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University of the Cordilleras College of Law

} As an act: Exertion by human beings of

physical or mental efforts, or both, towards
the production of goods and services.
} As a sector of society: That sector or group in
a society, which derives its livelihood chiefly
from rendition of work or services in
exchange for compensation under managerial
direction (Mendoza, 2001).
} Refers to workers, whether agricultural or non-
} The Labor Code articles cited here are those
that are numbered according to the Codal of
Rex Bookstore, 2013 edition. The
renumbering accommodated the revisions
introduced to the Code by RA 10151. If you
are using an older codal version, just subtract
six from the article number (e.g., ULP of
employers in the 2013 Rex codal is Art. 254.
Old number is Art. 248)
Constitutional Mandates on Labor,
Labor Law
Labor Legislation, Social
The State shall protect and promote the interests of the Filipino

Art. II, Sec. 9. The State shall promote a just and dynamic social
order that will ensure the prosperity and independence of the
nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a
rising standard of living and improved quality of life for all.

Art. II, Sec. 18. The State affirms labor as a primary social
economic force. It shall protect the rights, of workers and
promote their welfare.
The State shall protect and promote the interests of the Filipino

Art. XII, Sec. 12. The State shall promote the preferential use of
Filipino labor, domestic materials and locally produced goods,
and adopt measures that help make them competitive.
Art XIII, Sec. 14. The State shall protect women by providing
safe and healthful working conditions, taking into account their
maternal functions, and such facilities and opportunities that
will enhance their welfare and enable them to realize their full
potential in the service of the nation.
Art. XV, Sec. 8. The State shall, from time to time, review to
upgrade the pensions and other benefits due to retirees of both
the government and the private sectors.
Rights of Workers
Art. Ill, Sec. 8. The right of the people, including
those employed in the public and private sectors, to
form unions, associations, or societies for purposes
not contrary to law, shall not be abridged. (formation
of labor organizations)

Art. Ill, Sec. 18(2). No involuntary servitude in any

form shall exist except as a punishment for a crime
whereof the party shall have been duly convicted.
Protection to Labor Clause

Art. XIII, Sec. 3 The State shall afford full protection to labor,
local and overseas, organized and unorganized, and promote
full employment and equality of employment opportunities for
It shall guarantee the rights of all workers to self- organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
of work, and a living wage. They shall also participate in policy
and decision- making process affecting their rights and benefits
as may be provided by law.
} Phrase included in the 1987 constitution to
highlight worker’s participation in policy-
} Added in the Labor Code
◦ Article 217, Declaration of Policy
◦ Article 261, Exclusive Bargaining Representation
and Worker’s Participation in Policy and Decision-
Protection to Labor Clause

Art. XIII, Sec. 3 , cont.  

The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster
industrial peace.

The State shall regulate the relations between workers and

employers, recognizing the right of labor to its just share in the
fruits of production' and the right of enterprises to reasonable
returns of investments, and to expansion and growth.
Defines rights of workers under Labor Standards and Labor

Under Labor Standards Under Labor Relations

} Security of Tenure; } Self- organization

} Living wage; } Collective bargaining

} Share in the fruits of

and negotiations
} Peaceful concerted
production; and
activities, including
} Humane conditions of
} Participation in policy
and decision- making
} Constitutional provisions on labor are not self- executory, hence the
need for Social Legislation, Labor Legislation and Welfare Legislation
} Social Legislation - Laws that provide particular kinds of protection
or benefits to society or segments thereof in furtherance of social
} Labor Legislation - Statutes, regulations and jurisprudence
governing the relations between capital and labor. It provides for
certain employment standards and a legal framework for negotiating,
adjusting and administering those standards and other incidents of
} Welfare Legislation - Provides for the minimum economic security,
of the worker and his family in case, of loss of earnings due to death,
old age, disability, dismissal, injury or disease.
  Labor Legislation Social Legislation
Governs the effects of
Effect to Employment Directly affects employment

Designed to meet the daily

Purpose Involves long range benefits
needs of workers

Covers employment for Covers employment for profit

profit or gain and non- profit
Effect to Employee Affects work of employee Affects life of employee
Benefits are paid by the Benefits are paid by
worker’s employer government agencies

Social legislation encompasses labor legislation, thus is broader in scope

than the latter. All labor laws are social legislations but not all social
legislations are labor laws.
} The law governing the rights and duties of employers and
employees with respect to Labor Standards and Labor
} Labor Standards Law deals with the minimum standards as to
wages, hours of work and other terms and conditions of
employment that employers must provide their employees.
} Labor Relations Law defines the status, rights and duties as
well as the institutional mechanisms that govern the
individual and collective interactions between employers,
employees and their representatives.
} Presidential Decree No. 442
◦ Deals with Labor Standards and Labor Relations
◦ Became effective November 1, 1974
} Special Laws:
a. Laws on Social Security (SSS Law, GSIS Law, Limited Portability Law (RA 7699)
b. National Health Insurance Act
c. Paternity Leave Act
d. Retirement Pay Law
e. Home Mutual Development Fund Law
f. Anti- Sexual Harassment Act
g. Anti- Child Labor Act
h. 13th Month Pay Law
i. Migrant Workers and Overseas Filipinos Act of 1995 (R.A. No. 8042, as
amended by RA 10151)
j. Expanded Comprehensive Agrarian Reform Law
k. Magna Carta for Public Health Workers
} Labor- related provisions in Other Laws

Civil Code
a. Art. 1700. The relation between capital and labor are not merely contractual.
They are so impressed with public interest that labor contracts must yield to
the common good. Therefore, such contracts are subject to the special laws
on labor unions, collective bargaining, strikes and lockouts, closed shop,
wages, working conditions, hours of labor and similar subjects.
b. Art. 1701. Neither capital nor labor shall act oppressively against the other,
or impair the interest or convenience of the public.
c. Art. 1702. In case of doubt, all labor legislations and all labor contracts shall
be construed in favor of the safety and decent living for the laborer.
d. Art. 1703. No contract which practically amounts to involuntary servitude,
under any guise whatsoever, shall be valid.
} Labor- related provisions in Other Laws

Revised Penal Code

a. Art. 289. Formation, maintenance and prohibition of combination of
capital or labor through violence or threats. — The penalty of
arresto mayor and a fine not exceeding 300 pesos shall be imposed
upon any person who, for the purpose of organizing, maintaining or
preventing coalitions of capital or labor, strike of laborers or lock-
out of employees, shall employ violence or threats in such a degree
as to compel or force the laborers or employers in the free and legal
exercise of their industry or work, if the act shall not constitute a
more serious offense in accordance with the provisions of this Code.
} Attainment of Social Justice
◦ Balance the interest of labor and capital (eliminate
◦ Labor is afforded a greater measure of protection
– There is greater supply of labor than demand for their
– Those who have less in life should have more in law;
– The need for employment by labor comes from vital,
and even desperate necessity (survival);
Preliminary Discussions on the
Labor Code
} The state shall afford full protection to labor,
promote full employment, equal work
opportunities without bias or discrimination,
regulate the relations of employers and employees,
and assure workers rights (refer to protection to
labor clause Art. XIII, Sec. 3, 1987 Const. & Art. 3,
Labor Code);
} The relation of capital and labor are impressed with
public interest, hence employment contracts are
not ordinary contracts (Art. 1700, NCC);
} In case of doubt or ambiguity, labor laws and rules are to be
construed in favor of labor (Art. 4, Labor Code, Art. 1702,
Civil Code)
◦ IF THERE IS DOUBT as to the meaning of the legal and contractual
provision, the above- mentioned applies.
accordance with its express terms. (Meralco v. NLRC, GR No. 78763,
July 12, 1989).
◦ The law also recognizes that management has rights which are also
entitled to respect and enforcement in the interest of fair play (St.
Luke's Medical Center Employee's Assoc, v. NLRC, GR No. 162053,
March 7, 2007).
} Comes from acknowledgement that capital
wields more power than labor;
} (Sanchez v. Harry Lyons Construction Inc., GR
No. L- 2779, October 18, 1950).
– There is greater supply than demand for labor;
– Those who have less in life should have more in law;
– The need for employment by labor comes from vital,
and even desperate necessity (survival)
General Rule: The Code applies to all workers, whether agricultural or non-
agricultural, including employees in a government corporation incorporated
under the corporation code;

1. Government employees;
2. Employees of government Corporations created by special or original
3. Foreign governments;
4. International Agencies, employees of intergovernmental or international
5. Corporate officers/Intra- corporate disputes which fall under PD 902- A
and now fall under the jurisdiction of, the Regular Courts pursuant to the
Securities Regulation Code; and
6. Local water districts except where NLRC jurisdiction is invoked.
} Government employees;
} Employees of government Corporations created by special or original charter
(Juco v. NLRC, GR No. 98107, August 18, 1997);
} Foreign governments (JUSMAG- Philippines v. NLRC, GR No. 108813,
December 15, 1994);
} International Agencies (Lasco v. UNRFNRE, GR Nos. 109095- 109107,
February 23, 1995), employees of intergovernmental or international
organizations (SEAFDEC- AQD v. NLRC, GR No. 86773, February 14, 1992);
} Corporate officers / Intra- corporate disputes which fall under PD 902- A and
now fall under the jurisdiction of, the Regular Courts pursuant to the
Securities Regulation Code (Nacpil v. IBC, GR No. 144767, March 21, 2002);
} Local water districts (Tanjay Water District v. Gabaton, GR Nos. 63742 and
84300, 17 April 1989) except where NLRC jurisdiction is invoked
(Zamboanga City Water District v. Buat, GR No. 104389, May 27, 1994).
} Law recognizes management rights. The
employer has the right to
◦ Conduct business;
◦ Prescribe rules;
◦ Select and hire employees;
◦ Transfer or discharge employees;
◦ Discipline of employees, and
◦ Return of investment and expansion of business.
} Rural Bank of Cantilan . v. Julve, GR No. 169750, February 27,
◦ Under the doctrine of management prerogative, every employer has
the inherent right to regulate, according to his own discretion and
judgment, all aspects of employment, including hiring, work"
assignments, working methods, the time, place and manner of work,
work supervision, transfer of employees, lay- off of workers, and
discipline, dismissal, and recall of employees  
} Mendoza v. Rural Bank of Lucban, GR No. 155421, July 7,
◦ Management prerogatives, however, are subject to limitations
provided by
– law,
– contract or collective bargaining agreements and
– general principles of fair play and justice
The Whys and Hows
} Article 217, Labor Code

◦ Promote and emphasize the primacy of free collective bargaining and

negotiations, including voluntary arbitration, mediation and
conciliation, as modes of settling labor or industrial disputes;
◦ Promote free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and development;
◦ Foster the free and voluntary organization of a strong and united
labor movement;
◦ Promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
} Article 217, Labor Code

◦ Provide an adequate administrative machinery for the

expeditious settlement of labor or industrial disputes;
◦ Ensure a stable but dynamic and just industrial peace;
◦ Ensure the participation of workers in decision and
policy- making processes affecting their rights, duties
and welfare.
◦ Prohibit courts or administrative agencies or officials
from setting or fixing wages, rates of pay, hours of work
or other terms and conditions of employment, except as
otherwise provided under the Labor Code.
} Workers organize as a union or some other
form of association (registered or
} Effect of registration with the State:
Acquisition of legally demandable rights, e.g.
right to demand collective bargaining
} Organization must have rules and
mechanisms that respect member rights
} No employer influence or interference (See
Article 261, Labor Code)
} Self Advancement
} Job Security
} Upholding the rule of law over arbitrary
exercise of power by capital
} Provide employees a sense of participation in
the enterprise
} There can be many labor organizations in the
workplace, but
◦ Only one recognized representative for workers in
Collective Bargaining
◦ Selected by the workers themselves by way of
election (with or without intervention of the
} All persons employed in commercial,
industrial and in religious, charitable, medical
or educational institutions (profit or non-
} Includes the right to
◦ Form
◦ Join
◦ Assist
Labor organizations of their own choosing
} Presentation of proposals and counter- proposals
by the parties
} If capital and labor agree on substantially all points,
a labor contract is forged (Collective Bargaining
} If both parties do not agree on material points, this
results in a deadlock
◦ Parties are obliged to avoid or break the impasse
◦ Failure to resolve a deadlock may result in work stoppage
– Strike
– Lockout
} While a legal right, strike or lockout is not an ideal
solution to compel a party to agree to a proposal
} Considered as measures of last resort
} Strikes and lockouts are heavily regulated
◦ Purpose
◦ Manner of implementation
◦ Violation of established rules will merit sanctions (admin,
civil and criminal)
} Parties are allowed to introduce means and
methods that will expedite bargaining
◦ Subject to compliance to legal standards
} Parties are primarily responsible for dealing
with problems arising out of their relations
(Inter- party relationship)
◦ Voluntary modes of settling disputes are preferred
over compulsory processes
◦ Grievance machinery: In- house problem solving
◦ State steps in only when
– Parties fail to agree
– Rights are violated
} SSS Employees Association vs. CA, 175 SCRA 686: “The principle
behind labor unionism in private industry is that industrial peace
cannot be secured through compulsion by law. Relations between
private employers and their employees rest on an essentially
voluntary basis. … the terms and conditions of employment in the
unionized private sector are settled through the process of collective

} But, when dispute

transgresses legal
boundaries, the injuctive
powers of the state may be
invoked, especially when
national interest is involved.
} Employer: Includes any
person acting in the
interest of an employer,
directly or indirectly.
The term shall not
include any labor
organization or any of
its officers or agents
except when acting as
an employer.
} Employee: Includes any person
in the employ of an employer.
The term shall not be limited to
the employees of a particular
employer, unless the Labor Code
so explicitly states. It shall
include any individual whose
work has ceased as a result of or
in connection with any current
labor dispute or because of any
unfair labor practice if he has not
obtained any other substantially
equivalent and regular
} Managerial employees
} Supervisory employees
} Rank- and- file employees
} If there is no such relationship, there is no
basis for exercising the right of self-
organization for purposes of collective
} Note also that Labor Arbiters cannot exercise
jurisdiction where Er- Ee Relationship does
not exist. (subj. to exception)
} Four- Fold Test
1. the selection and engagement of the employee;
2. the payment of wages;
3. the power of dismissal; and
4. the power to control the employee’s conduct, or the so- called
“control test.”
} Two- tiered test of employment relation ship
1. Control test – the employer’s power to direct the employee (the
manner, means and methods) by which work is accomplished;
2. Economic reality test – economic reality of the relationship; the
question of economic dependency of the worker on his employer.
(Read Orozco vs. CA, GR 155207, April 29, 2005)
} A stipulation stating expressly that there is no Er- Ee
relationship is not controlling (Chavez vs. NLRC, GR No.
146530, Jan. 2005)
} Jeepney and taxi drivers (Paguio Transport Corp. vs. NLRC GR
No. 119500, August 1998)
} Bus, auto- calesa drivers (R. Transport Corp. vs. Ejandra, GR
No. 148508, May 2004)
} Fishermen (Ruga vs. NLRC, Jan. 1990)
} Stevedores
} Lawyers, doctors, nurses, dentists, public relations
practioners, other professionals
} Employees of cooperatives
} Insurance agents (salaried)
} Commission salesmen
} Agents of prinicipal (who are not employees
in other respects)
} Working scholars (See Section 14, Rule X,
Book III, IRR, Labor Code)
} Consultants
} Visiting Physicians
} Independent contractors
} Labor disputes: Includes any controversy or matter
concerning terms or conditions of employment or the
association or representation of persons in negotiating, fixing,
maintaining changing or arranging the terms and conditions
of employment, regardless of whether the disputants stand in
the proximate relation of employer and employee.
} Nature: arises from Er- Ee relationship, regardless
of whether the disputants stand in the proximate
relation of employer and employee;
◦ SMCEU- PTGWO vs. Bersamira & SMC, GR No. 87700, June
– Involves issue of SMC’s exclusion of temporary, probationary &
contractual employees in scope of CBA with union
} Subject Matter
◦ Terms and conditions of employment
◦ Association or Representation of persons
} Standards- related
◦ Compensation
◦ Benefits
◦ Working Conditions
} Relations Disputes
◦ Organizational rights/ULP
◦ Representation
◦ Bargaining
◦ Contract administration
◦ Personnel policy
◦ Employment tenure disputes
} Grievance procedure – CBA- prescribed, in- house mechanism
for addressing complaints.
} Conciliation – involves third person who meets with both
parties and, by assuaging hurt feelings and cooling tempers,
aids in reaching agreement.
} Mediation – third person offers suggested solutions to
} Arbitration – dispute is submitted to impartial third person
who renders decision based on evidence, law and
jurisprudence. Decision is enforceable.
◦ Voluntary – by agreement of parties
◦ Compulsory – directed by law. Primarily done by labor arbiters of the
} Enforcement/Compliance Order – dispute arises
from concern uncovered by the exercise of
enforcement/visitorial power of SOLE, or
adjudicatory powers of the DOLE Regional Directors
(Articles 128, 129, Labor Code)
} In case of labor disputes that may affect an
industry indispensable to the national interest, the
following apply:
◦ Assumption of jurisdiction by DOLE
◦ Certification to the NLRC for compulsory arbitration
Jurisdiction, Case Flow,
Appeals, Cases
} Precursor: Court of Industrial Relations
} NLRC was created by the Labor Code
◦ attached to the DOLE
◦ Under EO 204, s. 2005, DOLE exercises
administrative supervision over the commission
◦ Under RA 9347, several changes to the composition
of the divisions, rank equivalence, and reverted to
the old version of NLRC’s attachment to DOLE
(program and policy coordination)
◦ Equal representation from workers, employers &
public sector
} NLRC exercises adjudicatory powers and
other functions through its divisions (not the
individual commissioners);
} En banc decisions pertain only to
◦ Promulgation of rules governing hearing and
disposition of cases in the divisions (e.g., 2011
NLRC Rules);
◦ Recommending Labor Arbiters to the President
◦ Allowing a division to hear and decide a case under
the jurisdiction of another division
} Original and exclusive jurisdiction to hear and
decide the following cases involving all workers,
whether agricultural or non- agricultural (Art. 223,
LC, Rule V Section 1, 2011 NLRC Rules):
1. Unfair labor practice cases; ULP Means "Unfair labor
practice" means any unfair labor practice as expressly
defined by the Code (Art. 218(K), Art. 254, Art. 255).
2. Termination disputes;
3. If accompanied with a claim for Reinstatement, those
cases that workers may file involving wages, rates of
pay, hours of work and other terms and conditions of
4. Claims for actual, moral, exemplary and other forms of
Damages arising from the employer- employee relations;
5. Cases arising from any Violation of Article 270 of this Code,
including questions involving the legality of strikes and
lockouts; and
6. Except claims for Employees Compensation, Social Security,
Medicare and maternity benefits, all other Claims arising
from employer- employee relations, including those of
persons in domestic or household service, involving an
amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for
reinstatement (Article 223, Labor Code, as amended).
7. Original and exclusive jurisdiction over money claims arising out
of employer- employee relationship or by virtue of any law or
contract, involving Filipino workers for Overseas deployment,
including claims for actual, moral, exemplary and other forms of
damages (Section 10, Republic Act No. 8042, as amended by
Republic Act No. 10022).
8. Wage distortion disputes in unorganized establishments not
voluntarily settled by the parties pursuant to Republic Act No.
9. Enforcement of compromise agreements when there is non-
compliance by any of the parties or if there is prima facie evidence
that the settlement was obtained through fraud,
misrepresentation or coercion (Article 233, Labor Code, as
10. Other cases as may be provided by law.
} The jurisdiction of labor arbiters, as well as of the NLRC, is
limited to disputes arising from an employer- employee
relationship which can only be resolved by reference to the
Labor Code, other labor statutes, or their collective
bargaining agreement. U- Bix's complaint was one to collect
sum of money based on civil laws – on obligations and
contract, not to enforce rights under the Labor Code, other
labor statutes, or the collective bargaining agreement. (U- Bix
Corporation, et al. vs. Valerie Anne H. Hollero, G.R. No.
177647, October 31, 2008)
} The jurisdiction of labor courts extends only to cases where
an employer- employee relationship exists. (Jaguar Security &
Investigation Agency vs. Rodolfo Sales, et. al., G.R. No.
162420, April 22, 2008)
} Exception to the rule that Er- Ee relationship
is necessary for Labor Arbiters to acquire
◦ “The jurisdiction of Labor Arbiters is not limited to
claims arising from Employer- Employee
relationships under Sec. 10 of RA 8042, which
cover money claims arising out of an employer-
employee relationship or by virtue of any law or
contract involving Filipino workers for overseas
deployment, including claims for…damages.”
Santiago vs. CF Sharp Crew Management, Inc. (GR
No. 162419, July 2007)
Corporate Officers
} Nacpil vs. IBC (GR No. 144767, March 21, 2002) –
Officers designated by the board are corporate
} Prudential Bank and Trust Company (GR No.
141093, Feb. 20, 2001) - One rising from the
ranks is not a mere corporate officer
} Rural Bank of Coron vs. Cortes, (GR No. 164888,
Dec. 6, 2006) – A corporate officer who is also an
employee may file an illegal dismissal case with the
labor arbiter.
See also
} Okol vs. Slimmers World International (GR No.
160146, December 11, 2009)
} Gomez vs. PNOC Development and Management
Corporation (GR No. 174044, November 27, 2009)
} Atty. Virgilio R. Garcia vs. Eastern
Telecommunications Philippines (GR No. 173115,
April 16, 2009)
} Renato Real vs. Sangu Philippines, Inc. et al., G.R.
No. 168757, 1/19/2011
} Case may be filed in the RAB having jurisdiction
over the workplace of complainant or petitioner
} Where two or more RABs have jurisdiction, venue
resides in the RAB which first acquired it
} No objection to venue before the filing of position
papers, issue is deemed waived
} May be by written agreement, or by motion for
meritorious cases
} Option of the worker
Mandatory Amicable
Start Conference Settlement?

Submit Position
File Complaint Papers/Memoranda

Receive, docket and Clarificatory Hearing Issue Order

subscribe complaint
Evaluate pleadings
Raffle and assign and evidence End
Issue Order
Set case for submitting case for
mandatory decision Issue,
conference/issue promulgate and
summons release decision
Prepare decision
Significant changes from 2005 Rules (as discussed by Atty. Ruben Del

1. Service of Notices, Resolutions, Orders and Decisions by Private

Courier (Section 4, Rule III). Under the 2005 Rules, service of notices
such as summons, notice of conference, resolutions, orders and
decisions is made through the NLRC’s messenger or sent by registered
mail only. In the 2011 Rules, service can be done by private courier

2. Authority of the Labor Arbitration Associate to Conduct Conciliation

and Mediation Conference (Section 8a, Rule V). The 2005 Rules state
that “the Labor Arbiter shall personally preside over and take full
control of the proceedings”. The 2011 Rules state that the Labor
Arbiter may be assisted by the Labor Arbitration Associate in the
conduct of the proceedings.
} En Banc Resolution 11- 12 amended the 2011 NLRC Rules of
} Venue: When venue is not objected to before the first
scheduled mandatory conference, such issue or objection will
be deemed waived. (Rule IV, Section 1, par. c)
} Confidentiality of Commission Records: access to pleadings
and other documents filed by parties to a case are restricted.
Reports, drafts of decisions, records of deliberations, and
other documents involving private rights are made
confidential. Nevertheless, decisions, resolutions and orders
of the NLRC are open to the parties and their counsel or
authorized representative during office hours. (Rule XIII,
Section 8)
} Manila Hotel Corporation vs. NLRC (GR No. 120077,
October 13, 2000) – The NLRC has no jurisdiction
when the main aspects of the case transpired in
foreign jurisdictions and the only link that the
Philippines has with the case is that the employee
is a Filipino citizen.
} PNB vs. Cabansag (GR No. 157010, June 21, 2005)
– when the employee is directly hired in a foreign
country but nonetheless secures a (POEA)
employment certificate, she is an OFW and thus the
case falls under the jurisdiction of the labor arbiter.
} Banez vs. Valdevilla (GR No. 128024, May 9,
2000) – Art. 217 (now 223) is comprehensive
enough to include claims for all forms of
damages arising from Er- Ee relations,
including Er’s claims for actual damages
against a dismissed Ee.
} Domondon vs. NLRC (GR No. 154376, Sept.
30, 2005)
} Two kinds
◦ Original Jurisdiction
– Injunction in ordinary labor disputes;
– Injunction in strikes and lockouts under Article 270,
– Certified labor disputes in industries indispensable to
the national interest, where work stoppage is likely or
has already occurred.
◦ Exclusive Appellate Jurisdiction
– Cases decided by the labor arbiters;
– Cases decided by DOLE regional directors under
Article 129;
} NLRC has exclusive appellate jurisdiction on
all cases decided by the labor arbiters.
} NLRC does not have original jurisdiction on
the cases over which labor arbiters have
original and exclusive jurisdiction.
} If the labor arbiter does not exercise original
and exclusive jurisdiction over a case, the
NLRC has no appellate jurisdiction over it.
} Labor Arbiters’ decisions – ordinary appeal to
the NLRC, w/in 10 calendar days from receipt.
NLRC’s decision on appeal is elevated to the
CA by way of special civil action (Rule 65),
and then under ordinary appeal (Rule 45) to
the SC
DECISION (Supreme Court)

Grounds: Questions of
Petition for
Law from Decision of CA
(Rule 45)
DECISION (Court of Appeals)

Grounds: determination of whether or

not the NLRC acted without or in excess
Petition for
of its jurisdiction or with grave abuse of
discretion in rendering its decision.
(Rule 65)

Requisites for Perfection:

Grounds: Section 2, Rule
Section 4, Rule VI, 2011
VI, 2011 NLRC Rules of
NLRC Rules of Procedure,
Appeal Procedure, as amended
as amended

DECISION (Labor Arbiter)

} Prima facie evidence of abuse of discretion on
the part of the labor arbiter
} Decision, order or award was secured through
fraud or coercion, including graft and
} Purely on questions of law
} Serious errors in the findings of facts which
would cause grave or irreparable damage or
injury to appellant
} Filed within reglementary period (ten days
from receipt of decision by party seeking
} Under oath
} Appeal fee
} Posting of cash or surety bond (where
judgment involves monetary award)
} Proof of service to adverse party
} Note the following:
◦ Labor arbiter loses jurisdiction upon perfection of
◦ Lack of verification is not fatal nor jurisdictional
◦ Appeal is still valid despite failure to pay docket fee,
but refusal to pay despite directive is fatal
◦ Raising new issues or changing theory on appeal is
not allowed.
} Reinstatement is immediately executory even
pending appeal
} Pioneer Texturizing Corporation vs. NLRC –
employer is duty- bound to inform employee of
} An employer may not stay execution of
reinstatement, even when he has posted a bond
} Roquero vs. PAL (GR No. 152329, April 2003) -
Labor arbiter has ministerial duty to implement
reinstatement order
} Actual reinstatement of the employee to his
work under the same terms and conditions
prior to dismissal or separation, or
} Reinstatement in the payroll of the company,
without requiring actual return to work
} Pursuant to E.O. 126, the National Conciliation and Mediation
Board (NCMB) has absorbed the conciliation, mediation and
voluntary arbitration functions of the BLR.
} The BLR functions, as it now stands are confined largely to
union matters, collective bargaining and labor education.
} Jurisdiction over labor- management problems or disputes is
also exercised by other offices such as the DOLE regional
offices, the Office of the Secretary of Labor, NLRC, POEA,
OWWA, SSS- ECC, the regional wage and productivity boards,
NWPC, and even the regular courts over intra- corporate
} To act on its own initiative or upon the
request of either or both parties on all:
◦ INTRA- union conflicts;
◦ INTER- union conflicts; and
◦ OTHER RELATED Labor Relations Disputes
} Shall include any conflict between a labor
organization and the employer or any
individual, entity, or group that is NOT a
labor organization or worker’s association.
} This includes:
} Cancellation of registration of unions and
worker’s associations; and
} A petition for interpleader.
} A proceeding brought by a party against two
or more parties with conflicting claims,
compelling the claimants to litigate between
and among themselves their respective rights
to the claim, thereby relieving the party so
filing from suits they may otherwise bring
against it. (Sec. 1 (Par. “z”), Rule I, DO 40- 03)
} removed from the jurisdiction of the BLR “all”
labor- management disputes. The effect of E.
O. 251 is to transfer to the NCMB the
mediation, conciliation, and arbitration
functions of the BLR.
} The parties may, by agreement, settle their
differences by submitting their case to a
voluntary arbitrator rather than taking the
case to the BLR.
} This category of labor relations disputes as the
name suggests is related to inter/intra union
disputes to differentiate it from other labor-
management disputes, such as those under
◦ Article 128: Visitorial and enforcement power
◦ Article 129: recovery of wages, simple money claims and
other benefits
◦ Article 223: Jurisdiction of the LA and NLRC
◦ Article 273: Jurisdiction of VA
◦ Article 277(g): Secretary of Labor, on possibility of strikes
and lockouts
} Sec. 16. Bureau of Labor Relations – The BLR shall:
◦ Set policies, standards, and procedures on the
registration and supervision of legitimate labor union
activities including denial, cancellation, and revocation
of labor union permits;
◦ Set policies, standards and procedures relating to
collective bargaining agreements, and the examination
of financial records of accounts of labor organization to
determine compliance with relevant laws;
◦ Provide proper orientation to workers on their schemes
and projects for improvement of the standards of living
of workers and their families.
} Intra- Union Disputes (Sec. 1(bb)) – refer to any conflict
between and among union members, including
1. grievances arising from any violation of the rights and conditions of
2. violation of or disagreement over any provision of the union’s
constitution and by- laws, or
3. disputes arising from chartering or affiliation.
} Inter- Union Disputes (Sec. 1(x)) – refer to any conflict
between and among legitimate labor organizations involving:
1. representation questions for purposes of collective bargaining or
2. any other conflict or dispute between legitimate labor organizations
based on any violations of their rights as labor organizations.
} Cancellation of registration of a labor organization
filed by its members or by any other labor
} Conduct of election of union and worker’s association
officers/nullification of election of union and worker’s
association officers;
} Audit/accounts examination of union or worker’s
association funds;
} De- registration of CBA;
} Validity/invalidity of union affiliation or disaffiliation;
} Validity/invalidity of acceptance/non- acceptance for
union membership;
} Validity/invalidity of impeachment/
expulsion of union and worker’s association
} Validity/invalidity of voluntary recognition;
} Opposition to application for union and CBA
} Violations of or disagreements over any
provision in a union or worker’s association
constitution and by- laws;
} Disagreements over chartering or registration of
labor organizations and CBAs;
} Violations of the rights and conditions of union or
worker’s association membership;
} Violations of the rights of legitimate labor
organizations, except interpretation of CBAs; and
} Such other disputes or conflicts involving the rights
to self- organization, union membership, and
collective bargaining –
◦ Between and among legitimate labor organizations; and
◦ Between and among members of a union or worker’s
} DOLE Regional Office - where the labor
organization is registered;
} Bureau of Labor Relations – where the
complaint involves a federation or industry/
national union;
} Involving Entire Membership
– The complaint must be signed by at least 30% of the
entire membership of the union; and
– It must also show exhaustion of administrative
} Involving a Member Only
◦ In such case, only the affected member may file
the complaint. Redress must first be sough within
the union itself in accordance with its
constitution and by- laws EXCEPT under any of
the following circumstances:
– Futility of intra- union remedies;
– Improper expulsion procedure;
– Undue delay in appeal as to constitute substantial
– The action is for damages;
} Involving a Member Only
◦ In such case, only the affected member may file the
complaint. Redress must first be sough within the
union itself in accordance with its constitution and by-
laws EXCEPT under any of the following circumstances:
– Lack of jurisdiction of the investigating body;
– Action of the administrative agency is patently illegal,
arbitrary, and oppressive;
– Issue is purely a question of law;
– Where the administrative agency had already prejudged the
case; and
– Where the administrative agency was practically given the
opportunity to act on the case but did not.
} The rights, relationships and obligations of the part-
litigants against each other and other parties- in-
interest prior to the institution of the petition shall
continue to remain during the pendency of the
petition and until the date of finality of the decision
rendered therein. Thereafter, the rights,
relationships and obligations of the party litigants
against each other and other parties- in- interest
shall be governed by the decision so ordered.
} The filing or pendency of any inter/intra-
union disputes is not a prejudicial question to
any petition for certification election and shall
not be a ground for the dismissal of a
petition for certification election or
suspension of proceedings for certification
How: Formal 1. Under Oath
requirements 2. Consist of a memorandum of appeal
3. Based on either of the following grounds:
a. Grave abuse of discretion
b. Gross violation of the rules
4. With supporting arguments and evidence
Period: Within ten days from receipt of decision
To whom appealable 1. Bureau of Labor Relations – if the case originated from
Med- Arbiter/Regional Director;
2. Secretary of DOLE in case decision originated from BLR

Where filed Regional office or to the BLR where the complaint originated
(records transmitted to the BLR or Sec. within 24 hours from
receipt of the memorandum on appeal
} For grounds under Section 1: any LLO members thereof
specially concerned
} For grounds under Section 2: any party- in- interest

} RO that issued its certificate of registration or certificate of
creation of chartered local – if it involves labor unions with
independent registration, chartered locals, workers
association, its officers or members.
} Directly with the BLR if it involves a federation/national union/
industry union, its officers or members
Formal requirements
} In writing
} Verified under oath
} Contains:
◦ Name, address and other personal circumstances of the complainant
or petitioner
◦ Name, address and other personal circumstances of the respondent
or person charged
◦ Nature of complaint or petition
◦ Facts and circumstances surrounding complaint or petition
◦ Causes of action
◦ Statement on exhaustion of Administrative Remedies
◦ Reliefs prayed for
◦ Certification of non- forum shopping
◦ Other relevant matters
} Regulation and registration of labor unions
} Keeping of registry of labor unions
} Maintenance of a file of CBA’s
} Maintenance of a file of all settlements or final
decisions of the SC, CA, NLRC and other agencies
on labor disputes

} BLR has no jurisdiction over implementation or

interpretation of CBAs, which shall be subject of
grievance procedure and/or Voluntary arbitration.
} ANY Compromise Settlement (labor standards
or labor relations law) voluntarily agreed
upon by the parties with the assistance of the
BLR or DOLE- RO shall be final and binding
upon the parties.
} NLRC has no jurisdiction except:
◦ Noncompliance with compromise agreement
◦ Prima facie evidence that settlement was obtained
through fraud, misrepresentation or coercion.
} Purpose: Parties agree to
◦ Avoid litigation, or
◦ Put an end to one already in place
} How: making reciprocal concessions
◦ Win- win
} Substantial requirements
◦ Voluntary, devoid of coercion
◦ Not contrary to law, morals, public policy
◦ Reasonable
} Formal requirements
◦ In writing
◦ Signed in the presence of person before whom case is filed
} When effected:
◦ At any stage of the proceedings, even when there is
already a final & executory judgment
◦ EXCEPT when judgment is in process of execution
} Validity: Valid and binding on both parties,
with or without DOLE assistance
} Repudiation:
◦ If done without DOLE assistance
◦ In case of non- compliance with agreement
◦ Prima facie evidence of fraud, misrepresentation,
} Options when agreement is violated:
◦ Enforce compliance
◦ Regard as rescinded, revert to original demand
} Quitclaim: A formal renunciation or
relinquishing of a claim
◦ Usually integral in compromise agreements
} Cases:
◦ Mindoro Lumber vs. Baay,, GR No. 158753,
June 2005
◦ Veloso and Liguaton vs. DOLE, Noah’s Ark Sugar
Carriers, GR No. 87297, Aug. 1991
◦ JAG & Haggar Jeans vs. NLRC, GR No. 105710, Feb.
◦ Magbanua vs. Uy, GR No.161003, May 2005
“Dire necessity is not an acceptable ground for
annulling the releases especially since it has not been
shown that the employees had been forced to
execute them. It has not even been proven that the
considerations for the quitclaims were
unconscionably low and that the petitioners had been
tricked into accepting them. … no deception has
been established on the part of the private
respondent that would justify the annulment of the
petitioners’ quitclaims.”
Labor Organizations
} "Labor organization" means any union or association of
employees which exists in whole or in part for the purpose of
collective bargaining or of dealing with employers concerning
terms and conditions of employment.
} "Legitimate labor organization" means any labor organization
duly registered with the Department of Labor and
Employment, and includes any branch or local thereof.
} "Bargaining representative" means a legitimate labor
organization whether or not employed by the employer.
} "Chartered Local" refers to a labor organization in the private
sector operating at the enterprise level that acquired legal
personality through the issuance of a charter certificate by a
duly registered federation or national union, and reported to
the Regional Office in accordance with Rule III, Section 2- E of
these Rules.
} "Exclusive Bargaining Representative" refers to a legitimate
labor union duly recognized or certified as the sole and
exclusive bargaining representative or agent of all the
employees in a bargaining unit.
} "Independent Union" refers to a labor organization operating
at the enterprise level that acquired legal personality through
independent registration under Article 234 of the Labor Code
and Rule III, Section 2- A of these Rules.
} "Labor Organization" refers to any union or association of
employees in the private sector which exists in whole or in
part for the purpose of collective bargaining, mutual aid,
interest, cooperation, protection, or other lawful purposes.
} "Labor Relations Division" refers to the (1) Labor Organization
and CBA Registration Unit and (2) Med- Arbitration Unit in the
Regional Office. The Labor Organization and CBA Registration
Unit is in charge of processing the applications for
registration of independent unions, chartered locals, workers
associations and collective bargaining agreements,
maintaining said records and all other reports and incidents
pertaining to labor organizations and workers' associations.
} "Legitimate Labor Organization" refers to any labor
organization in the private sector registered or
reported with the DOLE in accordance with Rules III
and IV of these Rules.
} "Legitimate Workers' Association" refers to an
association of workers organized for mutual aid
and protection of its members or for any legitimate
purpose other than collective bargaining registered
with the DOLE in accordance with Rule III, Sections
2- C and 2- D of these Rules.
} Dealing with the Employer – interaction
between employers and employees
◦ Grievances
◦ Wages
◦ Hours
◦ Other terms and conditions of employment
} Applies even without registration
} Collective Bargaining – is a right acquired
through registration, and recognition or
certification as the exclusive bargaining
} At the National Level
◦ National Union/Federation
◦ Industry Union
◦ Trade Union Center
◦ Alliance
◦ Company Union
} Enterprise Level
◦ Independent Labor Union
◦ Chapter
} Amended Articles 240, 244, 245, 261, 262 &
} 20% membership of employees in bargaining unit
required only for independent unions
} Chapters acquire legal personality (for purposes of
certification election) upon receiving their charter
} Grounds of cancellation revised. Some grounds
were removed as they were not promotive of self
organization rights
} Petition for Certification Election will continue to be
heard despite petition to cancel registration
} Cancellation may be effected by vote of two-
thirds of membership, with application to
cancel submitted to DOLE by the
organization’s board
} Reportorial requirements
} Supervisors Union and Rank and File Unions
may join same Federation
} Commingling of supervisors and rank & file
employees no longer a ground for
} PCEs filed by a federation on behalf of its
chapter need not identify the chapter’s
officers and members
} Employer cannot oppose a petition for
certification election; he is considered a
} Legal personality
} Enjoy the rights given to legitimate labor
◦ Petition for certification election
◦ Bargaining rights
◦ Right to strike
} Non- registered unions are not illegitimate or
} Union registration refers to the process of
determining whether the application for
registration of a labor union organized for
collective bargaining complies with the
documentary requirements prescribed under
Rule 3 and 4 of DOLE Department Order No.
40—03and the rules implementing Book V of
the Labor Code, as amended.
} All labor unions whose members are employed in commercial,
industrial and agricultural enterprises, and employees of
government- owned and controlled corporations without
original charters established under the Corporation Code,
including religious, charitable, medical or educational
institutions whether operating for profit or not which exist in
whole and in part for collective bargaining.
} Alien employees with valid working permits issued by DOLE
may exercise their right to self- organization and join or assist
labor unions for purposes of collective bargaining if they are
nationals of a country which grants the same or similar rights
to Filipino workers, as certified by the Department of Foreign
} Duly accomplished and notarized Application Form;
} Charter certificate issued by the federation or national union
indicating the creation or establishment of the local/chapter;
} The names of the local/chapter’s officers, their addresses and
principal office of the local/chapter; and,
} The local/chapter’s constitution and by- laws, provided that
where the local/chapter’s constitution and by- laws is the
same as that of the federation or national union, this fact
shall be indicated accordingly.
} Duly accomplished and notarized Application
} Minutes of Organizational Meeting and
Attendance Sheet
} List of Members
} Financial Report if in existence for at least
one (1) year
} If less than 1 year, and has not collected any
amount, a certification to this effect.
} Constitution and by- laws accompanied by the
names and signatures of ratifying members.
} Minutes of adoption or ratification of the
constitution and by- laws, date/s when
ratification was made and list of ratifying
} Minutes of adoption or ratification is not
required if it is done simultaneously with the
organizational meeting including the date/s
when ratification was made and list of
ratifying members.
} Statement that it is not reported as a
chartered local or any federation.
} List of members comprising at least 20% of
the employees of the bargaining unit.
} The independent union’s act of entering into
an agreement of affiliation with a federation
or national union, or
} A chartered local’s act of maintaining its ties
to a federation or national union despite its
subsequent independent registration
} Report of affiliation of independently
registered labor union;
◦ Resolution of LU board approving affiliation
◦ Total number of members, and names of those
approving affiliation
◦ Certificate of affiliation
◦ Written notice to the employer concerned if the
affiliating union is the bargaining agent
Independent Chartering
How obtained Registration on its Through charter
own accord under Art. certificate issued by
240 National Union/
Effect of disaffiliation Retains legal Loses legal personality
} May only occur on the grounds of disloyalty
or such grounds specified in the constitution &
by- laws;
} Effected by serving a verified notice to the
local/chapter, copy the BLR
} Effect
◦ revocation of legal personality, except if local
chapter has acquired independent registration.
◦ If covered by CBA, local chapter may be given
opportunity to register independently
} Act on all applications within 30 days from filing,
provided all documents and papers required have
been submitted;
} When DOLE refuses to register a labor organization
which has complied with the requirements,
mandamus is the proper remedy
} Approval – Order and Certificate of Registration
} Disapproval – Decision which states clearly reasons
for denial
} BLR has jurisdiction
} Only for grounds in Article 245
} Petition for cancellation will not suspend PCE
} Union may still seek just and equitable
remedies in appropriate courts
} Misrepresentation, false statements or fraud
in connection with the adoption or ratification
of the constitution and by- laws or
amendments thereto, minutes of ratification
and list of members who took part
} Misrepresentation, false statements or fraud
in connection with the election of officers,
minutes of the election of officers and list of
} Voluntary dissolution by members
} Ten grounds in Article 245 prior to RA 9481
have been reduced to three
} Examples of removed grounds
◦ Failure to submit reportorial requirements
◦ Illegal strike
◦ Engaging in “cabo” system
} May be done by members themselves
} 2/3 of general membership votes during a
meeting called for the purpose of dissolving
} Application to cancel registration submitted
by the board, attested by the president
} Article 247
a. Arbitrary or excessive initiation fees
b. Full and detailed reports
c. Direct election of officers
d. Determination of major policy affecting entire
membership of organization
e. Exclusion of subversive persons from membership
f. Exclusion of convicted member as union officer
g. Collection or disbursement only by authorized
h. Receipts for all payments
} Article 247
i. Funds for authorized use only
j. Ban on unauthorized compensation on officers
k. True and correct accounting of funds
l. Inspection of records of organization
m. No unauthorized special levy or assessment of
n. Check – off
o. Information on the Constitution and by- laws
} Article 247can be best grouped into four
basic classifications
1. Political rights – right to vote and be voted for
2. Deliberation and decision- making. Right to
participate in deliberations on major policy
questions and decide by secret ballot
3. Money matters
4. Information
1. Constitution and By- laws
2. Collective Bargaining Agreement
3. Labor Laws
} Cancellation of union registration, OR
} Expulsion from office of a union officer.
} 30% of all members (if affecting entire
membership) must concur re filing of
complaint with the BLR
} Only affected member/members may file a
complaint pertaining to a violation of which
they are affected
} Ang Malayang Manggagawa ng Ang Tibay
Enterprises, et al. vs. Ang Tibay, et al., G.R.
No. L- 8259, December 1957:
◦ The relationship of the union and the members is
governed by their mutual agreement, the terms and
conditions of which are set forth in the union
constitution and by laws and binding on the
members as well as the organization itself
} Non- employees (247(c))
} Subversives (247(e))
} What about persons convicted of crimes
involving moral turpitude?
◦ Allowed as members, not eligible for election as
officer (247(f))
} The labor organization cannot compel employees
to become members of their labor organization if
they are already members of a RIVAL UNION
} The persons mentioned in Art 247[e] (SUBVERSIVES)
of the Labor Code are prohibited from becoming a
member of a labor organization
} The members of RELIGIOUS ORGANIZATION whose
religion forbids membership in labor organization
could not be compelled into union membership
(Victoriano v. Elizalde Rope Workers Union, L-
25246 September 1974)
} Tancino vs. Pura Ferrer- Calleja, G.R. 78131,
Jan. 1988
◦ Only members of the union have the eligibility to
take part in the election of union officers. Eligibility
to vote may be determined through the use of the
applicable payroll period and the status of the
employees during the applicable period. This
pertains to the payroll of the month next preceding
the labor dispute, in case of regular employees and
the payroll period at or near the peak of operation,
in case of employees in seasonal industries.
} Written resolution;
} Approved by a majority of all members; and
} Approval obtained at a general membership
meeting duly called for that purpose.
} Secretary of the organization shall record the
minutes of the meeting, which shall be
attested to by the President.
◦ list of all members present
◦ votes cast; and
◦ purpose of the assessment or fees
} (Palacol et aa. v Ferrer- Galleja, et al, GR No.
85222, February 6, 1990) - Substantial
compliance with the aforementioned
procedure is not enough – the requirements
must be strictly complied with
} A method of deducting from an employee’s
pay at prescribed period, the amounts due to
the union for fees, fines or assessments
} Union dues are the lifeblood of the union. All
unions are authorized to collect reasonable
membership fees, union dues, assessments
and fines and other contributions for labor
education and research, mutual death and
hospitalization benefits, welfare fund, strike
fund and credit and cooperative undertakings

(Art. 283 [a])

} General Rule: NO special assessment,
attorney’s fees, registration fees or any other
extraordinary fees may be checked off from
any amount due an employee without an
individual written authorization duly signed
by the employee
} The Authorization should specifically state
◦ Amount; and
◦ Purpose and the beneficiary of the deduction
} For mandatory activities provided under the
Code; and
} When non- members of the union avail of the
benefits of the CBA:
◦ Said non- members may be assessed union dues
equivalent to that paid by members;
◦ Only by a board resolution approved by majority of
the members in a general meeting called for the
} Eduardo J. Marino, Jr. et al. vs. Gil Y. Gamilla, et al.,
G.R. No. 149763, July 7, 2009: The individual
written authorization duly signed by the employee
is an additional requirement in order that a special
assessment may be validly checked- off. In case of
check- off another requisite is necessary in addition
to the requirements for special assessment,
enumerated above and this is, individual written
authorization for check- off duly signed by the
employee concerned.
} Being an intra- union conflict, the Regional
Director of DOLE has jurisdiction over check
off disputes.
} Regular monthly contributions paid by the
members to the union in exchange for the
benefits given to them by the CBA and to
finance the activities of the union in
representing them.
} Dues equivalent to union dues charged from the
non- union members who were benefited by the
CBA provisions.
} The relationship between the non- union employees
and the Union that is the bargaining representative
is that of principal – agent
} Since the union was able to secure better terms and
conditions of employment for all employees, it is
proper that they be compensated for their
} The employee is part of the bargaining unit,
} He is not a member of the union; and
} He partook of the benefits of the CBA
} Written authorization is not necessary for
Union Dues Agency Fees
Applies to Union Members Applies to Non Members of the
Paid by reason of their Paid by reason of the benefits they
membership enjoyed under the CBA
Written authorization is required Written authorization is NOT
for dues to be deducted from required
salaries (Check- Off)
} NAIBAILU v. San Miguel Brewery Inc.,
GR No. 18170, August 31, 1963 –
◦ Agency Fee cannot be imposed on employees
already in the service and are members of
another union. If a closed shop agreement cannot
be applied to them, neither may an agency fee, as
a lesser form of union security, be imposed to
◦ Payment by non- union members of agency fees
does not amount to an unjust enrichment
basically because the purpose of such dues is to
avoid discrimination between union and non-
union members.
} Members of a rival union are NOT
Considered Free Riders
} When the union bids to be the bargaining
agent, it voluntarily assumes the
responsibility of representing all employees
in the appropriate bargaining unit.
} Undertake activities for benefit of members;
} Sue and be sued;
} Exclusive representative of all employees;
} Represent union members;
} Be furnished audited financial statements by
} Own properties; and
} Be exempted from taxes.
1. Constitution and by- laws, or amendments
thereto, minutes of ratification, and the list
of members who took part in the
ratification of the constitution and by- laws
or amendments thereto;
2. List of officers, minutes of the election of
officers and list of voters within 30 days
from election;
3. Annual financial report within 30 days after the
close of every fiscal year; and
4. List of members at least once a year or whenever
required by the Bureau

§ Failure to comply with the above- mentioned

requirements shall not be a ground for
cancellation of union registration
§ Erring officers or members to be suspended,
expelled from membership, or otherwise
Art. 249: Coverage and
Employees’ Right to Self-
} Art. III, Sec. 8. The right of the people,
including those employed in the public or
private sectors, to form unions, associations,
or societies for purposes not contrary to law
shall not be abridged.
} Art. XIII, Sec. 3. The State shall guarantee the
rights of all workers to self- organization,
collective bargaining and negotiations, and
peaceful concerted activities including the
right to strike in accordance with law.
} To form, join and assist labor organizations
for the purpose of collective bargaining
through representatives of their own
choosing; and
} To engage in lawful concerted activities for
the same purpose or for their mutual aid and
protection (Art. 252)
} All persons employed in commercial,
industrial and agricultural enterprises and in
religious, charitable, medical, or educational
} Ambulant, intermittent and itinerant workers,
self- employed people, rural workers and
those without definite Employers may form
labor organizations for their mutual aid and
} Art. 250 : Rights of Employees in the public
◦ Employees of government corporations established
under the Corporation Code shall have the right to
organize and bargain collectively with their
respective ER’s.
◦ All other EE’s in the civil service shall have the right
to form associations for the purposes not contrary
to law.
} Art. 251 :
◦ Managerial employees are not eligible to join, assist,
or form any labor organization.
◦ Supervisory employees shall not be eligible for
membership in a labor organization of the rank-
and- file EE’s but may join, assist or form separate
labor organizations of their own.
1. Rey’s Hair Salon refused to bargain with the
union of the barbershop composed of eight
barbers on the ground that the shop was a
service establishment and the number of the
barbers was less than ten. Is the contention
} No. The law does not fix the minimum
number of employees for the exercise of the
right to self- organization and the right
extends to all types of establishments.
2. Faculty members of a non- profit school
converted their club into a labor union. Is this
} Yes. Even employees in non- profit or
religious organizations are entitled to
exercise this right.
3. Is a religious sect’s directive to its
congregation not to join a labor union a bar for
members to form their own union?
} The right of the members of a sect not to join
a labor union for being contrary to their
religious beliefs does not bar the members of
that sect from forming their own union.
(Kapatiran vs. Calleja)
} Those, who, in the interest of the ER, effectively
recommend such managerial actions if in the
exercise of such authority is not merely routinary
or clerical in nature but requires the use of
independent judgment. (Art. 218)
} The criterion which determines whether a particular
employee is within the definition of a statute is the
character of the work performed rather than the
title or nomenclature of position held. (NSRC vs.
} If the recommendation of the teacher area supervisor is
subject to evaluation, review and final approval of the
principal, is the teacher a supervisory employee? No. This is
merely ineffective or clerical recommendation. ( Laguna
Colleges vs. CIR )
} Supervisors were given the job of “either to assist the
foreman if the effective dispatch of manpower and
equipment” or “execute and coordinate work plans emanating
from his supervisors.” Are these “supervisors” supervisory
personnel? No. They only execute approved and established
policies leaving little or no discretion at all whether to
implement the said policies or not. (Southern Philippines
Federation vs. Calleja)
} “…assist and act in a confidential capacity to, or
have access to confidential matters of persons who
exercise managerial functions in the field of labor
relations.” – Philips Industrial Development vs.
NLRC, GR No. 88957, 6/25/1992;
} “…those who, by reason of their positions or nature
of work are required to assist or act in a fiduciary
manner to managerial employees and hence, are
likewise privy to sensitive and highly confidential
records.” – Metrolab Industries vs. Confesor, et. Al.,
GR No. 108855, 2/28/1996
} Exempt from membership in the rank and file
bargaining unit;
} They are not eligible to form, join or assist
labor organizations;
} Because of the distinct nature of their work,
confidential employees are a separate
category. In this regard, there is no
discrimination against them;
} Art. 252 speaks of the illegality of the
following acts with respect to the exercise to
the right of self- organization
◦ Restraint
◦ Coercion
◦ Discrimination
◦ Undue interfere with employees and the workers in
their exercise of self- organization right
} Alexander Reyes vs. Cresenciano Trejano , GR No. 84433,
June 1992. The right to self- organization includes the right
not to form or join a union
} Airtime Specialists vs. Ferrer- Calleja, (180 SCRA 179). The
intendment of the law is to grant to bona- fide employees of a
bargaining unit, whether members of a labor organization or
not, the right to vote in certification elections
} However, by virtue of the operation or enforcement of a
closed shop clause in a CBA, an employee may be compelled
under pain of dismissal, to become a member of a labor
} May an ER impose as condition for
employment that the applicant shall not join a
labor organization or shall withdraw from the
one he belongs to?
} No. Such a condition partakes of the nature of
a “yellow dog contract” and constitutes an
unfair labor practice. It is interference with
the individual’s right to self- organization.
} SPFL v. Calleja, 179 SCRA 127, GR No. 80882,
April 1989. The right to self- organization
must be upheld in the absence of express
provision of law to the contrary. It cannot be
curtailed by a Collective Bargaining
} Art. 253 – concept of ULP and procedure for
} Art. 254 – ULP by employers
} Art. 255 – ULP by labor organizations
} Art. 267 – CBA violations which are gross in
} Art. 270(c) – union busting involving
dismissal of union officers which threatens
existence of union
} Concurrence of BOTH
1. There should exist an employer- employee
relationship between the offended party and
2. Act complained of must be EXPRESSLY
mentioned and defined in the Labor Code
} Interference, restraint, coercion of employees
in the exercise of their right to self
} Yellow dog contract
} Contracting out services or functions
performed by union members, that interfere,
restrain or coerce employees in the exercise
of their right
} Company union
} Initiate, dominate, assist or otherwise
interfere with the formation or administration
of any labor organization
} Includes giving of financial or other support
to it or its organizers or supporters
} Discrimination
◦ Wages, hours of work, terms and conditions of
◦ Except with respect to Union Security Clauses
} Dismissal or prejudice or discrimination by
reason of testimony
} Violation of duty to bargain
} Payment of Negotiation or Attorney’s Fees to
the Union, its officers or agents
} Violate CBA
} Restraint or coercion of employees in the exercise
of their right
} Causing or attempting to cause employer to
discriminate against an employee
} Violate duty, or refuse to bargain collectively with
} Causing or attempting to cause employer to pay or
deliver any money or other things of value for
services which are not performed, including
demand for union negotiation fees (Feather-
} Ask for or accept negotiation or attorney’s
fees from employers as part of settlement of
any issue in collective bargaining or any other
} Violation of a CBA
} Only officers or agents of corporations,
associations or partnerships who actually
participated in, authorized or ratified ULPs to
be held criminally liable
} On the part of the Union, its officers,
members of governing boards,
representatives or agents
} Expressions of opinion by an employer,
though innocent in themselves, may be
constitutive of ULP because of the
circumstances under which they are uttered,
the history of the employer’s labor relations
or anti- union bias or because of their
connection with an established collateral plan
of coercion or interference.
} Stipulation in the CBA where management
recognizes membership of employees in the
union which negotiated said agreement
should be maintained or continued as a
condition of employment or retention of
} Purpose is to safeguard and ensure continued
existence of the union
} Closed shop
} Maintenance of membership agreement
} Union shop agreement
} Modified union shop
} Exclusive Bargaining Agreement
} Bargaining for members only agreement
} Agency shop agreement
} Preferential hiring agreement
} Employer must still afford employee due
} A process by which the representatives of an
employer and its employees to discuss and
negotiate concerning wages, hours of work,
benefits and other terms and conditions of
employment for the purpose of concluding a
contract that is mutually acceptable to the
} A democratic framework to stabilize Er- Ee
relations, to create a climate of sound and
stable industrial peace
} A mutual responsibility & legal obligation of
the employer and the union
} Collective bargaining denotes negotiations
looking forward to a collective agreement,
however, it is a continuous process.
} Negotiation of wages, hours & terms,
conditions of employment
} Execution of written contract embodying
} Negotiation of issues arising out of
interpretation or application of agreement
} Negotiation of terms of new contract, or
proposed modifications.
} System of collective bargaining consists of:
◦ Negotiation of contracts (legislative phase)
◦ Administration of contract (executive phase)
◦ Interpretation or application (judicial phase)
Party seeking negotiation Engaged Party makes reply
serves written notice & thereto within 10 calendar
statement of proposals days from receipt of notice

Conciliation proceedings
Request for conference
by NCMB to resolve within 10 calendar days to
dispute, either motu address differences in
proprio or upon request proposals
} A contract
} executed upon request of either the employer
or the exclusive bargaining representatives
} Incorporating all agreements reached during
◦ With respect to wages, hours of work and other
terms and conditions of employment
◦ Including proposals for adjusting any grievance or
questions under such agreement
} Azucena:
“It is more than a contract; it is a
generalized code to govern a myriad cases
which the draftsmen cannot wholly anticipate.
It covers the whole employment relationship
and prescribes the rights and duties of the
parties. It is a system of industrial self-
government with the grievance machinery at the
very heart of the system.”
} Management may only be compelled to deal
and negotiate when the following juridical
preconditions are present:
1. Possession of status of majority representation by
the Ee’s representative, in accordance with Art.
266- 271 of the Labor Code
2. Proof of majority representation
3. Demand to bargain
§ ALU vs. Ferrer- Calleja, 173 SCRA 178
Employ er W here there is no
relationship, there
is no duty to

W here there is no
duty to bargain,
refusal to bargain
violates no right. Employ ees (thru SEBA)
} Bargaining Representative
◦ Refers to the Legitimate Labor Organization
selected or designated by the employes. Does not
refer to its officers.
◦ How selected is discussed under Articles 266- 271
of Labor Code
◦ See Phil. Diamond Hotel & Resort vs. MDHEU G.R.
No. 158075, June 30, 2006: Only LOs designated
or selected by the majority of the employees in an
appropriate bargaining unit may engage the
employer for collective bargaining
} Manifestation of workers’ participatory right
} PAL vs. NLRC (GR No. 85985, Aug. 1993) – “The
CBA may not be interpreted as cession of
employees’ right to participate in the deliberation
of matters which may affect their rights and the
formulation of policies relative thereto.”
} May be exercised by a Labor- Management Council,
aside from or instead of a union (dealing with the
employer vs. collective bargaining)
} Does not preclude the exercise of an individual
employee’s right to raise his own grievance.
} That group of jobs and jobholders
represented by the recognized or certified
union when it bargains with the employer.
} May comprise all of the supervisors or,
separately, all the rank- and- file population of
the company.
} The law favors having only one grouping per
category (following the “united- we- stand,
divided we fall” logic), but does not prohibit
sub- groups that are “appropriate.”
} Refers to a group of employees sharing
mutual interests within a given employer unit,
comprised of all or less than all of the entire
body of employees in the employer unit or
any specific occupational or geographical
grouping within such employer unit.
} BLR’s primary function, considering all legally
relevant factors.
} Bargaining Unit may be determined following
the four recognized modes:
1. Substantial Mutual Interests principle or
community or mutuality of interests rule
2. Will of the Employees (Globe Doctrine)
3. Collective Bargaining History
4. Employment Status
} Employees sought to be represented must
have substantial mutual interests in terms of
employment and working conditions
} Characterized by similarity of employment
status, same duties and responsibilities and
substantially similar compensation and
working conditions.
} There must be a logical basis for the formation of a
bargaining unit.
} Adherence to the adage “Strength in Numbers”
} Geographical location can be completely
disregarded if communal or mutual interests of the
employees are not sacrificed.
} However, if employers in two plants are clearly
distinct, each group of employees in the plants are
treated as separate units (Diatagon vs. Ople)
} SMC Employees Union vs. Confesor, (GR No.
111262, Sep. 1996)
} Philtranco Service Enterprises vs. BLR, (GR No.
85343, Jun. 1989)
} SMC vs. Laguesma (GR No. 100485, Sep.
} SMC Supervisors and Exempt Employees
Union vs. Laguesma (GR No. 110399, Aug.
} St. James School of Quezon City vs.
Samahang Manggagawa sa St. James School
of Quezon City (GR No. 151326, Nov. 23,
} Globe Machine and Stamping Co., 3 N.L.R.B. 294 (1937),
A petitioning union claimed that there were three
separate bargaining units in the plant, whereas an intervening
union argued for treating the plant as one overall unit.
The US NLR Board found that either arrangement would
result in appropriate bargaining units, and concluded that the
question was so evenly balanced that the determining factor
should be the desire of the employees themselves.
} Globe Machine and Stamping Co., 3 N.L.R.B. 294
Each of the three separate units was given the
opportunity to vote for the petitioning union (and
representation as a separate unit), the intervening
union (and representation as an overall unit), or no
The Globe procedure thereby allows employees "
to determine the scope of a unit by allowing them to
cast a vote for each of several potential units which
the Board has determined are appropriate."
} US Case: Globe Machine & Stamping Co. (3
NLRB 294, 1937)
} In defining the appropriate bargaining unit, …
the determining factor is the desire of the
workers themselves. Consequently, a
certification election should be held
separately to choose which representative
union will be chosen by the workers.
} Prior collective bargaining history and affinity
of employees should be considered in
determining the appropriate bargaining unit.
} The existence of a prior collective bargaining
history is neither decisive nor conclusive in
the determination of what constitutes an
appropriate bargaining unit (see SMC vs.
Laguesma, NAFTU vs. Mainit Lumber Devt.
Company Workers Union)
} NAFTU vs. Mainit – SC applied mutuality of
interest among workers in sawmill division
and logging division, despite the history of
divisions being treated as separate units and
geographical distance (see also SMC vs.
} Casual employees and those employed on
day- to- day basis – must be considered
separate because there is no mutuality of
interest (Philippine Land- Air- Sea Labor Union
vs. CIR, GR No. L- 14656, Nov. 1960)
} Confidential employees cannot be allowed to
be included in rank- and- file bargaining units
} Belyca Corporation vs. Ferrer- Calleja (GR No.
77395, Nov. 1988)
} Certification Election
} Consent Election
} Voluntary Recognition
} Process of determining by secret ballot the
sole and exclusive bargaining agent of the
employees in an appropriate bargaining unit,
for purposes of collective bargaining.
} No longer necessary under the following
◦ Voluntary recognition of the employer
◦ Employees designate the union as the bargaining
} Organized establishments
◦ Petition questioning the majority status of the
incumbent bargaining agent is filed with the DOLE
during the 60- day freedom period
◦ Verification of Petition necessary
◦ Support of at least 25% of all employees in
bargaining unit
} In unorganized establishments, certification
election shall be “automatically” conducted
upon the filing of a petition by a legitimate
labor organization
} Legitimate labor organization, or
} Employer, when requested by a labor organization
to bargain and status of organization is in doubt.
} Note: Art. 264- A – Employer is a bystander in
petitions of certification election. Employer’s
participation limited to:
◦ Being notified or informed of petitions of such nature
◦ Submitting list of employees to Med- Arbiter during pre-
election conference
} May be filed at any time in the absence of a
CBA, except:
◦ Certification year- bar rule
◦ Bargaining deadlock bar rule
◦ Contract bar rule
} Certification year- bar rule – A certification
election may not be filed within one year from
the date of a valid certification, consent or
run- off election, or one year from the date of
voluntary recognition.
} Bargaining deadlock- bar rule.
◦ Before the filing of a petition for certification
election, the duly recognized or certified union has
commenced negotiations with the employer within
the one- year period from the date of a valid
certification, consent or run- off election or
voluntary recognition.
◦ A bargaining deadlock to which an incumbent or
certified bargaining agent is a party had been
submitted to conciliation or arbitration or become
the subject of a valid notice of strike or lockout.
} Kaisahan ng Manggagawang Pilipino (Kampil-
Katipunan) vs. Trajano (GR No. 75810, Sept.
} Capitol Medical Center Alliance of Concerned
Employees- USFW vs. Laguesma (GR No.
118915, Feb. 1997)
} The BLR shall not entertain any petition for
certification election or any other action
which may disturb the administration of duly
registered existing collective bargaining
agreements affecting the parties.
} 60- day Freedom Period
} CBA is not registered with the BLR
} CBA contains provisions lower than statutory
} Falsified, fraudulent or misrepresented documents
} Incomplete CBA
} Collective bargaining and negotiations entered into
prior to the 60- day freedom period
} Internal strife in the union resulting in an industrial
dispute which does not foster industrial peace.
} Petitioner is not listed in DOLE’s registry of
legitimate labor organizations, or whose
registration is revoke or cancelled with
} Petition filed outside of freedom period,
provided that the 60 day period based on the
original CBA shall not be affected by any
amendment, extension or renewal of the CBA
} Failure to submit 25% support requirement
for filing of petition
} Voluntarily agreed upon by the parties with or
without the intervention of the DOLE
} Certification Election – to determine the sole and
exclusive bargaining agent of all the employees in
an appropriate bargaining unit for the purpose of
collective bargaining;
} Consent Election – to determine the issue of
majority representation of all workers in the
appropriate collective bargaining unit mainly for
the purpose of determining the administrator of
the CBA; not for the purpose of determining the
bargaining agent for purposes of collective
} Process whereby the employer recognizes a
labor organization as the exclusive
bargaining representative of the employees in
the appropriate bargaining unit after a
showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.
} Available only in unorganized establishments.
1. What is Certification Election? - Certification election is a
process of determining through secret ballot the sole
and exclusive bargaining agent (SEBA) of all the
employees in an appropriate bargaining unit for the
purpose of collective bargaining.
2. Where does a union file a petition for certification
election (PCE)? - A PCE is filed at the Regional Office
which issued the certificate of petitioning union’s
certificate of registration/certificate of creation of
chartered local.
3. What are the requirements in filing a PCE? - Among the important
requirements are the following:
a. A statement indicating any of the following:
◦ That the bargaining unit is unorganized or that there is no registered CBA
covering the employees in the bargaining unit;
◦ If there exists a duly registered CBA, that the petition is filed within the sixty-day
freedom period of such agreement;
◦ If another union had been previously recognized voluntarily or certified in a valid
certification, consent or run-off election, that the petition is filed outside the one-
year period from entry of voluntary recognition or conduct of certification or run-
off election and no appeal is pending thereon.
b. In an organized establishment, the signature of at least twenty-five (25%)
percent of all employees in the appropriate bargaining unit shall be attached
to the petition at the time of its filing (Section 4, Rule VIII, of the Department
Order No. 40-03).
4. What happens after receipt of the PCE? - The petition will be raffled to the
Med-Arbiter for preliminary conference to determine, among others, the
bargaining unit to be represented, the contending unions, and the possibility
of consent election.   
5. What happens upon approval of the conduct of certification election by the
Mediator-Arbiter? - The PCE will be endorsed to an election officer for the
conduct of pre-election conference wherein the date, time and place of
election will be identified, the list of challenged and eligible voters will be
made, as well as the number and location of polling places.
6. May a PCE be denied? - Yes, if:
a. filed before or after the freedom period of a registered CBA;
b. the petitioner union is not listed in the DOLE Registry of legitimate labor organization; or
c. the legal personality of the petitioner-union has been revoked or cancelled with finality.
7. Who conducts CEs? - The DOLE Regional Office through
the election officer conducts the certification election.
8. How is the SEBA determined? - The union that garners
majority of the valid votes cast in a valid certification
election shall be certified as the SEBA.
9. May election protest be entertained? - Yes, but protest
should have been first recorded in the minutes of the
election proceedings.
10. What happens if the petitioner union fails to garner the
majority of the valid votes cast? - There will be no SEBA,
but another PCE may be filed one year thereafter. 
11. What are the requisites for certification election in organized
establishments? - Certification election in organized establishments
requires that:
a. a)    a petition questioning the majority status of the incumbent bargaining
agent is filed before the DOLE within the 60-day freedom period;  
b. b)    such petition is verified; and
c. c)    the petition is supported by the written consent of at least twenty-five
percent (25%) of all employees in the bargaining unit.
12. What is the requirement for certification election in unorganized
establishments? - Certification election in unorganized
establishments shall “automatically” be conducted upon the filing of
a petition for certification election by an independent union or a
federation in behalf of the chartered local or the local/chapter itself. 
13. May an employer file a PCE? - Yes, the employer may file a PCE if it
is requested to bargain collectively.
14. May an employer extend voluntary recognition to a legitimate labor
organization without filing a PCE? - Yes, management may
voluntarily recognize a union if there is no other union in the
company and if other requirements are complied with (Sec. 2, Rule
7 of D.O. 40-03).   
15. What is the role of employer in certification election? - The employer
shall not be considered a party to a petition for certification election,
whether it is filed by an employer or an LLO, and shall have no right
to oppose it. Its participation shall be limited only to being notified or
informed of petition for certification election and submitting the
certified list of employees or where necessary, the payrolls
(Employer as Bystander Rule).
} A negotiated contract between a legitimate
labor organization and the employer
concerning wages, hours of work and all
other terms and conditions of employment in
a bargaining unit
} Deemed as the law between the parties
during its lifetime
} Provisions are construed liberally
} A proposal not embodied in the CBA is not part thereof
} Minutes of CBA negotiation have no effect if not
incorporated in the CBA
} Making a promise during the CBA negotiation is not
considered bad faith
} Adamant stance resulting in impasse is not bad faith
} No terms and conditions may be imposed by the DOLE
or any other agency which the law and the parties did
not intend to reflect in the CBA
} Signing bonus is not demandable under the law
} Allegations of bad faith are erased with the signing of
the CBA
} Single Enterprise
◦ Between on certified labor union and one employer
} Multi- Employer Bargaining
◦ Between and among several certified labor unions
and employers
◦ Conditions
– Only LLOs that are the SEBA may participate and
– Only employers with counterpart LLOs which are
incumbent bargaining agents may participate
– Employers must consent to multi- enterprise
bargaining may participate
} Where there is yet no CBA:
◦ Compliance to Article 256, LC
◦ Er and union must MEET, CONVENE and CONFER for
collective bargaining purposes
◦ Requisites of collective bargaining must be complied with
– Er- Ee relationship
– Majority status of bargaining union
– Demand to negotiate
◦ Advantage where the negotiations have no precedent CBA:
Clean slate, unencumbered by previous agreements
} Where there exists a CBA
◦ Neither party shall terminate nor modify such
agreement during its lifetime.
◦ Parties may serve notice to terminate or modify
agreement during freedom period
◦ Parties to keep the status quo during freedom
period until new agreement is reached.
} Posting of CBA
◦ Posted in two conspicuous places in the work
premises, at least five days prior to ratification
◦ Mandatory requirement; non- compliance will result
in ineffectiveness of CBA (ATU vs. Trajano, 1988)
◦ Employer responsible for posting (ALU vs. Ferrer-
Calleja, May 1989)
} Ratification by Majority of Employees in
Bargaining Unit
} Registration of CBA
} Ignoring all notices for negotiation and
requests for counter- proposals
} Refusing to bargain anew on economic terms
of the CBA, using flimsy excuses such as
questioning union
} Not serving an answer
} All the above are indications of bad faith
} Employer who violates the duty to bargain
collectively loses its statutory right to
negotiate or renegotiate terms and conditions
of the draft CBA; and may impose the
adoption of the proposals of the union as the
} Cases
◦ General Milling Corporation vs. CA,
◦ Kiok Loy vs. NLRC
◦ Divine Word University of Tacloban vs. SOLE
} Representation aspect – 5 years, meaning no
petition questioning the majority status of the
incumbent agent shall be entertained by
} Economic and non- economic provisions
except representation renegotiated not later
than three years after its execution
} New CBA concluded by negotiation
◦ The CBA or other provisions of such agreement
entered into within 6 months from expiration of
term shall retroact to the day immediately following
date of expiration
◦ If entered into beyond 6 months, parties shall agree
on effectivity
} CBA concluded through arbitral award
◦ LMG Chemicals Corporation vs. Secretary of DOLE,
(GR No. 127422, April 2001)
} Conciliation and Mediation with NCMB, DOLE
} Declaration of Strike or Lockout
} Referral to conciliation or voluntary
} Any question by Er or union regarding
◦ interpretation or application of the CBA, or
◦ company personnel policies, or
◦ Any claim by either party that the other party is
violating the CBA or company personnel policies.
} Complaint or dissatisfaction arising from the
interpretation or implementation of CBA and
those arising from interpretation or
enforcement of personnel policies.
} Refers to mechanism for the adjustment and
resolution of grievances arising from the
interpretation or implementation of a CBA
and those arising from the interpretation and
enforcement of company personnel policies.
} Internal rules of procedure established by the
parties in their CBA with voluntary arbitration
as the terminal step.
} Refers to the system of grievance settlement
at the plant level as provided in the CBA.
} Consists of successive steps starting at
complainant and his immediate supervisor,
up to the level of top union and company
} All grievances submitted to the grievance
machinery that are not settled in seven
calendar days from submission shall be
referred to Voluntary Arbitration prescribed in
the CBA
} Voluntary Arbitrators shall be named and
designated in advance, or include a
procedure for selection of VAs.
} In case parties fail to select VA, NCMB shall
} Mode of settling labor- management disputes
} Parties select a competent, trained and
impartial third person
} Decision based on merits of the case
} Decision is final and executory
Voluntary Arbitration Courts of Law
Proceedings may be Informal Proceedings are Formal
Precedents set by other arbitration Doctrine of Stare Decisis
not obligatory on VAs
Rules on evidence are not imposed, Rules on evidence outline points of
hence arbitrator determines what admissibility of evidence
is admissible
Arbitrators are highly specialized Judges considered as generalists
} Contract- negotiation disputes
◦ Terms and conditions of contracts
◦ Collective bargaining issues
◦ Known as arbitration of “interest”
} Contract interpretation disputes
◦ Arises out of existing CBAs
◦ Known as arbitration of “grievance” or “rights”
} Jurisdiction of LA – Article 223
} Jurisdiction of VA- Article 267, 268
} Interpretation or implementation of CBA are
disposed of by LAs by referring the matter to
the grievance machinery, of which the
terminal step is voluntary arbitration
} Under Article 268, VAs may, upon voluntary
agreement of the parties hear and decide ALL
other labor disputes including ULP and
bargaining deadlocks
} Termination disputes may fall within the
jurisdiction of VAs, provided that the parties
had agreed in unequivocal language that the
termination dispute would be referred to the
grievance machinery and voluntary arbitration.
} San Jose vs. NLRC & Ocean Terminal Services
(GR 121227, Aug. 1998)
} San Miguel Corporation vs. NLRC
} Sanyo Philippines Workers Union vs.
Canizares, GR No. 101619, July 1992
} Any person accredited by NCMB as such, or
} Any person named or designated in the CBA
as such, or
} One appointed by the NCMB in case either
party refuses to submit to voluntary

} Note that VAs are not part of DOLE or any

government agency. His authority to render
arbitral awards are vested by law.
} Article 268- A: Upon motion of any interested
party, the VA may issue a writ of execution
requiring the sheriff of the NLRC or regular
courts or public officials whom the parties
may designate in the submission agreement
} People planning and acting together
} One undertaken by two or more employees,
or by one on behalf of others.
} Temporary stoppage of work by the
concerted action of the employees as a result
of an industrial or labor dispute.
} Consists not only of concerted work
stoppages but also sitdowns, mass leaves,
slowdowns, attempts to damage, destroy or
sabotage plant equipment or facilities and
similar activities.
} Cessation of work by employee in an effort to
get more favorable terms for employment
} Concerted refusal by employees to do any
work for their employer, or work at their
customary rate of speed until the object of
strike is attained by employer’s concession
} Established relationship between strikers and
persons against whom the strike is called
} Relationship must be of employer- employe
} Existence of dispute between the parties and
the utilization by labor of the weapon of
concerted refusal to work as a means of
persuading or coercing compliance to
} Even though work cessation is by “belligerent
suspension,” Employment relations still
} Work stoppage is temporary
} Concerted action by employees
} Striking group is a LLO, and in the case of
bargaining deadlock, the sole bargaining
} Temporary stoppage of work by reason of
refusal of an employer to furnish work as a
result of an industrial or labor dispute
} An employer’s means of protecting his
bargaining position
} Employer must show that his act is primarily
defensive, and not an act of hostility to
collective bargaining or of discriminaiton.
} To forestall threatened acts of sabotage (Rizal
Cement Workers Union vs. Madrigal Co.)
} In anticipation of a threatened strike where
motivated by economic considerations
} In response to unprotected strike or walkout
} In response to a whipsaw strike
} A right given to workers to peacefully march
to and from before an establishment involved
in a labor dispute accompanied by the
carrying and display of signs, placards and
banners intended to inform the public about
the dispute.
} Included in the constitutional guarantee
◦ to engage in concerted activities for purposes of
collective bargaining for their mutual benefit and
◦ Freedom of speech principle
} Can be performed by persons even in the
absence of Er- Ee relationship
} Right to peaceful picketing should be
exercised with due respect to the right of
others; coercion, intimidation or acts of
violence are strictly prohibited
} Picketers cannot rightfully prevent employees
of another company which is not their
employer from entering or leaving their
rented premises (innocent bystander)
} Extent
◦ General – occur over a whole community, province,
state or country. An extended form of sympathetic
strike; many workers stop working to put pressure
on government or paralyze economic & social
◦ Local or Particular – applies only in a particular
enterprise or locality
} Nature of the Act
◦ Sitdown Strike – Possession, trespass and
prevention of access and operation
◦ Slowdown – reduction of production output
◦ Partial or quickie strike – intermittent, unannounced
work stoppage; used interchangeably with wildcat
} Employee Interest
◦ Primary Strike – declared by employees who have a direct
and immediate interest in the subject of the dispute
between them and the Er
◦ Secondary Strike – Coercive measure adopted by workers
against an employer connected by product or employment
with alleged unfair labor conditions or practices
◦ Sympathetic Strike – striking employees have no demands
or grievances of their own, but strike to directly or
indirectly aid others without direct relation to the
advancement of the interest of the strikers.
} Economic Strike – one intended to force wage
and other concessions from the employer,
which he is not required by law to grant.
} Unfair Labor Practice Strike – called against
the ULP of the employer, usually for the
purpose of making him desist from further
committing such practices. Called for mutual
protection, and for the discontinuance of
employer abuses.
} Parties must first exhaust measures or
remedies that will avoid the strike, akin to the
doctrine of Exhaustion of Administrative
} Only when non- disruptive alternatives have
proved unsuccessful may strikes be deemed
} Jumping the gun on the grievance procedure/
voluntary arbitration of a dispute will mean
that the strike is PREMATURE, thus illegal
} Once an issue has been submitted for
conciliation, mediation or compromise, the
employees cannot resort to a strike.
} Discussions during conciliation proceedings
are confidential and treated as privileged
} Parties can enter into compromise
agreements to avoid a strike, which
compromise shall be immediately final and
} Art. 260 – Not subject to labor injunction or
restraining order
} Art. 254 – No discrimination against striker in
the exercise of the right
} Art. 270(a) – Preservation of employment
} Art. 270(c) – Prohibition on Strike- breakers
First requisite: Valid and factual ground
} (1) CBA Deadlock; and
} (2) Unfair labor practice (ULP).

Second Requisite: Notice (of Strike or Lockout)

} (1) CBA Deadlock - 30 days from intended
date of strike
} (2) Unfair labor practice (ULP) – 15 days.
Third requisite: Notice to NCMB- DOLE at least
24 hours prior to the taking of the strike or
lockout vote (secret ballot)
} Decision to conduct vote
} Date, time and place

Fourth Requisite: Strike or Lockout Vote

} Majority approval required
} Must be implemented even in cases of union-
Fifth requisite: Strike/Lockout Vote Report
} Submitted at least seven days prior to strike/lockout
} If report submitted during cooling off period, seven day
waiting period begins on the day following the cooling
off period
} If for union busting, cooling period may be dispensed

Sixth Requisite: Cooling Off Period

} Reckoned from filing of notice of strike/lockout
} 30 days for deadlock, 15 for ULP
} If strike is for union- busting, period is dispensed with
Seventh requisite: Waiting period
} Seven days from submission of strike vote
1. Failure to comply with requisites will render the strike or
lockout illegal.
2. A strike or lockout based on non- strikeable issues is illegal
3. A strike or lockout is illegal if the issues involved are
already subject of compulsory or voluntary arbitration or
conciliation or the steps in grievance machinery are not
4. A strike or lockout is illegal if unlawful means were
employed or prohibited acts or practices were committed (e.
g., Use of force, violence, threats, coercion, etc.; Barricades,
blockades and obstructions of ingress to [entrance] or
egress from [exit] the company premises).
5. A strike or lockout is illegal if the notice of strike or notice
of lockout is already converted into a preventive mediation
6. A strike or lockout is illegal if staged in violation of the “No-
Strike, No- Lockout” clause in the collective bargaining
7. A strike or lockout is illegal if staged in violation of a
temporary restraining order or an injunction or assumption
or certification order.
8. A strike is illegal if staged by a minority union.
9. A strike or lockout is illegal if conducted for unlawful
purpose/s (e.g.: Strike to compel dismissal of employee or
to compel the employer to recognize the union or the so-
called “Union- Recognition Strike”)
10. The local union and not the federation is liable to pay
damages in case of illegal strike.
} The NCMB has the authority to convert a notice of strike filed
by the union into a preventive mediation case if it finds that
the real issues raised therein are non- strikeable in character.
} NCMB has duty to exert all efforts at mediation and
conciliation to enable parties to settle the dispute amicably
and in line with the state policy of favoring voluntary modes
of settling labor disputes.
} Once a notice of strike/lockout is converted into a preventive
mediation case, it will be dropped from the docket of notices
of strikes/lockouts.
} Once dropped therefrom, a strike/lockout can no longer be
legally staged based on the same notice. The conversion has
the effect of dismissing the notice.
1. Those that are expressly prohibited by law
2. Does not comply with statutory requirements
3. Declared for an unlawful purpose
4. Employs unlawful means
5. In violation of an existing injunction
6. In violation of assumption or certification order
7. Violation of no- strike, no- lockout clause
8. Minority union calls strike
9. Strike by a non- registered union
10. Premature strike
} Occurs when labor dispute that caused or
may cause strike is in an industry
indispensable to the national interest
} DOLE Secretary assumes jurisdiction and
◦ May decide the case, or
◦ Certify the same to the NLRC for compulsory
} The power of assumption of jurisdiction over
labor disputes in these industries is in the
nature of the POLICE POWER measure
} Automatically enjoins intended or impending strike
or lockout
} All striking or locked out employees shall return to
work immediately
◦ Note that striking employees are not considered to have
abandoned their employment, but only ceased from their
} Employer shall resume operations and admit all
workers under same conditions pre- strike
} No Motion for Reconsideration will stay the
assumption order
} No work, no pay rule applied
} Exceptions
◦ ULP strike
◦ Unconditional and voluntary offer to return to work
is refused by employer
◦ Employees are discriminated against despite a
◦ Non- participating employees were locked out by
◦ Reinstatement no longer possible
} Article 270 - Note prohibitions on:
◦ Labor Organizations
◦ Third Persons
◦ Employers
◦ Public Officials or Employees
◦ Picketers
} Enjoins striking workers to RETURN TO WORK
} Defiance of RTWO is considered an illegal act
} Strike becomes illegal
} Defiant strikers may be sanctioned with
disciplinary measures, e.g. dismissal or loss
of employment status or criminal prosecution
} NCMB shall conduct a referendum by secret
ballot on or before 30th day of the strike;
} If majority of union members accept offer
◦ Striking workers shall return to work immediately
◦ Employer readmits striking workers upon signing of
} Initiated when EMPLOYER makes an offer that
is, in his opinion, better than his previous
stance in the labor dispute
} NCMB shall conduct a referendum by secret ballot
on or before 30th day of the lockout;
} If majority of board members, trustees or directors
accept offer
◦ Locked out workers shall return to work immediately
◦ Employer readmits workers upon signing of agreement
} Initiated when STRIKERS make an offer that is, in
their opinion, more acceptable than their previous
stance in the labor dispute
Security of Tenure
Management Prerogatives
Termination of Employment
} Defined: The constitutional right granted the
employee that the employer shall not
terminate the services of an employee except
} It extends to regular (rank and file,
managerial) as well as non- regular
employment (probationary, seasonal, project)
} Applies as protection from unwarranted and
unconsented demotion and transfer
} Article 294 (280)
◦ Regular
◦ Casual
◦ Project
◦ Seasonal
} Other forms
◦ Fixed Period
◦ Probationary
} Employee has been engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of the
} One year of service has been rendered,
whether continuous or broken, with respect
to the activity in which he is employed;

Employee must be allowed to work after probationary

period in both instances.
} Nature of Work Test – Whether or not there is
reasonable connection between the particular
activity performed by the employee in relation to
the usual business or trade of the employer
} Period of Service Test – Employee’s length of
service is at least one year, whether continuous or
} Probationary Employee Test – Whether or not the
employee is allowed to work after the lapse of the
probationary period.
} ABS- CBN vs. Marlyn Nazareno (26 Sept. 2006)
} Fabela vs. SMC, (Feb. 28, 2007)
} De Leon vs NLRC, (176 SCRA 615)
} Hacienda Fatima, (Jan. 28., 2003)
} Employee has been engaged to perform
activities which are NOT necessary or
desirable in the usual trade or business of the
} Once a casual employee has rendered at least
one year of service, his status becomes
REGULAR; no appointment or declaration
The purpose of this rule is to honor the
constitutional guarantee of security of tenure and
right to self- organization
} Conti vs. NLRC
} Baguio Country Club vs. NLRC
} Employee has been engaged for a SPECIFIC project
or undertaking
} the completion or termination of the project has
been determined at the time of engagement of the
} REGULAR STATUS vested when
◦ Continuous re- hiring of project employees even after
the cessation of a project for the same tasks or nature of
tasks (Tomas Lao Const. vs. NLRC, 276 SCRA)
◦ Tasks performed by project employee are vital,
necessary and indispensable to the usual business or
trade of the employer
} Exodus International Construction Corporation, et al. v.
Guillermo Biscocho, et al., G.R. No. 166109, Feb. 2011:
◦ Two types of employees in the construction industry:
– Project employees or those employed in connection with a
particular construction project or phase thereof and such
employment is coterminous with each project or phase of the
project to which they are assigned.
– Non- project employees or those employed without reference to any
particular construction project or phase of a project; when one
project is completed, employees are automatically transferred to
the next project awarded to employer. There was no employment
agreement given employees which clearly spelled out the duration
of their employment and the specific work to be performed and
there is no proof that they were made aware of these terms and
conditions of their employment at the time of hiring.
} No dismissal before completion of project,
except for just or authorized cause;
} Must comply with procedural requirements;
} No need for notice of termination upon the
expiration of project period;
} Prior to dismissal, report must be made to
the nearest employment office of the
termination of services every time project is
} Employment is for a pre- determined period
established at the time of engagement (Read
St. Theresa’s School of Novaliches vs. NLRC,
289 SCRA 110)
} Employee’s duties are usually necessary and
desirable to the usual business or trade of the
1. fixed period of employment was knowingly and
voluntarily agreed upon by the parties without
any force, duress, or improper pressure being
brought to bear upon the employee and absent
any other circumstances vitiating his consent; or
2. It satisfactorily appears that the employer and the
employee dealt with each other on more or less
equal terms with no moral dominance exercised
by the former or the latter. (Lynvil Fishing
Enterprises, Inc. vs. Andres G. Ariola, et al., G.R.
No. 181974, Feb. 2012)
} Employer required to inform the probationary employee of
such reasonable standards at the time of his engagement, not
at any time later; else, the latter shall be considered a regular
employee. (Section 6, Implementing Rules of Book VI, Rule VIII-
A, Labor Code)
} Purpose:
◦ Employer observes the fitness, propriety and efficiency of a
probationer to ascertain whether he is qualified for permanent
◦ Employee seeks to prove he has the qualifications to meet the
reasonable standards for permanent employment.
} Length of time the probation depends on the parties’
agreement, but not to exceed six (6) months under Article
295 (281) of the Labor Code.
} Cases
◦ Canadian Opportunities Unlimited, Inc. vs. Bart Q.
Dalangin, Jr., G.R. No. 172223, February 6, 2012.
◦ Armando Ailing vs. Jose B. Feliciano, Manuel F. San
Mateo III, et al., G.R. No. 185829. April 25, 2012.
} Work or service is seasonal in nature and the
employment is for the season’s duration
} Considered as regular if re- engaged after one
} Seasonal employees not laid off during the
end of season, simply on leave w/o pay until
re- employment
} Relationship is only suspended, not severed
} Work or service is seasonal in nature and the
employment is for the season’s duration
} Considered as regular if re- engaged after one
} Seasonal employees not laid off during the
end of season, simply on leave w/o pay until
re- employment
} Relationship is only suspended, not severed
} Our laws recognize and respect the exercise by management of
certain rights and prerogatives. For this reason, courts often decline
to interfere in legitimate business decisions of employers. In fact,
labor laws discourage interference in employers’ judgment
concerning the conduct of their business. (Philippine Industrial
Security Agency Corporation vs. Aguinaldo, G. R. No. 149974, June
15, 2005; Mendoza vs. Rural Bank of Lucban, G.R. No. 155421, July
7, 2004).
} An employer can regulate, generally without restraint, according to
its own discretion and judgment, every aspect of its business. (Deles,
Jr. vs. NLRC, G. R. No. 121348, March 9, 2000).
} This privilege is inherent in the right of employers to control and
manage their enterprise effectively. (Mendoza vs. Rural Bank of
Lucban, G.R. No. 155421, 07 July 2004).
} regulate and control all aspects of employment in their
business organizations. Such aspects of employment
include hiring, work assignments, working methods,
time, place and manner of work, tools to be used,
processes to be followed, supervision of workers,
working regulations, transfer of employees, work
supervision, lay- off of workers and the discipline,
dismissal and recall of workers. (Philippine Airlines, Inc.
vs. NLRC, G. R. No. 115785, Aug. 4, 2000).
} Management retains the prerogative … to change the
working hours of its employees. (Sime Darby Pilipinas,
Inc. vs. NLRC, G.R. No. 119205, 15 April 1998, 289
SCRA 86).
} A transfer means a movement (1) from one position to
another of equivalent rank, level or salary, without a break in
the service; or (2) from one office to another within the same
business establishment. (Sentinel Security Agency, Inc. vs.
NLRC, G. R. No. 122468, Sept. 3, 1998).
} Prerogative of management to transfer an employee from one
office to another within the business establishment upheld,
1. There is no demotion in rank or diminution of salary, benefits, and
other privileges, and;
2. Action is not motivated by discrimination, made in bad faith, or
effected as a form of punishment or demotion without sufficient
cause. (Mendoza vs. Rural Bank of Lucban, G. R. No. 155421, July 7,
2004; Benguet Electric Cooperative vs. Fianza, G. R. No. 158606,
March 9, 2004).
1. Must be exercised without grave abuse of
2. Basic elements of justice and fair play adhered to.
3. Employer must be able to show that the transfer
is not unreasonable, inconvenient or prejudicial
to the employee, otherwise, the employee’s
transfer is tantamount to constructive dismissal.
(The Philippine American Life and General
Insurance Co. vs. Gramaje, G. R. No. 156963, Nov.
11, 2004; Globe Telecom, Inc. vs. Florendo-
Flores, G. R. No. 150092, Sept. 27, 2002).
} William Endeliseo Barroga vs. Data Center College
of the Philippines, et al., G.R. No. 174158, June
◦ Constructive dismissal is quitting because continued
employment is rendered impossible, unreasonable or
unlikely, or because of a demotion in rank or a
diminution of pay. It exists when there is a clear act of
discrimination, insensibility or disdain by an employer
which becomes unbearable for the employee to continue
his employment.
◦ It is management prerogative for employers to transfer
employees on just and valid grounds such as genuine
business necessity, e.g. financial constraints
} An employee has a right to security of tenure,
but this does not give her such a vested right
in a position as would deprive the employer
of its prerogative to change employee
assignments or transfers where the
employee’s service will be most beneficial to
the employer’s client.
} Cases
◦ OSS Security & Allied Services, Inc., vs. NLRC, G. R.
No. 112752, Feb. 9, 2000
◦ Tan vs. NLRC, 299 SCRA 169, 180 [1998]
◦ Chu vs. NLRC, G. R. No. 106107, June 2, 1994
} Transfer directed by employer under
questionable circumstances
◦ Transfer ordered during height of union activities
◦ Used as a subterfuge to get rid of an undesirable
◦ Transfer is patently whimsical or vindictive
} Cases
◦ Union activities - Yuko Chemical Industries vs.
Ministry of Labor & Employment (GR No. 75656,
May 28, 1990)
◦ No notice of transfer as condition for training -
Zafra vs. Court of Appeals (GR No. 139013,
September 17, 2002)
◦ Whimsical or vindictive transfer - Damasco vs.
NLRC (GR No. 115755, December 4, 2000)
} In general, transfers not characterized by grave
abuse of discretion or bad faith are all valid. The
worker cannot refuse for any of the following
◦ Additional expense and travel time (Genuino Ice Company
vs. Magpantay, GR No. 147790, June 27, 2006)
◦ Parental obligations (Tinio vs. CA, GR No. 171764, 2007)
◦ Anxiety
◦ “Home” base (PT&T Corp. vs. Laplana, GR No. 76645, July
23, 1991)
} Those directed
◦ By contractual stipulation (Abbott Labs vs. NLRC,
GR No. 76959, Oct. 12, 1987)
◦ Standard Operating Procedure
◦ Company Policy
◦ Order of the Government (Bisig Manggagawa ng.
Tryco vs. NLRC, GR No. 151309, Oct. 15, 2008)
◦ Guidelines of Government Organs (BSP Circular
mandating rotation of bank employees
} To avoid conflict of interest (Duncan
Association of Detailman – PTGWO vs. Glaxo
Wellcome Phils., GR No.162994, September
17, 2004)
} By reason of abolition of position (Beneco vs.
Fianza, 158606, March 9, 2004)
} Advancement from one position to another,
involving an increase in duties and
responsibilities authorized by law AND
increase in compensation and benefits.
} Mere increase in salary should not be
determinative of promotion, as the increase is
merely incidental.
} Promotion involves a scalar ascent in rank or
} Transfer involves lateral movement to the
same rank and salary
} A promotion can be refused, and it will not
result in punishment
} A transfer directed in good faith and in the
exercise of management prerogative cannot
be refused without pain of sanction
} A promotion that results from a transfer
requires the consent of the employee
} Agabon vs. NLRC (GR No. 158693, Nov. 27,
◦ Constitutional due process protects the individual
against the government
◦ Statutory due process protects the worker from
unjust termination of employment except for just
cause after notice and hearing
} Substantive Due Process: Valid Causes
◦ Just Cause
◦ Authorized by Law
} Procedural Due Process:
◦ Written notice of the charge/s
◦ Opportunity to be heard
– Hearing
– Conference
◦ Written notice of termination
} Skippers United Pacific, Inc. and Skippers Maritime
Services, Inc. Ltd. vs. Nathaniel Doza, et al. (GR No.
175558, Feb. 2012)
◦ Substantive due process - Legality of the act of dismissal.
◦ Procedural due process - Legality of the manner of dismissal.
consists of twin requirements: notice and hearing.
◦ Employer must furnish employee with two written notices
before termination of employment:
– 1st notice apprises the employee of the particular acts or omissions
for which his dismissal is sought;
– 2nd notice informs the employee of the employer’s decision to
dismiss him.
– Before issuance of second notice, a hearing must be complied with
by giving the worker an opportunity to be heard.
} Substantive due process requires that
dismissal by the employer be made based on
a just or authorized cause under Articles 282
(296) to 284 (298) of the Labor Code.
} Notice issued prior to commission of offense does not
satisfy requirement (Janssen Pharmaceutica vs. Silayro,
GR 172528, Feb. 26, 2008)
} Service of notice is a mandatory requirement
} Notice must be in writing (no form necessary)
◦ Must not only state the policy violated, but the corresponding
penalty of dismissal imposable thereon (Cruz vs. Coca- Cola,
GR No. 165586)
◦ Must state that dismissal is sought
◦ Charges stated in general terms invalid
} Employee must be dismissed on same grounds stated in
first notice
} Changing of ground for dismissal indicates lack of basis
} Warning letters (Skippers United Pacific vs.
Maguad, GR No. 166363, August 15, 2006)
} Affidavit narrating incident (Asian Terminals
vs. Marbella, GR No. 149074, August 10,
} First notice pertains to a different incident
from the offense for which employee is
dismissed (Wah Yuen Restaurant vs. Jayona,
GR No. 159448, Dec. 16, 2005)
} Employee’s admission
} Termination due to abandonment
} Employer has burden of proof in showing
dismissal was not illegal (Limketkai Sons
Milling vs. Llamera, GR No. 152514, July 12,
} Substantial proof, not clear and convincing
Substantial Evidence Clear and Convincing Evidence
That amount of relevant A medium level of burden of
evidence which a reasonable proof which is a more rigorous
mind might accept as adequate standard to meet than the
to justify a conclusion preponderance of evidence
standard, but less than proof
beyond reasonable doubt.
} Lynvil Fishing Enterprises v. Andres Ariola, et
al., GR No. 181974, February 1, 2012
} Armando Ailing vs. Jose Feliciano, Manuel F.
San Mateo III, et al., GR No. 185829, April 25,
1. Serious Misconduct
2. Wilful Disobedience
3. Fraud or Breach of Trust
4. Gross Negligence
5. Analogous Causes
} Philippine Long Distance Telephone Company
v. Bolso, G.R. No. 159701, August 17, 2007
1. Improper or wrong conduct
2. Transgression of some established and definite
rule of action.
3. Dereliction of duty, wilful in character
4. Implies wrongful intent, not merely an error in
} Marival Trading vs. NLRC, GR No. 169600,
June 26, 2007
a) it must be serious;
b) it must relate to the performance of the
employee’s duties; and
c) it must show that the employee has become
unfit to continue working for the employer.
} Joeb M. Aliviado, et al., vs. Procter & Gamble
Philippines, Inc., GR No. 160506, June 6,
} One of the fundamental duties of an
employee is to obey all reasonable rules,
orders and instructions of the employer.

} Disobedience, to be a just cause for

termination, must be willful or intentional,
willfulness being characterized by a wrongful
and perverse mental attitude rendering the
employee’s act inconsistent with proper
} Willful and intentional disobedience
} Where such rule, order or instruction violated
1. reasonable and lawful
2. sufficiently known to the employee, and
3. connected with the duties which the
employee has been engaged to discharge.
NICANOR E. JAO, JR., G.R. No. 163431, August 28,
◦ Must be attended by a wrongful and perverse mental
attitude rendering the employee’s act inconsistent with
proper subordination
◦ Constitutes harmful behavior against the business interest
or person of his employer
◦ Impliedly, the erring employee obtains undue advantage
detrimental to the business interest of the employer.
Gold City Integrated Port Services vs. NLRC, GR No.
86000, September 21, 1990
} Not always punishable with dismissal
} Reasonable proportionality between the act of
insubordination and penalty imposed therefore
} If insubordination is not an effective threat to his
co- workers or the safety of the customers dealing
with his employer, or to the goodwill of his
employer, suspension is more proportionate
} Kakampi and its members vs. Kingspoint
Express and Logistics and/or Mary Ann Co,
GR No. 194813, April 25, 2012
} Refers to any fault or culpability on the part
of the employee in the discharge of his duty
rendering him absolutely unworthy of trust
and confidence demanded by his position
} Mabeza vs. NLRC, G.R. No. 118506.  April 18,
◦ Loss of confidence as a just cause for dismissal was
never intended to provide employers with a blank
check for terminating their employees. Such a
vague, all- encompassing pretext as loss of
confidence, if unqualifiedly given the seal of
approval by this Court, could readily reduce to
barren form the words of the constitutional
guarantee of security of tenure.
} Mabeza vs. NLRC, G.R. No. 118506.  April 18, 1997:
◦ Loss of confidence should ideally apply only to cases
involving employees occupying positions of trust and
confidence or to those situations where the employee is
routinely charged with the care and custody of the
employer's money or property.
– managerial employees - those vested with the powers or
prerogatives to lay down management policies and/or to
hire, transfer, suspend, lay- off, recall, discharge, assign or
discipline employees or effectively recommend such
managerial actions;
– those who, in the normal and routine exercise of their
functions, regularly handle significant amounts of money or
} Loss of trust must be based on willful breach
} Person committing breach must hold a
position of responsibility, trust and
} Act complained of must be "work- related"
such as would show the employee concerned
to be unfit to continue working for the
} James Ben L. Jerusalem vs. Keppel Monte Bank,
et al, GR No. 169564, April 6, 2011
} Want or absence of or failure to exercise
slightest care or diligence, or entire absence
of care;
} An absence of that diligence that an
ordinarily prudent man would use in his own
} Abel vs. Philex Mining Corp., GR No. 178976, July
31, 2009
1. Want or absence of or failure to exercise slight
care or diligence;
2. Thoughtless disregard of consequences without
exerting effort to avoid them;
3. Negligence is not only gross but also habitual.
◦ Habitual neglect implies repeated failure to perform one's
duties for a period of time, depending upon the
} Dr. Danilo T. Ting And Mrs. Elena Ting VS.
Court Of Appeals, G.R. No. 146174, July 12,
◦ While we are not unmindful that no material injury
need be shown to sustain a finding of gross
◦ Employee acted without bad faith
◦ There was reasonable basis for the act committed
◦ Employee is burdened by some condition that
would excuse error in judgment
} Elements similar to those found in Labor
◦ Abandonment
◦ Immoral Conduct
◦ Sleeping on the Job
◦ Tardiness
◦ Unexplained Absences
◦ “Attitude Problem”
◦ Dishonesty
} Nissan Motors Phils. vs. Victorino Angelo, G.R.
No. 164181, September 2011
} PGA Employee Labor Union and Sandy T.
AND ASSURANCE INC., and/or Jocelyn Retizos,
G.R. No. 185335, June 13, 2012
} Roberto Gonzales vs. NLRC & Pepsi Cola
Products, Philippines, Inc., G.R. No. 131653,
March 26, 2001
} Employer may place worker concerned under preventive
suspension if continued employment poses serious and
imminent threat to life or property of employer and co-
} Period must be definite, but not longer than 30 days
} Done during investigation
} Employee not entitled to wages during preventive suspension,
but if period is extended, he is entitled to wages for the time
he is suspended beyond the original 30- day period
} See discussion on suspension as penalty
1. Retrenchment
2. Redundancy
3. Installation of Labor- Saving Devices
4. Closure of Business
5. Disease
} Reduction of personnel for the purpose of
cutting down operation costs in terms of
salaries and wages
} Resorted to because of losses in operation of
◦ Lack of work
◦ Reduction in volume of business
1. Necessary to prevent losses, which are established
2. Written notice to DOLE and employee at least one month
prior to termination
◦ Employer’s lapse of belated furnishing of DOLE with the one- month
notice is only a procedural infirmity and does not render the
retrenchment illegal
◦ BUT DOLE nonetheless still required to be given notice
3. Payment of separation pay
4. Employer exercises prerogative for advancement of its
5. Use of fair and reasonable criteria in ascertaining who
would be dismissed
} Losses should be substantial, not merely de
} Substantial losses sought to be averted must
be imminent;
} To effectively prevent substantial losses,
retrenchment is reasonably necessary;
} Alleged losses already suffered and imminent
losses sought to be forestalled must be
proved by sufficient and convincing evidence.
} Bonifacio Anino vs. NLRC, GR No. 123226,
May 21, 1996
} Plastimer Industrial Corporation & Teo Kee
Bin vs. Natalia C. Gopo, GR No. 183390, Feb.
16, 2011
} International Management Services/Marilyn
Pascual vs. Roel P. Logarta, GR No. 163657,
Apr. 18, 2012
} Exists where the service capability of the
workforce is greater than what is reasonably
required to meet the demands of the
business enterprise;
} Position is redundant when it is rendered
superfluous by:
◦ Overhiring of workers
◦ Decrease in volume of business
◦ Dropping of a particular product or service
1. Good faith of the employer in abolishing
redundant position
2. Fair and reasonable criteria in ascertaining what
positions are to be declared redundant
◦ Preferred status
◦ Efficiency
◦ Seniority
3. Evidence to substantiate redundancy, e.g.:
◦ Adoption of new staffing pattern
◦ Feasibility studies on viability of new positions
◦ Job description and approval of management of
} Related to redundancy
} Installation of machinery to effect economy
and efficiency in its method of production
} Employer not precluded from adopting a new
policy conducive to more economical and
effective management
} DOLE Philippines vs. NLRC, Sep. 13, 2001
} Nelson A. Culili vs. Eastern Telecoms, GR No.
165381, Feb. 9, 2011
} Edgar Agustilo vs. Court of Appeals, San
Miguel Corporation, Francisco Manzon, Jr., GR
No. 142875, Sep. 7, 2001
} Closure of business or undertaking due to
business losses
} Relocation of employer’s plant from one
location to another
◦ Take note, however of runaway shops which are
considered as ULP
} Determined by management. No business
can be required to continue operating at a
loss simply to maintain the workers in
} Alabang Country Club, Inc., et al vs. NLRC, GR
No. 157611, Aug. 9, 2005
} Cheniver Deco Print Technics Corporation vs.
NLRC, et al, GR No. 122876, Feb. 17, 2000
} Me Shurn Corporation vs. Me- Shurn Workers
Union- FSM, GR No. 156292, Jan. 11, 2005
} Article 298: Employer shall not terminate the
service of employee suffering from any
disease unless there is a certification by a
competent public health authority that the
disease is incurable within a period of six
months even with proper medical treatment
} Employee suffering from a disease
} Employee’s continued employment is
prohibited by law or prejudicial to his health
or health of co- workers
} Certification by competent public health
Just Cause Authorized Cause
Implies that employee concerned Does not imply delinquency or
has committed or is guilty of some culpability on the part of the
violation against the employer, as employee;
in serious misconduct, fraud or
neglect of duties;
Dismissal process initiated by Dismissal process initiated by
employee employer
As a rule, separation pay is not Law requires separation pay
Nominal damages to be paid if Nominal damages to be paid if
employer overlooks procedural employer overlooks procedural
due process is P30,000.00 due process is P50,000.00
◦ Dismissal is for Just Cause (Art 296) or Authorized
Cause (Art 297- 298)
◦ Procedural requirements complied
} Substantial & Procedural Due Process present
◦ Dismissal is NOT for Just Cause (Art 296) or
Authorized Cause (Art 297- 298)
◦ Procedural requirements complied
} Substantial Due Process absent
◦ Dismissal is NOT for Just Cause (Art 296) or
Authorized Cause (Art 297- 298)
◦ Procedural requirements NOT complied
} Both Substantial & Procedural Due Process
◦ Dismissal is for Just Cause (Art 296) or Authorized
Cause (Art 297- 298)
◦ Procedural requirements not complied
} Substantial Due Process present but
Procedural Due Process is wanting
} Employer liable to pay indemnity in
the form of nominal damages
} Pre WENPHIL Case: If just cause existed but
procedural due process not followed, dismissed
employee entitled to reinstatement & backwages
} Wenphil Doctrine: If the dismissal was for a just or
authorized cause but done without due process,
termination is valid but employer sanctioned with
payment of indemnity
} However, Serrano vs. NLRC termed the termination
ineffectual, not illegal, and penalty imposed on
employer is full backwages plus nominal and moral
} Abandoned Serrano ruling and reverted to
Wenphil Doctrine. Backwages and moral
damages deleted, nominal damages limited
to those in Agabon and Jaka cases
} AGABON RULING: Dismissal will be held valid
and legal but employer should be sanctioned
for failure to afford due process to employee
} If dismissal is for Just Cause
◦ P30,000.00 (Agabon Case)
} If dismissal is for Authorized Cause
◦ P50,000.00 (Jaka Food Processing Corp. vs. Pacot)
◦ If dismissal is for Cause proven to be nonexistent
} Ex. See the following cases:
◦ Magtoto vs. NLRC, GR No. 6370, Nov. 18, 1985
◦ Standard Electric Manufacturing Corp. vs. Standard
Electric Employees Union, GR No. 166111, August
25, 2005
◦ Asian Terminals Inc. vs. NLRC, GR No 158458, Dec.
19, 2007
} Imposed when dismissal is too harsh a
penalty due to certain mitigating factors such
as absence of malice, or employee is a first
} Reinstatement without loss of seniority rights
and other privileges
} Full backwages and allowances
} Other benefits or their equivalent in cash
} Damages
} Attorney’s fees
} Legal interest on separation pay