. (Standard Chartered Bank v. Confessor,
G.R.No.114974,June16,2004)
Q: Balmar Farms Ees Association (BFEA) is
affiliated with Associated Labor Union (ALU). ALU Note: Occurs when the Er constantly changes its
won in the certification election held in the positionovertheagreement.
company. Thus, ALU sent its proposal for a CBA,
(g)PaidNegotiation
butthecompanyrefusedtoactonitallegingthat
BEA is the sole and exclusive bargaining
Q:Whatismeantbypaidnegotiationasaformof
representativeandthatBFEAthroughitspresident
ULP?
had sent a letter informing the company of its
disaffiliation with ALU. Is the company guilty of A:Itistheactoftheemployertopaynegotiationor
ULPforrefusingtobargaincollectively? attys fees to the union or its officers or agents as
part of the settlement of any issue in collective
A: Yes. ALU is the certified exclusive bargaining bargainingoranyotherdispute.
representative after winning the certification
election. The company merely relied on the letter (h)GrossViolationofCBA
of disaffiliation by BFEAs president without proof
and consequently refusing to bargain collectively Q: When is the violation of CBA considered as
constitutes ULP. Such refusal by the company to ULP?
bargain collectively with the certified exclusive
bargainingrepresentativeisaviolationofitsdutyto A:OnlywhentheviolationisgrossTheremustbe
collectively bargain which constitutes ULP. (Balmar a flagrant and/or malicious refusal to comply with
Farmsv.NLRC,G.R.No.73504,Oct.15,1991) theeconomicprovisionoftheCBA.
156
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157
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andimpetuousreasonsorforcausesforeigntothe
closed shop agreement. (Manila Mandarin Ees A:Yes,assumingthattheyactedintheirindividual
Unionv.NLRC,G.R.No.76989,Sep.29,1987) capacities when they wrote the letter, they were
nonethelessprotected,fortheywereengagedina
Laborunionsarenotentitledtoarbitrarilyexclude concertedactivity,intheirrightofselforganization
qualified applicants for membership and a closed that includes concerted activity for mutual aid and
shop applicants provision will not justify the protection.Anyinterferencemadebythecompany
employerindischarging,oraunionininsistingupon willconstituteasULP.
thedischargeofanemployeewhomtheunionthus
refuses to admit to membership without any Thejoininginprotestsordemands,evenbyasmall
reasonable ground thereof. (Salunga v. CIR, G.R. group of Ees, if in furtherance of their interests as
No.L22456,Sep.27,1967) such is a concerted activity protected by the
IndustrialPeaceAct.Itisnotnecessarythatunion
Q:Whenisthererefusaltobargain? activitybeinvolvedorthatcollectivebargainingbe
contemplated. (Republic Savings Bank v. CIR, G.R.
A:Aunionviolatesitsdutytobargaincollectivelyby No.L20303,Oct.31,1967)
entering negotiations with a fixed purpose of not
reachinganagreementorsigningacontract. Q:Whatisastrike?
3.RIGHTTOPEACEFULCONCERTEDACTIVITIES A:Itmeansanytemporarystoppageofworkbythe
concerted action of employees as a result of an
Q: What is the constitutional basis of strikes,
industrialorlabordispute.(Sec.1[uu],RuleI,Book
lockoutsandotherconcertedactivities?
V,IRR)
A: The State shall guarantee the rights of all
It shall comprise not only concerted work
workers to selforganization, collective bargaining
stoppages, but also slowdowns, mass leaves,
andnegotiations,andpeacefulconcertedactivities,
sitdowns, attempt to damage, destroy or sabotage
includingtherighttostrikeinaccordancewithlaw
plantequipmentandfacilities,andsimilaractivities.
(Sec.3,Art.XIII,1987Constitution).
(Samahang Manggagawa sa Sulpicion Lines v.
Note: The law does not look with favor upon strikes SulpicioLines,Inc.,G.R.No.140992,Mar.25,2004)
and lockouts because of their disturbing and
perniciouseffectsuponthesocialorderandthepublic Q:Whatisthepurposeofastrike?
interests;topreventoravertthemandtoimplement
Sec.6,Art.XIVoftheConstitution,thelawhascreated A: A strike is a coercive measure resorted to by
severalagencies,namely:theBLR,theDOLE,theLabor laborerstoenforcetheirdemands.Theideabehind
Management Advisory Board, and the CIR. (Luzon a strike is that a company engaged in a profitable
Marine Devt Union v. Roldan, G.R. No. L2660, May business cannot afford to have its production or
30,1950) activities interrupted, much less, paralyzed. (Phil.
CanCo.v.CIR,G.R.No.L3021,July13,1950)
Q:Whatisaconcertedaction?
Q:Whatisalockout?
A: It is an activity undertaken by 2 or more
employees,byoneonbehalfoftheothers. A: It means any temporary refusal of an employer
tofurnishworkasaresultofanindustrialorlabor
Q:Areallconcertedactionsstrikes? dispute.(Art.212[p])
A:Notallconcertedactivitiesarestrikes.Theymay
Q:Whatispicketing?
only be protest actions they do not necessarily
cause work stoppage by the protesters. A strike in
A:Itistheactofmarchingtoandfrotheemployers
contrast is always a group action accompanied by
premises which is usually accompanied by the
workstoppage.
display of placard and other signs, making known
thefactsinvolvedinalabordispute.
Q: The Ees wrote and published a letter to the
bank president, demanding his resignation onthe
The right to picket as a means of communicating
grounds of immorality, nepotism, favoritism and
the facts of a labor dispute is a phase of the
discrimination in the appointment andpromotion
freedomofspeechguaranteedbytheConstitution.
ofbankEes.Thebankdismissedthe8Eesonthe
If peacefully carried out, it can not be curtailed
allegedlibelousletter.WeretheEesengagedina
concertedactivity?
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LABOR RELATIONS LAW
evenintheabsenceofErEerelationship.(PAFLUv. Q:Whatisaslowdown?
Cloribel,G.R.No.L25878,Mar.28,1969)
A: It is a method by which ones employees,
Q:Istherighttopicketanabsoluteright? without seeking a complete stoppage of work,
retard production and distribution in an effort to
A: No, while peaceful picketing is entitled to compelcompliancebytheemployerwiththelabor
protectionasanexerciseoffreespeech,thecourts demandsmadeuponhim.
are not without power to confine or localize the
sphere of communication or the demonstration to Q: Does an overtime boycott or work
the parties to the labor dispute, including those slowdown by the employees constitute a strike
with related interests, and to insulate and hence a violation of the CBAs No strike, no
establishments or persons with no industrial lockoutclause?
connectionorhavinginteresttotallyforeigntothe
context of the dispute. (Liwayway Pub., Inc. v. A: Yes, the concept of a slowdown is a "strike on
Permanent Concrete Workers Union, G.R. No. L theinstallmentplan."Itisawillfulreductioninthe
25003,Oct.23,1981) rateofworkbyconcertedactionofworkersforthe
purpose of restricting the output of the employer
Therighttopeacefulpicketingshallbeexercisedby (Er),inrelationtoalabordispute;asanactivityby
the workers with due respect for the rights of which workers, without a complete stoppage of
others.No person engaged in picketing shall work, retard production or their performance of
commit any act of violence, coercion or duties and functions to compel management to
intimidation.Stationary picket, the use of means granttheirdemands.
like placing of objects to constitute permanent
blockade orto effectively close points of entry or Such a slowdown is generally condemned as
exitincompanypremisesareprohibitedbylaw. inherentlyillicitandunjustifiable,becausewhilethe
employees (Ees) "continue to work and remain at
Q:Whoisastrikebreaker? theirpositionsandacceptthewagespaidtothem,"
they at the same time "select what part of their
A: Any person who obstructs, impedes, or allotted tasks they care to perform of their own
interfereswithbyforce,violence,coercion,threats, volition or refuse openly or secretly, to the Er's
or intimidation any peaceful picketing affecting damage, to do other work;" in other words, they
wages, hours or conditions of work or in the "work on their own terms." (Interphil Laboratories
exercise of the right of selforganization or Ees UnionFFW v. Interphil Laboratories, Inc., G.R.
collectivebargaining.(Art.212[r]) No.142824,Dec.19,2001)
Q:Whatisastrikearea? Q:Whatarethecharacteristicsofastrike?
A:
A:Itmeanstheestablishment,warehouses,depots, 1. ExistenceofanErEerelationship
plants or offices, including the sites or premises 2. Existenceofalabordispute
usedasrunawayshops,oftheErstruckagainst,as 3. Employment relation is deemed to
well as the immediate vicinity actually used by continuealthoughinastateofbelligerent
picketing strikers in moving to and fro before all suspension
points of entrance to and exit from said 4. Temporaryworkstoppage
establishment.(Sec.1[vv],RuleI,BookV,IRR) 5. Workstoppageisdonethroughconcerted
action
Q:Whatisaninternaluniondispute? 6. The striking group is a legitimate labor
organization; in case of a bargaining
A:Itincludesalldisputesorgrievancesarisingfrom deadlock, it must be the employees sole
anyviolationofordisagreementoveranyprovision bargainingrepresentative
oftheconstitutionandbylawsofaunion,including
any violation of the rights and conditions of union Q: PAL dismissed strike leader Capt. Gaston as a
membershipprovidedforinthisLC.(Art.212[q]) result of which the Union resolved to undertake
the grounding of all PAL planes and the filing of
Q:Whatisaboycott? applications for protest retirement of members
whohadcompleted5yearsofcontinuousservice,
A: It is an attempt, by arousing a fear of loss, to and protest resignation for those who had
coerce others, against their will to withhold from rendered less than 5 years of service in the
one denominated unfriendly to labor their company. PAL acknowledged receipt of said
beneficialbusinessintercourse. letters and among the pilots whose protest
159
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A:Yes,theconcertedeffortsofthemembersofthe existenceoftheunionis
union and its supporters caused a temporary work threatened.Itmuststillobserve
stoppage.Theallegationthattherecanbenowork themandatory7daystrikeban
stoppagebecausetheoperationinthedivisionhad periodbeforeitcanstagea
been shut down is of no consequence. It bears validstrike
stressing that the other divisions were fully
operational. (Bukluran ng Manggagawa sa Q:Whatarethedifferentformsofstrike?
Clothman Knitting Corp. v. CA, G.R. No. 158158,
Jan.17,2005)
A:
1. Legal Strikeone called for a valid purpose
a.FormsofConcertedActivities
and conducted through means allowed by
Q:Whatarethetypesofstrike? law.
2. Illegal Strikeone staged for a purpose not
A: recognizedbylaw,orifforavalidpurpose,
1. Economic strike used to secure the conducted through means not sanctioned
economic demands such as higher wages bylaw.
and better working conditions for the 3. EconomicStrikeonestagedbyworkersto
workers forcewageorothereconomicconcessions
2. ULP strike protest against ULP of from the employer which he is not
management required by law to grant
(Consolidated Labor Association
Q:Distinguishbetweenaneconomicstrikeandan of the Phil. vs. Marsman, G.R. No. L
ULPstrike. 17038,July31,1964)
4. ULPStrikeonecalledtoprotestagainstthe
A: employers acts of unfair practice
ECONOMICSTRIKE ULPSTRIKE enumerated in Article 248 of the Labor
Astonature Code, as amended, including gross
Involuntarystrike;theLO is violation of the collective bargaining
Voluntarystrike forcedtogoonstrikebecause agreement(CBA)andunionbusting.
becausetheEewill oftheULPcommittedagainst 5. Slow Down Strikeone staged without the
declareastriketo thembytheEr.Itisanactof workers quitting their work but by merely
compel selfdefensesincetheEesare slackening or by reducing their normal
managementto beingpushedtothewalland workoutput.
grantitsdemands theironlyremedyistostagea 6. WildCat Strikeone declared and staged
strike without filing the required notice of strike
Whowillinitiate and without the majority approval of the
TheCBagentof recognizedbargainingagent.
theappropriate 7. Sit Down Strikeone where the workers
EithertheCBagentortheLLOin
bargainingunitcan stop working but do not leave their place
behalfofitsmembers
declarean ofwork.
economicstrike
Astothecoolingoffperiod b.Whomaydeclareastrikeorlockout
30daysfrom Q:Whomaydeclareastrikeorlockout?
noticeofstrike
beforethe A:
15daysfromthefilingofthe
intendeddateof 1. Any certified or duly recognized
noticeofstrike
actualstrike bargainingrepresentativemaydeclarea
subjecttothe7
strike in cases of bargaining deadlock
daystrikeban
and unfair labor practice. Likewise, the
Astotheexceptiontothecoolingoffperiod
employer may declare a lockout in the
Noexception Thecoolingoffperiodmaybe
samecases.
mandatory dispensedwith,andtheunion
maytakeimmediateactionin
2. In the absence of a certified or duly
Note:noticeof caseofdismissalfrom recognized bargaining representative,
strikeandstrike employmentoftheirofficers any legitimate labor organization in the
votemaybe dulyelectedinaccordancewith establishment may declare a strike but
dispensedwith; theunionsconstitutionandby only on the ground of unfair labor
theymaystrike laws,whichmayconstitute practice. (Section 2, Rule XIII Book V,
immediately unionbustingwherethe
161
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LABOR RELATIONS LAW
169
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
causegraveorirreparabledamagetothe
Q: 2 days after the union struck, the SLE ordered
complainingparty.(Art.218[e])
the striking workers to return to work within 24
2. Onthegroundofnationalinterest
hours. But the striking union failed to return to
3. The SLE or the NLRC may seek the
workandinsteadtheycontinuedtheirpickets.As
assistanceoflawenforcementagenciesto
a result, violence erupted in the picket lines. The
ensure compliance with this provision as
service bus ferrying nonstriking workers was
well as with such orders as he may issue
stonedcausinginjuriestoitspassengers.Threats,
toenforcethesame(Art.263[g])
defamation,illegaldetention,andphysicalinjuries
also occurred. The company was directed to
(2)InnocentBystanderRule
acceptback all striking workers, except theunion
officers, shop stewards, and those with pending
Q: What must an innocent bystander satisfy
criminal charges. Was the SLE correct in not
beforeacourtmayenjoinalaborstrike?
including the union officers, shop stewards and
thosewithpendingcriminalchargesinthereturn
A:Theinnocentbystandermustshow:
toworkorder?
1. Compliancewiththegroundsspecifiedin
A:No,toexcludeunionofficers,shopstewardsand
Rule58oftheRulesofCourt,and
thosewithpendingcriminalchargesinthedirective
2. That it is entirely different from, without
tothecompanytoacceptbackthestrikingworkers
any connection whatsoever to, either
without first determining whether they knowingly
party to the dispute and, therefore, its
committed illegal acts would be tantamount to
interestsaretotallyforeigntothecontext
dismissal without due process of law. (Telefunken
thereof. (MSF Tire & Rubber v. CA, G.R.
Semiconductors Ees UnionFFW v. SLE, G.R. No.
128632,Aug.5,1999)
122743&127215,Dec.12,1997)
Q:MaytheRTCtakecognizanceofthecomplaint
(2)WaiverofIllegalityofStrike
where the same is but an incident of a labor
dispute?
Q: When is there a waiver of the illegality of a
strikebytheemployer? rd
A: No, where the subject matter of the 3 party
170
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR RELATIONS LAW
courtshavenojurisdictiontoactonlaborcasesor
various incidents arising therefrom, including the
executionofdecisions,awardsororders.
Aparty,byfilingits3rdpartyclaimwiththedeputy
sheriff, it submitted itself to the jurisdiction of the
NLRCactingthroughtheLA.
The broad powers granted to the LA and to the
NLRCbyArt.217,218and224oftheLCcanonlybe
interpreted as vesting in them jurisdiction over
incidents arising from, in connection with or
relatingtolabordisputes,asthecontroversyunder
consideration, to the exclusion of the regular
courts.TheRTC,beingacoequalbodyoftheNLRC,
hasnojurisdictiontoissueanyrestrainingorderor
injunctiontoenjointheexecutionofanydecisionof
the latter. (Deltaventures v. Cabato, G.R. No.
118216,Mar.9,2000)
Q:TheemployerfiledwiththeRTCacomplaintfor
damages with preliminary mandatory injunction
againsttheunion,themainpurposeofwhichisto
dispense the picketing of the members of the
union.Theunionfiledamotiontodismissonthe
groundoflackofjurisdiction.TheRTCdeniedthe
motion to dismiss and enjoined the picketing, it
said that mere allegations of ErEe relationship
does not automatically deprive the court of its
jurisdiction and even the subsequent filing of
charges of ULP, as an afterthought, does not
deprive it of its jurisdiction. Was the issuance by
theRTCoftheinjunctionproper?
A:No,theconcertedactiontakenbythemembers
of the union in picketing the premises of the
departmentstore,nomatterhowillegal,cannotbe
regarded as acts not arising from a labor dispute
over which the RTCs may exercise jurisdiction.
(SamahangManggagawangLibertyCommercialv.
Pimentel,G.R.No.L78621,Dec.2,1987)
171
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
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172
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
173
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:
Q: Who has the exclusive appellate jurisdiction 1. Theappealisperfected:
overallcasesdecidedbyLaborArbiters? a. Filed within the reglementary period
providedinSec.1ofthisRules
A:TheNLRC. b. Verified by the appellant himself in
accordancewithSec.4,Rule7ofthe
Q:Whatistheeffectofperfectionofanappealon RulesofCourt,asamended
execution? c. In the form of a memorandum of
appealwhichshallstatethegrounds
A: The perfection of an appeal shall stay the relied upon and the arguments in
execution of the decision of the Labor Arbiter on support thereof, the relief prayed
appeal,exceptexecutionforreinstatementpending for,andwithastatementofthedate
appeal. the appellant received the appealed
decision,resolutionororder
Note:TheprovisionofArt.223isclearthatanaward d. In 3 legibly typewritten or printed
by the LA for reinstatement shall be immediately copies
executor even pending appeal and the posting of a e. Accompaniedby(i)proofofpayment
bondbytheemployershallnotstaytheexecutionfor of the required appeal fee; (ii)
reinstatement.(PioneerTexturizingCorp.v.NLRC,G.R. posting of a cash or surety bond as
No.118651,Oct.16,1997) providedinSec.6ofthisRule;(iii)a
certificate of nonforum shopping;
b.Effectofselfexecutingorderofreinstatementon and (iv) proof of service upon the
backwages otherparties.
Q: May dismissed employees (Ees) collect their 2. Merenoticeofappealwithoutcomplying
wages during the period between the Labor withtheotherrequisitesaforestatedshall
Arbiters (LAs) order of reinstatement pending not stop the running of the period for
appeal and the NLRC decision overturning that of perfectinganappeal.
theLA?
Q: Is the posting of an appeal bond required for
A: Yes. Par. 3 of Art. 223 of the Labor Code
theperfectionofanappealfromaLaborArbiters
provides that the decision of the LA reinstating a
(LAs)decisioninvolvingmonetaryaward?
dismissed or separated Ee, insofar as the
reinstatement aspect is concerned, shall
A:Yes.IncasethedecisionoftheLAortheRegional
immediatelybeexcutory,pendingappeal.
Director involves a monetary award, an appeal by
the employer may be perfected only upon the
Even if the order of reinstatement of the LA is
postingofabond.(Sec.6,RuleVI,NLRC2005Rules
reversed on appeal, it is obligatory on the part of
ofProcedure)
theemployer(Er)toreinstateandpaythewagesof
the dismissed Ee during the period of appeal until
Q:Whataretheformsoftheappealbond?
reversalbythehighercourt.Ontheotherhand,if
theEehasbeenreinstatedduringtheappealperiod
A: It shall either be in the form of cash deposit or
and such reinstatement order is reversed with
suretybondequivalentinamounttothemonetary
finality, the Ee is not required to reimburse
award, exclusive of damages and attorney's fees.
whatever salary he received for he is entitled to
(Sec.6,RuleVI,NLRC2005RulesofProcedure)
such, more so if he actually rendered services
during the period. (Pfizer v. Velasco, G.R. No.
Q:Whomayissueasuretybond?
177467,March9,2011)
Unless there is a restraining order, it is ministerial A: It shall be issued by a reputable bonding
upon the LA to implement the order of companydulyaccreditedbytheCommissionorthe
reinstatement and it is mandatory on the Er to SC,andshallbeaccompaniedbyoriginalorcertified
complytherewith.(Garciav.PAL,G.R.No.164856, truecopiesof:
Jan.20,2009)
1. A joint declaration under oath by the Er,
c.RequirementstoperfectappealtoNLRC his counsel, and the bonding company,
attestingthatthebondpostedisgenuine,
Q:HowisanappealfromLAtoNLRCperfected? andshallbeineffectuntilfinaldisposition
ofthecase.
174
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
175
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:CantheLaborArbiter(LA)conductcompulsory
arbitration? 2.NATIONALLABORRELATIONSCOMMISSION
(NLRC)
A: Yes. Under the Labor Code, it is the LA who is
clothed with the authority to conduct compulsory Q:WhatistheNLRC?
arbitration on cases involving termination disputes
[Art.217,P.D.442,asamended].(PALv.NLRC,G.R. A: It is an administrative body with quasijudicial
No.55159,Dec.22,1989) functionsandtheprincipalgovernmentagencythat
hearsanddecideslabormanagementdisputes;itis
Q:Whataretherulesonvenueoffilingcases? attachedtotheDOLEsolelyforprogramandpolicy
coordinationonly.
A:
1. All cases which the Labor Arbiters (LAs) Q: How are the powers and functions of theNLRC
have authority to decide may be filed in allocated?
the Regional Arbitration Branch (RAB)
having jurisdiction over the workplace of A:
thecomplainant/petitioner. 1. EnBanc
a. Promulgating rules and regulations
Note: Workplace is understood to be the and governing the hearings and
placeorlocalitywheretheemployee(Ee)is disposition of cases before any of its
regularlyassignedwhenthecauseofaction divisionsandregionalbranches.
arose.ItshallincludetheplacewheretheEe b. Formulating policies affecting its
issupposedtoreportbackafteratemporary administrationandoperations.
detail,assignmentortravel. c. Ontemporaryoremergencybasis,to
In case of field Ees, as well as ambulant or allow cases within the jurisdiction of
itinerant workers, their workplace is where
anydivisiontobeheardanddecided
theyare
by any other division whose docket
a.Regularlyassigned
b. Supposed to regularly receive their
allows the additional workload and
salariesandwages suchtransferwillnotexposelitigants
c.Receivetheirworkinstructionsfrom tounnecessaryadditionalexpense.
d. Reporting the results of their 2. Division(8Divisionswith3members)
assignmenttotheiremployers(Er) a. Adjudicatory;
b. All other powers, functions and
2. Where 2 or more RABs have jurisdiction duties;
over the workplace, the first to acquire c. Exclusive appellate jurisdiction over
jurisdictionshallexcludeothers. cases within their respective
territorialjurisdiction.
3. Improper venue when not objected to
before filing of position papers shall be Q: Does an individual Commissioner have
deemedwaived. adjudicatorypower?
4. Venue may be changed by written A: No. The law lodges the adjudicatory power on
agreement of the parties or when the each of the eight divisions, not on the individual
NLRCortheLAsoorders,uponmotionby commissioners nor on the whole commission. The
theproperpartyinmeritoriouscases. division is a legal entity, not the person whosits
in it. Hence, an individual commissioner has no
5. ForOverseasContractWorkerswherethe adjudicatory power, although of course, he can
complainant resides or where the concurordissentindecidingacase.
principal office of the respondent Er is
located,attheoptionofthecomplainant. a.Jurisdictions
Note: The Rules of Procedure on Venue is Q: What are the two kinds of jurisdiction of the
merely permissive, allowing a different NLRC?
venue when the interest of substantial
justice demands a different one. (Dayag v. A:
Canizares,GR.No.124193,Mar.6,1998) 1. ExclusiveOriginalJurisdiction
a. Certified labor disputes causing or
likely to cause a strike or lockout in
anindustryindispensabletonational
176
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
177
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
Commissionenbanc.
A:Theappealshouldnotprosper.TheSC,inmany
Q: Some disgruntled members of Bantay cases, has ruled that decisions made by the NLRC
Labor Union filed with the Regional Office of the maybebasedonpositionpapers.Inthequestion,it
DOLE a written complaint against their union isstatedthatthepartiesagreedtosubmitthecase
officers for mismanagement of union funds. The for resolution after the submission of position
Regional Director (RD) did not rule in the papers and evidence. Given this fact, the striker
complainants' favor. Not satisfied, the membersofBcannotnowcomplainthattheywere
complainants elevated the RDs decision to the denied due process. They are in estoppel. After
NLRC. The union officers moved to dismiss on the voluntarily submitting a case and encountering an
groundoflackofjurisdiction.Aretheunionofficers adversedecisiononthemerits,itistoolateforthe
correct?Why? loser to question the jurisdiction or power of the
court. A party cannot adopt a posture of double
A:Yes,theunionofficersarecorrectinclaimingthat dealing. (Marquez vs. Secretary of Labor, G.R. No.
the NLRC has no jurisdiction over the appealed 80685,March16,1989).(2001BarQuestion)
ruling of the RD. in Barles v. Bitonio, G.R. No.
120220,June16,1999,theSCruled: Q: Is barangay conciliation available in labor
cases?
Appellate authority over decisions of the RD
involvingexaminationofunionaccountsisexpressly A: No. Labor cases are not subject to barangay
conferred on the Bureau of Labor Relations (BLR) Conciliation since ordinary rules of procedure are
under the Rule of Procedure on Mediation merely suppletory in character visvis labor
Arbitration. disputes which are primarily governed by labor
laws. (Montoya v. Escayo, G.R. No. 8221112,Mar.
Sec. 4. Jurisdiction of the BLR (b) The BLR shall 21,1989)
exercise appellate jurisdiction over all cases
originating from the RD involving complaints for Q:WhatarethepowersoftheNLRC?
examinationofunionbooksofaccounts.
A:
The language of the law is categorical. Any 1. Rule making power promulgation of
additional explanation on the matter is rulesandregulations:
superfluous."(2001BarQuestion) a. Governing disposition of cases
before any of its division/regional
Q:Company"A"andUnion"B"couldnotresolve offices.
their negotiations for a new CBA. After b. Pertainingtoitsinternalfunctions
conciliation proceedings b e f o r e t h e NCMB c. Asmaybenecessarytocarryoutthe
proved futile, Bwentonstrike.Violenceduring purposesoftheLaborCode.
the strike prompted A to file charges against 2. Power to issue compulsory processes
strikermembers of B for their illegal acts. The (administer oaths, summon parties, issue
SLE assumed jurisdiction, referred the strike to subpoenas)
the NLRC and issued a returntowork order. 3. Power to investigate matters and hear
The NLRC directedthe parties to submit their disputes within its jurisdiction
respective position papers and documentary (adjudicatory power original and
evidence. At the initial hearing before the NLRC, appellatejurisdictionovercases)
the parties agreed to submit the case for 4. Contemptpower
resolution after the submission of the position 5. OcularInspection
papersandevidence. 6. Powertoissueinjunctionsandrestraining
orders
Subsequently, the NLRC issued an arbitral award
resolving the disputed provisions of the CBA and b.EffectofNLRCreversalofLaborArbitersorderof
ordered the dismissal of certain strikers for reinstatement
having knowingly committed illegal acts during
the strike. The dismissed employees elevated Q: May dismissed employees (Ees) collect their
their dismissal to the CA claiming that they wages during the period between the Labor
were deprived of their right to due process and Arbiters (LAs) order of reinstatement pending
that the affidavits submitted by A were self appeal and the NLRC decision overturning that of
serving and of no probative value. Should the theLA?
appeal prosper? State the reason(s) for your
answerclearly.
178
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
A: Yes. Par. 3 of Art. 223 of the Labor Code appeal or petition for certiorari. (Ginete v. Sunrise
provides that the decision of the LA reinstating a ManningAgency,G.R.No.142023,June21,2001)
dismissed or separated Ee, insofar as the
reinstatement aspect is concerned, shall Q: What is an injunction or a temporary
immediatelybeexcutory,pendingappeal. restrainingorder(TRO)?
Even if the order of reinstatement of the LA is A: Orders which may require, forbid, or stop the
reversed on appeal, it is obligatory on the part of doingofanact.ThepoweroftheNLRCtoenjoinor
theemployer(Er)toreinstateandpaythewagesof restrain the commission of any or all prohibited or
the dismissed Ee during the period of appeal until unlawfulactsunderArt.218ofLaborCodecanonly
reversalbythehighercourt.Ontheotherhand,if beexercisedinalabordisputes.
theEehasbeenreinstatedduringtheappealperiod
and such reinstatement order is reversed with Note: A restraining order is generally regarded as an
finality, the Ee is not required to reimburse ordertomaintainthesubjectofcontroversyinstatus
whatever salary he received for he is entitled to quountilthehearingofanapplicationforatemporary
such, more so if he actually rendered services injunction. (BF Homes v. Reyes, G.R. No. L30690
during the period. (Pfizer v. Velasco, G.R. No. November19,1982)
177467,March9,2011)
Q:WhomayissueaTRO?
c.RequirementstoperfectappealtoCourtof
Appeals A:
1. President(Art.263[g])
Q: Is judicial review of the NLRCs decision 2. SecretaryofLabor(Art.263[g])
available? 3. NLRC(Art.218)
A: Yes, through petitions for certiorari (Rule 65) Note: Art. 218 of the Labor Code limits the grant of
which should be initially filed with the CA in strict injunctive power to the NLRC. The LA is excluded
observance of the doctrine on the hierarchy of statutorily. Hence, no NLRC Rules can grant him that
courts as the appropriate forum for the relief power.
desired.TheCAisprocedurallyequippedtoresolve
unclear or ambiguous factual finding, aside from Q: What is the procedure for the issuance of
the increased number of its component divisions. restrainingorder/injunction?
(St.MartinFuneralHomev.NLRC,G.R.No.130866,
Sep.16,1998) A:
1. Filingofaverifiedpetition
Q: Within what period should the petition for 2. Hearingafterdueandpersonalnoticehas
certioraribefiledwiththeCourtofAppeals? been served in such manner as the
Commissionshalldirectto:
A: Under Section 4, Rule 65 (as amended by A.M. a. All known persons against whom
No.00203SC)oftheRulesofCivilProcedure,the reliefissought
petition must be filed within sixty (60) days from b. Also the Chief Executive or other
notice of the judgment or from notice of the public officials of the province or
resolution denying the petitioners motion for city within which the unlawful acts
reconsideration. This amendment is effective have been threatened or
September1,2000,butbeingcurativemaybegiven commercial charged with the duty
retroactiveapplication.(Narzolesv.NLRC,G.R.No. to protect the complainants
141959,Sep.29,2000) property.
3. Reception at the hearing of the
The period within which a petition for certiorari testimonies of the witnesses with
againstadecisionoftheNLRCmaybefiledshould opportunity for crossexamination, in
be computed from the date counsel of record of support of the allegations of the
the party receives a copy of the decision or complaint made under oath as well as
resolution,andnotfromthedatethepartyhimself testimonyinoppositionthereto.
receives a copy thereof. Article 224 of the Labor 4. Finding of fact of the Commission to the
Code,whichrequiresthatcopiesoffinaldecisions, effectthat:
orders or awards be furnished not only the partys a. Prohibited or unlawful acts have
counselofrecordbutalsothepartyhimselfapplies been threatened and will be
totheexecutionthereofandnottothefilingofan committed,orhavebeenandwillbe
continued unless restrained, but no
179
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
acceptanceforunionmembership
3.BUREAUOFLABORRELATIONS(BLR)MED
6. Validity/invalidityofvoluntaryrecognition
ARBITERS
7. Opposition to application for union or
CBAregistration
a.Jurisdiction
8. Violations of or disagreements over any
ofCBAs;
Note:Jurisdictionoverlabormanagementproblemsor
12. Validity/invalidity of impeachment/
disputesisalsoexercisedbyotheroffices:
1. DOLERegionalOffices
expulsion/suspension or any disciplinary
2. OfficeoftheSecretaryofLabor action meted against any officer and
3. NLRC member, including those arising from
180
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
181
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
182
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
183
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
184
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
3. TheclaimarisesfromErEerelationship. andother
4. The claimant does not seek laborlaws
reinstatement.
Note: In the absence of any of the ff. requisites, it is
the labor arbiter (LA) who shall have the jurisdiction
over the claims arising from ErEe relations, except Enforcement
Allotherclaims
claims for Ees compensation, SSS, Philhealth, and oflabor Limitedto
arisingfromEr
maternity benefits, pursuant to Art.217 of the Labor legislationin monetaryclaims
Eerelations
Code. general
LAdecidescase
The proceedings before the Regional Office shall be within30
summaryandnonlitigiousinnature. Proceedingis Initiatedby calendardays
anoffshootof sworncomplaints after
Q:WhatistheadjudicatorypoweroftheRegional routine filedbyany submissionof
Director(RD)? inspections interestedparty thecasebythe
partiesfor
A: The RD or any of his duly authorized hearing decision
officerisempoweredthroughsummaryproceeding Jurisdictional 1)Allother
and after due notice, to hear and decide cases reqts: claimsarising
involving recovery of wages and other monetary 1)Complaint fromErEe
claimsandbenefits,includinglegalinterests. arisesfromErEe relations
relationship
2)Including
Q:Anairlinewhichfliesboththeinternationaland
2)Claimantisan thoseof
domestic routes requested the SLE to approve the Eeorperson personsin
policy that all female flight attendants upon employedin domesticor
reaching age 40 with at least 15 years of service domesticor household
shall be compulsorily retired; however, flight No
household service
attendantswhohavereachedage40buthavenot jurisdictional
serviceoraHH
worked for 15 years will be allowed to continue reqts
3)Complaint 3)Involvingan
workinginordertoqualifyforretirementbenefits, doesNOTinclude amount
but in no case will the extension exceed 4 years. aclaimfor exceeding
Does the SLE have the authority to approve the reinstatement P5,000
policy?
4)Aggregate 4)Whetheror
A: Yes. Art.132 (d) of the Labor Code provides that moneyclaimof not
theSLEshallestablishstandardsthatwillensurethe EACHclaimant accompanied
safety and health of women employees including doesnotexceed withaclaimfor
the authority to determine appropriate minimum P5,000 reinstatement
age and other standards for retirement or Appealableto
SLE(Incase
termination in special occupations such as those of
compliance Appealableto Appealableto
flightattendantsandthelike.(1998BarQuestion)
orderisissued NLRC NLRC
byRegional
Q: What is the difference between the power of Office)
SecretaryofLaborandEmployment(SLE),Regional
Director(RD)andLaborArbiter(LA)? 6.DOLESECRETARY
A: a.VisitorialandEnforcementPowers
Art.128
Art.129 Art.217(a)(6)
VPandEPof
RD LA Q:Whatarethe3kindsofpowersoftheSecretary
SLE
ofLaborandEmployment(SLE)?
Inspectionof
establishments
andissuance A:
Adjudicationof LAexercises 1. Visitorialpowers
ofordersto
Eesclaimsfor originaland 2. Enforcementpowers
compel
wagesand exclusive 3. Appellateorpowertoreview
compliance
benefits jurisdiction
withlabor
standards, Q:Whatconstitutevisitorialpower?
wageorders
185
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
186
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
official of the Department of Labor and Q: Who will designate the voluntary arbitrator
Employment before whomsuch dispute is pending (VA)/panelincasethepartiesfailtoselectone?
that the termination may cause serious labor
disputeorisinimplementationofamasslayoff. A:ItistheNCMBthatshalldesignatetheVA/panel
based on the selection procedure provided by the
CBA. (Manila Central Line Free Workers Union v.
7.VOLUNTARYARBITRATORS Manila Central Line Corp., G.R. No. 109383, June
15,1998)
a.SubmissionAgreement
Q: May Labor Arbiters (LA) be designated as
Q:Howisarbitrationinitiated? voluntaryarbitrators(VA)?
A: A:Yes.ThereisnothinginthelawthatprohibitsLAs
1. Submission agreement Where the fromalsoactingasVAsaslongasthepartiesagree
partiesdefinethedisputestoberesolved tohavehimhearanddecidetheirdispute.(Manila
2. Demand notice Invoking collective Central Line Free Workers Union v. Manila Central
agreementarbitrationclause LineCorp.,G.R.No.109383,June15,1998)
Q:Whoisavoluntaryarbitrator(VA)? Q: What falls under the jurisdiction of Voluntary
Arbitrators(VA)?
A:
1. Any person accredited by the NCMB as A: Generally, the arbitrator is expected to decide
such only those questions expressly delineated by the
2. Any person named or designated in the submission agreement. Nevertheless, the
CBAbythepartiestoactastheirVA arbitrator can assume that he has the necessary
3. One chosen with or without the power to make a final settlement since arbitration
assistance of the NCMB, pursuant to a is the final resort for the adjudication of the
selection procedure agreed upon in the disputes. (Ludo and Luym Corp. v. Saornido, G.R.
CBA No.140960,Jan.20,2003)
4. Anyofficialthatmaybeauthorizedbythe
SLEtoactasVAuponthewrittenrequest Q:WhatcasesarewithinthejurisdictionofVA?
and agreement of the parties to a labor
dispute.(Art.212[n]) A:Originalandexclusivejurisdictionover:
Q:Whatarethepowersofavoluntaryarbitrator? 1. All unresolved grievances arising from
the:
A: a. Implementation or interpretation of
1. Holdhearings theCBA
2. Receiveevidence b. Interpretation or enforcement of
3. Take whatever action necessary to companypersonnelpolicies
resolve the dispute including efforts to
effect a voluntary settlement between 2. Wage distortion issues arising from the
parties.(Art.262A) application of any wage orders in
organizedestablishments
Q: How is a voluntary arbitrator (VA)/panel
chosen? 3. Those arising from interpretation and
implementation of productivity incentive
A: programsunderR.A.6971
1. The parties in a CBA shall designate in
advance a VA/panel, preferably from the 4. ViolationsofCBAprovisionswhicharenot
listingofqualifiedVAsdulyaccreditedby grossincharacterarenolongertreatedas
theNCMB,or ULP and shall be resolved as grievances
2. Includeintheagreementaprocedurefor undertheCBA
the selection ofsuch VA or panel of VAs,
preferably from the listing of qualified Note:GrossviolationofCBAprovisionsshall
VAs duly accredited by the NCMB. mean flagrant and/or malicious refusal to
(Art.260,par.3) comply with the economic provisions of
suchagreement.
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
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5. Anyotherlabordisputesuponagreement A:GR:DecisionsofVAarefinalandexecutoryafter
by the parties including ULP and 10 calendar days from receipt of the copy of the
bargainingdeadlock.(Art.262) awardordecisionbytheparties.(Art.262A)
Q: May the NLRC and DOLE entertain XPNs:
disputes/grievances/matters under the exclusive 1. AppealtotheCAviaRule43oftheRules
and original jurisdiction of the voluntary of Court within 15 days from the date of
arbitrator? receipt of VAs decision. (Luzon Devt
Bank v. Assn of Luzon Devt Bank Ees,
A:No.Theymustimmediatelydisposeandreferthe G.R.No.120319,Oct.6,1995)
same to the grievance machinery or voluntary 2. If decision of CA is adverse to a party,
arbitrationprovidedintheCBA appeal to the SC via Rule 45 on pure
questionsoflaw.
The parties may choose to submit the dispute to
voluntary arbitration proceedings before or at the Note:AVAbythenatureofherfunctionsactsinquasi
stageofcompulsoryarbitrationproceedings. judicial capacity. There is no reason why the VAs
decisions involving interpretation of law should be
Q: What is the effect of the award of voluntary beyond the SCs review. Administrative officials are
arbitrator(VA)? presumedtoactinaccordancewithlawandyettheSC
will not hesitate to pass upon their work where a
A:ThedecisionorawardoftheVAactingwithinthe question of law is involved or where a showing of
abuseofauthorityordiscretionintheirofficialactsis
scope of its authority shall determine the rights of
properly raisedin petitions for certiorari. (Continental
thepartiesandtheirdecisionsshallhavethesame
MarbleCorporationv.NLRC,G.R.No.L43825,May9,
legal effects as judgment of the courts. Such 1988)
mattersonfactandlawareconclusive.
Q: PSSLU had an existing CBA with Sanyo Phils.,
Q: Are both the employer and the bargaining Inc. which contains a union security clause which
representative of the employees required to go provides that: all members of the union covered
through the grievance machinery in case a by this agreement must retain their membership
grievancearises? ingoodstandingintheunionasconditionofhis/
her continued employment with the company.
A: Yes, because it is but logical, just and equitable On account of antiunion activities, disloyalty and
that whoever is aggrieved should initiate for joining another union, PSSLU expelled 12
settlement of grievance through the grievance employees (Ees) from the Union. As a result,
machinery. To impose compulsory procedure on PSSLU recommended the dismissal of said Ees
employersalonewouldbeoppressiveofcapital. pursuant to the union security clause. Sanyo
approvedtherecommendationandconsideredthe
Q: Who has jurisdiction over actual termination said Ees dismissed. Thereafter, the dismissed Ees
disputes and complaints for illegal dismissal filed filed with the Arbitration Branch of the NLRC a
byworkerspursuanttotheunionsecurityclause? complaintforillegaldismissal.
A: The Labor Arbiter and not the grievance Does the voluntary arbitrator (VA) have
machinery. jurisdictionoverthecase?
Q:Whatisthenatureofthepowerofavoluntary A: No, the VA has no jurisdiction over the case.
arbitrator? Although the dismissal of the Ees concerned was
made pursuant to the union security clause
A:Arbitratorsbythenatureoftheirfunctions,act provided in the CBA, there was no dispute
inaquasijudicialcapacity(BP129,asamendedby whatsoever between PSSLU and Sanyo as regards
R.A. 9702); where a question of law is involved or the interpretation or implementation of the said
thereisabuseofdiscretion,courtswillnothesitate union security clause. Both PSSLU and Sanyo are
topassuponreviewoftheiracts. united and have come to an agreement regarding
the dismissal of the Ees concerned. Thus there is
b.Rule43,RulesofCourt no grievance between the union and management
whichcouldbebroughttothegrievancemachinery.
Q: Are decisions of voluntary arbitrators (VAs) The dispute is between PSSLU and Sanyo, on the
appealable? one hand, and the dismissed union members, on
the other hand. The dispute therefore, does not
188
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
involve the interpretation or implementation of a Darbys counsel considered that issue as having
CBA. (Sanyo Philippines Workers UnionPSSLU v. dual aspects and intended in his own mind to
Canizares,G.R.No.101619,July8,1992) submit only one of those aspects to the VA, if he
did, however, he failed to reflect his thinking and
Q: X was employed as telephone operator of intent in the arbitration agreement. (Sime Darby
Manila Midtown Hotel. She was dismissed from Phils.v.Magsalin,G.R.No.90426,Dec.15,1989)
her employment for committing the following
violations of offenses subject to disciplinary Q:Apalisok,productionchiefforRPNStation,was
actions, namely: falsifying official documents and dismissed due to her alleged hostile, arrogant,
culpable carelessnessnegligence or failure to disrespectful, and defiant behavior towards the
follow specific instructions or established Station Manager. She informed RPN that she is
procedures. X then filed a complaint for illegal waiving her right to resolve her case through the
dismissalwiththeArbitrationbranchoftheNLRC. grievance machinery as provided in the CBA. The
The Hotel challenged the jurisdictionof the Labor voluntary arbitrator (VA) resolved the case in the
Arbitrator (LA) on the ground that the case falls employees(Ees)favor.
within the jurisdictional ambit of the grievance
procedure and voluntary arbitration under the Onappeal,theCAruledinfavorofRPNbecauseit
CBA. considered the waiver of petitioner to file her
complaint before the grievance machinery as a
DoestheLAhavejurisdictionoverthecase? relinquishment of her right to avail herself of the
aidoftheVA.TheCAsaidthatthewaiverhadthe
A: Yes, the LA has jurisdiction. The dismissal of X effect of resolving an otherwise unresolved
doesnotcallfortheinterpretationorenforcement grievance, thus the decision of the VA should be
ofcompanypersonnelpoliciesbutisatermination setasideforlackofjurisdiction.Istherulingofthe
dispute which comes under the jurisdiction of the CAcorrect?
LA. The dismissal of X is not an unresolved
grievance.Neitherdoesitpertaintointerpretation A: No. Art. 262 of the Labor Code provides that
ofcompanypersonnelpolicy.(Manejav.NLRC,G.R. uponagreementoftheparties,theVAcanhearand
No.124013,June5,1998) decideallotherlabordisputes.
Q: Sime Darby Salaried Employees (Ees) Contrary to the finding of the CA, voluntary
AssociationALU (SDSEAALU) wrote petitioner arbitration as a mode of settling the dispute was
Sime Darby Pilipinas (SDP) demanding the notforceduponrespondents.Bothpartiesindeed
implementationofaperformancebonusprovision agreed to submit the issue of validity of the
identical to the one contained in their own CBA dismissalofpetitionertothejurisdictionoftheVA
with SDP. Subsequently, SDP called both by the Submission Agreement duly signed by their
respondent SDEA and SDEAALU to a meeting respective counsels. The VA had jurisdiction over
wherein the former explained that it was unable thepartiescontroversy.
togranttheperformancebonus.Inaconciliation
meeting, both parties agreed to submit their TheEeswaiverofheroptiontosubmithercaseto
dispute to voluntary arbitration. Their agreement grievance machinery did not amount to
toarbitratestated,amongotherthings,thatthey relinquishing her right to avail herself of voluntary
were"submittingtheissueofperformancebonus arbitration.(Apalisokv.RPN,G.R.No.138094,May
tovoluntaryarbitration." 29,2003)
Doesthevoluntaryarbitrator(VA)havethepower 8.COURTOFAPPEALS
topassuponnotonlythequestionofwhetherto
grant the performance bonus or not but also to Q: Is judicial review of the NLRCs decision
determinetheamountthereof? available?
A:Yes,intheiragreementtoarbitrate,theparties A: Yes, through petitions for certiorari (Rule 65)
submitted to the VA the issue of performance which should be initially filed with the CA in strict
bonus.Thelanguageoftheagreementtoarbitrate observance of the doctrine on the hierarchy of
may be seen to be quite cryptic. There is no courts as the appropriate forum for the relief
indication at all that the parties to the arbitration desired.TheCAisprocedurallyequippedtoresolve
agreement regarded the issue of performance unclear or ambiguous factual finding, aside from
bonusasatwotieredissue,onlyonetierofwhich the increased number of its component divisions.
wasbeingsubmittedtoarbitration.Possibly,Sime
189
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
190
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
PROCEDURE AND JURISDICTION
effectivityoftheLCand appropriateregional
betweenNov.1,1974 officesofthe
Dec.31,1974 DepartmentofLabor.
(Art.291)
4years.Itcommences
torunfromthedateof
formaldismissal.
IllegalDismissalCases
(Mendozav.NLRC,G.R.
No.122481,Mar.5,
1998)
191
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ